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History : Administration & Economy under the Company rule (1757-1857)
Fundamentally the British East India Company remained a trading concern from 1600 to 1757. It became successful in gaining monopoly over trade in India by adopting all means to appease the British Government and its influential class. Lord Clive, during his second term as Governor, established Dyarchy in Bengal in 1765. This system of administration continued there for the next 7 years. Dyarchy was terminated in 1772. After that some Acts were passed by the Britishers as per their requirement to administer India. Some important Acta are as following:-
Regulating Act of 1773
The British Parliament passed the Regulating Act in 1773 by which changes were introduced in the administrative structure of the Company both in England and in India.
In England only those shareholders were allowed to vote, who possessed a share of 1000 pounds at least a year before the election. The Directors of the Company were also required to place before the British Government all their correspondence from India dealing with revenues and military administration.
In India the Governor of Bengal came to be designated as the Governor General. A Council comprising of four members, wherein decisions were to be taken on the basis of majority votes, was constituted to assist the Governor-General.
As per the provision of the Act, a Supreme Court was established at Calcutta comprising of a Chief Justice and three other judges. The Court was given the powers of adjudication over the Europeans, all persons in the Company’s service and the citizens of Calcutta.
Soon, the demerits of the Regulating Act also started coming to the fore. The position of the Governor-General became tenuous due to the provision of majority vote in the Governor-General’s Council.
Pitt’s India Act of 1784
The Pitt’s India Act was passed in 1784 in order to remove the above demerits of the Regulating Act. The new Act established the control of the British Government over the Company and all its affairs in India.
A Board of Control consisting of six members was set up by the British Parliament to look after all civil, military and ‘revenue affairs of the Company baring only its trading activities.
Besides a secret community of three Directors was also set up which would send important orders to India directly. In India, the number of members in the Governor-General’s Council was reduced from four to three.
The Charter Act of 1793
Lord Clive was the first to pay attention to the Civil Services. He prohibited the employees of the Company from undertaking any private trade or accept any gift and also asked them to sign an agreement with regard to their service. Since then the word ‘Covenanted Services’ came into use.
Lord Cornwallis used to detest Indians, regard everyone of them as corrupt, and therefore was not ready to appoint any Indian to a higher post. He Europeanised the Government Services.
He took steps to check corruption among the Company employees and introduce ban on their accepting bribes or gifts and carrying out private trade. The highest rank that an Indian could aspire to go was that of a Subedar in the army and Munif, Sadar Amin or Deputy Collector in the Civil Services.
The credit for introducing the first steps towards training of the Company’s Civil Servants to improve their efficiency went to Lord Wellesley, for which he founded the Fort William College at Calcutta on 24 November, 1800.
The Company on the other hand, established in 1806 its own training College at Haileybury in England in the name of East India College.
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