The Treaty of Allahabad was signed on August 16, 1765 between Mughal Emperor Shah Alam II of Bengal, Suja-ud-Daulah, the Nawab of Awadh and Lord Clive of the British East India Company after the Battle of Buxar (1764). Based on the terms of the agreement, Shah Alam II granted Diwani rights to the East India Company. These rights allowed the Company to collect revenue from the people of Bengal, Bihar, and Orissa. In return, the Company gave an annual tribute of 2.6 million rupees (260,000 British pounds) while securing for Shah Alam II the districts of Kora and Allahabad. The tribute money paid to the emperor was for the maintenance of the court of Allahabad. The accord also dictated that Shah Alam II restore to Balwant Singh the province of Varanasi as long as Balwant Singh continued to pay revenue to the Company.Awadh was returned to Shuja-Ud-Daulah but Allahabad and Kora was taken from him.The Nawab of Awadh also had to pay 5 Lakhs rupees of war indeminity to the British.
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