Question

Subsidiary alliances is a system developed by the East India Company. An Indian ruler entering into a subsidiary alliance with the British had to accept British forces in his territory and also agreed to pay for their maintenance. If the Indian rulers failed to make the payments required by the alliance, then part of their territory was to be taken away as a penalty.

For example: The Nawab of Awadh was forced to give over half of his territory to the company in 1801.