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Events on Friday 16 August 1765 1
1765Treaty of Allahabad grants Diwani rights to East India CompanyMughal emperor cedes Bengal tax administration to British tradersOn 16 August 1765, the Mughal emperor Shah Alam II signed the Treaty of Allahabad, granting the British East India Company the Diwani, or right to collect revenue, in Bengal, Bihar, and Orissa. The agreement followed the Company's victory at the Battle of Buxar the previous year and was negotiated by Robert Clive. It marked a decisive step in the transformation of the Company from a trading concern into a territorial power in India.