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Impact of the Charter Act of 1813

The Charter Act Of 1813 broadened the range of options available to British merchants in private trading. Let us learn about this Act in detail through this article.

With this Charter Act, 1813, the Governor-General of Bengal was elevated to the position of Governor-General of India (with Lord William Bentick acting as India’s first Governor-General), with full civil and military authority.

Historical Background of Constitution

It was the British government’s first attempt to supervise and regulate the East India Company’s operations in India. It acknowledged the company’s political and administrative functions for the first time.

The 1773 Regulating Act laid the framework for India’s central government. The Governor-General had some jurisdiction over Bombay and Madras, but a nebulous clause led to many problems. It was also the cause of Bengal’s ‘dual government’ being abolished.

Provisions of the Act

  • This Act allowed the company to keep its geographical assets in India, but it also tried to regulate the company’s actions and operations

  • It did not totally take over authority; hence the term was “Regulating”

  • The legislation established the Governor-General in Council, which consisted of a Governor-General and four Councillors in the Presidency of Fort William (Calcutta)

  • The Governors in Councils in Madras and Bombay were brought under Bengal’s influence, particularly on foreign policy concerns

  • They could no longer wage war on Indian states without Bengal’s permission

  • The corporate directors were elected for a five-year term, with one-fourth of them retiring each year

  • They also couldn’t be re-elected

  • Before the British authorities, the company directors were ordered to make public all correspondence with Indian authorities on revenue, civil, and military concerns

  • Calcutta established a Supreme Court of Judicature, with Sir Elijah Impey as the first Chief Justice

  • Judges were expected to arrive from England

  • It only had civil and criminal authority over British subjects, not Indians

Amending Act, 1781

To rectify defects and issues in the 1773 Regulating act, the Amending Act of 1781 was passed by the British parliament. This was known as the Act of Settlement or the Declaratory Act, 1781.

Provisions of the Act

  • The main provision of this Act was to distinguish between the Supreme Court and the Governor-General in Council

  • It resolved the Supreme Court’s jurisdictional issue

  •  As a result, the Supreme Court’s authority was limited to Calcutta and even administering the law of the defendant

  • If they performed something while doing their duties, government employees were exempt

Pitt’s India Act, 1784

The British government will have direct influence over Indian issues in the future. The company’s Indian lands were dubbed “British possessions.” The statute established a distinction between the company’s commercial and political activities.

Provisions of the Act

  • The Act gave the Court of Directors control over the company’s civil, military, and revenue functions

  • On the other hand, the civil, military, and revenue functions were given to a Board of Control, which consisted of the chancellor of the exchequer and four members of the Privy Council (appointed by the Crown)

  • In this way, it built a dual-government structure

  •  In India, the Governor-General had a three-member council (including the commander-in-chief), and the presidencies of Bombay and Madras were to be subject to him

  • A broad ban on aggressive wars and treaties was enacted on the same day (often ignored)

Amending Act of 1786

  • Cornwallis demanded control over the Governor General’s Council and its members

  • Cornwallis was entitled to bypass the council’s decision if he held the liability

  • Later on, this section was expanded to cover all Governors-General

Charter Act of 1793

This Charter Act of 1793 extended the company’s trading privileges for another twenty years.

Provisions of the Act:

  • The corporation was required to pay the British government 5 lakh pounds annually after paying essential expenses, interest, dividends, salaries, and other charges from the Indian income

  • The Governor-General, governors, and commander-in-chief needed royal approval to be appointed

  • The company’s senior executives were forbidden from leaving India without permission

  • This was interpreted as a resignation sign

  • Individuals and corporate personnel were permitted to trade in India under the company’s licence

  • The ‘privilege’ or ‘country trade’ licences permitted opium to be exported to China

  • The revenue administration was separated from judicial functions, resulting in the abolition of the Maal Adalats, or revenue courts

  •  Members of the Home Government were supposed to be paid out of Indian income, which they were until 1919

Significance of Charter Act, 1813

  • The company’s shareholders received a 10.5 per cent dividend on India’s revenue

  • The East India Company had to keep territorial possession and earnings for another 20 years without jeopardising the Crown’s authority

  • The constitutional position of British possessions in India was thus fully stated for the first time

  • The Board of Control’s authority was expanded further

  • A sum of one lakh rupees was to be made aside each year for the restoration, development, and encouragement of literature, study, and science among Indians

  • From the standpoint of the state’s responsibility for education, this was a crucial clause

  • The regulations of the Madras, Bombay, and Calcutta Councils must now be presented to the British Parliament

  • Therefore, the constitutional character of British possessions in India was established for the first time

  • Commercial transactions and territorial revenues were to be kept in separate accounts

  • The power of supervision and direction of the Board of Control was specified and considerably increased

  • Christian missionaries were also allowed to come to India and promote their religion

Features of Charter Act, 1833

Here’s the list of the features of the Charter Act 1833 – 

  • The Governors of Bombay and Madras lost their legislative powers due to this measure

  • This completed EIC’s duty as a commercial entity, transforming it into a full-fledged administrative entity

  • It was the first time a law member (Macaulay) was appointed to the Governor General’s Council

  • All limitations on European immigration and property ownership in India have been lifted

  • As a result, the road was set for the conquest of India by the Europeans on a large scale

Provisions of Charter Act, 1853

  • The Governor General’s Council’s legislative and executive duties had been split

  • Added six additional members to the Indian (Central) Legislative Council, known as legislative Councillors

  • The lawmaker was appointed to the Governor-executive General’s council as a full-time member

  •  It gave local representation in the Indian (Central) Legislative Council for the first time

  • An open competition for civil services was introduced

  • The Covenant Civil Service was thus also opened up to the Indians

Conclusion

By establishing British India’s constitutional status, the significance of the Charter Act of 1813 can be understood in terms of its function in affirming the Crown’s sovereignty over British India and so understanding the relevance of the Charter Act. It also broadens the range of options available to British merchants in private trading.

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Frequently asked questions

Get answers to the most common queries related to the UPSC Examination Preparation.

When was the last Charter Act passed?

Answer: The final of the Indian Charter Acts was enacted in 1853.

What was the importance of the Charter Act 1813 on Indian artisans?

Answer: The East India Company’s monopoly was dissolved by the Charter Act of 1813, with the exception...Read full

What was the most important fact in the Charter Act of 1853?

Answer: By the Charter Act of 1853, the company’s number of Directors was reduced from 24 to 18. The monarch was to appoint ...Read full

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