Chapter 1 · Topic 1.1 · Prelims + Mains1 of 3

Historical Background: Company rule and the Charter Acts

Key points

  • 1773 Regulating Act: Governor-General of Bengal (Warren Hastings), Supreme Court at
  • 1813 Charter: monopoly ends except tea and China trade; Crown sovereignty; missionaries; ₹1

Prelims box: facts and traps

Regulating Act, 1773What it did
Governor-General of BengalThe Governor of Bengal became Governor-General of Bengal, with an Executive Council of four; Warren Hastings was the first
PresidenciesThe Governors of Bombay and Madras were made subordinate to the Governor-General of Bengal
Supreme CourtProvided for a Supreme Court at Calcutta (set up in 1774): a Chief Justice and three judges
ConductBarred Company servants from private trade and from taking presents or bribes
ControlThe Court of Directors had to report on revenue, civil and military affairs to the British Government.
  • The 1813 grant, the General Committee of Public Instruction (1823) and the Orientalist and Anglicist Controversy all led to the introduction of English education in India, ending with Macaulay's Minute (1835).
  • Between 1773 and 1947 the British Parliament passed a chain of Acts, each one adding a piece.
  • The earlier Charter Acts renewed the Company's charter for a fixed term of twenty years: 1793, 1813 and 1833 each fixed one.
  • Trap (UPSC Prelims 2018): all the statements are correct.
  • Trap (UPSC Prelims 2019): “The revenues of India were now controlled by the British Parliament” is incorrect.
On this page (3 sections)
  1. Why a Polity book starts with British Acts
  2. Company rule: the Regulating Act 1773 and Pitt’s
  3. The Charter Acts of 1813, 1833 and 1853

Why a Polity book starts with British Acts

The Constitution of India was not written on a blank page. Between 1773 and 1947 the British Parliament passed a chain of Acts, each one adding a piece: a Governor-General, a central legislature, Indian members, elections, a division of subjects, provincial autonomy, a Federal Court, Public Service Commissions. When the Constituent Assembly sat down to write, much of this machinery already existed and was simply adapted.

Read the chapter in two phases. Company rule (1773–1858): Parliament slowly takes control of a trading company that had become a government. Crown rule (1858–1947): the Crown governs directly, and Indians are let in step by step, first as nominated members, then elected ones, then ministers.

Company rule: the Regulating Act 1773 and Pitt’s

India Act 1784 Regulating Act, 1773. The first step by the British Government to control and regulate the East India Company’s affairs in India. It recognised, for the first time, that the Company had political and administrative functions, not just commercial ones. It laid the foundations of central administration in India.

Regulating Act, 1773What it did
Governor-General of BengalThe Governor of Bengal became Governor-General of Bengal, with an Executive Council of four; Warren Hastings was the first
PresidenciesThe Governors of Bombay and Madras were made subordinate to the Governor-General of Bengal
Supreme CourtProvided for a Supreme Court at Calcutta (set up in 1774): a Chief Justice and three judges
ConductBarred Company servants from private trade and from taking presents or bribes
ControlThe Court of Directors had to report on revenue, civil and military affairs to the British Government

Pitt’s India Act, 1784. It separated the Company’s commercial and political functions. The Court of Directors kept commerce; a new Board of Control took charge of political affairs. This arrangement is called the system of double government. The Company’s territories were called the ‘British possessions in India’ for the first time, and the British Government got supreme control over the Company’s administration.

i PRELIMS TRAP Double government (1784: Court of Directors + Board of Control) is not dyarchy (1919: reserved and transferred subjects in the provinces). The 1858 Act ended double government.

→ Judiciary From the Calcutta Supreme Court of 1774 to the Supreme Court of India.

The Charter Acts of 1813, 1833 and 1853

Charter Act, 1813. It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China, so India’s trade opened to all British merchants. It asserted the sovereignty of the British Crown over the Indian territories held by the Company. It allowed Christian missionaries into India, and set aside one lakh rupees a year for the education of Indians. It did not hand control of Indian revenues to the British Parliament, which is why the 2019 key is statements 1 and 2 only.

Asked by UPSCUPSC Prelims 2019 · GS Paper I · Q4

Consider the following statements about ‘the Charter Act of 1813’: 1. It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China. 2. It asserted the sovereignty of the British Crown over the Indian territories held by the Company. 3. The revenues of India were now controlled by the British Parliament. Which of the statements given above are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
Show answer

Answer: (a) · UPSC official key

That education grant is where a chain began. The 1813 grant, the General Committee of Public Instruction (1823) and the Orientalist and Anglicist Controversy all led to the introduction of English education in India, ending with Macaulay’s Minute (1835). The 2018 key is all three.

