Bengal Presidency - Administrative Reform and The Permanent Settlement

Administrative Reform and The Permanent Settlement

Under Warren Hastings (British Governorships 1772-1785) the consolidation of British imperial rule over Bengal, and the conversion of mere trade into an entire military occupied territory under a military-civil government got solidified. To another member of the civil service, John Shore, afterwards Lord Teignmouth, was due the formation of a regular system of legislation. Acting through Lord Cornwallis, then Governor-General, he ascertained and defined the rights of the landholders in the soil. These landholders under the previous system had started, for the most part, as collectors of the revenues, and gradually acquired certain prescriptive rights as quasi-proprietors of the estates entrusted to them by the government. In 1793 Lord Cornwallis declared their rights perpetual, and made over the land of Bengal to the previous quasi-proprietors or zamindars, on condition of the payment of a fixed land tax. This piece of legislation is known as the Permanent Settlement of the Land Revenue. It was designed to "introduce" ideas of property rights to India, and stimulate a market in land. The former aim misunderstood the nature of landholding in India, and the latter was an abject failure. The Cornwallis code, while defining the rights of the proprietors, failed to give adequate recognition to the rights of the under-tenants and the cultivators. This remained a serious problem for the duration of British Rule, as throughout the Bengal Presidency ryots (peasants) found themselves oppressed by rack-renting landlords, who knew that every rupee they could squeeze from their tenants over and above the fixed revenue demand from the Government represented pure profit. Furthermore the Permanent Settlement took no account of inflation, meaning that the value of the revenue to Government declined year by year, whilst the heavy burden on the peasantry grew no less. This was compounded in the early 19th century by compulsory schemes for the cultivation of Opium and Indigo, the former by the state, and the latter by British planters (most especially in the district of Tirhut in Bihar). Peasants were forced to grow a certain area of these crops, which were then purchased at below market rates for export. This added greatly to rural poverty.

So unsuccessful was the Permanent Settlement that it was not introduced in the North-Western Provinces (taken from the Marathas during the campaigns of Lord Lake and Arthur Wellesley) after 1831, in Punjab after its conquest in 1849, or in Oudh which was annexed in 1856. These regions were nominally part of the Bengal Presidency, but remained administratively distinct. Officially Punjab, Agra and Allahabad had Lieutenant-Governors subject to the authority of the Governor of Bengal in Calcutta, but in practice they were more or less independent. The only all-Presidency institutions which remained were the Bengal Army and the Civil Service. The Bengal Army was finally amalgamated into the new British-Indian Army in 1904-5, after a lengthy struggle over its reform between Lord Kitchener, the Commander-in-Chief, and Lord Curzon, the Viceroy.