50 Important Topics – History (Part – 3)

Regulations, Charters and Constitutional Development

India in 1765

Regulating Act, 1773:

• The company was permitted to retain its territorial possessions but the British cabinet was
given the right to exercise control over Indian affairs of EIC.
• It changed the post of Governor of Bengal to “Governor-General of Bengal”.
• The Governor of Bombay and Madras now worked under the Governor-General of Bengal.

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 • Warren Hastings was made the first Governor-General of Bengal.
• The administration in Bengal was to be carried out by the governor-general and a council
consisting of 4 members. They were required to function according to the majority rule.

• It prohibited company servants from engaging in private trade or accepting bribes, aiming
to curb corruption.
• End of Dual administration in Bengal.
• The Regulating Act 1773 limited the company's dividends to 6% until it repaid a
government loan and restricted the terms of the Court of Directors to four years.
• The Court of Directors (the Company's governing body) was required to report on
revenue, civil and military affairs in India to British Government.
• Establishment of Supreme Court: A Supreme Court of judicature was to be established in
Bengal (Calcutta) along with appellate jurisdictions where all British subjects could seek
redressal.
• It comprised one chief justice and three other judges. Sir Elijah Impey was 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.

Significance of Regulating Act, 1773:

• Initiating Parliamentary Oversight: It marked the British government’s first attempt to
regulate and oversee the activities of the East India Company in India, setting a precedent
for subsequent legislative measures.
• Acknowledgment of the Company's Role: For the first time, the Act formally recognized
the political and administrative functions of the Company.

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 • Judicial Advancements: The creation of the Supreme Court introduced a legal system
influenced by British law, shaping the development of India’s judicial framework.
• Centralization of Authority: By establishing the position of Governor-General and
concentrating power in Bengal, the Act laid the foundation for a more centralized and
cohesive administration of British-controlled territories in India.

Pitt’s India Act, 1784

British Prime Minister - William Pitt the Younger

Objective of the Pitt’s India Act, 1784

• To address the shortcomings of the Regulating Act of 1773 and
• Bring the East India Company's rule in India under closer control of the British
government.
• ( Mismanagement, Corruption, Financial Difficulties, Military Setbacks )

Drawbacks of Regulating Act, 1773

• No veto power for the Governor-General
o Lacked the authority to overrule decisions made by his council → potential conflicts
and administrative difficulties.
• Unclear jurisdiction of the Supreme Court → Confusion and conflicts between the
Governor-General and the SC’s authority.
o The British Parliament passed the Amending Act of 1781, also known as the Act of Settlement,
to correct the flaws in the Regulating Act of 1773.
• Weakened Regional Governance -
• Confusion w.r.t to powers of Governors of Bombay and Madras vis – a - vis the Governor-
General → Administrative inefficiency and corruption.
• Limited impact on Company power → While the British Govt. got supervisory power over
the Company, the Act still left significant power in the hands of the East India Company,
allowing them to continue their exploitative practices.

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 • Ineffective oversight → No proper mechanism to scrutinize the reports sent by the
Governor-General to the British government.

Amendment Act, 1781

• Exempted the Governor-General, his Council and servants of EIC from the Supreme Court's
jurisdiction over their official acts.
• It excluded revenue matters and revenue collection issues from the Supreme Court's
jurisdiction.
• The Supreme Court would have jurisdiction over all inhabitants of Calcutta. It also required
the court to apply the defendants' personal law, which meant that Hindus would be tried
under Hindu law and Muslims under Mohammedan law.
• Appeals from Provincial Courts could be directed to the Governor-General-in-Council
rather than the Supreme Court.
• The Governor-General-in-Council was granted the authority to establish regulations for the
Provincial Courts and Councils.

