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Coming of the British & Revenue Settlements

Part of the BPSC study roadmap. General Studies topic histor-004 of General Studies.

Coming of the British & Revenue Settlements

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Coming of the British — Key Facts for BPSC

The British established their foothold in India through trade charters and gradually transformed into political rulers through a series of wars, treaties, and annexations.

Core Facts:

  • East India Company (EIC) established by Queen Elizabeth I in 1600 — granted monopoly over trade with the East
  • Battle of Plassey (1757): Robert Clive defeated Siraj-ud-daulah with the help of Mir Jafar — marked the beginning of British political power in India
  • Battle of Buxar (1764): British defeated the combined forces of Mir Qasim (Awadh), Shah Alam II (Mughal Emperor), and Shuja-ud-daulah — confirmed British control over Bengal
  • Regulating Act of 1773: First attempt to regulate EIC governance; appointed Governor-General of Bengal (Warren Hastings)
  • Charter Act of 1833: Made India a British colony; gave EIC administrative powers

Exam tip: The Battle of Plassey and its significance, along with Warren Hastings’ administrative reforms, are BPSC favourites.


🟡 Standard — Regular Study (2d–2mo)

Standard content for students with a few days to months.

Establishment of British Rule

Early Trading Companies

East India Company (EIC)

  • 1600: Granted charter by Queen Elizabeth I — monopoly over trade with the East (including India)
  • 1602: First joint-stock company — revolutionary financial instrument
  • 1608: Sir William Hawkins arrived at Jahangir’s court seeking trade privileges (failed)
  • 1615: Sir Thomas Roe obtained a farman (royal decree) from Jahangir allowing the EIC to establish a factory at Surat
  • Factories (trading posts) established at: Surat (1613), Bombay (1668), Calcutta (1690), Madras (1641)

Portuguese and Dutch

  • Portuguese were the first European traders in India — established in Goa (1510, Afonso de Albuquerque)
  • Dutch East India Company (VOC) — active in spices trade; established at Pulicat, Cochin; but were primarily driven out by the British

The Battle of Plassey (1757)

Background:

  • After the death of Mughal Emperor Aurangzeb (1707), the empire fragmented
  • Bengal became virtually independent under Alivardi Khan (1740–1756)
  • His grandson Siraj-ud-daulah became Nawab in 1756
  • EIC (under Robert Clive) and the French (under Dupleix) were competing for influence in Bengal

What Happened:

  • Siraj-ud-daulah seized the EIC’s factory at Calcutta (June 1756) — briefly imprisoned 146 British personnel (they died in the Black Hole of Calcutta)
  • Robert Clive, with a small force (about 3,000 men, including 500 Indian sepoys), defeated Siraj-ud-daulah’s much larger army (about 50,000)
  • Mir Jafar (Commander-in-Chief of Siraj’s army) was bribed to defect — no major battle; Siraj fled
  • Robert Clive won without a real fight — it was a political conspiracy, not a military victory

Why It Matters:

  • Mir Jafar installed as Nawab — a British puppet
  • EIC acquired Diwani rights (right to collect land revenue) in Bengal, Bihar, and Orissa by 1765 Treaty of Allahabad (signed with Mughal Emperor Shah Alam II)
  • British now had a regular source of income — the revenue of Bengal funded their expansion
  • This is considered the true beginning of British political rule in India

Battle of Buxar (1764)

Background:

  • Mir Qasim (installed by the British after Mir Jafar) grew resentful of EIC interference
  • He fled to Awadh and formed a triple alliance with Shah Alam II (Mughal Emperor) and Shuja-ud-daulah (Nawab of Awadh)
  • British forces under Hector Munro defeated the alliance at Buxar

Treaty of Allahabad (1765):

  • Shah Alam II accepted British protection and was given Allahabad and Kora
  • Shuja-ud-daulah recognized British control over Rohilkhand
  • Diwani rights granted to the EIC in Bengal, Bihar, and Orissa

Warren Hastings (Governor-General of Bengal, 1772–1785)

