They preferred to lead easy-going and pleasure- seeking lives. As a result misgovernment followed. In course of time, the anarchy and misrule in several states had resulted in their annexation by the British. Thus, the subsidiary system proved to be a preparation for annexation. Furthermore, the British collected very heavy subsidies from the protected princes and this had adversely affected their economy.

Enforcement of the Subsidiary System

Hyderabad

Hyderabad was the first state which was brought under Wellesley’s Subsidiary System in 1798. The treaty concluded in 1798 was an ad hoc measure. It fixed the amount to be paid annually at Rs.24 lakhs for the subsidiary force. In accordance with the treaty, all the French troops in Hyderabad were disbanded and replaced by a subsidiary British force. A new treaty was concluded in 1800 by which the Nizam ceded large territories to the Company and this constitutes the famous Ceded Districts.

Oudh

The threat of invasion by Zaman Shah of Afghanistan was the pretext for Wellesley to force the Nawab of Oudh to enter into a subsidiary treaty. Accordingly, the Nawab gave the British the rich lands of Rohilkhand, the lower Doab and Gorakhpur for the maintenance of an increased army which the British stationed in the capital of Oudh. The strength of Nawab’s own army was reduced. For the maintenance of law and order the British were authorised to frame rules and regulations. By this, the British acquired the right to interfere in the internal matters of Oudh. Although the Company obtained a fertile and populous territory, which increased its resources, the highhanded action of Wellesley was severely criticized.

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