The British had bribed mughal officials into granting rights of three cities, Gobindapur, Sutanuti and Kalikata to the British East India Company in the year 1651. The British built a factory and ware house there where goods for export were stored and many offices were built where company officials sat. This became the base for the company's trades known as factors.
In 1651, the British persuaded mughal officials to grant the rights of three cities – Gobindapur, Sutanuti, and Kalikata – to the British East India Company. The British then established a factory and warehouse in the area, where they stored goods for export and built offices for their officials. This marked the beginning of the company's trading operations, which were known as factors.