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Clive's First Governorship of Bengal (1757-1760) Assumed office following the Battle of Plassey (1757), marking the beginning of British political dominance in Bengal. Key Achievements: Secured significant trade privileges and revenue rights from Mir Jafar, the new Nawab. Consolidated the East India Company's (EIC) influence and military presence. Laid foundations for British territorial expansion in India. Clive's Second Governorship of Bengal (1765-1767) Clive's return was necessitated by severe corruption within the EIC and the administrative instability in Bengal after the Battle of Buxar (1764). Defining Events: Treaty of Allahabad (1765): Signed with Mughal Emperor Shah Alam II and Nawab Shuja-ud-Daula of Awadh. Granted the EIC the Diwani (right to collect revenue) of Bengal, Bihar, and Orissa. Emperor received an annual tribute from the EIC. Nawab of Awadh kept his territory but paid war indemnity and ceded Kora and Allahabad to the Emperor. Introduction of the Dual Government: Clive's innovative, yet controversial, administrative system. The Dual Government (1765-1772) Also known as Dyarchy, this system divided administrative responsibilities in Bengal between the EIC and the Nawab. Division of Powers: Authority Responsibilities ( Diwani ) Responsibilities ( Nizamat ) East India Company (EIC) Collection of land revenue. Control over civil justice (derived from Diwani ). Military power and defense. Appointment of Deputy Diwans (e.g., Muhammad Reza Khan for Bengal, Raja Shitab Rai for Bihar). No direct responsibility. Discharged through the Nawab. Nawab of Bengal No direct control over revenue, which was collected by EIC-appointed officials. Maintenance of law and order. Administration of criminal justice. General governance (police, magistracy). Received an annual allowance from the EIC for these duties. Rationale Behind the Dual System: Avoid Direct Administrative Burden: EIC lacked sufficient trained personnel and preferred to focus on trade and revenue. Maintain Appearance of Legitimacy: Continued the façade of Mughal imperial authority, reducing resistance. Maximize Profits: Allowed the EIC to reap financial benefits ( Diwani ) without incurring full administrative costs and responsibilities ( Nizamat ). Strategic Precaution: Feared that direct annexation might provoke other European powers (French, Dutch) or Indian states. Consequences and Impact: Economic Exploitation: EIC's primary focus on revenue maximization led to exorbitant land taxes. Peasantry suffered immensely due to ruthless collection methods. Decline of traditional industries and agriculture as resources were siphoned off. Administrative Anarchy: Lack of accountability: EIC held power but no responsibility; Nawab had responsibility but no power or funds. Breakdown of law and order, as the Nawab's administration was starved of resources and authority. Rampant corruption among EIC officials ( "private trade" ) and their Indian agents. Great Bengal Famine (1770): Exacerbated by EIC policies; revenue collection continued even as millions died. EIC's failure to provide relief or mitigate the disaster highlighted the system's flaws. Weakening of Indigenous Institutions: The Nawab's court and local administrative bodies became defunct. Drain of Wealth: Bengal's resources were systematically transferred to Britain, contributing to its industrial revolution. A Simplified Flow Diagram of Dual Government: Mughal Emperor East India Company (EIC) Nawab of Bengal Collection of Diwani (Revenue) Administration of Nizamat (Justice, Law & Order) Grants Diwani of Bengal, Bihar, Orissa Directly Controls Responsible for Provides Annual Allowance for Nizamat Revenue Flows to EIC Accountable to Nawab Abolition of Dual Government: The system was eventually abolished by Warren Hastings in 1772. He brought Bengal under direct EIC administration, marking