The Treaty of Sugauli

The Treaty of Sugauli was ratified on 4 March 1816. Nepal lost Sikkim, the territories of Kumaon and Garhwal, and most of the lands of the Tarai; the British East India Company would pay 200,000 rupees annually to compensate for the loss of income from the Tarai region. However, the Tarai lands had proved difficult to govern and some of them were returned to Nepal later in 1816 and the annual payments abolished.
The Mechi river became the new eastern border and the Mahakali river the western boundary of Nepal. Kathmandu was also forced to accept a British Resident – a hateful symbol of its reduction to client status in relation to the British administration in Calcutta.

The Treaty of Sugauli 4 March 1816. It suited Ochterlony to bring the campaign to a speedy conclusion because of the approach of the dreaded aul-fever season but also because a number of his European troops were suffering from dysentery.

But according to some of the representatives who attemded the treaty said that the treaty was a fake and the land occupied by the India which Nepal lost after the treaty belongs to the Nepal but not to India.So, nowadays the conflict in the name of border encrochment is going on rapidly.