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In the year 1765 Mughal Emperor Shah Alam granted to the company the diwani of Bengal, Bihar and Orissa. The company agreed to pay annually 26 lakh rupees to the Mughal Emperor and got right to keep the all-surplus amount of collected revenue.
The grant of the Diwani gave to the company a de jure status of an official of the Mughal Emperor.
Diwan or Diwani gave right to collect the revenue, and decide civil and revenue cases. Diwan send the collected revenue to the central authority or treasury. Regarding Bengal, we can see that Nawab of Bengal was the Puppet of East India Company and then East India Company became the Diwan of the Bengal.
The Blue Rebellion 1859
In march 1859 farmers started a blue rebellion in west Bengal. they all refused to grow indigo which was in great demand in European nations due to its high quality. they refused to be exploited and bullied by the British planters.