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The Carnatic Treaty was signed on 26 July 1801. It is a treaty between the Nawab of Arcot and the East India Company. It is one of the treaties by which the British Empire acquired its rule over the Indian subcontinent or later known as British India. The treaty entailed that the Nawab was to cede the districts of North Arcot, South Arcot, Tiruchirappalli, Madurai and Tirunelveli to the company, and transfer all the administrative powers to it.
Background
The treaty resulted in the liquidation of all the local chieftains of Tamil Nadu and The East India Company assumed direct control over Tamil Nadu. The Palayakkarar system came to an end as they had to demolish all forts and disband their armies. It resulted in the Company having full command over the region.
Consequences
United Kingdom legislation
East India Company and the Nabobs of the Carnatic Act 1806
An Act for enabling the Commissioners acting in Execution of an Agreement made between the East India Company and the private Creditors of the Nabobs of the Carnatic, the better to carry the same into Effect.
An Act to continue until the Twenty fifth Day of March One thousand eight hundred and thirteen, the Powers of the Commissioners appointed in pursuance of an Act of the Forty sixth Year of His present Majesty, for enabling the Commissioners acting in pursuance of an Agreement between the East India Company and the private Creditors of the Nabobs of the Carnatic, the better to carry the same into Effect.
An Act for further continuing until the First Day of August One thousand eight hundred and sixteen, and from thence until the End of the then next Session of Parliament, the Powers of the Commissioners appointed in pursuance of an Act of the Forty sixth Year of His present Majesty, for enabling the Commissioners acting in pursuance of an Agreement between the East India Company and the private Creditors of the Nabobs of the Carnatic, to carry the same into Effect.
Based on the terms of the treaty, the Nawab of Arcot (sometimes called the Nawab of the Carnatic) ceded all his lands to British rule, including the territory of the polygars. He was retained one-fifth of the revenues of the country, amounting to 12 lakhs p.a in exchange.