S.N.D.

T WOMEN’S UNIVERSITY
LAW COLLEGE
JUHU CAMPUS, MUMBAI.

A.Y. 2024-25

HISTORY AND LOGIC

ASSIGNMENT

TOPIC: REGULATING ACT 1773 AND CHARTER ACTS.

NAME OF THE STUDENT: EKAM KAUR CHHABRA

CLASS: BBA.LLB. 1ST YEAR, SEMESTER I
ROLL NO. 10
NAME OF THE PROFFESOR: MS. SHALINI DEY
DATE OF SUBMISSION: 2ND DECEMBER, 2024

SIGNATURE:
 ACKNOWLEDGEMENT.

I express my heartfelt gratitude to my teacher, Ms. Shalini Dey, for her valuable guidance and
constant support throughout this project. Their insights and encouragement were instrumental
in shaping this work.
I also extend my thanks to my family and friends for their support and motivation during this
process. Lastly, I am grateful for the resources and references that contributed to the
successful completion of this project.

Thanking You.

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 INDEX

Sr. Content Pg.

No. No.
1. Introduction 4
2. Historical Context (before 1773) 5-8
 1600: The Royal Charter
 1609: Charter Renewal
 1661: Charter by King Charles II
 1726: Creation of Mayor’s Courts
3. Regulating Act of 1773 9-10
 Background
 Provisions
 Impact
4. Analysis of Subsequent Charter Acts 11-12

 1784: Pitt’s India Act

 Charter Act of 1813
 Charter Act of 1833
 Charter Act of 1853
5. Impact on Indian Administration 13-14
6. Conclusion 15-16
7. References 17

INTRODUCTION.

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The history of British rule in India is intricately linked to the establishment and evolution of
the East India Company and the subsequent imposition of parliamentary control over its
operations.
The administrative structure of India was controlled mainly by the British during their reign.
Though the British came to India for trade, they soon started ruling different parts of India.
They made various changes in the administrative structure to strengthen their governance.
This project delves into the transformation of the Company from a commercial trading entity
into a political and administrative body, charting the journey from the early charters granted
by the British Crown to the eventual transfer of power to the British government in 1858.
It also explores the expansion of British influence into new territories and new issues,
demands, experiences, and ideas that led to changes in the administrative structure and
mainly the main acts related to these administrative structures.
The early charters, starting from 1600, granted the East India Company trading monopolies
and limited administrative powers. Over time, as the Company expanded its influence in
India, it became entangled in local politics, governance, and conflicts. This led to financial
mismanagement and corruption, necessitating direct intervention by the British Parliament.
The Regulating Act of 1773 was the first such step, aimed at bringing the Company under
parliamentary supervision while addressing the challenges posed by its dual role as a
commercial entity and a governing authority.
The subsequent Charter Acts, enacted between 1793 and 1853, played a critical role in
shaping British India’s governance. These acts systematically redefined the powers of the
East India Company, culminating in the cessation of its commercial activities and its
transformation into a purely administrative body. Each Charter Act marked significant
milestones, from opening India to missionaries (1813), to the centralization of governance
(1833), to the introduction of competitive civil service examinations (1853). Together, these
acts laid the groundwork for the British colonial administration in India, influencing its
judicial, economic, and political systems.
Through this project, we aim to provide a comprehensive understanding of how British
parliamentary intervention reshaped the East India Company’s role, transformed India’s
administrative framework, and set the stage for British colonial dominance.

