Diarchy System in Bengal
In Bengal from 1765 to 1772, the system of dual government or dyarchy was arranged by Clive. In this the real power was with the British company but the burden of administration was on the shoulders of the Nawab.
After the Battle of Buxar
- The Treaty of Allahabad was signed in August 1765.There were 2 treaties in Allahabad. One between the Nawab of Awadh and the British and the other between the Mughal Emperor Shah Alam II and the British.
- By the treaty with Shah Alam II, the British got the Diwani of Bihar, Bengal and Orissa legally and this prepared the background for the establishment of dual government system in Bengal.
- Clive believed that if the Company had clearly taken political power in its hands, then its true nature would be exposed to the people and all Indians would become its opponents.
- Foreign companies like French, Dutch, Danes, etc. probably do not easily accept the authority of the British company and do not pay taxes etc.to the British company which they had to pay according to the orders of the Nawab.
- The British company did not even have so many trained officers Took over the burden of governance.
- The Court of Directors at that time was not in favor of direct authority as it was likely to hamper the business of the company. They were more interested in money than territorial power.
- Due to the laxity of the Nizamat, the law and order came to a standstill and Administrative disruption occurred.
- The decline of agriculture and the terrible famine.
- Disruption of trade and commerce.
- Promote corruption.
- Decline in industrial efficiency and quality.
