The chief settlement of the Ostend Company in India was established at Bankibazar. There, the
Austrian flag was hoisted, and trade was carried on under its protection hence the enterprise was often referred to as the German Company. During the
Maratha invasions, Sayeed Ahmad was appointed by Alivardi Khan to the post of faujdar of Hooghly. During his tenure, Sayeed Ahmad became embroiled in a dispute with the German traders at Hooghly over customs duties. The company's chief, Francois de Schonamille, was accused of aiding the Marathas and asked to pay a large indemnity. Then, situation escalated when one of his officers, Subhan Singh, imposed oppressive measures that provoked the Germans to launch a night attack on the Hooghly fort on 22 September 1744. The assault was repelled by the guards, forcing the Germans to retreat by boat the following morning. Though the town was set ablaze, two ships with valuable cargo were captured. In retaliation, Sayeed Ahmad dispatched Husain Raza Khan and Subhan Singh with a strong force to besiege the German factory. However, lacking military experience and lulled into a false sense of security, they encamped in the garden of the merchant
Omichand near Hooghly. At midnight, the Germans mounted a surprise attack, throwing the camp into confusion and compelling the Mughal troops to flee. On hearing of this setback, Alivardi Khan ordered
Mir Jafar Khan to punish the Germans. Mir Jafar acting at the instigation of English and Dutch traders, laid siege to Bankibazar with 10,000 troops. The factory was soon abandoned. Contemporary accounts suggest that Mir Jafar may have accepted bribe from the Germans, allowing them to escape unharmed. == Aftermath ==