How the east India company gained from puppets nawab
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The first English factory was set up on the banks of the river Hugli in Bengal 1651. As their expanded, the East India Company convinced merchants and traders to come and settle near the factory.
By 1696, the Company began building a fort around the Hugli settlement. It also bribed Mughal officials into giving the Company Zamindari rights over three villages, one of which was Calcutta.
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. But they refused, which angered the Nawab of Bengal, Murshid Quli Khan, and led to fierce battles.
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