How did the dual government system in Bengal benefit the East India Company
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The dual system was introduced by Robert Clive.At Murshidabad, there was a puppet nawab sitting paying the Company an allowance of Rs.6 lakh.The Mughal emperor Shah Alam II came under the "protection" of the British and he would now stay at Allahabad.
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Based on the terms of the agreement, Alam granted the East India Company Diwani rights, or the right to collect taxes on behalf of the Emperor from the eastern province of Bengal-Bihar-Orissa. These rights allowed the Company to collect revenue directly from the people of Bengal, Bihar, and Orissa.
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