ABSTRACT
The diwani had hitherto rested with the nawab, who was also in control of the military government and criminal law, the combination of powers marking the decline of the former principles of the Empire. With Plassey and the following arrangements with successive nawabs of Bengal, the real authority had passed into the hands of the Company. Clive's solution for the situation as regards the nawab of Oudh and the Emperor alike was of the highest importance in determining the future history of India. In return he regularized the position of the Company in Bengal by bestowing upon it formally the diwani, covering the whole of the financial administration, including the collection of land revenue and customs, and the civil government. Influence was exerted from the royal family downwards to secure posts in India for hangerson and younger sons of noble or rich families, and the newcomers were intent only on acquiring fortunes.