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 Historical Context.
 1600: The Royal Charter
 The Charter Act of 1600, also called the Royal Charter of 1600, was an important
legal document issued by Queen Elizabeth I of England. It granted exclusive trading
rights to the English East India Company (EIC), marking the beginning of British
influence in India.
 During the late 16th century, European powers like Portugal, Spain, and the Dutch
were expanding their trade in Asia.
 English merchants wanted a share in the lucrative spice trade, particularly with the
East Indies (modern Southeast Asia and India).
 To strengthen England's position in global trade, a group of merchants and investors
approached Queen Elizabeth I.
 The act formally established the "Governor and Company of Merchants of
London Trading into the East Indies", commonly known as the English East India
Company.
 It granted the company a royal monopoly on all English trade in the East Indies for 15
years.
 The company was given exclusive rights to trade in regions east of the Cape of Good
Hope (Africa) and west of the Strait of Magellan (South America).
 Other English merchants could not trade in these regions without permission from the
company.
 The company was organized as a joint-stock company, where investors pooled their
money and shared profits.
 It had a governor, deputy governor, and a 24-member board of directors to oversee
operations.
 The company was empowered to establish factories (trading posts), maintain ships,
and hire employees.
 It could make treaties, establish settlements, and defend itself using military force,
with the Crown's approval.
 The monopoly could be terminated if the company failed to show profitability within
three years.
 The act marked the beginning of British involvement in Asian trade and laid the
foundation for British colonialism in India.

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 The company initially focused on trade but later became involved in local politics and
administration, especially in India.

 1609: Charter Renewal

 In 1609, the East India Company, was granted its second royal charter by King James
I of England. This charter extended the privileges initially granted to the company by
Queen Elizabeth I in its first charter of 1600.
 Unlike the 1600 Charter, which was valid for 15 years, the 1609 Charter made the
East India Company's privileges perpetual. However, this condition was subject to
revocation if the company violated terms or underperformed in its commercial
activities.
 The Company retained its monopoly over trade between England and the East Indies
(Asia), effectively excluding any competitors from venturing into this lucrative trade.
 The extended privileges incentivized the Company to expand its trade network,
leading to the establishment of trading posts (factories) in India, the first factory in
India was established in 1613 at Surat.
 In 1615, Sir Thomas Roe, an ambassador of King James I, negotiated a treaty with
Mughal Emperor Jahangir, granting the Company trade privileges. This strengthened
the Company's foothold.
 Although initially a trading organization, the East India Company began laying the
groundwork for future political and territorial control in India, which would become a
reality in later centuries.

 1661: Charter by King Charles II

 By the mid-17th century, the company had established trading posts in Surat, Madras,
Bombay, and Calcutta. However, they needed royal backing to expand their influence
and govern territories effectively.
 Marriage Treaty: The issuance of the 1661 Charter was linked to the marriage of King
Charles II to Catherine of Braganza, a Portuguese princess. As part of her dowry, the
Portuguese ceded Bombay (Mumbai) to England.
 The Portuguese territory of Bombay was handed over to the English Crown. King
Charles II, in turn, leased Bombay to the EIC in 1668 for an annual payment of £10.

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 The company was authorized to establish its own laws and governance in areas under
its control. It could appoint local governors, magistrates, and other officers to
administer justice.
 The EIC was allowed to create courts of law to settle disputes among employees and
local inhabitants. The charter laid the foundation for the development of an English-
style judicial system in India.
 The company was permitted to maintain armed forces, including forts, garrisons, and
fleets, to defend its territories and trade routes. It could declare war or make peace
with local rulers.
 The company gained the right to levy taxes on residents within its territories to
support its administrative and military expenses.
 The EIC could mint its own coins to facilitate trade.
 The charter authorized the company to acquire new territories through treaties,
purchases, or other means.
 The 1661 Charter marked a turning point by giving the EIC quasi-governmental
powers, allowing it to act as a political entity rather than just a trading company.
 Bombay became a significant base for British expansion, and its transfer established a
long-lasting British presence in western India.

 1726: Creation of Mayor’s Courts

 The act empowered the establishment of municipal corporations in the three
presidency towns: Bombay, Madras, and Calcutta.
 These corporations were to look after local administration, including taxation, public
works, and maintaining law and order.
 Each municipal corporation had a mayor and a group of Aldermen. The Mayor's Court
was established for resolving local disputes.
 For the first time, an attempt was made to introduce uniform laws for Europeans and
local populations within these territories.
 Appeals from the Mayor's Court could be made to the Privy Council in England,
marking the beginning of a structured appellate system.
 The act aimed to ensure better coordination between the British Crown and the East
India Company by formalizing their roles in governance and legal administration.

