Clive was extremely unwilling to place a Mussulman at the head of the administration of Bengal.  On the other hand, he could not bring himself to confer immense power on a man to whom every sort of villainy had repeatedly been brought home.  Therefore, though the nabob, over whom Nuncomar had by intrigue acquired great influence, begged that the artful Hindoo might be intrusted with the government, Clive, after some hesitation, decided honestly and wisely in favour of Mahommed Reza Khan.  When Hastings became Governor, Mahommed Reza Khan had held power seven years.  An infant son of Meer Jaffier was now nabob; and the guardianship of the young prince’s person had been confided to the minister.

Nuncomar, stimulated at once by cupidity and malice, had been constantly attempting to hurt the reputation of his successful rival.  This was not difficult.  The revenues of Bengal, under the administration established by Clive, did not yield such a surplus as had been anticipated by the Company; for, at that time, the most absurd notions were entertained in England respecting the wealth of India.  Palaces of porphyry, hung with the richest brocade, heaps of pearls and diamonds, vaults from which pagodas and gold mohurs were measured out by the bushel, filled the imagination even of men of business.  Nobody seemed to be aware of what nevertheless was most undoubtedly the truth, that India was a poorer country than countries which in Europe are reckoned poor, than Ireland, for example, or than Portugal.  It was confidently believed by Lords of the Treasury and members for the city that Bengal would not only defray its own charges, but would afford an increased dividend to the proprietors of India stock, and large relief to the English finances.  These absurd expectations were disappointed; and the Directors, naturally enough, chose to attribute the disappointment rather to the mismanagement of Mahommed Reza Khan than to their own ignorance of the country intrusted to their care.  They were confirmed in their error by the agents of Nuncomar; for Nuncomar had agents even in Leadenhall Street.  Soon after Hastings reached Calcutta, he received a letter addressed by the Court of Directors, not to the Council generally, but to himself in particular.  He was directed to remove Mahommed Reza Khan, to arrest him together with all his family and all his partisans, and to institute a strict inquiry into the whole administration of the province.  It was added that the Governor would do well to avail himself of the assistance of Nuncomar in the investigation.  The vices of Nuncomar were acknowledged.  But even from his vices, it was said, much advantage might at such a conjuncture be derived; and, though he could not safely be trusted, it might still be proper to encourage him by hopes of reward.