Permanent Settlement- Meaning, Features and Impact

The Permanent Settlement in Bengal was brought up with the effect of the East India Company, which was headed by Lord Cornwallis in 1793, who was the then Governor-General. It was an agreement that was signed between the company and also zamindar for the fixation of land revenue. It was first enacted in Bengal, Bihar, and Odisha, and was later followed by the northern Madras Presidency and also a district of Varanasi.

Permanent Settlement

Permanent Settlement

The Permanent Settlement referred to a contract that was conducted between the British East India Company and the landlords of Bengal also referred to as zamindars. Other two important land settlements included the Ryotwari system and the Mahalwari system.

Permanent settlement was enacted in order for a stable revenue and income, as they believed investment in lands should be encouraged and agriculture needed to be improved. Debates on how it would be done led to the introduction of a system of Permanent settlement in the year 1793. The amount to be paid as rent was fixed permanently and was not to be increased in the future. If there was a failure in the payment of rent it would lead to loss of zamindari.

Features of Permanent Settlement

Some important features of the permanent settlement included:

• The zamindars who were the tax collectors to the ruler were declared the rightful owners of the land.
• The right to inherit the land to the next generations was also granted through this act.
• The zamindar has the sole right to sell the land at his discretion. The internal issues of each district were left to the discretion of the zamindars.
• The zamindar had to pay land revenue to the British. If he fails to pay the revenue in the stipulated time, the rights over the land he possessed ownership will be ceased, and the land would be sold at auction.
• The landlords were required to pay a set amount. It was agreed that the amount would not rise in the future, which means it is permanent.
• The set sum to be paid to the company was 10/11 revenue to the government and 1/10 of it went to the zamindar.  
• A patta was to be given to the tenant by the zamindar which specifies the area and the rent to be paid by the tenant.

Merits of the Permanent Settlement

Indian landowners were tasked with providing for the needs of the farmers. Being natives of the land, they were able to go to remote parts of the territory and had a deep understanding of regional traditions.

There was a sense of security for everyone due to the system’s permanence. The corporation was aware of the anticipated revenue. The sum was also guaranteed to the landlord. The farmers also had confidence in their holdings and knew how much rent needed to be paid in place of the patta. The Zamindars would have an incentive in developing the land because the settlement was permanent, increasing their income.

Demerits of the Permanent Settlement

This system’s primary flaw was that it was dependent on the Zamindars’ character for efficiency. The interests of the farmers and the land were well taken care of if they were good. They would make land improvements that would be advantageous to all parties involved. However, if the landowners were terrible, they would have been careless about the situation of the farmers and the state of the land.

This led to the emergence of an upper aristocratic class of hereditary landlords who lived opulent and extravagant lives in general. The Zamindars generally supported the British government and did so even during the war for independence. Exceptions did exist.

Land revenue was established arbitrarily and the assessment of the land was improper. In other words, it was expected that both productive and unproductive land would generate income at the same pace. Farmers now had to work on unproductive land, which was a strain. Additionally, there was a revenue loss for the government in the case of productive land. Numerous Zamindars defaulted due to the high revenue rates. This system eventually turned out to have terrible consequences. The British government issued a warning in 1811 against forcing a permanent settlement without conducting an accurate land survey.

Impact of Permanent Settlement

The impact of permanent settlement on farmers was that they viewed the system in villages to be oppressive and exploitative because they had to pay the zamindar a very high rent while his claim to the land was very uncertain. In order to pay their rent, cultivators were frequently required to take out loans; if they failed to do so, they were kicked from the property.

For the Zamindars the revenue was established at a level that made it difficult for the Zamindars to pay, and those who didn’t pay the revenue forfeited their Zamindaris. The Zamindars had no desire to develop the land. As long as they could rent out the land, they preferred it.

The settlement was beneficial to the company to some extent. Cultivation had gradually increased, and market values had climbed within the first ten years of the nineteenth century. Zamindars’ income rose as a result, but the company suffered a setback because it was unable to raise revenue, as they had agreed that the revenue would be permanent. 

Related Links

1. Problems Created by Permanent Settlement
2. Settlements of Land during British Rule
3. Land Revenue Systems in British India
4. The Company Becomes the Diwan

FAQs on Permanent Settlement

Q 1. What do you mean by Permanent settlement?

Answer-

Permanent settlement refers to the regular flow of revenue for East India Company and also for encouraging the zamindars to invest in the improvement of lands and the amount to be given to the government was permanently fixed.

Q 2. What were the main features of Permanent settlement?

Answer-

The main features of Permanent settlement include that the zamindars are recognized as the owners of the land. They are provided with hereditary rights for a succession of lands that were under them and the amount which was paid by the landlords was fixed permanently.

Q 3. What are the three types of Permanent settlement?

Answer-

The three types of Permanent settlement includes Zamindari, Ryotwari, and Mahalwari system.