How did the East India Company gain the right to collect revenue in Bengal in 1765?

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West Bengal A tea plantation in Western Dooars, northern West Bengal, India.

The East India Company gained the right to collect revenue in Bengal in 1765 following its decisive military victory at the Battle of Buxar in 1764.12

After the defeat of the combined forces of the Mughal Empire, the nawab of Awadh, and the nawab of Bengal, the Mughal emperor Shah Alam II became a pensioner of the Company. In 1765, as part of the Treaty of Allahabad, the emperor formally granted the Company the diwani, or the legal right to collect revenue, in Bengal, Bihar, and Orissa. This transition marked a significant shift in the Company's role, transforming it from a mercantile entity into a dominant political and military power in the region.321456