After the battle of Buxar, the East India Company became the real masters of Bengal. Robert Clive introduced the dual system of government, i.e., the rule of the two—the Company and the Nawab—in Bengal in which both the diwani, i.e., collecting revenues, and nizamat, i.e., police and judicial functions, came under the control of the Company.
The Company exercised diwani rights as the diwan and the nizamat rights through its right to nominate the deputy subahdar. The Company acquired the diwani functions from the emperor and nizamat functions from the subahdar of Bengal.
The system held a great advantage for the Company. It left the appearance of authority to the puppet Indian ruler while keeping the sovereign power in the hands of the Company. The nawab was responsible for maintaining peace and order, but he depended both for funds and forces upon the Company because the latter controlled the army and revenues.
For the exercise of diwani functions, the Company appointed two deputy diwans, Mohammad Reza Khan for Bengal and Raja Sitab Roy for Bihar. Mohammad Reza Khan also acted as deputy subahdar.
The dual system led to an administrative breakdown and proved disastrous for the people of Bengal. Neither the Company nor the Nawab cared for administration and public welfare. Warren Hastings did away with the dual system in 1772.
Must read: Economic policies of the British in India
External link: https://silapatharcollege.edu.in/online/attendence/classnotes/files/1622276818.pdf
PRACTICE QUESTIONS
QUES 1 . The ‘Dual Government’ recommended by Lord Clive provided that the: CDS 2010
(a) criminal justice would be left to the Nawab officials, while civil and fiscal matters would be controlled by the Company.
(b) Company will look after fiscal matters and all the rest would be dealt by the Indian rulers.
(c) Indian rulers will deal with all the matters of administration under the supervision of a Company official.
(d) Indian rulers will be only titular heads and all the powers shall be directly dealt by the Company.
Answer (b) Explanation: The correct answer is option (b). According to the recommendation of Lord Clive, the Dual Government meant that the British East India Company would be responsible for fiscal matters, while the Indian rulers would handle all other aspects of administration. In this system, the Company would look after the financial aspects such as revenue collection, taxation, and trade. On the other hand, the Indian rulers would retain control over civil matters like law and order, justice, and day-to-day governance. Option (a) is incorrect because it states that criminal justice would be left to the Nawab officials, which is not accurate according to Lord Clive`s recommendation. Option (c) is incorrect because it suggests that Indian rulers would deal with all matters of administration under the supervision of a Company official, which is not in alignment with the concept of Dual Government. Option (d) is also incorrect as it states that Indian rulers would be merely titular heads with all powers directly dealt by the Company. However, Lord Clive`s recommendation allowed Indian rulers to retain authority in various administrative matters.
