Discover Bengal · Unfolded
❦Shah Alam II
Mughal emperor and grantor of the Bengal Diwani
Shah Alam II's 1765 grant of Bengal's Diwani gave the East India Company formal revenue authority and transformed the balance of power in Bengal.
Biography
Context
In the context of The settlement was made when the emperor was dependent on regional allies and Company protection. In return for the Diwani, the Company promised an annual payment of 26 lakh rupees and assigned him the districts of Kora and Allahabad. The arrangement gave Company control of Bengal's resources while preserving a formal Mughal legal framework for its rule., Shah Alam II is recognized as Mughal emperor and grantor of the Bengal Diwani. Shah Alam II's 1765 grant of Bengal's Diwani gave the East India Company formal revenue authority and transformed the balance of power in Bengal.
Contribution
Shah Alam II, originally Prince Ali Gauhar, became Mughal emperor in 1759 and sought to recover imperial authority in eastern India. After the Mughal-Oudh-Company defeat at Buxar in 1764, he signed the Treaty of Allahabad on 12 August 1765, granting the East India Company Diwani rights—the authority to collect revenue—from Bengal, Bihar, and Orissa.
Impact
Shah Alam II's farman helped convert the Company's military victory at Buxar into recognized fiscal authority and laid a foundation for colonial state-building in Bengal. His later attempt to return to Delhi with Maratha support, and the Company's decision under Warren Hastings to stop the tribute and transfer Kora and Allahabad to Oudh, show how quickly the imperial relationship became unequal.
Timeline Placement
Shah Alam II appears in 2 linked timeline events, spanning 1764 - 1765.
First Appearance
1764
Latest Appearance
1765
Active Span
1764 - 1765
Linked Events
2
Legacy Summary
Shah Alam II's farman helped convert the Company's military victory at Buxar into recognized fiscal authority and laid a foundation for colonial state-building in Bengal. His later attempt to return to Delhi with Maratha support, and the Company's decision under Warren Hastings to stop the tribute and transfer Kora and Allahabad to Oudh, show how quickly the imperial relationship became unequal. This influence is reflected across 2 connected events.
References
Key sources for understanding this figure
A Comprehensive History of Modern Bengal, 1700-1950
A three-volume survey covering the Nawabi era, colonial remaking, and the freedom struggle through 1950.
Cited in: 2 events
Diwani
Bengal-focused reference on the diwani system, the 1765 agreements, and how revenue authority passed to the East India Company.
Cited in: 2 events
East India Company
Overview of the Company's shift from trade to colonial rule, including the grant of diwani rights and its economic consequences in Bengal.
Cited in: 2 events
Seir Mutaqherin / Siyar-ul-Mutakhkherin
A late eighteenth-century history of Mughal India that is essential for understanding Bengal Nawabs and Plassey.
Cited in: 2 events
The English Factories in India
Calendar records of East India Company activity are valuable for trade, factories, and the commercial expansion that preceded colonial rule.
Cited in: 2 events
Battle of Buxar
Overview of the 1764 battle that consolidated East India Company military-political leverage in eastern India.
Cited in: 1 events
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Warren Hastings
East India Company governor and first Governor-General of Bengal
Related Places
Appears In Events
Timeline View