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Evolution of Colonial Governance: Regulating Act 1773 to Charter Act 1793

Evolution of Colonial Governance #

Regulating Act 1773 and the Rise of East India Company’s Authority #

The East India Company, which started as a trading company in 1600, gradually gained political influence by getting involved in local matters. The Battle of Plassey (1757) and the Battle of Buxar (1764) changed the fate of East India Company (EIC) which, after the regulating act of 1773, acquired power in Bengal initially and eventually extended its influence throughout India.

Company Rule (1773-1858) and the Legacy of the Regulating Act 1773 #

Before India’s independence, many regulations and laws, including the regulating act 1773, were enacted, which can be linked to the formation of the Indian Constitution

  • Time Frame: The development of the Indian Constitution can be categorized into two distinct periods: 
  1. The Company Rule (1773-1858)
  2. The Crown Rule (1858-1947).
The Company Rule (1773-1858) The Crown Rule (1858-1947)
  • The Company Rule, especially after the regulating act 1773, involved the implementation of a set of regulations that governed the operations and management of businesses. 
  • These rules were specifically designed to oversee the functioning of the East India Company (EIC).
  • The British government took direct control over India.
  • Throughout this period, the British Parliament passed various acts aimed at Indian administration. 

 

Also Read: CONSTITUTION AND CONSTITUTIONALISM: PRINCIPLES, SAFEGUARDS, AND CHALLENGES IN GOVERNANCE

Crises and Corrections: Imperative for Regulating Act 1773 in the East India Company’s Governance #

  • Bengal Famine (1770): It was the most appealing disaster in the history of India. EIC and officials were largely blamed for the complete collapse of the government.
  • Mal-Administration: Rampant corruption and plunder of Bengal by the EIC’s officials.
  • Dual Government: During the seven-year rule of dual government (Introduced by Robert Clive), Diwani rights were supposed to be exercised by the Company and Nizamat rights were exercised by Nizam. 
    • Nizam was the figurehead and actual rights were enjoyed by the Deputy Nawab who was appointed by the Company. 
    • Abuses and Scandals: Company enjoys power but responsibility was passed to Nizam. 
      • Private trade was at its peak, at the same time the company was in debt.
      • On the other hand, in maximizing revenue, It led to the oppression of peasantry.
  • A Demand for a Government Assistance: The occasion for the Regulating Act 1773 was the company’s misgovernment of its Bengal lands, brought to a crisis by the threat of bankruptcy and a demand for a government loan.
  • The Committee of Enquiry: The British government (House of Commons) appointed a secret committee to look for bankruptcy of the Company. 
    • The Committee of Enquiry issued its reports which were highly condemnatory. The British government passed two acts. 
  • First act passed for granting loan to EIC based on conditions and Second act was passed which was known as Regulating Act 1773.
    • It was passed without opposition in the parliament but it was condemned by the Company and its servants. 

india during company rule

    

Transformative Impact of the Regulating Act 1773 on East India Company’s Governance in India #

  • It was the British Government’s first move to manage and oversee the East India Company’s activities in India.
  • It recognised, for the first time, the political and administrative functions of the Company
  • For the first time, it recognised the political and administrative functions of the company.
  • It laid the foundations of central administration in India with the Regulating Act 1773.

Features of the Regulating Act 1773

Governor General
  • The Governor of Bengal was designated as the ‘Governor-General of Bengal,’ with the support of an Executive Council consisting of four members.
  • He was given a casting vote but no veto.
  • First Governor-General: Lord Warren Hastings.
Established Supreme Court
  • It established the Supreme Court in Calcutta (1774), comprising one chief justice and three additional judges
  • Sir Elijah Impey was chosen as the chief justice of this court.
  • Appeals could be taken from the provincial court to the governor general council and from there to the King in council.
Honest Administration:
  • Prohibition on Private Trade: It prohibited Company servants from engaging in private trade or accepting gifts or bribes from the local population.
  • It increased the British Government’s control over the Company by requiring the Court of Directors, the Company’s governing body, to report on revenue, civil, and military affairs in India.
  • It recognised Parliament’s authority to control the civil, military, and financial affairs of the company’s Indian possessions.
  • This  moves the strengthened Control over Company.
Subordination of Presidency
  • It made the governors of the Bombay and Madras presidencies subordinate to the Governor General of Bengal, unlike the previous independent status of the three presidencies.

 

Also Read: SCHEDULES OF INDIAN CONSTITUTION: 12 SCHEDULES NURTURING DEMOCRACY

Imperfections in Implementation: Assessing the Drawbacks of the Regulating Act 1773 in Governance Reform #

  • No Veto Power: Governor general had no veto power which made its office weak under the Regulating Act 1773
  • Neglect of Indian Issues: The Regulating Act 1773 did not demarcate power between the Governor and Supreme court which led to conflict between these two offices.
  • Weak Subordination of Presidency:  Subordination of  Madras and Bombay under Bengal was weak as these provinces could act on their own in the pretext of emergency, a situation tackled by the Regulating Act 1773.

Amending act of 1781: It reduced the power of the Supreme court much below the governor general council.

