Buxar and the Diwani turn victory into fiscal rule
At Buxar, Company forces defeated the combined armies of Mir Qasim, Shuja al-Dawlah and Mughal emperor Shah Alam II. The following settlement granted the Company revenue-collecting rights in Bengal, Bihar and Odisha.
The Company now financed its army from Indian revenues while governing through overlapping Mughal and regional institutions. This hybrid arrangement concealed a major transfer of power behind familiar administrative forms.