Charter Act 1793 was an important early law passed by the British Parliament to control the disorderly administrative practices of the East India Company. Through this act, the British government’s attitude towards the company’s governance structure and activities was slightly changed. At this time, under pressure from private British businessmen, the company’s monopoly on commercial rights had somewhat relaxed.
In fact, the Charter Act of 1793 is called “The act thus introduced in India the concept of a civil law, enacted by secular human agency and applied universally.” George D. Bearce said about the Charter Act of 1793, “From 1784 to 1813, Parliament passed almost no significant legislation relating to the East India Company or to India. A charter Act of 1793 slightly attends to the commercial system of India.”
You can also read about the Charter Act 1813: Its Purpose, Background, Features.
Objectives of Charter Act 1793
The main objective of the Charter Act of 1793 was to establish British sovereignty and expand the territory of Britishers in this country. For this purpose, the company’s legal right to continue its activities in this country was approved for another 20 years. In this way, the British government’s power over the company gradually increased, and the company’s political activities gradually decreased.
You can also read about The Regulating Act 1773: Purpose and Impact of this Act.
Features of Charter Act 1793
- The company’s commercial privileges were legally approved for 20 years.
- The company was able to maintain exclusive commercial rights over India and China until 1793. However, in some cases, private merchants were given the right to trade in India under certain conditions.
- The employees of the company had to pay 5 lakh pounds to the British government excluding their own expenses, dividends and salaries from the amount of revenue collected from the Indian states.
- Senior officers of East India Company were prohibited from going outside without permission. If the rule was violated, they would be dismissed.
- The Permanent Settlement was introduced by Lord Cornwallis in Bengal, Bihar and Odisha; the Charter Act of 1793 further facilitated the introduction of this land revenue system.
- The powers of the Governor-General in Indian administrative affairs were further increased. He could even disregard the councils of Bombay and Madras and give any order to the officials there if necessary.
- The rulers of Bombay and Madras were brought under the control of the Governor-General.
- The Governor-General could keep any one of his council members as co-president. In the absence of the Governor-General, the co-president would carry out his responsibilities.
- For the first time through this act, provision was incorporated to pay the salaries as well as allowances to Members of the Board of Control out of the revenue collected from the people of the Indian sub-continent. The number of members of the Board of Control was five.
- The royal approval was mandated for the appointment of the governor-general, the governors, and the commander-in-chief.
- The regulation applied to all rights, persons, and property of the Indian people, and it bound the courts to regulate their decisions by the rules and directives contained therein.
- To make people aware of their rights, privileges, and immunities, laws were to be printed with translation in the Indian language.
- The act introduced the concept of civil law in India.
- The company had the authority to provide licenses for trading in India to both people and the company’s employees. The license, known as ‘privilege’ or ‘country trade,’ paved the way for shipments of opium to China.
- The Maal Adalats disappeared as a result of the revenue administration and judicial duties being separated.
You can also read about Pitt’s India Act 1784: Origin, Key Provisions and Impact.
