<P> The prosperity that the officers of the company enjoyed allowed them to return to Britain and establish sprawling estates and businesses, and to obtain political power . The company developed a lobby in the English parliament . Under pressure from ambitious tradesmen and former associates of the company (pejoratively termed Interlopers by the company), who wanted to establish private trading firms in India, a deregulating act was passed in 1694 . </P> <P> This allowed any English firm to trade with India, unless specifically prohibited by act of parliament, thereby annulling the charter that had been in force for almost 100 years . By an act that was passed in 1698, a new "parallel" East India Company (officially titled the English Company Trading to the East Indies) was floated under a state - backed indemnity of £ 2 million . The powerful stockholders of the old company quickly subscribed a sum of £ 315,000 in the new concern, and dominated the new body . The two companies wrestled with each other for some time, both in England and in India, for a dominant share of the trade . </P> <P> It quickly became evident that, in practice, the original company faced scarcely any measurable competition . The companies merged in 1708, by a tripartite indenture involving both companies and the state . Under this arrangement, the merged company lent to the Treasury a sum of £ 3,200,000, in return for exclusive privileges for the next three years, after which the situation was to be reviewed . The amalgamated company became the United Company of Merchants of England Trading to the East Indies . </P> <P> In the following decades there was a constant battle between the company lobby and the Parliament . The company sought a permanent establishment, while the Parliament would not willingly allow it greater autonomy and so relinquish the opportunity to exploit the company's profits . In 1712, another act renewed the status of the company, though the debts were repaid . By 1720, 15% of British imports were from India, almost all passing through the company, which reasserted the influence of the company lobby . The licence was prolonged until 1766 by yet another act in 1730 . </P>

Give the conditions that led to the establishment of the east india company