Pitt’s India Act 1784 and the Restructuring of East India Company Governance #

  • Aim:  To meet shortcomings of the Regulating act 1773 and to control EIC more effectively.
  • Veto Power: The Pitt’s India act 1784 gave veto to the governor general and Bengal and Bombay presidency were made subordinate to the Governor general.
  • Administrative set up established under Pitts India act did not undergo major changes until the beginning of the company rule  1858.

Features of Pitt’s India Act 1784

Dual System of Control
  • Board of Control: It was set up in London to direct and oversee the activities of the Court of Directors and the Government of India
  • It empowered the Board of Control to oversee and manage all aspects of the civic, military, and financial operations of the British colonies in India.
  • The Board of Control represented the Crown.
  • A Secret Committee: It was established to transfer important orders of the Board  of control in India.
  • Composition: Total 6 Members viz., The King appointed the Chancellor of the Exchequer, the Secretary of State, and four Privy Councillors.
  • Court of Directors: It was the governing body of the company.
    • The Court of Directors represented the Company.
  • Composition: Of the total number of twenty-four members of the Court of Directors,
    • Six existed on rotation each year in April and
    • The directors were elected individually for four year
  • Recruitment of Covenanted Civil Service: This remained the absolute privilege of the Court of Directors until the Charter Act of 1853
British Got Control Over Company
  • Extended the British government’s influence over the operations and leadership of the Company in India.
Separated the Function of EIC
  • This act made a distinction between the Company’s commercial and political affairs.
Size of Council Reduced
  • In India, the Council of Governor General was reduced to 3.
  • One of whom is Commander in Chief of the King’s Army.
  • This move strengthened the position of Governor General which could override the decision of the council with the Veto Power in case of emergency.
Complete Subordination of Presidency:
  • The Act of 1784 also made Madras and Bombay under under control of the Governor general of Bengal in all matters like war, diplomacy and revenue.

 

Weaknesses and Criticisms Post Pitt’s India Act 1784 #

  • Subjective Power Sharing: Power of Company and Government was unclear and highly subjective.
  • Allegation of Nepotism on Board of Control.

Significance and Transformative Impact of Pitt’s India Act 1784 Post the Regulating Act 1773 #

  • Company’s territory for the first time was called the ‘British possession In India’.
  • The British government, through the  Pitt’s India Act 1784 was given supreme control over EIC and its affairs in Indian administration.

Amendment Act of 1786: #

  • Concentration of Power: Power of both Governor general and commander in chief concentrated on the Governor general.
    • This was done on the special request of Cornwallis.
  • Power to Override: This amendment granted power to the Governor general to override his council in extraordinary situations.

 

Charter Act of 1793 and its Impact on East India Company’s Rule in India #

  • Charter : It is a royal assent given to a company  for the purpose of trade, exploration, and/or colonization.
    • First charter for EIC was issued in 1600.
    • A commercial company needed to obtain a charter for overseas trade for various reasons, with the primary one being to secure maritime protection from pirates and invaders in foreign lands and seas for the Kingdom.
    • From time to time it was renewed for EIC till its abolition in 1875.
    • It was also the  source of income for the Crown.
  • Charter Act Series in India: specially for  the  administration of India began in 1793 with the passage of the Regulating Act 1773.
  • Charter Regulating Act 1793: enabled the English east India company to come to the ‘East Indies’ for trade and commerce as a company endowed with exclusive rights and subsequently to rule India until 1858.
    • It was passed in the June of 1793 by the British parliament. 
    • The primary aim of the Charter of 1793 was to extend the rule and trading privileges of the East India Company for an additional 20 years.

Features and Impact of the Charter Act of 1793 on East India Company’s Administration in India #

Features Description
Extended the Overriding Power of Governor General
  • It was initially given to Lord Cornwallis over his council.
  • This was extended  to all future Governor-Generals and Governors of Presidencies.
  • He could override his council in case of certain circumstances.I
More Authority Over Subordinate Presidency
  • It gave the Governor-General more authority and control over the administrations of the Madras and Bombay  presidency (especially in matters of war and peace)
Appointment of Vice President
  • During the absence of Governor general, the vice president had to be appointed in Bengal to look after Bengal administration.
Separation of Executive and the Judiciary
  • The powers vested in the collector were administrative and judicial as he was also in charge of collection of revenue and for deciding cases arising out of revenue matters. 
  • Now, the collector had sole responsibility for revenue collection.
  • All powers and ongoing cases of the Revenue courts were then shifted to the Mofussil Diwani Adalats.
  •  It led to the disappearance of the Maal Adalats.
Independence of the Supreme Court
  • The Supreme Court was made independent of the Governor general.
Other Features
  • Compensation from Indian Revenues: The Regulating Act 1793 stipulated that the Board of Control members and their employees  would now be compensated from Indian tax revenues, reflecting a measure influenced by the Regulating Act 1793.
    • This practice continued up to 1919.
  • Commander-in-Chief: He was not to serve on the Governor-General’s council unless he was appointed to do so, according to provisions.
  • Company’s Political Role: It clearly mentioned that the company ‘s political functions were on the behalf of the British government.
  • Senior company officials were barred  leaving India without permission. 

 

Also Read: UNDERSTANDING THE PREAMBLE OF INDIAN CONSTITUTION: SIGNIFICANCE, EVOLUTION, AND CONTEMPORARY DEBATES

 

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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UDAAN PRELIMS WALLAH
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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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Designed as per recent trends of Prelims questions
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