Permanent Settlement
Notes
The Permanent Settlement (also the Zamindari System) was introduced by Lord Cornwallis in 1793 in Bengal, Bihar and Orissa (later extended to Varanasi and parts of Madras). It fixed the land revenue permanently and made zamindars the owners of the land.
Background
- 1765: Company got the Diwani. 1772: Warren Hastings' Farming System (auction of revenue to the highest bidders, five-year leases) caused oppression and uncertainty. 1784: Pitt's India Act directed a permanent settlement.
- John Shore and James Grant debated; Cornwallis introduced the Decennial (10-year) Settlement in 1790, declared permanent in 1793.
Features
- Zamindars were recognised as owners of land, with hereditary and transferable rights.
- The revenue demand was fixed forever (about 90% to the Company, about 10% to the zamindar at first).
- Sunset Law: if the zamindar failed to pay on the fixed date, his estate was auctioned.
- The ryots became tenants, without ownership or tenancy security.
- The Cornwallis Code (1793) separated revenue and judicial functions and introduced civil and criminal courts and police reforms.
Merits (British view): stable income for the Company, creation of a loyal class of zamindars, an incentive to invest in land, and lower cost of revenue collection.
Effects
- Zamindars: absentee landlordism and subinfeudination (layers of intermediaries); old zamindars ruined by the sunset law, replaced by Calcutta traders and moneylenders.
- Peasants: rack-renting, eviction and indebtedness. Agriculture neglected.
- Company: lost the revenue from rising land values and agricultural prices.
- Later laws: Rent Act (1859) and Bengal Tenancy Act (1885) gave some protection. Zamindari was abolished after independence (e.g., West Bengal Estates Acquisition Act, 1953).
Comparison of land revenue systems
System | Introduced by | Region | Features | Share of area (approx.) |
|---|---|---|---|---|
Permanent Settlement | Cornwallis, 1793 | Bengal, Bihar, Orissa | Zamindar as owner; fixed revenue | 19% |
Ryotwari | Thomas Munro and Alexander Read | Madras, Bombay | Direct settlement with the cultivator; periodic revision | 51% |
Mahalwari | Holt Mackenzie (1822) | North-West Provinces, Punjab | Settlement with the village community (mahal) | 30% |
Key Points
- Cornwallis, 1793; Bengal, Bihar, Orissa; zamindars owners; fixed revenue.
- Sunset Law: auction if payment is late.
- Ryots became tenants; absentee landlordism.
- Ryotwari (Munro) and Mahalwari (Holt Mackenzie) are the other systems.
- Abolished after independence.
MCQs
Q1. The Permanent Settlement was introduced by Lord Cornwallis in: (a) 1765 (b) 1772 (c) 1793 (d) 1813 Ans: (c). The Decennial Settlement came in 1790.
Q2. The Ryotwari system was introduced by: (a) Cornwallis (b) Thomas Munro (c) Holt Mackenzie (d) Warren Hastings Ans: (b). In Madras and Bombay.
Q3. Under the Permanent Settlement, the "Sunset Law" meant: (a) Revenue was paid at sunset (b) The zamindar's estate was auctioned if payment was not made on the fixed date (c) Revenue was reduced at sunset (d) Land was returned to peasants Ans: (b).