After the capture of Chandernagor, Clive's distrust of the Nawab was intensified, not only by the information supplied by Mr. Watts of his intrigues with the French, but by his refusal to allow the passage of a few Sepoys and of supplies of ammunition and stores to the English factory at Kasimbazar. Meanwhile Clive received from Watts information of a plot which had been formed by some of the leading personages at the Nawab's court to dethrone him. These persons were Raja Dulab Ram, the finance minister; Mir Jafar, the commander-in-chief of the army; and Yar Latif Khan, a man not of the first rank, who would seem to have started the conspiracy, stipulating that, if it succeeded, he should be made nawab. There is some ground, however, for supposing that the original suggestion emanated from Jaggat Seth, a wealthy banker, who had received personal insults from the Nawab. Another person of considerable weight who was also implicated in the plot was Omichand, the wealthy Hindu in whose garden the Nawab's camp had been pitched on that foggy night in February when Clive marched through it. On that occasion he sustained a somewhat heavy loss, but inflicted a much heavier loss upon the troops of the Nawab, and thereby frightened the latter into treating for peace. At an early stage of the proceedings Clive received overtures from Mir Jafar, the commander-in-chief, who offered to aid the English against the Nawab on condition that he should succeed him. The events which followed included what in some respects were the most brilliant, and were certainly the most questionable, incidents in Clive's career. While his military reputation, already established by the defence of Arcot, the victory at Kaveripak, and the operations before Trichinopoli, rose higher than ever, and while he developed a capacity for civil and political administration of the highest order, the fame of his exploits was tarnished by a breach of faith which it is impossible to justify, and by the acceptance of large sums of money from the native prince whom he placed upon the throne of Bengal after the deposition of Suraj ud Daulah.
The treaty provided for an offensive and defensive alliance with Mir Jafar; for a prohibition against any resettlement of the French in Bengal, and for the transfer of their factories to the English company; for compensation for English losses at Calcutta, viz., to the company, £1,000,000; to the European inhabitants, £500,000; to the native inhabitants, £200,000; to the Armenians, £70,000; for the cession of all land within the Mahratta ditch and 600 yards beyond it; for the cession to the company of the Zemidari of the country to the south of Calcutta as far as Kalpi, subject to the payment of the customary rent; for the payment by the Nawab of all English troops sent to his assistance, and for a prohibition against the erection of any new forts below Hugli. Under a supplementary treaty Mir Jafar was to pay £500,000 to the army and navy and £120,000 to the members of council.