Pitts India Act, 1784:

• The Company's territories in India were called 'British possessions.’
• The act created a six-member Board of Control (BoC) to regulate Indian affairs and the
East India Company. The BoC had broad authority to oversee all civil, military, and
revenue matters of the East India Company.
• It separated the East India Company's commercial and political roles. The Company (Court
of Directors)kept its commercial activities, while the British government, through the Board
of Control, managed its political and administrative affairs, creating a Double Government
System / Dual Government System.
• It reduced the number of members in the Governor General's Council in India to three
members earlier from four members. It included the commander-in-chief in the council.
Thus, strengthening the power of Governor – General.
• It required civil and military officers to disclose information about their properties in
India and Britain. Corrupt officers were entitled to harsh penalties.

Background of Charter Act, 1813

The Continental System was a major blockade of British trade with continental Europe imposed by French
Emperor Napoleon I from 21 November 1806 to 11 April 1814. It was designed to cripple the British economy,
thereby forcing Britain out of the Napoleonic Wars (1803-1815).
• The Charter Act of 1813 was introduced during a period of significant socio-political and
economic changes in both Britain and India.
• By then, the East India Company had transitioned from a mere trading organization to a

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 powerful political entity wielding considerable territorial control in India.
• English merchants, seeking to reclaim trade opportunities lost due to Napoleon
Bonaparte's Continental System, demanded access to Indian markets.
• Additionally, many British Parliamentarians criticized the Company's governance, citing
corruption and inefficiency, which underscored the necessity of curbing its autonomy.
• Simultaneously, the evangelical movement in Britain championed the promotion of
Christianity in India, while humanitarian concerns highlighted the perceived exploitation
and mistreatment of Indians under Company administration.

Charter Act, 1813 / East India Company Act of 1813

• The company’s rule was extended to another 20 years.
• The undoubted sovereignty of British Crown over British possessions in India was asserted.
• End of Trade Monopoly: Abolished the East India Company's monopoly on Indian trade,
except for the tea trade and trade with China.
• Financial Allocations for Education: A sum of Rs. 100,000 was to be provided by EIC,
annually, for the revival of literature, encouragement of learned Indian natives and
promotion of scientific knowledge among the Indians.
• Granted Permission to the Christian missionaries to enter British India and spread
education and religious beliefs.
• Revenue: Separate accounts were to maintained for commercial transactions and territorial
revenues from British Territories in India.
• The Act gave more powers for the courts in India over European British subjects.

Q. Consider the following statements about ‘the Charter Act of 1813’: (UPSC Prelims 2019)
1. It ended the trade monopoly of the East India Company in India except for trade in tea and
trade with China.
2. It asserted the sovereignty of the British Crown over the Indian territories held by the
Company.
3. The revenues of India were now controlled by the British Parliament.
Which of the statements given above are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

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Charter Act, 1833 / Saint Helena Act, 1833
• The Company’s lease was extended further, for 20 more years.
• End of Trade Monopoly: The Company's monopoly of tea trade and trade with China
ended.
• All restrictions on European immigration and the acquisition of property in India were
lifted → Extensive European colonisation of India.

• It changed the post of Governor-General of Bengal to "Governor-General of India”.

• William Bentinck became the first Governor-General of India
• The Governments of Madras and Bombay lost their legislative powers and were only able
to propose law projects to the Governor-General.
• It added a fourth ordinary Member to the Governor-General’s Council who was a legal
expert. This member was Lord Macaulay.
• The Company prohibits discrimination against Indian citizens based on religion, colour,
birthplace, or descent.
• The administration was urged to improve slavery conditions and eventually abolish it.
Slavery was abolished in 1843.

Significance of Charter Act, 1833

• End of Trade Monopoly
• Centralisation of Administration → Unified Governance Structure, Structured Legislative
Process
• Codification of Laws → structured legal framework.
• Social and Administrative Reforms

Background of Charter Act, 1853

Why?
• Concerns w.r.t Accountability and Efficiency of British Indian Administration.
• Governor-General's Dual Role; Governor of Bengal and Governor – General of India.
• Calls for Decentralisation and Indian Participation in Governance

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 • Territorial Expansion and Governance Challenges.

