Evolution of Charter Acts in India: History, Governance & British Rule (1813-1853)

Evolution of Charter Acts in India

• The Act abolished the East India Company’s commercial monopoly in India, with the exception of its monopolies in trade with China and trade in tea. 
• Subject to these restrictions, Indian trade is open to all Englishmen.

• This was explicitly defined for the first time the constitutional position of British dominion over the Indian lands of the Company.

• The Act allowed individuals interested in promoting moral and religious improvements to travel to India.

• To educate Indians, EIC should invest Rs. 1 Lakh annually in the education of Indians.
• The British recognised the responsibility of the state in promoting education in India.

• Separation Territorial and Commercial accounts: The Act regulated the company’s territorial revenues and commercial profits. It was asked to keep these accounts  separate.
• Empowered the Local Governments: This act empowered the local government to impose taxes on persons and to punish those who did not pay them.

• The Act appointed the Governor-General of Bengal as the “Governor-General of India,” granting him full control over civil and military matters. This marked a significant governance change introduced by the Charter Act of 1813.
• Lord William Bentinck served as India’s first Governor-General of India.
• The members of the Governor General’s council increased to 4 from 3.

• It paved the way to reconstitute the administration on a new model to give it an all India character, building on the centralization trends initiated by the Charter Act 1813.
• The governor general council was given the power to control, supervise and direct the civil and military affairs of the company.
• Madras, Bombay and Bengal were placed under tight control of Governor general council

• The Act attempted to  introduce a System of open competitions for the selection of civil servants.
• However, this provision was negated after opposition from the Court of Directors, showcasing the ongoing tension in administrative reforms initiated by earlier acts, including the Charter Act 1813.
• Also, the High post of Civil and Military was shut for the Indians. Indians could only hold minor jobs.

• It ended the company’s monopoly over trade with China and tea ended, continuing the trend of reducing commercial monopolies initiated by the Charter Act 1813.
• It was also asked to end its commercial affairs as early as possible.

• The East India Company was transformed from a commercial organization to an administrative one, legalizing the British colonization of India.

• In order to codify all Indian laws, the Indian Law Commission was founded in 1834.
• Lord Macaulay was the inaugural chairman of the first Law Commission.

• The Act commanded the Governor General in Council to take action to lessen the slavery that has persisted in India since the Sultanate Era.
•  By Act V of 1943 slavery was abolished in India.

• As the company lost its  commercial function, It became a purely Administrative body.
• This act also ended all restrictions on European Immigration and their rights to purchase property in India.
• The government held the Company’s Indian possessions “in trust for His Majesty, His heirs and successors.”
• In contrast to this act, legislation made under the prior acts were referred to as “Regulations” instead of “ Acts ”.
• All revenue has to be raised under the authority of the Governor general council who also has control over expenditure.
• The Act also enlarged the executive council thus a fourth member was added as a Law Member.
• The Governor-General’s government was called “Government of India” and the council was called “India Council”.
• Any legislation in the British Indian territory might be amended, repealed, or changed by the Governor-General in Council.
• The Act outlined guidelines for the construction of Christian institutions in India, and the number of bishops was increased to 3.

• First Law Commission of independent India (Chairman-M.C. Setalvad) (neither a constitutional body nor a statutory body) was established in 1955 for a three-year term.
• Since then, twenty-one more commissions have been started.
• The Government of India has constituted the 22nd Law Commission of India for a period of three years with effect from 21st February, 2020. The term of 22nd Law Commission has since been extended up to 31stAugust, 2024 (Chairman Justice Ritu Raj Awasthi)

• For the first time, the legislative and executive functions of the Governor-General’s council were defined.
• Legislative councilors to the council to have additional 6 members.
• The law member was made a full member of the Governor executive council
• Provisional representation was of a civil servant who had served India for 10 years.
• This council’s legislative branch operated as a “mini-Parliament” and followed the same rules as the British Parliament.
• It marks the beginning of the Parliamentary system in India, reflecting changes initiated by the Charter Act 1813.

• Company to hold the territories and revenues in India in trust for the crown for an unspecified amount of time contrary to earlier Charter Act 1813  which was given a 20 years extension.

• Civil Services thrown open to all. No discrimination could be made while making an appointment.
• As a result it ended the Court of Directors power of patronage in appointing Civil Servants, a departure from the practices established by the Charter Act of 1813.
• Macaulay Committee was appointed to enforce this scheme on Indian Civil Service in 1854.

• This was the Final charter act 1813 that the British Parliament passed between 1793 and 1853.

• The Board of Directors was reduced from 24 to 18, with the British Crown to designate 6 of those 18.
• The Court of Directors was empowered to incorporate the newly acquired territories.