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The East India Company of England established its control in the countryside and
implemented its revenue policies. In this chapter, we will discuss what these policies
meant to people and how these changed the daily lives of people.

Bengal and the Zamindars:

• Colonial rule was first established in Bengal. In Bengal, East India Company tried
to reorder the rural society and establish new land rights and new revenue
system.
• There was an auction held at Burdwan (present day Bardhaman) in 1797, which
was popularly known as Grand Public Event.
• Company fixed the revenue and each zamindar was supposed to pay. This fixing
of revenue was done under the Permanent Settlement and it become operational
from year 1793.
• The Zamindars who failed to pay the revenue, their estate was auctioned to
recover the revenue. But sometimes it was found that the purchasers at auction
were servants and agents of the zamindar himself, e.g. auction in Burdwan.

The Problem of Unpaid Revenue:

• The British officials fell that agriculture, trade and the revenue resources of the
state could be developed by encouraging investment in agriculture. This could be
done by securing rights of property and permanently fixing the rates of revenue
demand.
• Company felt that when revenue will be fixed, it will provide opportunity to
individual to invest in agriculture as a means of making profit and company will
also be assured of regular flow of revenue.
• After a prolonged debate amongst company officials, the permanent settlement
was made with the rajas and taluqdars of Bengal.
• Zamindars had several, sometimes even 400 villages under them.
• Zamindars collected rent from the different villages, paid the revenue to the
company, and retained the difference as his income.

Reasons for Non-Payment by Zamindars:

• A number of reasons were responsible for non-repayment of revenue by
zamindars which include that revenue demands were kept very high. It was
imposed at a time when prices of agricultural produce was very low, so peasants
found it difficult to pay.
• Zamindars were also treated by strict laws i.e. the Sunset Law’, which was
completely regardless of the harvest. According to this law, zamindars had to pay
revenue by sunset of the specified date, otherwise zamindari was liable to be
auctioned.