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Regulating Act 1773, Pitt’s India Act 1784

Regulating Act 1773, Pitt’s India Act 1784

Edited By Ritika Jonwal | Updated on Aug 14, 2024 10:43 AM IST

The Government Act of 1919 was far from adequate and had too few measures to force the nation to adopt the self-government structure. Comprehending the distinction between Pitt's India Act and the Regulating Act is important to discern every distinct feature and element. This review can help us understand the deficiencies in the regulatory statute. The British government's supervision was to be evaluated by a thorough examination of matters involving the British East India Company. As the first move by the British government to control trade and internal affairs in India, the Regulating Act of 1773 was a significant component of the Indian political structure.

What is the Regulating Act of 1773?

The East India Company's holdings, primarily in Bengal, were brought under British Parliamentary supervision in 1773 with the passage of the Regulation Act. The mismanagement of the British East India government resulted in a bankruptcy situation and compelled the government to intervene in the Company's activities, giving rise to this legislation.

In June 1773, the British Parliament approved the Regulating Act. It was the first legislative approval and confirmation outlining the East India Company's rights and jurisdiction over its holdings in India.

Background - Reason for passing the Regulating Act of 1773

  • The Regulating Act 1773 was enacted to tackle the issues of dual system governance and the inadequate management and operations of the East India Company.

  • The British parliament of India passed the Regulation Act 1773 for many additional reasons that may be understood.

  • The East India Company was experiencing financial difficulties and had filed for bankruptcy. It had obtained a one million pound loan from the British government. Additionally, suspicions of bribery and corruption against business leaders surfaced.

  • Dual governance emphasises that in Bengal, two governmental rights existed: first, Diwani rights by the firm, and second, Nizamat rights by the company's Nawab. Both governmental rights were the primary cause of the escalation of riots in Bengal.

  • The major drivers behind the need for regulating laws were the East India Company and Bengal's increasing levels of anarchy. The people who suffered most from the mismanagement and dual government system were farmers and the general population.

Provisions of the Regulating Act of 1773

The Act's key provisions were as follows:

  1. For the first time, the company's administrative and political roles were acknowledged.

  2. It established the framework for India's central government.

  3. It created a leadership committee comprising four individuals to back the Governor of Bengal, dubbing him the "Governor-General of Bengal." Lord Warren Hastings was the first-ever Governor General.

  4. Consequently, the governor-general of Bengal was established as the ultimate power in charge of the governors of Bombay and Madras. Before this, the three presidencies functioned autonomously from each other.

  5. It declared that a Supreme Court would be set up in Calcutta (1774). The Supreme Court appointed Sir Elijah Impey as its inaugural chief justice.

  6. It prohibited the Company's employees from engaging in any personal trade.

  7. By requiring the Company's governing body, the Court of Directors, to provide updates on its earnings, legal, and military operations in India, it strengthened the British Government's control over the Company.

Merits of Regulating Act of 1773

  • The primary advantage of this Act was that it ended the Company's arbitrary control and established a foundation for all upcoming legislation on India's government.

  • The Regulating Act of 1773 established the framework for India's centralised government.

  • The British Cabinet was granted authority to oversee Indian affairs for the first time.

  • Additionally, it was the first instance in which the British government took charge of the East India Company's operations and regulated them.

Demerits of the Regulating Act of 1773

The Act's primary flaws were:

  1. It limited the Governor-General's authority.

  2. The Supreme Court's authority was also not delineated.

  3. There were frequent impasses in decision-making between the Governor-General, his council, and the Supreme Court since the Governor-General lacked veto authority.

  4. This measure altered the Company's organisational structure, but it did not solve the issues raised by the Indian community as a whole.

The Amending Act of 1781, commonly referred to as the Act of Settlement, and the Pitt's India Act of 1784 addressed many of these flaws.

What is the Pitt’s India Act 1784?

To address the shortcomings of the Regulating Act of 1773, the British Parliament approved the Pitt's India Act, of 1784, commonly known as the East India Company Act, of 1784. This legislation gave the British government and the Company joint responsibility over British territories in India, with the government having the last say. This legislation was still in force in 1858. William Pitt the Younger, the prime minister of Britain at the time the act was passed, is honoured in the name of the act.

Background - Pitt’s India Act 1784

Examine the events that resulted in the creation of the Pitt's India Act of 1784:

  • The British had previously seen the gains earned by the East India Company and were aware of the richness that existed on the Indian subcontinent.

  • To gain control over the Indian territories, the British parliament decided to gradually take over the East India Company.

  • To improve and eliminate the shortcomings of the Regulating Act of 1773, the British Parliament passed Pitt's Act in 1784.

  • The First Anglo-Maratha War (1775–1782) was another factor that compelled the British government to reconsider the company's political and administrative authority.

  • Pitt's India Act was created for the business to acknowledge the primacy of the British Parliament.