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 The Charter Act of 1726 is often regarded as the starting point for the modern judicial
system in India. The establishment of Mayor's Courts marked the first formal
introduction of English-style judiciary.
 The act was one of the earliest attempts to institutionalize urban governance in India
through the creation of municipal corporations. It marked the initial step toward
integrating Indian and British legal principles, though the English laws often
overshadowed local customs.
 This act symbolized a shift from mere trading activities to a structured governance
model, paving the way for subsequent legislative measures and greater British control.

Regulating Act of 1773

 Background
 By the mid-18th century, the East India Company had transitioned from a trading
body to a powerful political entity controlling vast territories in India.
 Following the Battle of Plassey (1757) and the Battle of Buxar (1764), the Company
acquired diwani rights (revenue collection) in Bengal, Bihar, and Orissa, giving it
control over immense resources.

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 The Company’s employees amassed vast personal wealth through corrupt practices,
leading to inefficient governance and financial mismanagement.
 The Bengal Famine of 1770 highlighted the Company’s neglect of administrative
responsibilities, resulting in widespread suffering and millions of deaths.
 The East India Company faced a severe financial crisis in the early 1770s due to
corruption, rising administrative costs, and military expenses.
 The British government, heavily dependent on the Company’s revenue, had to
intervene to regulate its affairs and ensure better governance.
 Public outcry over corruption and exploitation in India, combined with parliamentary
concern over Company finances, led to the enactment of the Regulating Act.

 Provisions
 The act created the office of the Governor-General of Bengal.
 Warren Hastings became the first Governor-General.
 Governors of Bombay and Madras were subordinated to the Governor-General of
Bengal in matters of diplomacy and military affairs.
 A council of four members was appointed to assist the Governor-General in
administration.
 Decisions were taken by majority vote, often resulting in conflicts.
 A Supreme Court of Judicature was established in Calcutta (Kolkata) in 1774.
 It consisted of a Chief Justice and three other judges.
 The court had jurisdiction over British subjects and Company officials in civil,
criminal, and revenue matters.
 The East India Company was required to report its revenue and civil and military
administration to the British government.
 Company directors had to submit copies of all correspondence related to revenue,
civil, and military matters for parliamentary scrutiny.
 Company officials were prohibited from engaging in private trade and accepting gifts
from Indian rulers.

 Impact
 The Regulating Act was the first step towards regulating the East India Company but
had limited success due to its vague provisions and the conflicts between the

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 Governor-General and his council. For example, Warren Hastings often faced
opposition from the council, leading to administrative delays and inefficiency.
 It marked the beginning of British centralization in Indian governance, with Bengal as
the administrative centre.
 The establishment of the Supreme Court led to jurisdictional conflicts between the
court and the Company’s executive officers. Ambiguity in the legal system created
confusion.
 The act exposed the weaknesses in the governance framework, necessitating further
reforms such as the Pitt’s India Act of 1784, which clarified the relationship between
the Company and the British government.

 Significance
 The Regulating Act was the first instance of British parliamentary control over the
East India Company, setting a precedent for future legislation.
 It laid the foundation for the eventual transfer of power from the East India Company
to the British Crown in 1858.
 The establishment of the Supreme Court introduced a formal legal system in India,
although imperfect.
 By requiring the Company to report its actions to Parliament, the Act emphasized
accountability and sought to curb corruption and inefficiency.
 The Act signaled a shift in British policy from merely controlling trade to governing
and administering territories in India.

Analysis of Subsequent Charter Acts

 1784: Pitt’s India Act:
 It established the dual system of control by the British government and the East India
Company.
 The Company became a subordinate department of the State and its territories in India
were termed ‘British possessions’. However, it retained the control of commerce and
day-to-day administration.

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 A Board of Control was formed to exercise control over the Company’s civil, military
and revenue affairs.
 The important political matters were reserved to a secret committee of three directors
(Court of Directors) in direct touch with the British government.

 Charter Act of 1813:

 Charter act of 1813 ended the monopoly of the East India Company in India, the
company’s monopoly in trade with China and trade in tea with India was kept intact.
 The company’s rule was extended to another 20 years.
 The act granted permission to the persons who wished to go to India for promoting
moral and religious improvements. (Christian Missionaries)
 This act regulated the company’s territorial revenues and commercial profits. It was
asked to keep its territorial and commercial accounts separate.
 The company’s dividend was fixed at 10.5% per annum.
 There was also a provision that Company should invest Rs. 1 Lakh every year on the
education of Indians.
 It empowered the Local Governments in India to impose taxes on persons and to
punish those who did not pay them.

