Bengal Nawabs underestimated the hidden power and potential of EIC. They failed to grasp the true intention of EIC. Nawabs were having the power to deal with the Company’s threats, but they continued tounderestimate the EIC power.They failed to see that the English Company was no mere company of traders but was therepresentative of the most aggressive and expansionist colonialism of the time.If they would have known the devastation caused by the Western trading companies inAfrica, South-East Asia, and Latin America would have got alert and acted differently.
They had neglected to build a strong army and paid a heavy price for it. For example, thearmy of Murshid Quli Khan consisted of only 2000 cavalry and 4000 infantry. Alivardi Khan
was constantly troubled by the repeated invasions of the Marathas and, in the end; he had
to cede a large part of Orissa to them.In 1756-1757 Siraj-ud-daula, the successor of Ali Vardi Khan, was defeated by EIC in Battle ofPlasey and credit goes to absence of strong army.Failed to check the growing corruption among their officials. Even judicial officials, the Qazisand muftis, were taking bribes.