Dual Government in Bengal

The Dual Government in Bengal (1765-1772) was a unique administrative arrangement born out of the East India Company's military victories, particularly the Battle of Buxar. Under the Treaty of Allahabad (1765), the Mughal Emperor Shah Alam II granted the Company the 'Diwani' rights, which meant control over revenue collection and civil justice in Bengal, Bihar, and Orissa.

Simultaneously, the 'Nizamat' functions, encompassing military defense, law and order, and criminal justice, remained with the Nawab of Bengal. This system, conceived by Robert Clive, was a clever legal fiction designed to allow the Company to extract maximum wealth from the rich provinces without assuming direct administrative responsibility or provoking overt political opposition.

The Company thus enjoyed 'power without responsibility,' while the Nawab was left with 'responsibility without power,' becoming a mere figurehead. This inherent imbalance led to catastrophic consequences.

The Company's relentless pursuit of revenue, often through oppressive revenue farming and the corrupt private trade of its servants, crippled Bengal's economy. Agricultural production declined, indigenous industries suffered, and a continuous drain of wealth to Britain ensued.

The administrative vacuum and lack of accountability culminated in the devastating Bengal Famine of 1770, which claimed millions of lives and exposed the moral bankruptcy of the system. The widespread suffering and the Company's own financial difficulties, despite its vast revenues, prompted intervention from Britain.

Warren Hastings, upon becoming Governor of Bengal in 1772, abolished the Dual Government, bringing the Diwani directly under Company control and initiating significant administrative and judicial reforms.

This marked the end of a dark chapter and paved the way for more direct British rule, eventually leading to the Regulating Act of 1773, which sought to establish greater parliamentary oversight over the Company's affairs.