Members of the Council were to hold office for 5 years and they could not be removed except by Crown on the representation of the Directors. A system was introduced to prevent the Governor-General from becoming autocratic. Governors of Bombay and Madras presidencies subordinate to the Governor-general of Bengal. The foundation of the civil service in the modern sense was, nonetheless, laid down during his regime. He reduced the number of custom houses and enforced a uniform tariff of 2. The joining of Princely states was voluntary and as a result, the federation did not come into existence. The servants of the East India Company carried on trade and commerce privately without paying any tax.
The Regulating Act 1773, was complemented by the 1773, which had a principal objective that was to reduce the massive amount of tea held by the financially troubled British East India Company in its London warehouses and to help the financially struggling company survive. One-fourth of them were to retire every year and the retiring Directors were not eligible for re-election. That warren hasting shall be the first Governor General and that Lt. To enforce these thumbs of the weavers were cut off. The Act set up a system whereby it supervised regulated the work of the East India Company but did not take power for itself.
As per the act, Office of the Governor-General of the Presidency of Fort William was created in 1773, and on 20 October 1773, Warren Hastings became the first Governor General of India. Also, there was ambiguity between the jurisdiction of the Supreme Court and that of the Council of the Governor-General. This Governor General was to be assisted by an executive council of four members. The result was that they always pulled in different directions. It was with Indian troops that the British defeated the Mughal emperor and took over Bengal. The Act set up a system whereby it supervised regulated the work of the East India Company.
In August 1772, the East India Company applied for a loan of One Million Pounds to the British government. Hence, it appointed two deputy diwans for exercising diwani functions — 1 Mohammad Reza Khan for Bengal and 2 Raja Sitah Roy for Bihar. The English East India Company became a territorial power when it acquired a wide dominion in India and also the Diwani rights. His administration witnessed the Rohilla War, the First Anglo-Maratha War and the Second Anglo-Mysore War. The Governor-General had a casting vote in case of a tie.
Objectives of the Act The key objectives of the Regulating Act of 1773 included — addressing the problem of management of company in India; address the problem of dual system of governance instituted by Lord Clive; to control the company, which had morphed from a business entity to a semi-sovereign political entity. The main provisions of the act were the appointment of a governor-general of Fort William in Bengal with supervisory powers over the presidencies of Madras now and Bombay now. With the mercenary army and using the internal dissension against the Nawab, the British had their biggest victory, the victory at Plassey. Some of these problems were addressed in an amendment of the Regulating Act in the form of Amending Act 1781 and other acts which followed it. Governor-General was also given the power of superintending and controlling the Presidencies of Madras and Bombay. While charges against Warren Hastings were still pending which were subsequently dropped, Nanda Kumar was suddenly arrested at the instances of a Calcutta merchant Mohan Das on a charge of forgery at the instigation of Warren Hasting. Indian exports were slowly being stiffled, with that its economy.
Basically, to remove the defects of the Regulating act of 1773, the Act of Settlement 1781 was enacted. About 85% of all the tea in America was smuggled Dutch tea. It made a beginning in the system of a written constitution for British India. Thus a series of acts, beginning from regulating act 1773, were passed to regulate the affairs of the company; renew its charters; provide for government in India; provide for civil and criminal laws and so. The Supreme Court also could not function smoothly as its jurisdiction and its relations with the council were not clear. Firstly, the act rendered the Governor General powerless before his colleagues because he had no veto power.
Appeals could be taken from the provincial courts to the Governor-General-in-Council and from there to King-in-Council. The company obtained exclusive right to trade with India for 15 years. Circumstances that led to Regulating Act 1773 The battle of Plassey 1757 and the Battle of Buxar 1764-65 led to firm establishment of territorial dominance of East India Company in India. . The Directors were required to submit copies of letters and advice received from the governor -General-in-Council. The administration in Bengal almost collapsed.
Governors-in-Council of Bombay and Madras were required to pay due obedience to the orders of Governor -General of Bengal. They fought against each other on the issues of corruption charges alleged on them. This change made it more difficult for private groups to control policy and places by manipulating votes. These presidencies were independent of each other and each of them was an absolute government in its own limits, only responsible to the Court of Directors in England. Because of this situation, the council used the Governor-General as the puppet to make their decision.
It was under these circumstances that the Parliament of England resolved to regulate the affairs of the Company. In short, the Company was on the brink of bankruptcy. The commander-in-chief of the whole was the commander of the Bengal army. It is also known as Declaratory Act, 1781. There was no procedure for re-election available.