The correct option is (a) 1 and 2 only.
Explanation
The Subsidiary Alliance system, aggressively implemented by Lord Wellesley (1798–1805), required Indian rulers to maintain a British contingent within their territory. The rulers had to pay for the maintenance of these troops. If a ruler failed to make the payment (cash subsidy), a portion of their territory was taken away (ceded) by the British East India Company as a penalty and to ensure future revenue for the troops.
Statement-wise Analysis:
- 1. Awadh (Correct): In 1801, Lord Wellesley accused the Nawab of Awadh, Saadat Ali Khan, of misgovernance and failure to pay the subsidy for the British troops stationed there. Consequently, the Nawab was forced to cede about half of his kingdom, comprising Rohilkhand and the fertile Lower Doab (territory between the Ganga and Yamuna), to the Company.
- 2. Hyderabad (Correct): The Nizam of Hyderabad was the first to accept the Subsidiary Alliance in 1798. In 1800, the subsidiary force was increased. To meet the cost of this increased force and clear arrears, the Nizam was forced to cede the territories he had acquired from the Mysore wars (Bellary, Anantapur, Cuddapah, and Kurnool). These areas became known as the "Ceded Districts".
- 3. Mysore (Incorrect): Following the Fourth Anglo-Mysore War (1799), the British restored the Wodeyar dynasty and imposed a Subsidiary Alliance. While the kingdom was reduced in size, this reduction was a result of the partition treaty following the war, not a subsequent penalty for failure to pay the subsidy. Later, in 1831, the administration was taken over by the British on grounds of misgovernance, but the specific context of "ceding territory for subsidy arrears" applies primarily to Awadh and Hyderabad.
- 4. Punjab (Incorrect): The state of Punjab was not subjected to a cession of territory for subsidy arrears. Instead, it was annexed outright by Lord Dalhousie in 1849 following the Second Anglo-Sikh War.
Key Takeaway:
The cession of territory in lieu of cash payment for subsidiary forces was a distinct feature of Lord Wellesley's expansionist policy, most notably applied to Hyderabad (1800) and Awadh (1801).