CAPF-AC (Assistant Commandant) Exam Study Material :
History - Administration & Economy under the Company rule (1757-1857)
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
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
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
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
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
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
The Company on the other hand, established in 1806 its own training College at
Haileybury in England in the name of East India College.
The Charter Act of 1813
According to the Charter Act of 1813, nobody in India
could be appointed as a clerk without obtaining a satisfactory certificate
from a recognised institution.
The monopolistic right of the British company was
abolished,except the trade with China and the Tea trade.
The Charter Act of 1833
It made the Governor- General of Bengal as the Governor
–General of India, and Lord William Bentic was the first Governor-General of
The Charter Act of 1833 by its clause 87 for the first
time accepted educational qualification as the sole basis for appointment in
For the implementation of this clause, a Committee was
constituted under the Chairmanship of Lord Macaulay in 1834, which adopted
in principle the system of a competitive examination for the recruitment of
Civil Servants, the minimum age for which was fixed at 18 years.
The Charter Act of 1833 delegated the power of framing
laws to the Governor-General in Council.
Trading rights of the company were completely terminated,
including the Tea trade & the trade with China. However,term of the company
was extended for another 20 years.
The Charter Act of 1853
The legislative and excutive functions of the
Governor-General’s council were separated. It introduced a system of open
competition as the basis for the recruitment of civil servants of the
In 1853, Charles Wood became the Chairman of the Board of
Control. Consequently, by the Charter Act of 1853, Indians were allowed
entry into the Civil Services through a system of open competitive
But the minimum age prescribed for this competitive
examination was raised to 23 and its centre was kept in England while the
medium of examination was made English.