Charter Act, 1853

• It extended the Company's rule and allowed it to keep possession of Indian territories in
trust for the British Crown, till the British Parliament provides otherwise.

• The Charter Act 1853 reduced the number of Directors of the East India Company from 24
to 18, with 6 to be nominated by the Crown.
• The Charter Act of 1853 made the Company responsible for paying the salaries of its Board
of Control members, secretaries, and other officers.

• The Act provided for the appointment of a separate governor for the Bengal Presidency.
• This distinguished the governor of Bengal from the Governor-General, who was in charge
of India's administration as a whole.

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• Establishment of a Separate Indian Legislative Council :
o Addition of six new council members known as legislative councillors to Governor –
General’s Executive Council.
o The 12 members were: 1 Governor-General, 1 Commander-in-Chief, 4 members of
the Governor-General’s Council, 1 Chief Justice of the Supreme Court at Calcutta, 1
regular judge of the Supreme Court at Calcutta, and 4 representative members
drawn from among the company’s servants with at least 10 years tenure, appointed
by the local governments of Bengal, Bombay, Madras and North Western
Provinces.

• Introduced an open competition system for selecting and recruiting civil servants.
• In 1854, the Macaulay Committee (also known as the Committee on the Indian Civil
Service) was formed.

• The Court of Directors could create a new presidency or province. This was because of the

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 difficulties that were faced in administering the increasingly large Indian territories of
Britain.
o Since 1833, two new provinces of Sind and Punjab were added.
o It could also appoint a Lieutenant Governor for these provinces. In 1859, a Lt.
Governor was appointed for Punjab.
o This Act also led to the creation of Assam, Burma and the Central Provinces.

Queen’s Proclamation of Nov,1858/ Victoria’s Proclamation

• The direct responsibility for the administration of the country was assumed by the British
Crown and Company rule was abolished.
• East India Company was liquidated.
• As per the Queen’s proclamation, the era of annexations and expansion had ended and the
British promised to respect the dignity and rights of the native princes.
• The Indian states were henceforth to recognise the paramountcy of the British Crown and
were to be treated as parts of a single charge.

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 • The people of India were promised freedom of religion without interference from British
officials.
• It was also promised that old Indian rights, customs, and practices would be given due
regard while framing and administering the law.
• The proclamation also promised equal and impartial protection under the law to all
Indians, besides equal opportunities in government services irrespective of race or creed.

GoI Act, 1858

• Transferred the East India Company's powers, territories, and revenues to the British
Crown, effectively ending the Company's rule in India.
• Queen Victoria, who was the monarch of Britain, also became the sovereign of British
territories in India, with the title “Empress of India” as a result of this Act.

• Abolishment of Dual Government : The Court of Directors and the Board of Control were
scrapped.
• The powers of the Company’s Court of Directors were vested with the Secretary of State
for India.
• The Governor-General of India was appointed Viceroy, acting as the Crown's
representative in India.
• Lord Canning became the first Viceroy under the new system.
• The Viceroy and the governors of the various presidencies were appointed by the Crown.
• The Viceroy was to be assisted with an Executive Council.

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• Secretary of State for India was to be a British MP and a member of the Prime Minister’s
cabinet. He was to be assisted by a council of 15 members.
• The Council was merely advisory body, the initiative and final decision were to be with the
Secretary of State.
• Lord Stanley became the 1st secretary of state for India.

• The Government of India Act 1858 established the Indian Civil Services (ICS), which were
open to Indians via competitive examinations.
• Satyendra Nath Tagore was the first Indian to be selected in the Indian Civil Services (ICS)
in June 1863.

• It was decided that the remaining Indian princes and chiefs, over 560 in number would
retain their independence as long as they accepted the paramountcy of the British Crown.

