The following were the areas of conflict between the nawabs of Bengal and the East India Company:

● The company wanted to expand its settlement and they also wanted special privileges.

● The Company thought that duties should be removed,

● But the Nawabs of the Bengal were not ready to give them that much freedom and also refused to give any concession,

● Nawabs demanded large tributes for the Company’s right to trade,

● Misuse of trade concession:

a) Farrukh Siyar, the Mughal Emperor had granted the British Company a Farman to carry on duty-free trade in Bengal, Bihar and Orissa in 1717 A.D. The English traders however misused the privilege and evaded the payment of taxes.

b) In the first half of the eighteenth century, Nawab of Bengal laid two conditions which the Company had to obey or lose its right to trade in Bengal.

● The officials of the Company engaged in private trade shall pay custom duty or privilege of not paying the duty will be with-drawn altogether.

● Nawabs also denied The Company any right to mint coins,

● The Company was stopped from extending its fortification.