Royal treasury or Rajkosha has been considered of the utter importance in Arthasastra by Kautilya. Kautilya has stated that it should be flooding. He proposes various methods to replenish the Rajkosha. He proposes to establish new Janapadas or colonies to increase land revenue. But his idea to establish a Janapadas is not objected only for revenue. He asks the king to settle Shudras in those colonies in large number. After getting the land converted in to arable, he recommends to allot it to Brahmins. These Brahmins were provided a revenue free land. He also prohibits entry of hermits belonging to non-Brahmins. He also established laws favoring the spread of Brahmin culture and restricting non-Brahmin ideology. It appears as if he was creating a cultural colony of Brahmin ideology and culture. It is interesting to see whether his policy was supported by the king like Chandragupta Maurya, who himself don’t seem to have been follower of Brahmanism. Kautiya’s intentions have been discussed in the present thesis.