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Indian Council Act, 1861:
• Expansion of the Executive Council
o Formalization of the Portfolio System:The Act formalised Lord Canning's 'portfolio'
system, which assigned specific government departments to each council member.
o This was done to improve administrative efficiency.
o Now there were five members for Home, Military, Law, Revenue, and Finance.
o A sixth member for Public Works was added in 1874.
• Central Legislature: For legislative purposes, the viceroy could add six to twelve additional
members, of whom at least half had to be non-officials.They were appointed for a
period of 2 years.
• Weaknesses of the Central Legislature:
o Lacked real powers; served only as an advisory body.
o Could not discuss important or financial matters without prior government
approval.

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 o Had no control over the budget.
o Could not discuss executive actions.
o Bills required the viceroy’s approval for final passing.
o The Secretary of State could disallow approved legislation.
o Non-official Indian members were elite individuals (princes, landlords, diwans) and
did not represent general Indian opinion.
o Viceroy could issue ordinances valid for six months in emergencies.
• Provincial Legislature:
o This Act restored the legislative powers of the Governor-in-Councils of the
Presidencies of Madras and Bombay.
o New provinces could also be created for legislative purposes and Lieutenant
Governors be appointed for them.
o Legislative councils were formed in other provinces in Bengal in 1862, North-West
Frontier Province in 1886 and Punjab and Burma in 1897, laying the groundwork for
increased provincial autonomy.
• The act empowered the Viceroy to issue rules and orders to ensure that the council runs
smoothly, consolidating his control over legislative procedures and improving
operational effectiveness.

Provisions of the Indian Councils Act 1892:

• The act increased the number of additional or non-official members in the legislative
councils as follows:
o Central Legislative Council: 10 – 16 members
o Bengal: 20 members
o Madras: 20 members
o Bombay: 8 members
o Oudh: 15 members
o North Western Province: 15
o In 1892, out of 24 members, only 5 were Indians.
• The members were given the right to ask questions on the budget (which was barred in the
Indian Councils Act 1861) or matters of public interest but had to give notice of 6 days for
it.
• They could not ask supplementary questions.
• The principle of representation was initiated through this act. The district boards,

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 universities, municipalities, chambers of commerce and zamindars were authorised to
recommend members to the provincial councils.
• The legislative councils were empowered to make new laws and repeal old laws with the
permission of the Governor-General.

GoI Act, 1909:

• Indians in Viceroy’s Executive Council: Minto appointed (on much persuasion by Morley)
Satyendra P Sinha as the first Indian member of the Viceroy’s Executive Council.
• Expansion of Legislative Councils: The legislative councils at the Centre and the provinces
increased in size.
• Composition of Imperial Legislative Council: The legislative councils at the Centre and
the provinces were to have four categories of members as follows:
• Ex officio members: Governor-General and members of the executive council.
• Nominated official members: Government officials who were nominated by the Governor-
General.
• Nominated non-official members: nominated by the Governor-General but were not
government officials.
• Elected members: elected by different categories of Indians.
• Introduction of Non-Official Majority: The Indian Councils Act 1909 maintained the
official majority in the Central Legislative Council while allowing the provincial legislative
councils to have a nonofficial majority.
• The elected members were elected indirectly. The local bodies elected an electoral college
that would elect members of the provincial legislative councils. These members would, in
turn, elect the members of the Central legislative council.
• The elected members were from the local bodies, the chambers of commerce, landlords,
universities, traders’ communities and Muslims.However, since some of the non-official
members were nominated, in total, a non-elected majority was there.
• Separate Electorates: It introduced separate electorates for the Muslims. Some
constituencies were earmarked for Muslims and only Muslims could vote their
representatives.
• Expansion of Powers:
o The members could discuss the budget and move resolutions.
o They could also discuss matters of public interest.
o They could also ask supplementary questions.
o No discussions on foreign policy or on relations with the princely states were

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 permitted.
• Two Indians were nominated to the Council of the Secretary of State for Indian affairs.

