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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 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.
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.
Cornwallis began implementing the regulations in 1793. [40] Critics of the Permanent Settlement objected to its permanency, claimed that the company was forgoing revenue, and that Cornwallis and others advocating it misunderstood the historic nature of the zamindars.
Before passage of the legislature, landed revenue laws of Bengal consisted of the Permanent Settlement Regulations of 1793 and the Bengal Tenancy Act of 1885. The 1793 legislature created a landed aristocracy (see: Zamindars of Bengal) which was supposed to be loyal to the British Empire.
In 1790 the Court of Directors issued a ten-year (Decennial) settlement to the zamindars, which was made permanent in 1800. By the Permanent Settlement Act of 1793 ( Bengali : চিরস্থায়ী বন্দোবস্ত ), the Zamindars class became more powerful than they were in the Mughal period.
During the colonial era, the Permanent Settlement consolidated what became known as the zamindari system. The British rewarded supportive zamindars by recognising them as princes. Many of the region's princely states were pre-colonial zamindar holdings elevated to a greater protocol. The British also reduced the land holdings of many pre ...