The Dual Government in Bengal, introduced in 1765, created divided authority between the Company and Nawab, leading to administrative failure and eventual abolition in 1772.

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• The Dual Government system was introduced in 1765 by Robert Clive after the Battle of Buxar, reshaping Bengal’s administrative structure.
• Under this system, Diwani rights for revenue collection were given to the Company, while Nizamat, including law and order, remained nominally under the Nawab.
• The Treaty of Allahabad with Shah Alam II granted the Company the authority to collect revenue from Bengal, Bihar and Orissa.
• The Company controlled administration indirectly through deputies like Muhammad Reza Khan and Raja Sitab Roy.
• The system allowed the Company to enjoy power and revenue without responsibility, while the Nawab remained a nominal ruler with limited resources and authority.
• Administrative failure emerged due to corruption, misuse of trade privileges, heavy taxation on peasants, and lack of accountability, leading to economic distress and famine.
• The system caused confusion and inefficiency as both the Company and Nawab neglected governance, prioritising revenue over public welfare and stability in Bengal.
• In 1772, Warren Hastings abolished the system, bringing both revenue and administration under direct Company control for better governance.