Asked by UPSCUPSC Prelims 2018 · GS Paper I · Q76

Which of the following led to the introduction of English Education in India ? 1. Charter Act of 1813 2. General Committee of Public Instruction, 1823 3. Orientalist and Anglicist Controversy Select the correct answer using the code given below :

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3
Show answer

Answer: (d) · UPSC official key

ActMain changes
Charter Act, 1833: the peak of centralisationGovernor-General of Bengal became Governor-General of India (Lord William Bentinck the first), with all civil and military powers. Bombay and Madras lost their law-making powers; laws made by the Governor- General were called Acts (earlier, Regulations). The Company’s commercial work ended: it became a purely administrative body. A law member joined the council (Macaulay). Open competition for civil servants was proposed but dropped after the Court of Directors objected
Charter Act, 1853: the last Charter ActSeparated the legislative and executive functions of the Governor-General’s council: six legislative members were added, forming a central legislative council that worked like a mini-parliament. Open competition for the civil services, open to Indians too (Macaulay Committee, 1854). Local representation: four of the new members were appointed by the governments of Madras, Bombay, Bengal and Agra. The Company’s rule was extended without a fixed period

Mains box: analysis and answer points

  • The Constitution of India was not written on a blank page.
  • When the Constituent Assembly sat down to write, much of this machinery already existed and was simply adapted.
  • Likely next angle: A chronological-order question on four Acts, or an Act-to-feature match

Practice

Practice MCQs (8)

Q1 · Battle IAS practice

Unlike the earlier Charters, which one of the following Charter Acts extended the Company's rule in India without specifying any particular period?

Answer (d) & explanation

The earlier Charter Acts renewed the Company's charter for a fixed term of twenty years: 1793, 1813 and 1833 each fixed one. The Charter Act of 1853 allowed the Company to keep the Indian territories in trust for the British Crown but did not specify any period. This meant Parliament could end Company rule at any time, and it did so five years later through the Government of India Act, 1858. The 1853 Act is also remembered as the last of the Charter Acts.

Q2 · Battle IAS practice

Who among the following was the last Governor-General of India under Company rule and also became the first Viceroy of India under the Government of India Act, 1858?

Answer (b) & explanation

Lord Canning became Governor-General in 1856 under the Company. When the Government of India Act, 1858 transferred power to the Crown, the Governor-General was given the additional title of Viceroy, and Canning became the first Viceroy. He read out Queen Victoria's Proclamation in November 1858. Lord Dalhousie (1848–56) was his predecessor and never held the title of Viceroy. Lord Elgin (1862–63) and Sir John Lawrence (1864–69) came after Canning.

Q3 · Battle IAS practice

Consider the following statements:
1. Under the Charter Act of 1833, the Governor-General of India in Council was vested with exclusive legislative powers for the whole of British India.
2. The first Law Commission, set up after the Charter Act of 1833, was headed by Lord Macaulay and prepared the draft of the Indian Penal Code.
Which of the statements given above is/are correct?

Answer (c) & explanation

Both statements are correct. Statement 1: the Charter Act of 1833 made the Governor-General of Bengal the Governor-General of India and gave the Governor-General in Council exclusive legislative power for the whole of British India. Laws made from then on were called Acts, not Regulations. Statement 2: a law member was added to the Council and the first Law Commission was set up in 1834 under Lord Macaulay. Its draft Indian Penal Code was ready by 1837, though it was enacted only in 1860. Hence both.

Q4 · Battle IAS practice

With reference to the Charter Act of 1833, consider the following statements:
1. It ended the activities of the East India Company as a commercial body, which became a purely administrative body.
2. It deprived the Governors of Bombay and Madras of their legislative powers.
3. It separated the legislative and executive functions of the Governor-General's Council.
Which of the statements given above are correct?

Answer (b) & explanation

Statement 1 is correct: the Charter Act of 1833 ended the Company's commercial activities, and it became a purely administrative body holding its territories in trust for the Crown. Statement 2 is correct: as the final step towards centralisation, the Governors of Bombay and Madras lost their legislative powers and the Governor-General of India got exclusive legislative power for the whole of British India. Statement 3 is incorrect: the separation of the legislative and executive functions of the Governor-General's Council came twenty years later, with the Charter Act of 1853, which added six legislative councillors. Hence 1 and 2 only.

