After the transfer of the East India Company forces to the Crown in 1858 the European units were combined with the British Army equivalents. The legality of automatic transfer to the British Army, was strongly disputed, which resulted in soldiers who had enlisted for the East India Company armies being given the option of discharge with no pension but with a payout. There were a smaller number of men who wanted to remain in India who were allowed to serve out their time in Local European units, but which were gradually dissolved.

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