Before discussing the introduction of the Regulating Act 1773, we need to be aware of why the British Parliament felt the need to enact a series of laws to control the East India Company. The East India Company was a merchant organization. This organization was under the control of the British government.
From the seventeenth century, the company’s employees worked in this country as representatives of British sovereignty. However, from the mid-eighteenth century, this merchant group gradually expanded its power in the Indian subcontinent. Although the company’s employees were obliged to rely on the London government, over time they became the masters of power and continued to increase oppression on the Indian people.
Although the company and the London government were interdependent, from 1773 to 1858, there was a lot of complexity in that dependent relationship. The company’s employees had to send a share of the wealth they looted through war to London, and in return, the government always helped the East India Company. After the Battle of Plassey, British control over the company’s activities increased. This was because these employees had become owners of vast wealth while establishing corrupt misrule over Indians.
By the eighteenth century, these company employees were involved in business and commerce along with ruling power, and this wealthy English merchant group had become an influential group in England. From then on, the amount of corruption had taken on a massive scale. From 1763-66 AD, the British Parliament’s intervention in this merchant group had somewhat widened.
In 1772, a committee was formed to examine all kinds of issues related to Indians. This was because it had become necessary to make some definite decisions on some constitutionally important issues. Mainly, it had become necessary to have specific laws regarding how to define the limits of authority of the British government and the company in this country and how the government would control the company’s employees. Against this backdrop, the Regulating Act, Pitt’s India Act, and Charter Act were introduced one after another.
What is Regulating Act 1773?
The Regulating Act of 1773 is the British Parliament’s regulation of the company’s longstanding governance structure. Parliament. This act was the first attempt to control the misrule and oppression of the company’s employees. However, the success of this act is not particularly noteworthy. The background, rules, and limitations of this policy are mentioned below.
You can also read about: Doctrine of Lapse Policy: Impact on India’s Princely States
Regulating Act 1773: Background
After the Battle of Buxar in 1764 AD, through the Treaty of Allahabad in 1765, the company had acquired the Diwani of Bengal, Bihar, and Orissa. The Mughal ruler Shah Alam II had given Robert Clive the responsibility of running the administration of Bengal. At that time, Clive introduced the ‘Dual Government’ in 1765, following the Mughal administrative system. The Dual Government had two parts: one was Diwani, and the other was Nizamat.
‘Diwani’ means revenue administration and civil justice, and ‘Nizamat’ means the administration of law and order and criminal justice. The company kept the Diwani right to itself and gave the responsibility of Nizamat to the Nawab.
The company appointed two Indians as the deputy diwan, Mohammad Reza Khan for Bengal and Raja Sitab Rai for Bihar.
Under this system, the British had power and resources without responsibility, while the Nawabs had the responsibility of the administration without the power to discharge it. Thus, Nawab had to take all responsibility for bad governance.
Therefore, the regulating act was introduced to directly address the problem of dual governance and mismanagement of the East India Company. Moreover, due to internal obstacles in the company, there was also a deficit in revenue collection.
You can also read about: Subsidiary Alliance System 1798: Origins, Impact and Facts
Provisions of Regulating Act 1773
- British government control was established over the Indian empire.
- It was the initial action done by the British government to manage and oversee the EIC’s operations in India.
- EIC was given permission for the first time to look after political and administrative affairs alongside trade.
- It laid the foundations of contral administrations in India.
- The Governor of Bengal became the Governor General of Bengal for the first time. The first Governor General was Warren Hastings.
- The first attempt was made to bring the governor and administration of Bombay and Madras under the governor general of Bengal, but it was not possible.
- It was said that there should be 4 members in the Governor General’s Council.
- The personal trade of the company’s employees and the acquisition of excess profits through bribes were cancelled.
- The Supreme Court was established in 1774 AD. There would be one Chief Justice and three other judges.
- It strengthened the control of the British government over the company by requiring the ‘court of directors’ (governing body of the company) to report on its revenue and civil and military affairs in India.
Limitations of Regulating Act 1773
- It was not possible to organize the Indian administrative system properly through this act.
- Disunity was noticeable among the members of the Governor General’s council.
- There was always a conflict between the governor and the members of the council. As a result, it was difficult to carry out administrative work.
- There was also ambiguity about the law among the provincial governors.
You can also read about: Blood and Iron Policy of Balban: Balban’s Path to Power
Conclusion
The Regulating Act of 1773 was not able to bring about changes in either the governance of India or the behavior of the company. However, through this act, for the first time, centralized control in India and the control of the British Parliament over the company’s affairs were established. As a result, perhaps the level of exploitation on Indians had decreased to some extent.
Regulating Act 1773 FAQ’s
Who is the founder of the Regulating Act 1773?
The Regulating Act of 1773 was introduced by the British Parliament to regulate the East India Company’s administration in India.
What was the main purpose of the Regulating Act 1773?
The main purpose to curb the corruption and mismanagement of the East India Company by establishing a system of governance and oversight.
