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What happened to the Mughal Emperor after the Treaty of Allahabad?

From NCERT In depth Asked by Anonymous from Dallas, United States 24 Oct 2026, 9:19 AM IST Updated

In one line

After the Treaty of Allahabad, the Mughal Emperor lost real power and became a pensioner under British control.

Shah Alam II — Mughal emperor (r. 1760–1788, 1788–1806)
Shah Alam II — Mughal emperor (r. 1760–1788, 1788–1806)
Shah Alam II, the Mughal Emperor who signed the Treaty of Allahabad.
Image: Wikipedia

The rule

The Treaty of Allahabad (1765) made the Mughal Emperor Shah Alam II dependent on the British East India Company, which now collected taxes (Diwani rights) from Bengal, Bihar, and Orissa, while the Emperor received a pension.

Let's understand it simply

Imagine you are the head of your family, but one day, someone else starts controlling all the money and decisions. You still live in the house, but you can only do what they allow. This is what happened to the Mughal Emperor after the Treaty of Allahabad. He was still called 'Emperor,' but the British East India Company took over the real power and money. The Emperor got a fixed allowance (pension), but he could not rule as before.

How it works

  1. The British defeated the Nawab of Bengal and his allies at the Battle of Buxar (1764).
  2. The Mughal Emperor Shah Alam II was forced to sign the Treaty of Allahabad in 1765.
  3. The Emperor gave the British East India Company the right to collect taxes (Diwani) from Bengal, Bihar, and Orissa.
  4. In return, the Company promised to pay the Emperor an annual pension (₹26 lakh per year).
  5. The Emperor lost control over these rich provinces and became dependent on the British for money and protection.
  6. Over time, even this pension was not always paid, and the Emperor's position became weaker.
What changed for the Mughal Emperor after the Treaty of Allahabad
  1. Lost control over Bengal, Bihar, Orissa
  2. Became dependent on British pension
  3. Had little real power
  4. British East India Company collected taxes

The story behind it

After the death of Aurangzeb in 1707, the Mughal Empire became weak. Many local rulers and foreign powers fought for control. In 1764, the British East India Company defeated the combined forces of the Mughal Emperor, the Nawab of Bengal, and the Nawab of Awadh at the Battle of Buxar. The Emperor, Shah Alam II, had no army or money left. He had to accept the terms set by the British at Allahabad in 1765. The British wanted legal control over Bengal's wealth, so they made the Emperor give them official rights. One detail: Shah Alam II had to leave Delhi and live in Allahabad under British 'protection.'

Key Events: Mughal Emperor and Treaty of Allahabad
  1. 1707Death of Aurangzeb; Mughal Empire weakens
  2. 1764Battle of Buxar: British defeat Mughal alliance
  3. 1765Treaty of Allahabad signed
  4. 1765Shah Alam II becomes pensioner of the British
  5. 1803British take control of Delhi; Emperor under their protection

Where you see it in real life

  • Delhi Red Fort: The Mughal Emperor lived here, but after the treaty, he had little power and was watched by the British.
  • Old coins: Coins from this period still had the Emperor's name, but the real rulers were the British.
  • History books: The Treaty of Allahabad is a turning point, marking the start of British rule in India.
  • Indian revenue system: The British used the Diwani rights from this treaty to collect taxes and build their empire.
  • Modern pension system: The idea of giving a fixed payment instead of real power can be seen in how some rulers were treated later.
  • Monuments: Many Mughal buildings from this period show signs of neglect, as the Emperor had less money and power.

Why it matters

  • Start of British rule: This treaty gave the British legal control over Bengal, the richest province.
  • End of Mughal power: The Emperor became a figurehead, not a real ruler.
  • Changed Indian history: The British used the money from Bengal to expand their rule over all of India.
  • Exam questions: This event is often asked about in CBSE and other exams as a key turning point.

Common mistakes

  • Thinking the Emperor was still powerful: After the treaty, he had almost no real power.
  • Confusing Diwani with land ownership: Diwani meant the right to collect taxes, not to own the land.
  • Believing the Emperor was happy with the pension: He accepted it because he had no choice, not because he wanted to.
  • Mixing up the Battle of Plassey and Buxar: Plassey (1757) gave the British control over Bengal's Nawab; Buxar (1764) led to the Treaty of Allahabad and control over the Mughal Emperor.

Remember it

After the Treaty of Allahabad, the Mughal Emperor kept his crown but lost his kingdom to the British.

Check yourself

What did the Mughal Emperor lose after the Treaty of Allahabad?

He lost real power and control over Bengal, Bihar, and Orissa.

Why did the British want Diwani rights?

To legally collect taxes from the richest provinces and fund their rule.

Was the Mughal Emperor still powerful after 1765? Why or why not?

No, because he depended on the British for money and had no control over his former provinces.

Which battle led to the Treaty of Allahabad?

The Battle of Buxar in 1764.

Quick recap

  • The Treaty of Allahabad (1765) made the Mughal Emperor a pensioner of the British.
  • He lost control over Bengal, Bihar, and Orissa.
  • The British East India Company got the right to collect taxes (Diwani).
  • The Emperor kept his title but had almost no real power.
  • This event marked the start of British rule in India.
Written by the LLOS.ai tutor, checked against NCERT chapters. Asked by Anonymous from Dallas, United States on 24 Oct 2026, 9:19 AM IST