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Regulating Act of 1773

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60 views12 pages

Regulating Act of 1773

Uploaded by

sajadahmedmay
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Bookstawa – Modern History

Regulating Act of 1773

Introduction

The Regulating Act was passed in the British Parliament in June 1773. It was the first
parliamentary ratification and authorization defining the powers and authority of the East India
Company with respect to its Indian possessions.

Background

The British East India Company was established as a trading company in 1600 and
transformed into a ruling body in 1765. After the Battle of Buxar (1764), the East India Company
got the Diwani (right to collect revenue) of Bengal, Bihar and Orissa and gradually, it started
interfering in Indian affairs.

The period from 1765-72 saw duality in the system of government where the Company had the
authority but no responsibility and its Indian representatives had all the responsibility but no
authority. This resulted in:
 Rampant corruption among servants of the Company.
 Excessive revenue collection and oppression of peasantry.
 Defeat of the company at the hands of Haider Ali in 1769 after huge war expenses.
 The Company’s bankruptcy, while the servants were flourishing.

The East India Company was in severe financial crisis and had asked a loan of 1 million pounds
from the British government in 1772. Further, there was a terrible famine in Bengal where a huge
population perished.

To bring some order into the business, the British government decided to regulate the
Company with a gradual increase in laws.

Provision of the Regulating Act, 1773

• Through this act, for the first time, the British cabinet was given the right to exercise
control over Indian affairs.

Regulating Act of 1773 - Page 1


Bookstawa – Modern History

• The act permitted the company to retain its territorial possessions in India but sought to
regulate the activities and functioning of the company.

• Control of the Company

• It changed the post of Governor of Bengal to “Governor-General of Bengal”. The


administration in Bengal was to be carried out by the governor-general and a council
consisting of 4 members. Warren Hastings was made the first Governor-General of Bengal.
The Governors of Bombay and Madras were now made to work under the Governor-
General of Bengal. Now, they could not wage war against Indian states without Bengal’s
approval.

• A Supreme Court of judicature was to be established in Bengal (Calcutta) along with


appellate jurisdictions where all subjects could seek redressal. It comprised one chief
justice and three other judges. Judges were to come from England. It had civil and criminal
jurisdiction over the British subjects and not Indian natives. Sir Elijah Impey became the
first Chief Justice.

• In 1781, the Act was amended and the Governor-General, the Council and the servants of
the government were exempted from the jurisdiction if they did anything while
discharging their duties.

Regulating Act of 1773 - Page 2


Bookstawa – Modern History

Drawbacks of the Regulating Act, 1773

• The Executive Council of Governor General of Bengal took decisions on the basis of
majority but the Governor General was answerable & accountable for all the acts. Further,
the Governor-General had no veto power.

• Although the Governors of Madras & Bombay presidency were made subordinate to the
Governor General of Bengal but there were no clear guidelines as on which matters they
were supposed to be dependent or independent of the Governor General of Bengal.

• The parliamentary control that was sought in the activities of the company proved to be
ineffective as there was no mechanism to study the reports sent by the Governor-General in
Council.

• It failed to address the concerns of the Indian population who were paying revenue to the
company. Further, it did not stop corruption among the company officials.

• The Supreme Court’s powers were not well-defined.

• The lack of clear disribution of power between the Executive council & the Supreme court
led to increased conflicts among them which could only be resolved only after the Act of
Settlement, 1781, which gave more powers to the Governor-General in Council over the
Supreme court.

Regulating Act of 1773 - Page 3

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