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While he was returning to Delhi, Englishmen sent with him a request to the Emperor to obtain a special firman to do business forever in Bengal; the Emperor was pleased to provide them the Firman and the occasion was celebrated with a 300 gun salute at Hooghly.
The investment in Bengal soared, the Bengal residency was separated from Madras and Mr.
His residence in Hooghly was secured with soldiers obtained from Madras.Another incident with the Faujdar of Cossimbazar resulted in altercations between the Governor of Bengal and the company causing their ships to leave Bengal without obtaining cargo.Enraged with this situation and determined to establish their authority, the company requested King James II in 1685 to permit the use of force against the Emperor’s army to settle the matter.The first factory was established in Surat in 1620 and later in Agra, and agents were further sent from these places to the eastern provinces to examine the possibility of opening factories there.However the transportation costs and logistics were unfavorable and the plan was abandoned.
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Admiral Nicholson was sent with ships to attack the port at Chittagong, fortify it, make an alliance with the King of Arakan who was against the Mughals, establish a mint and collect revenue, thus making Chittagong a fort city for the British in the eastern part. It was assumed that the Governor would abandon the city and then a peace treaty would be offered which would guarantee free trade and other economic benefits for the British and he would give up the territory of Dhaka and Chittagong.