 Charter Act of 1833:

 The charter act of 1833 legalized the British colonization of India. It ended the
activities of the East India Company as a commercial body, it became an
administrative body. It provided that the company’s territories in India were held by
government ‘in trust for His Majesty, His heirs and successors’.
 It made the Governor-General of Bengal as the Governor-General of India and vested
in him all civil and military powers. This made Lord William Bentinck the first
Governor-General of India. (centralization of the administration of India)
 The Governors of Bombay and Madras lost their legislative powers. Governor-
General of India had legislative powers over entire British India.
 The laws made under the previous acts were called as Regulations while laws made
under this act were called as Acts.
 The Governor-General in council had the authority to amend, repeal or alter any law
British Indian territories. The Governor-General’s council was to have four members
again, fourth member had limited powers only.

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  Introduced provisions to allow Indians into public office, though not implemented.
 For the first time, the Governor-General’s government was called Government of
India and the council was called India Council.
 Indian Law Commission was established to codify all Indian laws. The first Law
Commission had Lord Macaulay as its chairman.
 This act also directed the Governor General-in-Council to adopt measures to mitigate
the state of slavery, persisting in India since sultanate Era.
 It laid down regulation of establishment of Christian establishments in India and the
number of Bishops was made 3.

 Charter Act of 1853

 the legislative and executive functions of the Governor- General’s council separated
for the first time
 It established a separate Governor-General’s legislative council which came to be
known as the Indian (Central) Legislative Council. This legislative wing of the
council functioned as a mini-Parliament, adopting the same procedures as the British
Parliament.
 It introduced an open competition system of selection and recruitment of civil
servants. The covenanted civil service was thus thrown open to the Indians also.
Accordingly, the Macaulay Committee (the Committee on the Indian Civil Service)
was appointed in 1854.
 This act served as the foundation of the modern parliamentary form of government.

Overall Impact on Indian Administration

The Regulating Act of 1773 and the subsequent Charter Acts between 1793 and 1853 had a
profound impact on the administration of India, transforming the governance system under
the East India Company into a more centralized and structured framework. These legislative
measures introduced by the British Parliament marked the beginning of parliamentary control
over the East India Company, laying the foundation for a colonial administrative structure
that would last until independence. While they aimed to improve governance and
accountability, their primary objective was to safeguard British interests, which often came at
the expense of Indian society.
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One of the most significant changes brought about by these acts was the centralization of
administration. The Regulating Act of 1773 established the office of the Governor-General of
Bengal, making it the supreme authority over the presidencies of Bombay and Madras. This
marked the beginning of centralized governance in India, which was further solidified by the
Charter Act of 1833, when the Governor-General of Bengal was re-designated as the
Governor-General of India, with legislative powers consolidated under his council. This
centralization created a uniform system of administration across British territories, ensuring
consistency in governance. However, it also undermined the autonomy of provincial
presidencies, alienating local populations and failing to address the diverse needs of India’s
regions.

The legal system in India also underwent significant changes during this period. The
Regulating Act of 1773 established the Supreme Court at Calcutta, introducing a modern
judiciary that operated independently of the East India Company. Over time, subsequent
Charter Acts expanded the judiciary to other presidencies and empowered the Governor-
General’s council to legislate for all British territories in India. This led to the creation of
uniform laws and the beginnings of legal codification in India. However, the judicial system
primarily served British interests, and access to justice was limited for most Indians, with the
system often perceived as alien and unresponsive to local traditions.

These legislative acts also transformed the East India Company from a commercial enterprise
into an administrative body. While the Regulating Act of 1773 subjected the Company’s
operations to parliamentary oversight, the Charter Act of 1833 marked the end of its trading
activities, reducing it to a governing agency for British India. This shift allowed the British
government to exert greater control over Indian administration, but it also entrenched
exploitative policies aimed at maximizing revenue for Britain. Economic policies, such as the
Permanent Settlement, Ryotwari, and Mahalwari systems, prioritized British profits over the
welfare of Indian farmers, leading to widespread poverty and resentment.

