Britannica
Sources used in this answer
Why did Shah Alam II become a pensioner of the British East India Company?
Created from Britannica articles
using AI.
AI can make mistakes, so verify using Britannica articles.
Mughal dynasty
Emperors (from left, seated) Jahangir, Akbar, and Shah Jahan are depicted with their ministers (foreground) and Prince Dara Shikoh in a watercolor from India, c. 1630ā40.
Shah Alam II became a pensioner of the East India Company following the defeat of his ally, Shuja ud-Dawlah, at the Battle of Buxar in 1764.1
Prior to this, Shah Alam II had come into conflict with the company while attempting to capture Delhi and demanding tribute from Bengal and Bihar. After the defeat at Buxar, he entered into an arrangement where he became the company's pensioner. In exchange for this financial support, he legalized the company's position in Bengal, Bihar, and Odisha in 1765 by granting them the right to collect revenue in those regions.1