The Nawab was infuriated on learning of the attack on Chandenagore. His former hatred of the British grew. Though he was plagued by the fear of attack from the north by the Afghans under Ahmad Shah Durrani and from the west by the Maharathas. Therefore he could not deploy his entire force against the British for fear of being attacked from the flanks. A deep distrust set in between the British and the Nawab. As a result Siraj started secret negotiations with Jean law, chief of the French factory at Cossimbazar, and de Buray. The Nawab also moved a large division of his army under Raj Durlabh to Plassey, on the Island of Cossimbazar 30 miles south of Murshidabad.
Popular discontent against the Nawab flourished in his own court. The Seths, the traders of Bengal, were in perpetual fear for their wealth under the reign of Siraj, cotrary to the situation under Alivardi's reign.They have engaged Yar Lutuf Khan to defend them in case they were threatened in any way.William Watts, the Company representative at the court of Siraj, informed Clive about a conspiracy at the court to overthrow the ruler. The conspirators included Mir Jafar, paymaster of the army, Raidurlabh, Yar Latif Khan, and Omichand(Amir Chand), a sikh merchant, and several officers in the army. When communicated in this regard by Mir Jafar, Clive referred it to the select committee in Calcutta on 1 May.The Committee passed a resolution in support of the alliance . A treaty was drawn between the British and Mir Jafar to raise him to the throne of the Nawab in return for support to the British in the field of Battle and the best of all of large sums of money upon them as compensation for the attack. On 2 May, Clive broke up his camp and sent half the troop to Calcutta an the other half to Chadernagar.