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    Question

    Consider the following statements: 1. Shah Shuja

    exempted the East India Company from the usual customs duty of 4½% in return for an annual payment of 30 lakh rupees. 2. Murshid Quli Khan attempted to regulate and restrict the use of 'Dastak' to control internal trade abuses. 3. The servants of the East India Company misused the 'Dastak' system to evade the payment of customs duties by Indian merchants as well. Which of the above statements is/are correct?
    A Only 1 and 3 Correct Answer Incorrect Answer
    B Only 2 and 3 Correct Answer Incorrect Answer
    C Only 2 Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer

    Solution

    • In 1651 AD, the Subedar of Bengal, Shah Shuja, issued a farman allowing the East India Company duty-free trade in Bengal, Bihar, and Orissa, in return for an annual payment of 3000 rupees, not 30 lakh rupees. Thus, Statement 1 is incorrect. • Murshid Quli Khan attempted to regulate and restrict the use of 'Dastak' to control internal trade abuses. Thus, Statement 2 is correct. • The servants of the East India Company misused the 'Dastak' to not only evade paying customs duties themselves but also to extend this misuse to Indian merchants, thereby causing heavy revenue losses to the Bengal administration. Thus, Statement 3 is also correct. Hence, the correct answer is (b) Only 2 and 3.

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