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Why did the Nawab of Arcot borrow money from the East India company? What happened when his debts exceeded his capacity to pay?

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The Nawab of Arcot borrowed money from the East India company to meet the expenses he had incurred during the Carnatic wars. When his debts exceeded his capacity to pay, the power of collecting the land revenue dues from southern Palayakkarars was given to the East India company.

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