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Regulating Act
The need for constitutional change arose after the East India Company became the political power in 
1757.
The  British Government was no longer willing to allow the Company’s affairs to continue 
unsupervised.
Pressure from merchants and manufacturers to end the monopoly of the Company mounted.
Public opinion was critical of corruption in the Government in Bengal. 
Free enterprise was a major demand. 
The British Parliament enacted a series of laws among which the Regulating Act of 1773 stood first, to 
curb the Company traders’ unrestrained commercial activities and to bring about some order in 
territories under the Company control. 
? Limiting the Company charter to periods of twenty years, subject to review upon renewal, this  act gave the 
British government supervisory rights over the Bengal, Bombay, and Madras presidencies. 
? The Regulating Act also created a unified administration for India, uniting the three presidencies under the 
authority of the Bengal’s governor, who was elevated to the new position of governor-general. 
? Warren Hastings was the first incumbent governor-general (1773–1785).
Page 2


Regulating Act
The need for constitutional change arose after the East India Company became the political power in 
1757.
The  British Government was no longer willing to allow the Company’s affairs to continue 
unsupervised.
Pressure from merchants and manufacturers to end the monopoly of the Company mounted.
Public opinion was critical of corruption in the Government in Bengal. 
Free enterprise was a major demand. 
The British Parliament enacted a series of laws among which the Regulating Act of 1773 stood first, to 
curb the Company traders’ unrestrained commercial activities and to bring about some order in 
territories under the Company control. 
? Limiting the Company charter to periods of twenty years, subject to review upon renewal, this  act gave the 
British government supervisory rights over the Bengal, Bombay, and Madras presidencies. 
? The Regulating Act also created a unified administration for India, uniting the three presidencies under the 
authority of the Bengal’s governor, who was elevated to the new position of governor-general. 
? Warren Hastings was the first incumbent governor-general (1773–1785).
Pitt’s India Act of 1784 
Sometimes described as the “half-loaf system”, as it sought to mediate between Parliament and 
the company directors
? It enhanced Parliament’s control by establishing the Board of Control, whose members were selected 
from the British cabinet. 
? As governor-general from 1786 to 1793, Lord Cornwallis, professionalized, bureaucratized, and 
Europeanized the company’s administration. 
? He also outlawed private trade by company employees, separated the commercial and administrative 
functions, and enhanced the salaries of company’s servants. 
? As revenue collection became the company’s most essential administrative function, Lord Cornwallis 
granted legal ownership of land to the zamindars in Bengal. In return, zamindars had to pay the 
government fixed revenue by a certain particular date. This arrangement was to last for ever; hence the 
title “permanent settlement” was given. This system was also known as the zamindari system. 
? The immediate consequence was that as now zamindar became the owner of the land, the peasant was 
reduced to the status of the tenant on his own land. 
? Moreover now land became a negotiable property and the state was excluded from agricultural 
expansion and development, which came under the purview of the zamindars. 
Page 3


Regulating Act
The need for constitutional change arose after the East India Company became the political power in 
1757.
The  British Government was no longer willing to allow the Company’s affairs to continue 
unsupervised.
Pressure from merchants and manufacturers to end the monopoly of the Company mounted.
Public opinion was critical of corruption in the Government in Bengal. 
Free enterprise was a major demand. 
The British Parliament enacted a series of laws among which the Regulating Act of 1773 stood first, to 
curb the Company traders’ unrestrained commercial activities and to bring about some order in 
territories under the Company control. 
? Limiting the Company charter to periods of twenty years, subject to review upon renewal, this  act gave the 
British government supervisory rights over the Bengal, Bombay, and Madras presidencies. 
? The Regulating Act also created a unified administration for India, uniting the three presidencies under the 
authority of the Bengal’s governor, who was elevated to the new position of governor-general. 
? Warren Hastings was the first incumbent governor-general (1773–1785).
Pitt’s India Act of 1784 
Sometimes described as the “half-loaf system”, as it sought to mediate between Parliament and 
the company directors
? It enhanced Parliament’s control by establishing the Board of Control, whose members were selected 
from the British cabinet. 
? As governor-general from 1786 to 1793, Lord Cornwallis, professionalized, bureaucratized, and 
Europeanized the company’s administration. 
? He also outlawed private trade by company employees, separated the commercial and administrative 
functions, and enhanced the salaries of company’s servants. 
