Following the Battle of Buxar, on this day at an imperial Durbar convened by Mughal emperor Shah Alam II, the British East India Company, represented by Robert Clive, was granted the Diwani of Bengal, Bihar and Orissa.

It meant that the company, “from the beginning of the Fussal Rubby of the Bengal Year 1172”, could collect revenue from this region and control other aspects of financial and commercial administration, in exchange of an annual payment for ₹26,00,000 to the emperor.

Four days later, the Allahabad Treaty would be signed by the company, the Mughal emperor and Shuja-ud-Daulah, the Nawab of Awadh. It would reaffirm the terms of the Diwani agreement and allow the company to bring the Nawab under its control.

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