Warren Hastings was the first Governor-General of Bengal. His major reforms:

Administrative:

  • Established the Calcutta Supreme Court (1773) — though it conflicted with the Sadar Diwani Adalat
  • Created the Board of Revenue to oversee land revenue
  • Charter Act of 1773: Created the post of Governor-General; established a Supreme Court in Calcutta

Revenue Reforms:

  • Tried to fix revenue rates at 10% of the produce (the Charter of 1773)
  • Eventually led to the Permanent Settlement of 1793

Judicial:

  • Established circuit courts for criminal justice
  • Reform of the ** Cornwallis** Code later

Controversies:

  • Case of Raja Nand Kumar (1775) — the first Indian to be tried and executed for forgery under British law; Hastings was accused of suppressing evidence but was acquitted
  • RoopKanwar case — sati prevention; Hastings issued a regulation (but it was weak)
  • Chait Singh of Benares — Hastings demanded excessive tribute from the Raja; Raja resisted; Hastings annexed part of his territory
  • Treaty of 1784: Pitt’s India Act created a Board of Control to oversee EIC affairs

Cornwallis (Governor-General, 1786–1793)

Cornwallis is known for establishing the Permanent Settlement and civil service reforms.

Permanent Settlement (1793):

  • Fixed land revenue permanently (hence “Permanent”)
  • Zamindars recognized as landowners (proprietors) — they paid fixed revenue to the government
  • Revenue demand could NOT be increased in the future
  • This created a class of permanent landlords (Zamindars) loyal to the British
  • Disadvantages: Many Zamindars sold their lands or defaulted; farmers (Ryots) got no rights

Revenue Settlements — A Detailed Study

Permanent Settlement (1793) — Lord Cornwallis

  • Applied to Bengal, Bihar, Orissa, and parts of Madras
  • Zamindars became property owners — Revenue was fixed permanently (in perpetuity)
  • Revenue demand: 10/11 of the rental value — extremely high
  • Landowners who defaulted lost their lands (Lakhiraj lands excepted)
  • Created a class of loyal landlords — the “Taluqdari system”
  • Flaw: It did not grant rights to actual cultivators (Ryots); many Ryots became tenants

Ryotwari System — Thomas Munro (1820s)

  • Introduced in Madras Presidency (primarily)
  • Ryot (cultivator) was the owner of the land — direct settlement between the government and the cultivator
  • Revenue was fixed for a period (not permanently)
  • Each ryot had a pattadar (title deed) for his land
  • Disadvantages: Inadequate records, no credit system, ryots often under debt

Mahalwari System — William Bentinck (1833)

  • Introduced in Punjab, Western UP, parts of Central India
  • The village (Mahal) was treated as a single unit for revenue assessment
  • The village community (Panchayat) was collectively responsible for revenue payment
  • Disadvantages: Village headman became powerful; some cultivators lost rights

Comparative Table — All Three Systems

FeaturePermanent SettlementRyotwariMahalwari
AreaBengal, Bihar, OrissaMadras PresidencyPunjab, Western UP
UnitZamindarIndividual RyotVillage (Mahal)
RevenueFixed permanentlyFixed for periodFixed per village
OwnerZamindar (proprietor)Ryot (owner)Village community
CollectivityIndividualIndividualCollective
Created ByCornwallisThomas MunroWilliam Bentinck
Year17931820s1833

Why the British Conducted Revenue Settlements

  • Economic: Need a stable revenue stream to fund the Company’s operations and trade
  • Political: Create a class of landlords loyal to the British (Zamindars)
  • Administrative: Systematic record-keeping; land ownership became documented
  • Legal: Create property rights — land could now be bought, sold, and mortgaged

Impact on Bihar

  • Bihar was under the Permanent Settlement (as part of Bengal)
  • Many Zamindars in Bihar lost their lands due to high revenue demands
  • The Taluqdari system became prominent in South Bihar (shifting from older Zamindari)
  • Bihar’s agrarian economy was deeply affected by these revenue settlements

🔴 Extended — Deep Study (3mo+)

Comprehensive coverage for students on a longer study timeline.

