Correct Answer:
Option B - The Mughal emperor shah Alam II granted the Diwani of Bengal, Bihar and Odisha to the east India company in 1765. The Diwani allowed the company to use the vast revenue resources of Bengal. After the victory of the company at the Battle of Buxar (22nd October, 1764), lord clive signed two treaties with the defeated powers known as the first treaty of Allahabad (12th August. 1765) and Second Treaty of Allahabad (16th August 1765). First treaty was signed between lord clive, Mughal emperor shah Alam II and Nawab shuja-ud - Daula of Bengal and Second treaty was signed between lord clive and Nawab Shuja-ud-Daula of Awadh. According to first Treaty of Allahabad the company received the diwani rights of Bengal, Bihar and Odisha. Now revenues from India could finance company expenses.
B. The Mughal emperor shah Alam II granted the Diwani of Bengal, Bihar and Odisha to the east India company in 1765. The Diwani allowed the company to use the vast revenue resources of Bengal. After the victory of the company at the Battle of Buxar (22nd October, 1764), lord clive signed two treaties with the defeated powers known as the first treaty of Allahabad (12th August. 1765) and Second Treaty of Allahabad (16th August 1765). First treaty was signed between lord clive, Mughal emperor shah Alam II and Nawab shuja-ud - Daula of Bengal and Second treaty was signed between lord clive and Nawab Shuja-ud-Daula of Awadh. According to first Treaty of Allahabad the company received the diwani rights of Bengal, Bihar and Odisha. Now revenues from India could finance company expenses.