Which Mughal Emperor granted the Diwani rights to the East India Company?

(a) Aurangzeb

(b) Shah Alam II

(c) Bahadur Shah Zafar

(d) Jahangir

The correct answer is (b) Shah Alam II, the Mughal Emperor, who granted the Diwani rights to the East India Company in 1765.

After the Battle of Buxar (1764), the British East India Company defeated the combined forces of Mir Qasim (Nawab of Bengal), Shuja-ud-Daulah (Nawab of Awadh), and Shah Alam II himself. The Mughal Emperor, left with little choice, signed the Treaty of Allahabad in 1765.

What were the Diwani rights?

The Diwani rights gave the Company the authority to collect land revenue and administer finances in the rich provinces of Bengal, Bihar, and Orissa.

In return, the Company promised to pay a fixed annual tribute to the Mughal Emperor.

Importance of this event:

The Diwani rights gave the Company direct control over the revenues of Bengal, the wealthiest province in India.

It strengthened the Company’s political authority and reduced the Mughal Emperor to a mere figurehead.

It allowed the Company to finance its trade and military expansion using Indian resources, rather than importing money from Britain.

This event is considered the true beginning of British colonial rule in India.

The granting of Diwani rights by Shah Alam II marked a turning point in Indian history. The East India Company was no longer just a trading corporation but had become a powerful political and administrative authority in India.