Detailed Chronology of British Expansion

YearEventSignificance
1600EIC CharterTrading monopoly
1608Hawkins at Jahangir’s courtFirst British diplomatic mission
1615Thomas Roe’s farmanTrade rights
1757Battle of PlasseyPolitical foothold
1764Battle of BuxarConfirmed British dominance
1765Treaty of AllahabadDiwani rights granted
1773Regulating ActFirst governance reform
1793Permanent SettlementFixed revenue system
1813Charter ActEnd of EIC monopoly (except tea/trade)
1853Charter ActOpen competition for civil service
1857RevoltEnd of EIC; Crown rule

Robert Clive — Key Facts

  • First Governor of Bengal (1757–1760, 1765–1767)
  • Known as “Clive of India” — first to combine political power with commercial wealth
  • Returned to England a very wealthy man
  • Clive’s Dual Government System (1765): After getting Diwani rights, the EIC collected revenue through Indian officials (Zamindars) but took no responsibility for administration — led to chaos
  • Committed suicide in 1774 (though some suspect murder)

Warren Hastings — Detailed Contributions

  • Governor-General (1772–1785)
  • Revenue reforms: Established Board of Revenue; fixed revenue demand
  • Judicial reforms: Set up Diwani Adalats (civil courts) at district level, Nizamat Adalats (criminal courts) at province level
  • Charter Act of 1773: First Governor-General (Warren Hastings); established Supreme Court in Calcutta
  • Pitt’s India Act of 1784: Created Board of Control to supervise EIC
  • Relations with Indian states: Signed treaties with various princes; pursued cautious expansion
  • Cultural: Promoted the study of Indian languages; translated ancient texts; helped establish the Asiatic Society of Bengal (1784)

Lord Cornwallis — More Details

  • Governor-General (1786–1793)
  • Permanent Settlement (1793): Fixed land revenue permanently
  • Created the Indian Civil Service (ICS): Entry through competitive examination (though initially limited to Britain)
  • Separated revenue administration from judicial functions: Previously,Collectors oversaw both revenue and justice
  • Police reforms: Established a systematic police force; each district had a District Superintendent
  • Built Writer’s Building in Calcutta (Bengal’s administrative complex)

Charter Acts — Evolution of British Governance

Charter Act of 1813

  • Renewed EIC’s charter for 20 years
  • End of EIC monopoly on trade (except tea and opium with China)
  • Allowed missionaries to set up missions in India
  • Indian goods faced high tariffs in Britain (protecting British manufacturers)

Charter Act of 1833

  • Made India a British colony
  • EIC lost all commercial privileges; became purely administrative
  • Governor-General of Bengal became Governor-General of India
  • First mention of law commission: Appointed a law member to codify Indian law
  • ** Macaulay** was the first Law Member (1834); wrote the Macaulay’s Minutes on education (1835)

Charter Act of 1853

  • Separated the Governor-General’s legislative power from executive
  • Created a legislative council (central and provincial) separate from the executive
  • Opened civil service to competitive examination (but only in Britain — Indians still excluded)

Impact of Revenue Settlements on Indian Society

Positive:

  • Systematic record-keeping of land ownership
  • Certainty in revenue demand (under Permanent Settlement)
  • Creation of a landlord class loyal to the British
  • Development of a land market — land could be bought and sold

Negative:

  • Farmers (Ryots) got no rights — they were at the mercy of Zamindars
  • Many Zamindars defaulted on revenue and lost their lands
  • Fragmentation of holdings due to inheritance laws
  • Rural indebtedness increased — moneylenders took over land
  • Created a landed aristocracy that became parasitic — disconnected from agriculture

BPSC Previous Year Question Pattern

  • Battle of Plassey — causes, significance, Mir Jafar’s role
  • Revenue settlements — differences between all three
  • Warren Hastings’s reforms
  • Permanent Settlement — features and impact on Bengal
  • Charter Acts and their significance in governance evolution
  • Bihar and British revenue system

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