While the Battle of Plassey (1757) marked the beginning of the British political influence in Bengal and paved the way for their eventual dominance, the Battle of Buxar (1764) was more decisive in establishing the formal foundation of British rule. In the aftermath of Buxar, the British East India Company was granted the Diwani rights (right to collect revenue) of Bengal, Bihar, and Odisha by the Mughal Emperor Shah Alam II through the Treaty of Allahabad (1765). This grant provided the Company with significant administrative and financial power, transitioning their role from a trading company to a territorial power with formal legal authority, thus laying the formal foundation of the British Raj.