What is the Ijarah System?

Answer: The system of Ijarah constituted giving an assignment in return for an amount to one who bid the highest amount. It was widely popular during the Mughal reign. The Ijarah system was introduced by Jahadar Shah, who ruled from 1712 to 1713 and back then, it was a revenue farming system.  

This revenue system became largely popular for collecting and assessing revenue in the 18th century. Lands were farmed out to third parties by this same system when peasants did not have sufficient means to cultivate their lands. The system was restricted to revenue officials and their families.