The Company becomes the Diwan of Bengal, explain

The East India Company became the Diwan of Bengal in 1765. Here's a step-by-step explanation:

1. Battle of Plassey (1757): The East India Company, under the leadership of Robert Clive, defeated the Nawab of Bengal, Siraj-ud-Daulah. This was a significant turning point as it marked the beginning of British political influence in India.

2. Treaty of Allahabad (1765): After the Battle of Buxar in 1764, the Mughal Emperor Shah Alam II was forced to sign the Treaty of Allahabad in 1765. According to this treaty, the East India Company was granted the Diwani rights, or the right to collect taxes, over the provinces of Bengal, Bihar, and Orissa.

3. Diwani Rights: As the Diwan, the East India Company had the right to collect taxes on behalf of the Mughal Emperor. However, the company was not responsible for the administration or political affairs of the region. This allowed the company to use the revenue collected for its own purposes, leading to significant economic drain from the region.

4. Impact: The company's control over revenue collection led to widespread corruption and mismanagement. The company's officials exploited their positions for personal gain, leading to severe economic hardship for the local population. This period also saw the infamous Bengal Famine of 1770, which was exacerbated by the company's policies.

5. Consolidation of Power: The acquisition of Diwani rights marked the beginning of the company's transformation from a trading entity to a ruling power. Over the next century, the company would gradually expand its control over the rest of India, leading to the establishment of British colonial rule.