The Treaty of Amritsar, executed by the British East India Company and Raja Gulab Singh of Jammu after the First Anglo-Sikh War, established the princely state of Jammu and Kashmir under the suzerainty of the British Indian Empire.
The Battle of Sobraon in the First Anglo-Sikh War proved to be a decisive victory for the British East India Company over the Sikh Empire, inducing the Sikhs to sue for peace. Raja Gulab Singh, acting as the Wazir of the Sikh Empire, negotiated the terms of peace, which included the cession of the territory between the Sutlej and Beas, payment of 1.5 crore rupees in indemnity, and a drastic reduction in the Sikh army.
After the agreement was reached, the British Governor-General marched to Lahore on 20 February 1846. Soon afterwards, Rani Jindan, the queen mother and regent of the Sikh Empire, replaced Gulab Singh with Lal Singh as the Wazir. Lal Singh informed the British that the Sikh Darbar had the resources to pay only 0.5 crore (50 lakhs) in cash, and offered territory in lieu of the remaining one crore indemnity, suggesting the territories then under Gulab Singh's control. The British, on the other hand, asked for the entire hilly region between Beas and Indus, including the Kashmir Valley, in lieu of one crore.
The plan of Lal Singh and Rani Jindan may have been to relieve Gulab Singh of his territories and reduce his power. However, Gulab Singh had built strong relations with the British. The Governor-General offered to recognise him as an independent sovereign of the ceded territories if he paid the indemnity due from the Sikhs, to which Gulab Singh agreed. These arrangements were formalised in the Anglo-Sikh Treaty (the Treaty of Lahore), Article XII of which stipulated that the Sikh Empire would recognise the "independent sovereignty" of Gulab Singh in whatever territories the British might offer to him via a separate treaty.
In the sequel, the British decided to keep the territory between Beas and Ravi rivers to themselves, which included the Kullu Valley with forts such as Kangra and Noorpur. The remaining hilly territory between Ravi and Indus rivers was granted to Gulab Singh for a reduced payment of 0.75 crore (75 lakhs). These territories, with some later adjustments, became the princely state of Jammu and Kashmir under British suzerainty. Gulab Singh and his descendants were recognised as the "Maharajas" of the princely state, until the accession to the Union of India in 1947.
The Treaty of Amritsar was executed on 16 March 1846. It formalised the arrangements between the British East India Company and Raja Gulab Singh of Jammu in the sequel to the Treaty of Lahore.[1] By Article 1 of the treaty, Gulab Singh acquired "all the hilly or mountainous country with its dependencies situated to the eastward of the River Indus and the westward of the River Ravi including Chamba and excluding Lahul, being part of the territories ceded to the British Government by the Lahore State according to the provisions of Article IV of the Treaty of Lahore, dated 9th March, 1846." Under Article 3, Gulab Singh was to pay 75 lakhs (7.5 million) of Nanak Shahi rupees (the ruling currency of the Sikh Empire) to the British Government, along with other annual tributes. The Treaty of Amritsar marked the beginning of Dogra rule in Kashmir.[2]
Following is the detailed treaty of Amritsar: