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Why did the East India Company’s annexation policies upset Indian princes?

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Illustration of De Kantzow defending the treasury at Mainpuri during the Indian Rebellion of 1857, showing a British officer confronting armed sepoys inside a building as tensions rise during the uprising. — Indian Rebellion of 1857 Indian sepoys (soldiers) corner a British officer amid their attack on a treasury in Mainpuri, Uttar Pradesh.

The East India Company’s annexation policies, particularly under Lord Dalhousie, caused deep resentment among Indian princes by systematically undermining their sovereignty and traditional rights of succession.12

The primary source of this discontent was the doctrine of lapse. This policy allowed the British to annex states where a ruler died without a natural male heir, effectively rejecting the long-standing Hindu tradition that permitted rulers to adopt successors with full political rights. By asserting the right to approve or deny these adoptions, the Company seized control of several states, including Jhansi, and disregarded the claims of heirs such as Nana Sahib.12

Furthermore, the Company increasingly intervened in the internal affairs of princely states through subsidiary alliances. These treaties forced rulers to accept British oversight of their defense and foreign policy, while the Company’s heavy revenue demands placed states under severe financial strain. In cases like the annexation of Awadh, the British cited poor governance as a justification for takeover, further signaling that the Company intended to replace the traditional Indian aristocracy with direct British rule.32