(History)
(Pointer Notes)
Pointer Notes- Lecture 7
Topic- Consolidation of British Empire in India (Part1)- British Acts and Regulations (1773 - 1858)
Basic Understanding Required for This Lecture:
T o grasp the content of thislecture,studentsmusthaveaclearunderstandingofhowtheEastIndia
Company (EIC) transitioned from being a trading enterprise to becoming a political power. This
transformation is covered in the chapter of Modern History titled“Rise of British Supremacy in India.”
Key Points to Understand:
● Transition from Commercial to Political Entity:
○ I nitially, the EIC operated as a trading company focused on commerce.
○ Overtime,itevolvedintoaterritorialandpoliticalpower,withitsprimaryfocusshiftingto
land annexation and administrative control.
● The Period up to the 1770s:
○ By the 1770s, the British had established their dominance over Bengal through the
decisive battles ofPlassey (1757)andBuxar (1764).
○ Despite these victories, the EIC faced significant challenges:
■ Bankruptcydue to the misuse of power.
■ Rampant corruption among higher officials of the Company.
■ Exploitationoftradeprivileges,suchastheabuseof‘dastaks’ (freetradepasses)
for private gain.
● Intervention by the British Parliament:
○ In response to these challenges, the British Parliament beganimplementinglegislative
measures to regulate the EIC.
○ Over a series of acts, the Parliament gradually curtailed the Company’s autonomy,
ultimately leading to its dissolution through theGovernment of India Act of 1858.
T his understanding sets the stage for analyzing the EIC’s transitionandtheroleofBritishpoliciesin
reshaping India’s political landscape.
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(History)
(Pointer Notes)
Regulating Act of 1773
Background
● D ual Govt. of Bengal and rampant corruption prevailing.
● Looming Financial Crisis over the company.
Restructuring of the Company -
● D irect Parliamentary control over COD (Court of Directors) for the first time.
● The Actprovided for payment of liberal salaries and prohibited immoral activities.
In India -
● N ew Presidency of Bengal created.
● GovernorofBengalasthe“GovernorGeneralofBengal”(WarrenHastings)+ExecutiveCouncil(4
members)
● Supreme Court of Justice at Calcutta (CJ + 3 Judges) (Sir Elijah Imphey)
Limitations
● V ague in many areas - Neither given the state a definite control over the company, nor the
company a definite control over the servants.
Amending Act (Act of Settlement 1781)
Background
● P assedtoresolveconflictsregardingtheJurisdictionofSupremeCourtwhichwereleftvaguein
Regulating Act of 1773
Jurisdiction Exemptions -
● G G and Council, exempt from SC jurisdiction (Revenue Matters also exempted)
● SC Jurisdiction extended over all residents of Calcutta.
Regulatory Authority
● GG and council can make rules for Provincial Courts and councils.
T hisActmarksthefirstefforttodelineatetheexecutiveandjudiciaryfunctionsinIndia,clearlydefining
their separate jurisdictions.
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(History)
(Pointer Notes)
Pitt's India Act of 1784
Background-
● P assed in order to remove the weakness of the Regulating Act of 1773.
● To bring the company's administration in India under control of the British Parliament.
● It was the first time when Indian Territories under EIC were called as British Possessions in India
Main Provisions -
● B oard of Control - Political Affairs (New Establishment)
● Board of Directors - Power reduced to Commercial affairs only.
● GG Executive Council - Member reduced to 3 from 4 (Commander in Chief of army to be 1)
● Madras and Bombay Presidency were made subordinate to the Bengal Presidency.
● GGandcouncilmadesubordinatetoBritishGovernment-Forbiddentodeclarewarwithoutprior
sanctionofDirectors(Ihopeyourememberthe1stAngloMarathaWarandwhytreatyofSuratwas
annulled)
Significance-
● Increased British Control - Board of Control shifted power from EIC to British Government.
● Ambiguity of Governance (Political and Commercial affairs not clearly demarcated)
Act of 1786
Background-
● B ill passed to make Cornwallis accept the Governor Generalship of India.
● Cornwallis had a condition -HewantedthepowerofbothauthoritiesunderGGonly(GGand
Commander in Chief)
Main Provisions -
● A ct joined the offices of GG and Commander in Chief in the hands of GG.
● GGwasfurtherempoweredandallowedtooverridethemajorityofhiscouncilinmattersofWar
and peace on his own responsibility.
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(History)
(Pointer Notes)
Charter Act of 1793
Background-
● To codify laws to ensure that there was an impression of fairness and transparency in Governance.
Extension of Company’s charter -
○ E xtended Company’s charterby20Years-maintainingitstrademonopolyandpolitical
control over India.
○ GG now had the power to bypass Council’s decisions.
○ Company was empowered to give licenses to individuals as well as the company's
employees to trade in India. This trade especially in opium to China, was known as
‘Privilege or Country Trade’
○ CodificationofLaws-thisactlaidthefoundationofGovernancebasedonwrittenlawsin
British India in place of personal rules of past rulers.
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(History)
(Pointer Notes)
Charter Act of 1813
Background-
● B ritaininmidstofIndustrialRevolution-Lookingfornewmarketsforitsmanufacturedgoodsand
sources of raw material.
● Time period of Laissez Faire
● By 1813, Company territories had greatly expanded - Considered nearly impossible for the
Company to function both as a commercial and political entity.