Provisions of the Pitt’s India Act 1784

  1. The India Act of 1784 contained various measures, among them the selection of six private advisors, one of whom was designated as the Secretary of State, and the chance to implement this power through the creation of a committee.

  2. The military and civic matters were handled by the Board of Control. There were six of them in all:

  • Secretary of State

  • Chancellor of Exchequer

  • Four Privy Councillors.

  1. Furthermore, the president assumed control of the world and, not long after, was appointed minister of the affairs of the East India Company.

  2. Chapter 3 of the 1784 regulations addresses the president's selection as secretary of state.

  3. The chancellor has been named as a state secretary, but this option may not be viable if it proves impractical. Consequently, the senior commissioner will then take on the role of the secretary of state.

  4. The leader of the board was designated to be the chief secretary.

  5. The Bengal Presidency supplanted the Madras and Bombay Presidencies. Calcutta effectively took over as the capital of the British colonies in India.

Features of the Pitt’s India Act 1784

  1. This legislation differentiated between the East India Company's governmental and business activities.

  2. For the initial time, the term "British holdings in India" was coined. As a consequence of this legislation, the British authorities acquired direct control over Indian governance.

  3. Unlike the earlier Regulating Act of 1773, when the government only aimed to "regulate" affairs rather than assume control, the Company fell under the authority of the British government.

  4. The British Crown's power to govern its Indian holdings militarily and civilly was established by this legislation. The Company maintained its monopoly over commercial operations.

Demerits of the Pitt’s India Act 1784

There were significant drawbacks to Pitt's India Act, such as the governor general's confrontation with the masters and the ambiguity surrounding the respective masters' jurisdictional borders. These masters worked for the British government and the East India Company.

The act's inability to clearly define the limits of the company's and the government's jurisdiction led to its dismissal.

  • Served two masters: East India Company and British Crown.

  • No clear boundaries between the Board of Control and the Court of Directors.

  • Had to make spot decisions with discretion.

Significant distinctions between the Pitts India Act and the Regulation Act of 1773

  1. The major purpose of the 1773 Regulation Act was to establish firm authority over Indian land; Pitt's India Act was proposed to address the shortcomings of the 1773 Regulation Act.

  2. The East India Company was in financial danger, thus the Regulation Act of 1773 was enacted to prevent it. Pitt's India Act was created to preserve an effective rule and to regulate and oversee governmental entities inside Indian Places.

  3. The Regulation Act of 1773 includes a crucial clause about the five-year process for choosing company directors. By putting Pitt's India Act into practice, the Indian region's administrative process will be established.

  4. Every revenue correspondence must be linked to the Regulation Act of 1773. Pitt's India Act will be put into effect to increase the effectiveness of governing Indian territory and judicial considerations.

  5. The Regulation Act of 1773 established a supreme court in the nation's capital city of Calcutta, which was presided over by Sir Elijah Impey, the first Chief Justice of India.

  6. Pitt's India Act must regulate the responsible and operational activities of the East India Company.

Comparison between Pitt's India Act and the Regulating Act

It is critical to compare the Pitts India Act and the Regulating Act of 1773 to identify essential components that offer information on the consequences of the British colonial government on India. A comparison between the Pitts India Act and the Regulating Act of 1773 reveals that the latter is more significant and relevant than the former. Pitt's India Act was introduced, which led to the development of the Indian legal and administrative systems. Pitt's India Act designated the East India Company's Indian possessions as "British possession in India" for the first time.

Conclusion

Both of these acts played a very important role in extending the territories of the East India Company in India. To ensure the correction of errors jointly implemented with the Regulation Act of 1773, the British government introduced the Pitt's India Act. The goal of the dual control system established by the British government was to improve control and power distribution throughout the British population. Hyder Ali of Mysore beat the British East India Company in 1769. This also pushed the British government to enact a new statute to enable them to maintain tight control over Indian territory. The main provisions of Pitt's India Act may be determined by comparing the Regulating Act to Pitt's India Act.

Frequently Asked Questions (FAQs)

1. What was the purpose of the Regulating Act of 1773?

The Regulating Act of 1773 (officially known as the East India Company Act 1772) was a British Parliament Act that sought to improve the management of the East India Company's control in India.

2. What were the limits imposed by the Regulating Act?

The "Parliament of Great Britain" regulated business dividends to just 6% by the "Regulating Act of 1773" and limited the Court of Directors' mandates to four years.

3. What were the faults of the Regulating Act of 1773?

The Governor-General held no veto authority. It did not address the concerns of the Indian people, who provided income to the firm.

4. Who was the first Governor-General, as per the Regulating Act?

In 1773, Warren Hastings was appointed as Bengal's first governor-general.

5. What made Pitt's India Act enacted?

To fix the shortcomings of the Regulating Act of 1773, Pitt's India Act of 1784 was approved.

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