(districts) to the English Company instead of "qist" money. However, Umdat-ul-Umra was not agreeable to this and expressed to the Governor that the "qist" money would be paid only in cash, in accordance with the agreement signed between his father and Lord Cornwallis in 1787. When this was brought to the notice of the Governor-General in Council, he disapproved of the Governor's action and directed him to offer his congratulations on the Nawab's accession to the throne and also to accept the "qist" money in cash.

The British, during this time, were aiming at securing certain portions of the land of the Nawab. As stated above, they demanded certain Taluks to be transferred to them instead of qist money. On the fall of Srirangapatnam in 1799, it was claimed by the British that they had discovered both Umdat-ul-Umra and his father had been carrying on secret correspondence with Mysore against the interests of the British. The East India Company took excuse this as an opportunity in their favour to declare that they would no longer honour the treaty of 1792 made with Nawab Wallajah. Instead, they drafted a new treaty by which they resolved to assume the entire management and administration of the Carnatic.

Umdat-ul-Umra did not agree to this treaty. As he fell seriously ill at this time, the matter was not pressed for the moment by the British, but on the death of Umdat-ul-Umra in 1801 the British took coercive measures to enforce the treaty.
The English troops from the Fort took possession of the Chepauk Palace and a tent was pitched for Lord Clive within the precincts of the Palace. Ali Hussain (Taj-ul-Umra), the reputed son of Umdat-ul-Umra at first reluctantly accepted the terms; but subsequently rejected the offer made by the Governor. So, Azim-ud-Daula, the son of Amir-ul-Umra, the youngest brother of Umdat-ul-Umra was declared the next Nawab as he gladly agreed to sign the treaty of 1801 with the English.