The Dual Government of Bengal was established by Robert Clive after the Treaty of Allahabad in 1765. It was a unique system where the British East India Company held actual power, while the Nawab of Bengal was entrusted with the responsibility of administration.

• Diwani (Revenue and Civil Administration): The British acquired the right to collect revenues from the Mughal emperor. They appointed two deputy diwans, Mohammad Reza Khan for Bengal and Raja Sitah Roy for Bihar, to handle these functions.
• Nizamat (Police and Criminal Administration): This authority was obtained from the Nawab of Bengal. The British controlled the nizamat through the nomination of the deputy subahdar, who oversaw police and judicial powers.

The British had the authority to appoint the deputy subahdar, who could not be removed without their consent. This ensured their influence over both diwani and nizamat functions. Despite having the power, the Company was not initially interested in directly collecting revenue, leading to the appointment of Indian deputies for diwani functions. The entire administration of Bengal was carried out through Indian agency, with Mohammad Reza Khan serving as both deputy diwan and deputy nizam. Raja Sitah Roy handled diwani functions for Bihar.

The British exercised control through these Indian deputies, maintaining actual authority while delegating administrative tasks. The system offered the British power without the burden of direct responsibility. The Nawab and his officials were responsible for administration, but lacked the authority to execute it. The Nawab became a mere puppet in the hands of the British, entirely dependent on them for his existence.

Disadavantage of the Dual Government

The Dual Government of Clive has been criticized in various ways. It led to disastrous results.

Power Imbalance and Administrative Chaos:

• The British held both power and money, while the Nawab had only the responsibility of administration.
• With a meager annual grant, the Nawab struggled to manage the administration effectively.
• The lack of funds and authority resulted in rampant lawlessness in Bengal.

Economic Downturn and Agricultural Decline:

• The Company prioritized its own interests over public welfare by collecting revenue from Bengal, Bihar, and Orissa.
• The Nawab, lacking funds and authority, couldn’t address public needs or invest in agriculture.
• The neglect of agriculture under the Dual Government contributed to the 1770 famine.

Rise of Private Trade and Unfair Taxation:

• Poor administration led to an increase in private trade by East India Company servants without paying taxes.
• Local merchants suffered from heavy taxes, causing a decline in local trade and commerce.

Escalation of Oppression:

• With the Nawab being controlled by the English company, servants became oppressive and wayward.
• The people of Bengal endured increased oppression due to the unchecked behavior of the Nawab’s servants.

Decline of Local Industries:

• The Company compelled local weavers and small industries to work exclusively for them.
• This control over local industries contributed to the overall decline of the region’s economic activities.

Ineffective Justice System:

• The Dual Government undermined the justice system, as judges appointed by the British had a biased influence.
• People struggled to receive fair verdicts, as the judges prioritized British interests over impartial justice.

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