Subsidiary Alliance System

1. The Britishers as a supreme power: Whichever state wanted to sign this treaty, had to accept the English as a supreme authority. The East India Company behaved as a guardian of that state.

2. Appointment of resident: The state kept an English Resident in their court, /to check the activities of the king.

3. Keeping of an English army: Indian rulers were not allowed to have their army to protect the state from external and internal invasion. The state had to keep an English army. The state had to bear financial burden of the army.

4. Giving to the territory: If the Indian rulers failed to make payments, part of their territories were taken away as penalty.
e.g.,

• The Nawab of Awadh was forced to give over half of his territory to the company in 1801.
• Hyderabad was also forced to cede territories on similar grounds.

5. Protection by the English: In return for the above-mentioned conditions the English Company promised to protect the state from its enemies. They also promised the state not to interfere in the internal affairs of the state but this was a promise they seldom kept.