How Many Charters Act in India

How Many Charters Act in India

Edited By Team Careers360 | Updated on Jun 15, 2023 10:03 AM IST

Introduction

The British Parliament of the United Kingdom passed the East India Company Act 1813 (53 Geo 3 c 155), sometimes referred to as the Charter Act 1813, which extended the British East India Company's charter and prolonged the Company's authority in India. To represent the expansion of British power in India, the Company's commercial monopoly was broken, with the exception of the trade in tea, opium, and goods with China.

There are five Charter Acts in India. They are:

  • Charter Act of 1784

  • Charter Act of 1793

  • Charter Act of 1813

  • Charter Act of 1833

  • Charter Act of 1853

Charter Act of 1784

This Act was enacted during Lord Dalhousie's tenure as Governor-General of India. It required all civil and military personnel to reveal their property in India and Britain within two months of joining. The size of the Governor-council General was decreased to three members. One of the three would be the British Crown's Commander-in-Chief of the army in India.

Features

  • The Pitts India Act separated the Company's commercial and governmental functions.

  • The East India Company's actions in India were the first thing the British government did, and they were monitored and controlled.

  • It recognised the Company's political and administrative duties for the first time.

  • It created a four-member Executive Council to support the Governor of Bengal and renamed him "Governor-General of Bengal."

  • It enhanced the British Government's control over the Company by compelling the Court of Directors (the Company's governing body) to report on its revenue and civil and military activities in India.

  • It subordinated the governors of the Bombay and Madras presidencies to the Governor General of Bengal, an improvement over the prior system, in which the three presidents operated independently of one another.

  • The Pitts India Act separated the Company's commercial and governmental functions.

Why is it Called the Pitts Act of 1784?

Pitt the Younger became England's youngest Prime Minister in 1783 at the age of 24. Pitt was an accomplished administrator who advocated for efficiency and change while mentoring the next generation of leaders.

In 1784, the act was passed during the presidency of William Pitt, the younger.

Historical Background

Following the passage of Act 1773, the Company's operations were probed by both a Select and a Secret Committee in 1781, particularly the Supreme Court's relationship with the Bengal Council.

The Secret Committee explored the causes of the Maratha War (1775-82, 1803-05, 1817-18). The Company's Directors recognised that the war had exhausted them and demanded another million-pound loan from the State.

With Pitt's India Act, the British East India Company and the British government shared control of India. These changes continued until 1858.

Classification of the Functions

  • Pitt's India Act was the first to separate the political and commercial responsibilities of the East India Company.

  • The company's political functions were handed up to the British government (Under the Board of Control)

  • The Board of Commissioners, also known as the Board of Supervision, was established to exercise control over the company's civil, military, and revenue affairs.

Charter Act of 1793

The East India Company Act 1793 was a British Parliament Act that renewed the charter permitted to the British East India Company (EIC). It stated, "Any sovereignty acquired by the subjects of the crown shall be done on behalf of the Crown and not for its own sake.” The Act suggested that the firm carried out its political obligations on behalf of the British government. Dividends paid by the corporation were permitted to be increased to 10%.

Significance

  • First and foremost, the appointment of the Governor-General of Bengal as the Governor-General of India was a key step toward the consolidation and centralisation of India's governance.

  • Second, the East India Company's dissolution as a commercial concern effectively became it the crown's trustee in administrative affairs.

  • Third, for the first time, this act authorised the free admittance of Indians to the country's administration. Although Indians may join the public service, it was still a complex process.

  • Fourth, this legislation separated the Governor-legislative General and executive functions in the Council for the first time. The law commission, which was directed by Lord Macaulay, also codified the statutes.

Impact

The British East India Company Charter is named after this Act of the British Parliament. It was enacted on August 7, 1793, during the Second Anglo-Mysore War, and the British East India Company was granted a Charter of Incorporation, which was a government-issued trading permission. The Charter required the Company to be managed by a Governor and a Company of Adventurers (a Board of Directors). These were to be the authorities of the British East India Company in all ways. It further stated that the Company's share capital should be 1.2 million pounds, with each share valued at £100.

Features

  • This Act enabled the Company to retain control over British possessions in India.

  • The Company's business would be carried on for the next 20 years.

  • This Act indicated unequivocally that the Company's political and administrative functions would be performed on behalf of the British government.

  • The Governor-General was given exemplary powers, including the ability to veto council decisions in some cases.

  • While the Governor-General was away from Bengal, he (the Governor-General of Bengal) might designate a Vice President from his civilian council.

Charter Act of 1813

The British East India Company's charter was extended, and its dominance over India was maintained by the Charter Act of 1813, an Act of the British Parliament. However, the Company's commercial monopoly was dissolved, except for the opium and tea trades, as well as trade with China, showing the expansion of British influence in India.

Background

  • The Continental System in Europe under Napoleon Bonaparte hurt British business people (which barred the import of British goods and other commodities into French allies in Europe).

