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Summary
Modern Indian History Class 19

Last class revision (5:05 PM)

Regulation of EIC (5:20 PM)

  • Parliament came to regulate EIC affairs in India by the 1770s due to:
  • Rise of EIC  as it was earning huge profits,
  • There was the political rise of EIC which was a non-state actor and this made the British state anxious especially after the American war of independence where British settlers started revolting against British rule, therefore the fear of the same in India EIC.
  • Also, the state wanted a share in EIC profits, therefore in 1767 parliament mandated EIC to annually pay 400,000 pounds to the public exchanger.
  • The great Bengal famine of 1770 hurt the image of Britain and EIC's conduct went against the idea of the white man's burden and the morality of imperialism
  • There was huge corruption by EIC officials who returned super-rich from India.
  • In 1770, EIC requested 10 million pounds of loans from the state as it was going bankrupt.
  • Important men like clive and warrant hasting wanted a formal relationship with the state to increase their status.
  • The request for a loan acted as an opportunity for the British state to bring EIC under regulation.
  • A select committee of parliament 1772:
  • The purpose of the Committee was:
  • To look into the state of EIC affairs in India, and the nature of the relationship between the British state and the EIC regarding territory acquired by the EIC in India that is public affairs of the EIC.
  • EIC had multiple affairs like commercial affairs where it acted as a company and public affairs where it acted as a state.
  • How EIC Headquarters in London which is a court of directors can best control EIC's administration in India?
  • The result of the committee was that EIC was allowed to continue its monopoly over trade with India.
  • However COD of EIC was now to be accountable for EIC's administration in India.
  • It also led to regulating act of 1773.

 Regulating act of 1773/Lord North's act (5.51 PM)

  • The Importance of the act was that for the 1st time right of parliament to regulate EIC affairs was legally recognized.
  • The act bought the COD of EIC under the supervision of parliament.
  • Now COD has so summit all information received from India in civil, military, and revenue matters to the British state.
  • however commercial matters were kept free from supervision, as only those areas where EIC acted as a state was regulated.
  • The governor of Bengal was elevated to Governor-general of Bengal.
  • The governor of Bengal and madras subordinated to the Governor-general of Bengal in matters of war and peace accepted in emergency circumstances.
  • Governor general of Bengal to collect information on all matters on EIC affairs in India and send the same to the COD of EIC in London.
  • The Supreme Council of Bengal was created under the Governor-general of Bengal with 4 members/councillors.
  • That is Governor-general of Bengal was put in a council of 4 to ensure democratic decisions making as all decisions were to be taken on basis of a majority vote of 4 councillors (the Governor-general of Bengal. did not vote).
  • The Governor-general of Bengal only had a casting vote.
  • A supreme court at Calcutta with one chief justice and 3 normal judges.
  • Regulating act 1773 barred the taking of gifts by EIC officials from Indians, therefore focusing on anti-corruption.
  • 4-year tenure of directors of COD of EIC and they could not be reappointed.
  • A 5-year tenure for the governor-general of Bengal could be reappointed and could be dismissed in between.
  • Governor of Bombay and Madaras could be dismissed by the governor-general of Bengal if they disobey him on matters of war and peace.
  • The legislative function was given to the supreme council of Bengal.
  • Result of the act:
  • The huge distance between India and England led to poor supervision due to poor communication.
  • Centralization of power in the governor-general of Bengal began.
  • Disunity in the supreme council of Bengal and lack of veto power with the governor-general of Bengal led to the problem of indecision.
  • Vague wordings of "emergency circumstances meet" that in practice meant the governor of Bengal and madras acted independently in matters of war and peace like the treaty of Surat.
  • the conflict between SC in Calcutta and GG Bengal council due to a lack of clarity in the jurisdiction of both.
  • The jurisdiction of SC was over all British subjects residing in Bengal and their native servants.
  • SC was supreme only in name as the High court act led to 3 high courts in 3 presidencies and Culcutta HC was Sadar Nizamat Adalat, and Sadar Diwani Adalat(SC in madras in 1800 and SC in Bombay in 1823).
  • Amending act of 1781/ Bengal Judicature act/ Declaratory act resolved the ambiguity in the jurisdiction between SC and the Governor-general of Bengal.

Pitt's India act 1784 (7:38 PM)

  • Public affairs of EIC and EIC's administration in India were brought under the control of the British parliament by setting up a board of control(BOC) in London
  • For 1st time the phrase "British possession in India" was used but the issue of sovereignty over territory under EIC was still not decided clearly.
  • BOC had 6 members including 1 of the secretary of state(President of the board), the chancellor of the exchequer, and 4 privy council members.
  • The role of the BOC was to superintend, direct, and control all acts, operations, and concerns related to civil, military, and revenue government of British territorial possessions in the east indies.
  • Therefore COD of EIC was a top authority in commercial matters and BOC in public matters.
  • Therefore Pitt's India act 1784 set up a system of double government for EIC's affairs in India.
  • COD to send all incoming and count-going letters to India to BOC.
  • BOC could pass binding orders and also to the Governor-General of Bengal.
  • Governor-General of Bengal now had two bosses, therefore dual control of the Governor-General of Bengal(in public affairs and not in commercial affairs).
  • Now a principal servant of EIC could be appointed only after the approval of the British crown, that is Governor-General of Bengal,  Governor of Madras,  Governor of Bombay, and Commander-in-chief of the EIC army.
  • Therefore EIC was allowed to retain commerce and patronage.
  • The Governor-General of Bengal's council's size was reduced to 3 members to solve the problem of indecision and this led to an increase in the Governor-General of Bengal's power over his council(had two votes, a normal and casting vote).
  •  The Governor of Madras and the Governor of Bombay also put in a council of 3.
  •  Governor of Madras and Governor of Bombay subordinated to the Governor-General of Bengal in matters of war, peace, and revenue, and the responsibility of these 3 now more clearly defined.

The topic for the next class: The impact of Pitt's India act 1784