Q5 · Battle IAS practice

With reference to Pitt's India Act of 1784, consider the following statements:
1. For the first time, the Company's territories in India were called the 'British possessions in India'.
2. The Board of Control was empowered to supervise and direct all operations of the civil and military government and revenues of the British possessions in India.
3. It abolished the Court of Directors and transferred its functions to the Board of Control.
Which of the statements given above are correct?

Answer (d) & explanation

Statement 1 is correct: Pitt's Act was the first to describe the Company's territories as the 'British possessions in India'. Statement 2 is correct: the new Board of Control was given power to supervise and direct the civil and military government and the revenues. Statement 3 is incorrect: the Court of Directors was not abolished. It kept managing the commercial affairs, and that is exactly why the arrangement became a double government. Both the Court of Directors and the Board of Control were abolished only by the Government of India Act, 1858. Hence 1 and 2 only.

Q6 · Battle IAS practice

Which one of the following was NOT a provision of the Charter Act of 1813?

Answer (c) & explanation

Options (a), (b) and (d) are provisions of the Charter Act of 1813. It opened India to Christian missionaries, it set aside funds for the promotion of learning and Western education, and it allowed the local governments to tax persons subject to the Supreme Court's jurisdiction. The same Act also ended the Company's trade monopoly in India except in tea and the trade with China, and it asserted the sovereignty of the British Crown. Option (c) is the odd one out: taking away the legislative powers of the Bombay and Madras Governors was part of the centralisation brought by the Charter Act of 1833.

Q7 · Battle IAS practice

Consider the following statements regarding the civil services under Company rule and after:
1. The Charter Act of 1833 stated that Indians should not be debarred from holding any place, office or employment under the Company.
2. The attempt of the Charter Act of 1833 to introduce open competition for the selection of civil servants was negated after opposition from the Court of Directors.
3. The Macaulay Committee on the Indian Civil Service was appointed in 1854.
4. From the very first open competition, the Indian Civil Service examination was held simultaneously in England and India.
How many of the statements given above are correct?

Answer (c) & explanation

Statements 1, 2 and 3 are correct; statement 4 is incorrect. The Charter Act of 1833 said Indians should not be debarred from any office under the Company and tried to bring in open competition, but the provision was negated after the Court of Directors objected (statements 1 and 2). Open competition actually came with the Charter Act of 1853, and the Macaulay Committee was set up in 1854 to work it out (statement 3). Statement 4 is wrong: for decades the examination was held only in London, which put Indians at a disadvantage. It began to be held in India also only from 1922, after the Montagu-Chelmsford reforms (UPSC's own history of the Commission). Hence only three.

Q8 · Battle IAS practice

Consider the following statements:
1. The Charter Act of 1793 provided that the salaries of the members and staff of the Board of Control would be paid out of the Indian revenues.
2. The Government of India Act, 1858 provided that the salary of the Secretary of State for India would be paid out of the British revenues.
Which of the statements given above is/are correct?

Answer (a) & explanation

Statement 1 is correct: the Charter Act of 1793 charged the salaries of the members and staff of the Board of Control to the Indian revenues, a practice that lasted for over a century. Statement 2 is incorrect: when the Crown took over in 1858, the cost of the new Secretary of State and his Council of India also fell on Indian revenues. Indian nationalists long objected to this 'Home charge'. Only the Government of India Act, 1919 provided that the Secretary of State's salary would be paid out of the British exchequer. Hence 1 only.

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Flashcards (10)

Who was the first Governor-General of

Bengal? Warren Hastings (Regulating Act, 1773).

Which Act set up the Supreme Court at

Calcutta? The Regulating Act, 1773 (court set up in 1774).

Which Act created 'double government'?

Pitt's India Act, 1784.

Which Act ended the Company's trade

monopoly except tea and trade with China? The Charter Act, 1813.

Did the Charter Act 1813 give the British

Parliament control of Indian revenues? No. That statement was wrong in the 2019 question.

Who was the first Governor-General of

India? Lord William Bentinck (Charter Act, 1833).

Which Act ended the Company's

commercial activities? The Charter Act, 1833.

Which Act separated the legislative and

executive functions of the Governor- General's council? The Charter Act, 1853.

Which Act made the central legislature

bicameral? The Government of India Act, 1919.

Under the 1935 Act, who held residuary

powers? The Governor-General.

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