  • They demand the end of the East India Company's monopoly in addition to a say in British trade in Asia as a result.

  • Finally, under the Charter Act of 1813, British merchants were permitted to trade in India under a stringent licencing system.

Purpose of the Charter Act of 1813

The British Parliament's Charter Act of 1813 extended the East India Company's charter for another 20 years. The East India Company Act of 1813 is an alternate name for this statute. The constitutional status of British Indian territory was initially specified by this act, which makes it significant.

Benefits Gained by India with the Enactment of the Charter Act of 1813

Several helpful activities have been implemented as a result of the Charter Acts. The most notable was the abolition of slavery in India. Another advantage was the introduction of centralisation in legislative and administrative functions. The codification of the Criminal Procedural and Penal Codes was another significant milestone. The corporation has achieved numerous advancements in higher education.

In 1813, the Parliament appropriated one lakh rupees per year for the improvement of Indian literature and education. Previously, they had sponsored both western and regional education. However, the Company later withdrew financial funding for vernacular education. The Company placed no priority on enhancing elementary education quality. The missionaries made substantial contributions to India's fundamental education progress.

Features

  • Except for tea, opium, and products traded with China, the Company's trading monopoly was shattered.

  • The Church, which was sponsored by Indian tax money, was led by a Bishop. The Englishmen were granted permission to settle in India and control the land under a licencing system. Missionaries were also granted permission to bring useful information and disseminate religious and moral betterment, while traders were granted licences for legal reasons.

  • The crown had complete authority over territorial revenue.

  • A one lakh grant has been allocated for educational promotion.

Charter Act of 1833

The East India Company's charter was extended for another 20 years by the British Parliament by the Charter Act of 1833.

Significance of the Act

  • It raised the Governor General of Bengal to the position of Governor General of India and consolidated and organised India's administration.

  • It appointed the East India Company as a trustee of the crown in matters of administration.

  • The Act distinguished between the Governor General's executive and legislative responsibilities.

  • Lord Macaulay's law commission codified the statutes.

Historical Background

  • The Charter Act of 1833 was passed during substantial changes in Great Britain as a result of the Industrial Revolution.

  • The government's stance toward industrial industry was acknowledged as the laissez-faire principle.

  • The political milieu in Britain was looking for changes and liberal ideals throughout the creation of the Charter Act of 1833.

  • However, while the Whigs were in power, the measure was introduced in parliament, and the parliament was in the mood for reforms, free trade, and legal codification.

  • The Charter Act of 1833, based on the findings of a legislative inquiry, constituted a watershed moment in India's constitutional history.

Charter Act of 1853

The Charter Act of 1853 revived the Company's authority and allowed it to keep its territory. Unlike 1793, 1813, and 1833 charter acts, the charter extended revenues from Indian lands in the trust of the crown for the next 20 years. When the charter act of 1853 was passed, Lord Dalhousie was the Governor-General of India. The Charter Act of 1853 is significant because it represents the commencement of India's Parliamentary system.

Historical Background

Unnecessary expenditure and unnecessary delay in despatch due to the presence of the board of directors and the court of directors. After the Act of 1833, the British East India Company had already conquered Sind and Punjab, as well as several other Indian states; there were territorial and political changes in India.

Concerns were also expressed concerning the role of the Governor-General of India as Governor of Bengal, which resulted in certain judgments favouring Bengal. There was also a need for power decentralisation and giving Indians a say in how their affairs were run. In the previous year, the Company appointed two Committees to investigate the Company's operations. The Charter Act of 1853 was drafted and approved based on their reports.

Significance

  • The Charter Act of 1853 stated unequivocally that the Company's authority would not continue long.

  • One of the distinguishing elements is the clear separation of the Legislative and Executive Councils, which marks the birth of India's Parliamentary system.

  • The Governor-General was relieved of his administrative responsibilities in Bengal and began working for the Government of India.

  • The Charter Act of 1853 establishes and governs The Legislative Council, which is regarded as an essential constitutional instrument.

Features

  • The Charter Act of 1853 made it feasible to split the functions of the legislative and executive councils.

  • The Charter Act of 1853 laid the groundwork for the modern form of Parliamentary government.

  • The time threshold that was previously contained in earlier Charter Acts was removed from the act. As a result, the EIC's rule was prolonged indefinitely.

  • The Charter Act of 1853 put an end to the policy of solely granting government employment based on recommendations. Now, Indians were overly eager for positions in the Civil Services of India, creating a competitive environment.

  • The Britishers implemented the system of local government for the first time in many years, increasing their representation in the legislative council. Members were drawn from Madras, Bengal, Bombay, and parts of the North Western Province.

Conclusion

The Charter Act of 1813 dissolved East India Company's monopoly in India, but the company's monopoly in commerce with China and trade in tea with India was preserved. Thus, all British subjects were allowed to do business with India for all commodities except tea. The act included a monetary incentive for the rebirth of Indian literature and the advancement of science. The firm had plans to get more involved in the education of the Native Americans who worked for them.

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