The Treaty of Sugauli was ratified on 4 March 1816. As per the treaty, Nepal lost Sikkim (including Darjeeling), the territories of Kumaon and Garhwal, and most of the lands of the Terai. The Mechi River became the new eastern border and the Mahakali river the western boundary of the kingdom. The British East India Company would pay 200,000 rupees annually to compensate for the loss of income from the Terai region. Kathmandu was also forced to accept a British Resident. The fear of having a British Resident in Kathmandu ultimately proved to be unfounded, as the rulers of Nepal managed to isolate the Resident to such an extent as to be in virtual house arrest.