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Assignment On Permanent Settlement Act

The permanent settlement was an agreement signed in 1793 between the East India Company and Bengal landholders. It made zamindars the permanent proprietors of their land in exchange for paying a fixed tax to the British. This negatively impacted cultivators by making their land rights insecure and rents high. It also hurt many zamindars and the East India Company by setting taxes too high. The permanent settlement overall benefited only landlords while harming cultivators, zamindars, and the Company. It was abolished after India's independence.

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257 views3 pages

Assignment On Permanent Settlement Act

The permanent settlement was an agreement signed in 1793 between the East India Company and Bengal landholders. It made zamindars the permanent proprietors of their land in exchange for paying a fixed tax to the British. This negatively impacted cultivators by making their land rights insecure and rents high. It also hurt many zamindars and the East India Company by setting taxes too high. The permanent settlement overall benefited only landlords while harming cultivators, zamindars, and the Company. It was abolished after India's independence.

Uploaded by

Ahnaf Ali
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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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ASSIGNMENT

NAME: FARIHA AHEER


DEPARTMENT: MARKETING (BATCH-07)
ROLL: 157
COURSE: BDS (GED 1105)
DATE OF SUBMISSION: 30TH AUGUST 2022
Q: what is permanent settlement? What was its impact on the society during that
time?
Ans: The permanent settlement was a grand contract, signed in 1973 between the government of
East India Company in Bengal and individual landholders of Bengal zamindars and talukdars.
According to the contract, the zamindars were admitted into the colonial state system as the
absolute proprietors of landed property in Bengal. As absolute proprietors of land, zamindars and
talukdars were required to pay revenue to the government at a fixed rate permanently. But the
cultivating raiyats had to face problems as they were denied to such a privilege. The landholders
were free to change the rate of their tenants as well as evict them if they wanted to. But if they
defaulted, their lands proportionate to their default would be realized through a public sale of
their land. This law was known as the sunset law.

Features of permanent settlement:


 Landlords or zamindars were recognized as landowners and were given hereditary rights
to the lands under their control.
 The zamindars were given the freedom to sell or transfer the land according to their wish.
 The zamindars proprietorship would last as long as the fixed revenue was being paid to
the government on the specified date. Or else, their rights would be terminated and their
lands would be auctioned off.
 The landlords were required to pay a fixed amount permanently.
 The fixed amount was 10% of the revenue for the government and 10% for the zamindar
which was significantly higher than the current rates in England.
 The zamindar was also required to give his tenant a patta that described the area of the
land given to him as well as the rent to be paid to the landlord

Drawbacks of permanent settlement:


 As the revenue was fixed at a high rate, it left many zamindars with little or no margin for
shortfalls in times of flood, drought or any other calamity.
 Because of the high rate of revenue, many zamindars were forced to divide their estate
into small lots of land known as patni and rent them out permanently to holders on the
promise of a fixed rate.
 As per the agreement, zamindars were required to issue written agreements to each
cultivator mentioning how much the tenant has to pay.
 There was no way to raise the tax according to the government. So the revenue could not
increase to meet the expenses of the Company, which was attempting to expand.
Impact of permanent settlement:
 For the Cultivators: The system was found to be oppressive and exploitive by the
cultivators in villages as the rent they paid to the zamindars was vey high while his right
to the land was quite insecure. The cultivators were often forced to take out loans to pay
their rent. If they failed to pay the rent, they were evicted from their land.
 For the Zamindars: The revenue being set at such a high level, the zamindars found it
difficult to pay. Those who could not pay the revenue, lost their zamidari. The zamidars
got uninterested in improving their land. They preferred renting it out as long as they
could.
 For the Company: By the first decade of the 19 th century, cultivation had expanded and
the market price had risen. Even though this meant an increase in the Zamidar’s income,
it meant a loss for the company since it could not increase a revenue demand that had
been set before.
Therefore, the permanent settlement benefited no one except the landlords. It proved to be
harmful than beneficial. Furthermore, the advantages it had, could be obtained through a
settlement that spanned nearly 15-20 years. The Company recognized this as well and did not
introduce it in other parts of India except Northern Sarkers in the south and the district of
Banaras in the north. After India’s independence, the permanent settlement system was
completely abolished.

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