● Christian Missionaries advocating for access to India for propagation of Christianity.
Provisions-
● RenewedCompanycharterfornext20Years-Howevercompany’smonopolyovertradebroken,
Exclusive privileges taken back (Exception - Trade in Tea, opium, goods with China )
● The Act explicitly declared the Sovereignty of the Crown over the territories acquired by the
company.
● Indian Courts were granted greater jurisdiction over British and other European subjects.
● Allowed Christian to go to India and allowed them to settle under a license.
● Fundingforeducation-ActprovidedayearlyfundofRs1LakhforpromotionofLiteratureand
sciences among Indian subjects.
● CivilServiceReform-Actproposedopencompetitionforcivilservicepositionsandstatesthat
India should be eligible for these roles - However this reform faced opposition and was not
implemented.
Assessment of this Act -
● E conomicLiberalisation-ActencouragedcompetitionandeconomicgrowthbyallowingIndian
merchants and other Europeans to trade.
● Social and Religious Changes - Act facilitated the spread of Christianity and social reforms,
influencing religious and societal dynamics.
● Educational Advancement - Act funded IndianEducation,recognisingitsimportanceforsocial
progress and intellectual development.
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(History)
(Pointer Notes)
Charter Act of 1833
Background-
● K nownasSaintHelenaAct-TransferofownershipofislandofSaintHelenafromEICtoBritish
Crown.
● EIC trade monopoly - Viewed as harmful
● Period of Industrial Revolution
● Liberal Party (Known as Whigs) came into power.
Main Provisions -
Legal British Colony
● IndiamadeaBritishcolony,andforthefirsttime-GOIauthority establishedoverentireterritory
passed by EIC.
○ AllrestrictionsimposedontheentryofEuropeanandBritish,abolished-Europeanand
British could now freely acquire, hold or dispose any property in India.
● Act extended the Company’s charter for 20 Years more however - Company’s Exclusive trade
privilegesEndedinallmatters -Companyaskedtowindupitscommercialbusinessassoonas
possible - Role of EIC now only restricted to pure administrative body.
● GG of Bengal made GG of India and his council known as Indian Council. (William Bentick)
○ Civil, Military, Financial and Revenue matters controlled by GG.
○ For the first time,the Government that GG ran wascalled as Government of India.
○ GG in Council givenExclusive legislative powerssuchas -
■ Power to repeal, alter or amend any laws or regulations in British territory.
■ Act deprived Governors of Bombay and Madras of their legislative peers.
● Actprovidedforappointmentof 4thmemberofGG’scouncil,Hehadnovotingrights-Couldonly
attend the meeting by Invitation (Law member - Macaulay)
○ Act provided for enactment of Law Commission - First Commission appointed in 1834
under Macauly.
● CA1833madeprovisionstofreelyadmitthenativeofIndiantobepartofadministrationthrough
the process of Competitive examination (Criteria - Fitness)
● GG was directed to work for abolition of Slavery (Abolished under Indian Slavery Act - 1843)
Significance-
● Act marked the culmination of centralisation process which began with the Act of 1733.
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(History)
(Pointer Notes)
Charter Act of 1853
Background-
● H ighCostsandBusinessdelaysduetotheBoardofControlandCourtofDirectorsraisedconcerns
about EIC efficiency.
● Politically informed Indians formed groups like Bombay Association and Madras Native
Association who demanded de-centralisation and greater participation in Governance.
Provisions-
● It said that Indian Territories would remains ‘in trust for the Crown, until Parliament should
otherwise direct’
● Now the Company disappeared as a commercial agency, remainingasapoliticalagentforthe
Crown.
● Legislative Provisions -
○ F or the first time, GG’s council Legislative and Executive functions were separated. The
Legislative was treated as a special function of the Government.
○ Actprovidedfor 6newmemberstothecouncil,knownasLegislativeCouncillors-Leading
tocreationofdistinctGG’sLegislativeCouncil,.WhichcametobeknownasICS-Indian
Legislative Council. (No Indian representation)
■ Chief Justice + Judge of SC + 4 Provincial representativesfromBengal,Madras,
Bombay,NorthWesternProvinces.(ProvincialRepresentativeswerecivilservants
for the Company with 10 Years of Experience in those respective states)
○ Powers with these councillors -
■ Questions could be asked, policy of Executive Council could be discussed,
Government could be discussed for its lapses, Bills were referred to Select
committees, and Legislative Business were conducted in public.
■ However, a Law to be promulgated needed the assessment of the Governor
General, and GG could veto any Bill of the legislative council.
○ Executive provisions -
■ L aw was made a full member of GG Executive Council.
■ Taking the strength back to 4.
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(History)
(Pointer Notes)
○ Directors and Powers
■ N umber of Directors reduced (24 to 18).
■ Directorsdivestedofitspatronageandpowerofappointmentastheserviceswere
thrownopentoCompetitiveExamination,inwhichnodiscriminationofanykind
was to be made. (Macauly Committee) (Satyendranath Tagore - First Indian Civil
Servant (1863))
■ However,CourtofDirectorswasempoweredto-ConstituteanewPresidency,Alter
the boundaries of the existing states, Incorporate the newly acquired state.
● Under this, A separate Lt. Governorship of Punjab was created un 1859.
● A separate post of Governor of Bengal was also created.
Assessment -
● CA of 1853 marks the beginning of Parliamentary System in India.
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(History)
(Pointer Notes)
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