Bhagalpur passed to the East India Company by the grant of the emperor Shah Alam in 1765.
In 1785 he re-established Shah Alam on the imperial throne at Delhi, and as his reward obtained for the peshwa the title of vakil-ul-mutlak or vicegerent of the empire, contenting himself with that of his deputy.
The district was acquired by the East India Company under the treaty with Nawab Mir Kasim in 1760, and confirmed by the emperor Shah Alam in 1765.
The provinces of Allahabad and Kora, forming the lower part of the Doab, were handed over to Shah Alam himself, who in his turn granted to the company the diwani or financial administration of Bengal, Behar and Orissa, together with the Northern Circars.
Sindhia ceded all claims to the territory north of the Jumna, and left the blind old emperor Shah Alam once more under British protection.