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The Dual system in Bengal was introduced by Robert Clive. During the Dual Government in Bengal the Nawab depended for his internal and external security on the British. As the dewan, the company directly collected its revenues, while though the right to nominate the Deputy subahdar, it controlled the nizamat or the police and judicial powers. This Dual Government in Bengal held a great advantage for the British: they had power without responsibility. The Nawab and his officials had the the responsibility of administration but not the power to discharge it.

Nawab was granted Rs.53 Lakhs per annum for the administration but later on this amount was reduced to 32 Lakhs. Thus all the responsibilities were with the Nawab and all the powers with the British. This dual system was proved to be unsuccessful and in 1772 it was ended by Lord Warren Hastings on the orders of the directors of the company.

During the Dual System Nawab-ud-Daulla and Saif-ud-Daull were the nawabs of Bengal. At the time of end of this system Mubaraq-ud-Daulla was the nawab of bengal.

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