Q8. The Diwani rights were granted to the Company in

(a) 1757

(b) 1765

(c) 1799

(d) 1856

The correct Answer: (b) 1765

The correct answer is 1765. The Diwani rights were granted to the British East India Company by the Mughal Emperor Shah Alam II after the Company’s victory in the Battle of Buxar (1764).

What were the Diwani rights?
The Diwani rights gave the Company the authority to collect land revenue from the provinces of Bengal, Bihar, and Orissa. This meant that the East India Company could directly control the finances of these rich provinces.

Importance of the Diwani rights:

1. It provided the Company with enormous financial resources.
2. The Company could now maintain a strong army from Indian revenues instead of relying on money from England.
3. It marked the beginning of direct British control over Indian administration and economy.
4. The Company started acting not just as a trader but also as a political and revenue-collecting authority.

With the Diwani rights, the East India Company became the real ruler of Bengal. This was a turning point in Indian history because it allowed the British to expand their political power and laid the foundation for their colonial rule in India.