Medieval Indian History Questions (MCQs) for UPSC, SSC & States PCS Examinations

Q.  Which among the following is / are correct statements about the Mughal Firman issued to the British in 1717 by Farrukhsiyar?
1. East India Company was entitled to trade in Bengal without paying the normal customs duty
2. It provided immunity from duty for goods belonging to the servants of the East India Company
3. The East India Company issued Dastaks authorising it’s agents to trade customs-free within the province of Bengal
Choose the correct option from the codes given below:


a. Only 1 & 2
b. Only 1 & 3
c. Only 1
d. 1, 2 & 3


ANSWER: See Answer
 
In this question, second statement is not correct. We note here that the Dastak was the trade permit sanctioned to the east India company by Farruksiyar’s firman of 1717. Under the terms of this firman, East India Company was entitled to trade in Bengal without paying the normal customs duty. On the basis of the rights entrusted to the company, it started issuing dastaks authorizing its agents to trade customs-free within the province of Bengal.
The firman covered only free trade by the company and not the private trade of its servants. This was one of the big confusions. Practically, the servants of the company generally abused the free trade right by producing the dastak to the chowkies of the government. But the chowkidars had reasons to believe that most of the dastaks produced by company traders were produced just to cover their own private trade. Not only that, the company sold dastaks at high price not only to European private traders but also to native merchants. This rampant abuse of dastak was one of the key issues of conflicts between the nawab and the company.
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