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Foothold in Bengal
Bengal was then a large and rich province in India, advanced in trade and commerce. Commercial and political control over Bengal naturally appeared an attractive proposition to the profit-seeking English merchants. Bengal was also an important province of the Mughal empire.
Shah Shuja, the subahdar (or governor) of Bengal in 1651, allowed the English to trade in Bengal in return for an annual payment of Rs 3,000, in lieu of all duties. Factories in Bengal were started at Hooghly (1651) and other places like Kasimbazar, Patna and Rajmahal. Nevertheless, despite the privileges of the farmans, the Company’s business was now and then obstructed by customs officers in the local checkposts who asked for payment of tolls. In pursuance of its changed policy, the Company wanted to have a fortified settlement at Hooghly so that force could be used if necessary. William Hedges, the first agent and governor of the Company in Bengal, appealed to Shaista Khan, the Mughal governor of Bengal in August 1682, for redressal of the grievance. As nothing came out of the appeal, hostilities broke out between the English and the Mughals. Four years later, Hooghly was sacked by the imperial Mughals in October 1686. The English retaliated by capturing the imperial forts at Thana (modern Garden Reach), raiding Hijli in east Midnapur and storming the Mughal fortifications at
Balasore. However, the English were forced to leave Hooghly and were sent to an unhealthy location at the mouth of the River Ganga.
After the Mughal raid on Hooghly, Job Charnock, a company agent, started negotiations with the Mughals so as to return to a place called Sutanuti. Charnock signed a treaty with the Mughals in February 1690, and returned to Sutanuti in August 1690. Thus, an English factory was established on February 10, 1691, the day an imperial farman was issued permitting the English to “continue contentedly their trade in Bengal” on payment of Rs 3,000 a year in lieu of all dues. A zamindar in Bardhaman district, Sobha Singh, rebelled, subsequently giving the English the pretext they were looking for, to fortify their settlement at Sutanuti in 1696. In 1698, the English succeeded in getting the permission to buy the zamindari of the three villages of Sutanuti, Gobindapur and Kalikata (Kalighat) from their owners on payment of Rs 1,200. The fortified settlement was named Fort William in the year 1700 when it also became the seat of the eastern presidency (Calcutta) with Sir Charles Eyre as its first
president.