The system of Dual Government was introduced in Bengal by Robert Clive of British East India Company. It lasted from 1765 to 1772. Under this system, the administration of Bengal was divided into Nizamat and Diwani. The Diwani was carried out by the company and the Nizamat by the Nizam. The system was abolished by Warren Hastings in 1772 and Bengal was brought under direct control of the British and the Nawabs remained as the mere pensioners of the East India Company.

(a)Provisions of the Permanent Settlement Act of 1793
(b)Lord Cornwallis was the first Governor-General who paid his attention to the revenue reforms.
(c)It was the permanent land settlement of Bengal, Bihar and Orissa. He reorganized the Board of Revenue which had the power of supervising the works of the revenue collectors.

Sir John Shore succeeded Cornwallis. He looked after the affairs of the company till 1798 when he was recalled due to failure in tackling with the mutiny of army officials of Bengal in 1785. Sir John Shore followed a policy of non-intervention in the affairs of the native states. This resulted in the Nizam employing French officers to train his army thus decreasing the English influence. The Marathas and Tipu Sultan also sought the help of the French thus undermining the British.

The Subsidiary Alliance System was “Non-Intervention Policy” used by Lord Wellesley who was the Governor- General (1798-1805) to establish British Empire in India. According to this system, every ruler in India had to accept to pay a subsidy to the British for the maintenance of British army