? As revenue collection became the company’s most essential administrative function, Lord Cornwallis 
granted legal ownership of land to the zamindars in Bengal. In return, zamindars had to pay the 
government fixed revenue by a certain particular date. This arrangement was to last for ever; hence the 
title “permanent settlement” was given. This system was also known as the zamindari system. 
? The immediate consequence was that as now zamindar became the owner of the land, the peasant was 
reduced to the status of the tenant on his own land. 
? Moreover now land became a negotiable property and the state was excluded from agricultural 
expansion and development, which came under the purview of the zamindars. 
Charter Acts
The Charter Act of 1813 ended the monopoly of the Company over trade with India. 
The Company’s control over revenue, administration and appointments remained untouched. 
The Charter Act of 1833 abolished the Company’s monopoly of the China trade. 
The Act also deprived the presidencies of the power to make laws, concentrating legislative 
power with the Governor-General and his council.
Page 4


Regulating Act
The need for constitutional change arose after the East India Company became the political power in 
1757.
The  British Government was no longer willing to allow the Company’s affairs to continue 
unsupervised.
Pressure from merchants and manufacturers to end the monopoly of the Company mounted.
Public opinion was critical of corruption in the Government in Bengal. 
Free enterprise was a major demand. 
The British Parliament enacted a series of laws among which the Regulating Act of 1773 stood first, to 
curb the Company traders’ unrestrained commercial activities and to bring about some order in 
territories under the Company control. 
? Limiting the Company charter to periods of twenty years, subject to review upon renewal, this  act gave the 
British government supervisory rights over the Bengal, Bombay, and Madras presidencies. 
? The Regulating Act also created a unified administration for India, uniting the three presidencies under the 
authority of the Bengal’s governor, who was elevated to the new position of governor-general. 
? Warren Hastings was the first incumbent governor-general (1773–1785).
Pitt’s India Act of 1784 
Sometimes described as the “half-loaf system”, as it sought to mediate between Parliament and 
the company directors
? It enhanced Parliament’s control by establishing the Board of Control, whose members were selected 
from the British cabinet. 
? As governor-general from 1786 to 1793, Lord Cornwallis, professionalized, bureaucratized, and 
Europeanized the company’s administration. 
? He also outlawed private trade by company employees, separated the commercial and administrative 
functions, and enhanced the salaries of company’s servants. 
? As revenue collection became the company’s most essential administrative function, Lord Cornwallis 
granted legal ownership of land to the zamindars in Bengal. In return, zamindars had to pay the 
government fixed revenue by a certain particular date. This arrangement was to last for ever; hence the 
title “permanent settlement” was given. This system was also known as the zamindari system. 
? The immediate consequence was that as now zamindar became the owner of the land, the peasant was 
reduced to the status of the tenant on his own land. 
? Moreover now land became a negotiable property and the state was excluded from agricultural 
expansion and development, which came under the purview of the zamindars. 
Charter Acts
The Charter Act of 1813 ended the monopoly of the Company over trade with India. 
The Company’s control over revenue, administration and appointments remained untouched. 
The Charter Act of 1833 abolished the Company’s monopoly of the China trade. 
The Act also deprived the presidencies of the power to make laws, concentrating legislative 
power with the Governor-General and his council.
Bureaucracy
With such expansion of the British territories and the increasing administrative responsibilities, a bureaucracy was 
also required to control British possessions. 
In 1785, Lord Cornwallis created a professional cadre of Company servants who had generous salaries, had no 
private trading or production interests in India, enjoyed the prospect of regular promotion and were entitled to 
pensions. 
All high-level posts were reserved for the British, and Indians were excluded. Cornwallis appointed British judges, 
and established British officials as revenue collectors and magistrates in each district of Bengal. 
From 1806 the Company trained its young recruits in Haileybury College near London. 
Appointments were still organized on a system of patronage. 
In 1829 the system was strengthened by establishing districts throughout British India small enough to be 
effectively controlled by an individual British official who henceforth exercised a completely autocratic power, 
acting as revenue collector, judge and chief of police. 
After 1833 the Company selected amongst its nominated candidates by competitive examination. 
After 1853, selection was entirely on merit and the examination was thrown open to any British candidate. 
The Indian civil service (i) was very highly paid; (ii) it enjoyed political power which no bureaucrat could have had 
in England.
