In this article, we discuss the regulating act of 1773 for various competitive exams such as UPSC, SSC, etc...
East India Company became a political power after the Battle of Buxar and Battle of Plassy. Along with the East India Company, the British Government was also benefiting from this.
Because the British government had given permission to trade in India and other Asian countries. In return, the British East India Company was giving 4 lakh British pounds to the British government every year.
The financial condition of the British East India Company deteriorated after 1768. Therefore the British East India Company asked for a loan of 1 lakh pounds from the British Government.
To regulate the British East India Company, the British Government passed the Regulating Act of 1773.
In 1769, the rain decreased. There was no harvest. The British East India Company increased the taxes so much that people were not getting anything to eat.
Femin increased so much that one-third population of Bengal ended due to the non-availability of food.
It also had a bad effect on the trade of the East India Company.
The reason behind the bankruptcy of the East India Company was the First Anglo-Mysore War. This war lasted for 3 years between Hyder Ali and the Britishers.
The East India Company did not get any benefit from this war. The cost of this war was huge.
The third reason behind the bankruptcy of the East India Company was corruption, the employees of the East India Company used to do a lot of corruption.
The loss in the tea trade was the fourth reason for the bankruptcy of the East India Company.
The British East India Company had created three presidencies in India i.e. Bengal Presidency, Madras Presidency, and Bombay Presidency.
Each presidency had a governor. Each presidency worked independently of each others. The three governors used to report to the Court of Directors.
The strength of the Court of Directors was 24. In the Regulating Act 1773, the Governor of Bengal was made the Governor-General of Bengal.
The remaining two governors reported to the Governor-General of Bengal. The Governor-General of Bengal used to report to the Court of Directors.
A dual form of administration was going on in Bengal, it was closed. After the Battle of Buxar, Mughal Emperor Shah Alam II gave the power of tax collection of Bengal, Bihar and Orrisa to the East India Company.
But the administrative powers of all these areas belonged to the Nawab here. That is, two rules were going on in Bengal.
Its direct damage was being done to the people living in these areas. The Regulating Act of 1773 did not make any changes to the trade monopoly.
No changes were made in the control of the company either. The power of the commercial and political affairs of the East India Company was still in the hands of the Court of Directors.
Four member executive councils were formed to assist the governor-general. The governors of Madras and Bombay also had executive councils.
Governor-general and his executive council used to decide whether the law should be passed or not on the basis of voting.
If any law has to be passed, then the approval of at least 2 out of 4 members was necessary. The same process of the Central Legislature was also carried on in the Bombay and Madras Presidencies.
British East India company earns revenue from commercial trade, territorial possessions, and salt tax.
This act prohibited involvement in private trade in any way to end corruption. Fort William Supreme Court was established for the East India Company and the Britishers.
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