Statement I : The annexation of Awadh by Lord Dalhousie in 1856 adversely affected the financial conditions of the sepoys. Statement I : The sepoys had to pay higher taxes on the land where their family members stayed in Awadh..

The annexation of Awadh by Lord Dalhousie in 1856 significantly impacted the financial status of the sepoys, who were often described as 'peasants in uniform'. Approximately 75,000 sepoys in the Company's army hailed from Awadh, and the annexation 'adversely affected the sepoy’s purse'. Following the annexation, the British introduced summary revenue settlements (1856-57) which aimed to remove the taluqdars but resulted in increased financial burdens on the peasantry. In practice, the common man, including the families of sepoys, had to pay higher land revenue and additional taxes on essential items like food, houses, and ferries. Since the sepoys' grievances were deeply rooted in their rural origins, the increased taxation on their family lands in Awadh directly worsened their financial conditions, making Statement II a correct explanation for the financial distress mentioned in Statement I.

Sources

1. [1] THEMES IN INDIAN HISTORY PART III, History CLASS XII (NCERT 2025 ed.) > Chapter 10: REBELS AND THE RAJ > Discuss... > p. 284