Lecture 5
Lecture 5
Lecture 5
Regulating
Act of 1773
Factors Main
Limitations of Significance
behind the Provisions of
the Act of the Act
Act the Act
Factors behind
Regulating Act
of 1773
Socio-Political Corruption
▪ With rampant abuse of private trade privileges in India, the Company’s employees amassed huge wealth.
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▪ Company’s employees began using their newly amassed wealth to spread social & political corruption in Britain.
▪ Company bought seats in the House of Commons for its agents. Consequently, many thinkers & Statesmen began to
fear that the Company may grab dangerous supremacy in British government and felt necessary to impose regulations
on it.
Salient Provisions
under Regulating
Act of 1773
Related to Related to
Company’s Company’s
Government in Government in
Britain India
▪ The main aim of Regulating Act of 1773 was to regulate the activities of Company in both India as well as England and
remove deficiencies pertaining to the same.
▪ Before Secretary of State they had to disclose ‘everything dealing with civil & military administration.’
Provisions Related To Company’s Government In India
▪ The Act provided a new executive for ‘Bengal Presidency’ and vested in it the civil & military powers of Bengal, Bihar
& Orissa.
▪ It would comprise of a Governor-General and four councillors (Governor-General-in-Council).
▪ Name of first Governor General (Warren Hastings) and Councillors (Phillips Francis, Clavering, Monson & Barwell)
were named in the Act.
Taming The Powers Of Governor General
▪ The Council comprised of men specially sent from England who were not servants of the Company.
▪ Through this, Parliament aimed to control Governor, who was now required to function in Council, the decision of
Council was binding upon him.
▪ The Council was to take all decision by majority, though Governor General had the casting vote in case of equality
votes.
▪ Council was given a term of 5 years and presence of 3 members formed a quorum.
Addressing The Problems Of Corruption & Low Salaries
▪ The Act provided for payment of liberal salaries & prohibited immoral activities such as private trade, receiving or
giving bribes, money lending etc.
FOUNDATION OF CENTRAL ADMINISTRATION IN INDIA
▪ Regulating Act of 1773 sought to bring synergy between the administration of Bengal,
Madras & Bombay Presidencies.
▪ In order to establish and empower a central authority, Bengal Presidency was made
supreme with exclusive powers to deal with matters of war & peace. Other Presidencies
were made subordinate to it.
▪ Governor of Bengal was now called Governor-General of all British territories in India.
▪ Lord Warren Hastings was first such Governor General of British India.
▪ Governor of Madras & Bombay were required to send regularly, to the Governor-General,
information connected with government, revenues, etc. Consequently, this act laid the
foundation of Central Administration in India.
Limitations under
Act of 1773
Inefficient Governor-General-in-Council
▪ Working of Governor-General-in-Council proved to be most inefficient.
▪ Governor General faced opposition from his councillors and had no power to override them.
▪ Such obstructionism made the Council dysfunctional.
VAGUE PROVISIONS FOR CENTRAL ADMINISTRATION
▪ The act was vague regarding the extent to which Bengal Presidency was to exercise control over other presidencies.
▪ Consequently, Maratha and Mysore Wars were initiated by Bombay & Madras Presidencies, even as Hastings were
opposed to both.
VAGUE PROVISIONS REGARDING SUPREME COURT
▪ The Act also did not define the relationship between the Supreme Court and the Company courts as well as the
various country courts in Bengal over which the GG-in-Council had appellate powers.
▪ This resulted in conflict between the Court and the GG-in-Council. Consequently, it proved to be the worst defect of
the Act.
▪ Supreme Court administering English law also claimed jurisdiction over the entire native population (and not just
British subjects) and proved quite unpopular with them.
Significance under Regulating Act of 1773
Significance of Act of
1773
▪ It was the first main step towards Parliamentary Control over Company’s administration in India.
▪ It fixed the administrative centre at Calcutta.
▪ It was a praiseworthy effort to secure a corruption-free administration.
▪ Overall, it was a well-meant attempt to introduce a better system of governance. Unfortunately, in practice it ended
up ‘adding to Hastings’ difficulties instead of strengthening his hands.
Salient
Backdrop of Significance of
Provisions
the Act the Act
under the Act
System of Double
Government
Introduction of Board of
Act 1784
Control
Principle of Non-
Intervention
▪ The Act gave the British government supreme control over the Company’s affairs and its administration in India.
▪ With this Act, began a new phase in the history of British conquest of India; while the East India Company became
an instrument of British imperialism, India was to serve as a colony meeting the interests of all sections of ruling
classes in Britain.
Provisions under
Charter Act of 1813
Beginning of
End of EIC Constitutional Promotion of
Ecclesiastical
Monopoly over Position of British Literature &
settlements in
Indian Trade Territories in India Sciences
India
▪ It allowed missionaries to go to India and also allowed them to settle there under a license. This marked the beginning
of ecclesiastical settlements in India.
PROMOTION OF LITERATURE & SCIENCES
▪ It provided for a yearly fund of ₹1 lakh for promotion of literature & sciences among Indian subjects (As a declaration
of the principles of state responsibility for education, this provision may be taken as one of the most significant British
pronouncements with respect to India).
Factors behind
the Act of
1833
Impact of
Philosophy of
Liberal Wave
Laissez Faire
in Britain
Complete Removal of
EIC Monopoly
Colonization of India
Expansion of GG’s
Executive Council
of 1833
Employment of Indians
in Public Services
Directions to Abolish
Slavery
Administrative
Centralization
Legislative
Centralization
New Presidency
▪ The Act further centralised the Indian administration and the Governor General of Bengal was made the Governor
General of India.
▪ The powers of GG-in-Council were further extended and Bombay, Madras and all other territories were placed under
the complete control of GG-in Council.
Legislative Centralization
▪ The Act brought legislative Centralization. The GG-in-Council was given the powers to legislate for the whole British
territories in India while the legislative powers of other presidencies were simultaneously ended.
Creation Of New Presidency
▪ New Presidency of Agra was also created by virtue of this act.