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

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).

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. 

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.

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.

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.

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.

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

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