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The Permanent Settlement had the features that state demand was fixed at 89% of the rent and 11% was to be retained by the zamindar. The state demand could not be increased but payment should be made on the due date, before sunset, so it was also known as the 'Sunset Law'. Failure to pay led to the sale of land to the highest bidder.
In 1793, the Revenue Sale Law was passed which altered the Permanent Settlement. The change made it impossible for Zamindar to claim relief from taxes due to natural disasters such as flooding or drought. It also created a provision that allowed the colonial administration to sell of the property of Zamindars who defaulted on the payment of taxes.
The Permanent Settlement was introduced first in Bengal and Bihar and later in Varanasi and also the south district of Madras. The system eventually spread all over northern India by a series of regulations dated 1 May 1793. These regulations remained in place until the Charter Act of 1833. [1]
Its best known provision was the Permanent Settlement [1] (or the zamindari system), which established a revenue collection scheme that lasted until the 20th century. Beginning with Bengal, the system spread over all of northern India by means of the issue of a series of regulations dated 1 May 1793.
After the collapse of the Mughals, the British East India Company held sway over much of South Asia. [10] The colonial power wanted the revenue system "to be simple in its principle and uniform in its operation," but the zamindari system was so ingrained that even the early British rulers, from the grant of Dewani (1765) to the Permanent Settlement (1793), dared not challenge it fundamentally.
In 1793 Lord Cornwallis declared their rights perpetual, and gave 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 ...
John Shore (who went on to succeed Cornwallis as Governor-General) and Charles Grant, [38] two men he came to trust implicitly, were the most important contributors to what is now called the Permanent Settlement. The essence of the arrangement they came up with in the summer of 1789 was that the zamindars would effectively become hereditary ...
In 1793, the new Governor-General, Lord Cornwallis, promulgated the permanent settlement of land revenues in the presidency, the first socio-economic regulation in colonial India. [44] By the terms of the settlement rajas and taluqdars were recognised as zamindars and they were asked to collect the rent from the peasants and pay revenue to the ...