Why did Robert Clive ban East India Company servants from private trade and accepting gifts?

Robert Clive implemented these restrictions during his second governorship (1765–1767) to curb the rampant corruption and "reckless plunder" that had come to define the East India Company’s administration in Bengal.12

By the mid-18th century, company servants had effectively become "unresisted predators" of the Bengal economy. Because they were not adequately paid by the company, they relied on private trade and the extraction of gifts or bribes from local officials to amass personal fortunes. This behavior led to significant abuses, including the intimidation of Indian merchants and the creation of artificial monopolies, which undermined the regional economy and fueled political instability.12

Clive’s reforms were intended to restore discipline and administrative integrity. He required servants to sign covenants prohibiting the acceptance of gifts exceeding 1,000 rupees without official consent and attempted to ban private trade. To address the lack of legitimate income, he established a Society of Trade to provide salaries through a salt monopoly, though this measure met with limited success due to opposition from company directors.12