Q. 43.6( 11 Votes )

How was the

Answer :

East India Company decided to invest in land for the development of agriculture.

Permanent settlement - In 1793, the company introduced Permanent Settlement which means the revenue that needs to be paid is permanent and will not increase or decrease in future. According to this settlement, the rajas and taluqdars were made Zamindars. Their job was to collect the rent form the peasants and then pay the collected revenue to the company. As the revenue that has to be paid was fixed permanently, the company thought that this might lead to the expected flow of income to the company and the Zamindars who were the mediators will feel encouraged to invest in the land for its improvement. The fixation of revenue benefitted the Zamindars as Company cannot demand more revenue, so if the production increases, Zamindars take advantage of it.


But Company came to know that Zamindars didn’t invest in land and often found it difficult to pay the revenue as the amount fixed was high. Those who failed to pay the revenue lost their jobs. As the cultivation increased, the Zamindars were benefitted the most but the company didn’t get any profit.


As the company was needed more money, the fixation of revenue under the permanent settlement was creating a problem, so they decided to introduce a new system.


Mahalwari system - Holt Mackenzie, an Englishmen introduced a new system in the North-Western Provinces of the Bengal Presidency. This system was called the Mahalwari system which came into effect in 1822. Mackenzie considered that villages are an important part of the Indian society and it has to be preserved. According to this system, the collectors went from village to village, inspected and measured the land, recorded the customs and rights of different groups. The revenue of each plot in a village was calculated to bring out the total amount of revenue that could be acquired from the Village or Mahal. The village headman has to collect the total amount of revenue that had to pay to the company. Zamindar is not a part of this system and the revenue calculated changes at regular intervals and is not fixed like Permanent system. This system was termed as Mahalwari system.


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