The introduction of a bureaucratic system was another critical development during this
period. The Charter Act of 1853 laid the groundwork for the Indian Civil Service (ICS) by
introducing competitive examinations for recruitment. While this allowed limited Indian
participation, systemic biases and cultural barriers ensured that higher administrative ranks
remained dominated by the British. This hierarchical bureaucracy was efficient but
unresponsive to Indian needs, further distancing the administration from the people it

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governed. Nevertheless, the emergence of an educated Indian elite within this system
eventually led to the rise of nationalist movements, as these individuals began to demand
greater representation and equality.

Social and cultural policies introduced through the Charter Acts also left a lasting legacy. The
Charter Act of 1813 opened India to Christian missionaries, leading to significant cultural and
religious interventions. Western education, promoted under this act, created an English-
speaking Indian elite who became instrumental in articulating nationalist ideas in the 19th
and 20th centuries. At the same time, the imposition of British cultural values disrupted
traditional Indian institutions and fostered resentment among the local population.

The cumulative impact of these legislative measures on Indian administration was profound.
While they introduced centralized governance, a modern legal system, and an efficient
bureaucracy, these changes were primarily designed to serve British interests. The
exploitative economic policies and the exclusion of Indians from meaningful participation in
governance created widespread dissatisfaction and alienation. However, these very policies
also sowed the seeds of political awakening in India, as the educated elite began to challenge
British rule and demand self-governance. In this way, the administrative framework
established by the Regulating Act and the Charter Acts not only shaped British colonial rule
but also laid the groundwork for the Indian struggle for independence.

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 CONCLUSION.
The Regulating Act of 1773 and the Charter Acts that followed played a pivotal role in
shaping the trajectory of British colonial rule in India. These legislative measures marked the
transition of the East India Company from a profit-driven trading corporation to a centralized
administrative authority, paving the way for the establishment of British imperial control.
While these acts introduced reforms that created a modern bureaucracy, judiciary, and
governance structure, their primary purpose was to safeguard British interests. This self-
serving approach often resulted in the exploitation of Indian resources and people, deepening
socio-economic disparities and eroding traditional institutions.

In my opinion, while these acts brought about some semblance of order and uniformity in
administration, they failed to consider the cultural, economic, and social complexities of
India. The focus on revenue extraction, coupled with the exclusion of Indians from
meaningful participation in governance, created a system that was efficient for the British but
deeply alienating for Indians. The introduction of Western education and legal reforms,
though progressive in some respects, was implemented in a way that marginalized indigenous
knowledge systems and traditions.

I believe that these policies could have had a more positive impact if they had been designed
with a focus on inclusive governance and sustainable development. Allowing greater Indian
representation in administrative and legislative processes could have bridged the gap between
the rulers and the ruled, fostering a more collaborative and equitable system. Similarly,
economic policies that prioritized local development over imperial profits might have
mitigated the widespread poverty and unrest that characterized much of colonial rule.

As I reflect on the legacy of the Regulating Act and the Charter Acts, it becomes evident that
their significance lies not just in their immediate impact but also in their unintended
consequences. The centralization of administration and the introduction of Western education
created a new class of educated Indians who ultimately spearheaded the nationalist
movement. In this sense, these acts inadvertently laid the foundation for India’s struggle for
independence.

In conclusion, while the Regulating Act of 1773 and the Charter Acts were instrumental in
shaping India’s colonial administration, their exploitative nature and disregard for Indian
needs highlight the dangers of governance systems driven by external interests. My takeaway
from this topic is that good governance must be rooted in inclusivity, cultural sensitivity, and

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a genuine commitment to the welfare of the people it serves. For contemporary India, the
lessons from this history remind us to prioritize participatory governance and equitable
policies, ensuring that the mistakes of the past are not repeated.

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 REFERENCES.

1) Insightsonindia.com
2) Dristiias.com
3) Testbook.com
4) Clearias.com
5) Scribd.com
6) Modern History by V.D Mahajan
7) Blog.ipleaders.in
8) Iilsindia.com
9) Simplestudyall.com

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