Montagu-Chelmsford Reforms, 1919

• Dyarchy in the Provinces
o Divided provincial subjects into transferred and reserved subjects
o Transferred subjects – Administered by governor with ministers responsible to the
LC
o Reserved subjects – Administered by governor and executive council (not
responsible to LC)
• Bicameralism and Budget
o Bicameralism introduced in Central Legislative Assembly
o First time separation of provincial and central budgets
• High Commissioner and Secretary of State
o High Commissioner for India appointed for 6 years in London
o Secretary of State to be paid by British Exchequer

Under Dyarchy some subjects, such as Land revenue administration, famine relief, irrigation,
administration of justice, law and order, newspapers, borrowing, forests etc., were called ‘reserved’
subjects and remained under the direct control of the Governor; others such as education, public
health & sanitation, public works, agriculture, fisheries, religious endowments, local self
governments, medical services etc, were called ‘transferred’ subjects and were to be controlled by
ministers responsible to the legislatures.

• Direct Elections and Franchise

o Direct elections introduced
o Limited franchise based on property, tax, and education
• 3 out of 6 Executive Council members to be Indians
• Communal Representation
o Principle of communal representation extended
o Separate electorate extended to Sikhs, Christians, Anglo-Indians.

Government of India Act 1935

Aim An Act to make further provision for the Government of India.

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 Territorial Extent Territories under direct British control

Enacted by Parliament of United Kingdom

Royal Assent 24th July 1935

Commenced 1st April 1937

Status Repealed on 26th January 1950 in India

Government of India Act,1935 :

• The Act provided for All India Federation consisting of all British Indian provinces, the
Chief Commissioner’s provinces, and Indian states (princely states). However, this was
contingent upon the following conditions:
• States with at least 52 allotted seats in the proposed council of states agree to join the
federation
• The aggregate population of the above states must be at least 50% of the total population of
Indian states, which ultimately did not happen, so the federation was never formed.But this
federation never came up.
• Dyarchy at centre :Reserved subjects—foreign affairs, defense, tribal areas and
ecclesiastical affairs which were to be exclusively administered by the governor-general
and not the federal legislature, on the advice of executive council.
• The Act provided provincial autonomy which replaced dyarchy.
• Provinces were freed from the superintendence and direction of the Secretary of State and Governor-
General.
• Provinces henceforth derived their legal authority directly from the British Crown.
• Independent financial powers and resources were also given to provinces.
• This Act divided powers between the centre and the provinces.
o There were three lists which gave the subjects under each government.
▪ Federal List (Centre)
▪ Provincial List (Provinces)
▪ Concurrent List (Both)

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o The Viceroy was vested with residual powers.
o Indian Council
▪ The Indian Council was abolished.
▪ The Secretary of State for India would instead have a team of advisors.
o Only 14% of the total population in British India was given the right to vote.
o Governors were given special powers. They could veto legislative action and legislate
on their own.
o Moreover, they also retained full control over civil service and the police.
o It extended the communal representation to women and labour (workers) too.
o It introduced bicameralism in six out of eleven provinces.
▪ Thus, the legislatures of Bengal, Bombay, Madras, Bihar, Assam, and the
United Provinces were made bicameral consisting of a legislative council
(upper house) and a legislative assembly (lower house).
o Sindh was carved out of Bombay Presidency.
o Bihar and Orissa were split.
o Burma was severed off from India.
o Aden was also separated from India and made into a Crown colony.
o A federal court was established at Delhi for the resolution of disputes between
provinces and also between the centre and the provinces.
▪ It was to have 1 Chief Justice and not more than 6 judges.
o It introduced bicameralism in six out of eleven provinces.
▪ Thus, the legislatures of Bengal, Bombay, Madras, Bihar, Assam, and the
United Provinces were made bicameral consisting of a legislative council
(upper house) and a legislative assembly (lower house).
o Sindh was carved out of Bombay Presidency.
o Bihar and Orissa were split.
o Burma was severed off from India.
o Aden was also separated from India and made into a Crown colony.
o A federal court was established at Delhi for the resolution of disputes between
provinces and also between the centre and the provinces.
▪ It was to have 1 Chief Justice and not more than 6 judges.

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