Step 1: Oppressive British Revenue Policy in Damin-i-Koh:
The British had persuaded the Santhals to clear the dense forests of the Rajmahal Hills and practice settled agriculture, carving out a dedicated territory for them called Damin-i-Koh in $1832$. However, once the land was cleared and cultivation began, the colonial state imposed exceptiolly high land taxes. The Santhals soon realized that the state was demanding an unsustaible share of their hard-earned produce, creating severe economic distress.
Step 2: Exploitation by Moneylenders and Traders (Dikus):
To pay their heavy government revenues in cash, the Santhals were forced to take loans from local non-tribal moneylenders and traders, whom they referred to as dikus (outsiders). These moneylenders charged astronomical interest rates. When the simple tribal peasants failed to repay the compound interest, the moneylenders seized their cattle, crops, and ancestral lands, pushing the Santhals into a cycle of permanent debt bondage and dispossession.
Step 3: Encroachment by Zamindars and State Authority:
The British-backed local Zamindars steadily asserted control over the edges of the Damin-i-Koh, encroaching upon Santhal lands. Furthermore, the colonial police, judicial system, and railway contractors acted in favor of the wealthy traders and Zamindars, leaving the Santhals with no legal recourse. Realizing that their entire social, cultural, and economic way of life was being dismantled, the Santhals rose in a massive, coordited armed rebellion ($1855$ -- $1856$) under the leadership of Sidhu and Kanhu to drive out the oppressors and establish their own self-ruled territory (Santhal Parga).