The correct option is (c) 1 and 3 only.
Explanation
The Subsidiary Alliance system was a non-intervention policy used by Lord Wellesley (Governor-General, 1798–1805) to bring Indian Princely States under British political control. Under this system, the British East India Company agreed to protect the Indian ruler from external attacks and internal revolts in exchange for specific terms that compromised the ruler's sovereignty.
Statement-wise Analysis
- Statement 1 is Correct: Under the terms of the alliance, the Indian ruler was required to disband his own armed forces and accept the permanent stationing of a British force within his territory. The ruler was prohibited from maintaining an independent army.
- Statement 2 is Incorrect: While the Company undertook the responsibility of protecting the Indian state, the financial burden fell entirely on the Indian ruler. The ruler had to pay for the maintenance of the "subsidiary forces." The Company did not pay for these forces from its own treasury.
- Statement 3 is Correct: The payment for the subsidiary forces could be made in cash or by ceding territory. If the Indian rulers failed to make the required payments, a portion of their territory was taken away by the Company as a penalty. For example, the Nawab of Awadh was forced to cede over half of his territory in 1801 due to the inability to pay for the subsidiary forces.
Key Takeaway: The Subsidiary Alliance system effectively disarmed Indian states and forced them to finance the British army, thereby consolidating British military power at the expense of Indian rulers.