Page 5


Regulating Act
The need for constitutional change arose after the East India Company became the political power in 
1757.
The  British Government was no longer willing to allow the Company’s affairs to continue 
unsupervised.
Pressure from merchants and manufacturers to end the monopoly of the Company mounted.
Public opinion was critical of corruption in the Government in Bengal. 
Free enterprise was a major demand. 
The British Parliament enacted a series of laws among which the Regulating Act of 1773 stood first, to 
curb the Company traders’ unrestrained commercial activities and to bring about some order in 
territories under the Company control. 
? Limiting the Company charter to periods of twenty years, subject to review upon renewal, this  act gave the 
British government supervisory rights over the Bengal, Bombay, and Madras presidencies. 
? The Regulating Act also created a unified administration for India, uniting the three presidencies under the 
authority of the Bengal’s governor, who was elevated to the new position of governor-general. 
? Warren Hastings was the first incumbent governor-general (1773–1785).
Pitt’s India Act of 1784 
Sometimes described as the “half-loaf system”, as it sought to mediate between Parliament and 
the company directors
? It enhanced Parliament’s control by establishing the Board of Control, whose members were selected 
from the British cabinet. 
? As governor-general from 1786 to 1793, Lord Cornwallis, professionalized, bureaucratized, and 
Europeanized the company’s administration. 
? He also outlawed private trade by company employees, separated the commercial and administrative 
functions, and enhanced the salaries of company’s servants. 
? As revenue collection became the company’s most essential administrative function, Lord Cornwallis 
granted legal ownership of land to the zamindars in Bengal. In return, zamindars had to pay the 
government fixed revenue by a certain particular date. This arrangement was to last for ever; hence the 
title “permanent settlement” was given. This system was also known as the zamindari system. 
? The immediate consequence was that as now zamindar became the owner of the land, the peasant was 
reduced to the status of the tenant on his own land. 
? Moreover now land became a negotiable property and the state was excluded from agricultural 
expansion and development, which came under the purview of the zamindars. 
Charter Acts
The Charter Act of 1813 ended the monopoly of the Company over trade with India. 
The Company’s control over revenue, administration and appointments remained untouched. 
The Charter Act of 1833 abolished the Company’s monopoly of the China trade. 
The Act also deprived the presidencies of the power to make laws, concentrating legislative 
power with the Governor-General and his council.
Bureaucracy
With such expansion of the British territories and the increasing administrative responsibilities, a bureaucracy was 
also required to control British possessions. 
In 1785, Lord Cornwallis created a professional cadre of Company servants who had generous salaries, had no 
private trading or production interests in India, enjoyed the prospect of regular promotion and were entitled to 
pensions. 
All high-level posts were reserved for the British, and Indians were excluded. Cornwallis appointed British judges, 
and established British officials as revenue collectors and magistrates in each district of Bengal. 
From 1806 the Company trained its young recruits in Haileybury College near London. 
Appointments were still organized on a system of patronage. 
In 1829 the system was strengthened by establishing districts throughout British India small enough to be 
effectively controlled by an individual British official who henceforth exercised a completely autocratic power, 
acting as revenue collector, judge and chief of police. 
After 1833 the Company selected amongst its nominated candidates by competitive examination. 
After 1853, selection was entirely on merit and the examination was thrown open to any British candidate. 
The Indian civil service (i) was very highly paid; (ii) it enjoyed political power which no bureaucrat could have had 
in England.
Judicial System
By the mid- eighteenth century, the British had a political presence in the three presidency 
towns of Madras, Bombay, and Calcutta which also saw the emergence of British judicial system 
in India. 
The Mayor’s Court was established in 1727 for civil litigation in Bombay, Calcutta, and Madras. 
In 1772 an elaborate judicial system, known as adalat, established civil and criminal jurisdictions. 
Both Hindu pandits and Muslim qazis (Sharia court judges) were recruited to aid the presiding 
judges in interpreting their customary laws, but in general, British common and statutory laws 
became applicable. 
The two main theoretical principles underlying the entire British judicial system in India were the 
notions of the Rule of Law and Equality before law – thus, in theory
? no one was above the law (certain rules which defined the rights, privileges and obligations of the 
people) and 
? all the citizens irrespective of their caste, class and other status, were now equal before law. 
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