Question

how did the dual government system in Bengal benefit the East India Company

Answer 1

hey mate..

The Dual System of Government in Bengal was the brainchild of Lord Clive. At Murshidabad, there was a puppet Nawab sitting paying the company an annual allowance of Rs. 6 Lakh. The British Emperor Shah Aalam II came under the “protection” of the British and he would now stay at Allahabad. The company was giving to him Rs. 26 Lakh every year in lieu of the Diwani rights or the Fiscal administration. But this was not able to satisfy the ambitions of Lord Clive. He left nothing for the Bengal than just a shadow authority and the real government came into the hands of the East India Company. The territorial administration of the Northern Circars was to keep the French and British at bay.

Answer 2

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.