Question

A royal order granting the company the right to trade duty free is called

Answer 1

By 1696, the Company began building a fort around the Hugli settlement. ... It also convinced the Mughal emperor Aurangzeb to issue a farman, an official order, granting the Company the right to trade duty-free. The employees of the Company also carried on their private trades, and so were expected to pay duty.

Answer 2

A royal order granting the company the right to trade duty free is called Farman

Explanation:

• On the river bank of Hugli in Bengal in 1651 was established the first English factory. The East India Company (EIC) also encouraged merchants and businessmen to come and live near the factory as it grew.
• In 1696, the EIC started to build a fort around the settlement of Hugli. dThe Mughal officials were also bribed for granting Zamindar rights to the EIC of three cities, one of which was Calcutta.
• It also persuaded Aurangzeb, the Mughal emperor  to issue an official order known as "Farman", which granted the company "a duty-free trade right". The EIC also undertook private trade and hence had to pay duty. However,  they refused, that angered the Bengal Nawab, Murshid Quli Khan, and it led to battles.