With reference to the colonial rule of India, which one of the following was not the feature of Subsidiary Alliance System?

The correct answer is Option 2. Under the Subsidiary Alliance System, introduced by Lord Wellesley, the financial burden of the British army was indeed borne by the Indian State, but the "determination of expenses" was not their duty. Instead, the British fixed the costs, and the Indian ruler had to pay a fixed subsidy or cede territory in perpetuity.

Why Option 2 is not a feature:

• The British dictated the financial terms; the Indian State had no sovereign power to "determine" or negotiate these expenses. Failure to pay led to the annexation of parts of their territory.

Why other options are features:

• Option 1 & 3: Maintaining a British contingent and hosting a British Resident were core pillars of the alliance to control the state's internal and external affairs.
• Option 4: While the army was for the state's "protection," it was composed of Indian sepoys under British command, serving Company interests.