Regulating Act 1773 – Modern Indian History For UPSC

The Regulating Act of 1773 marked a turning point in British India, addressing corruption in the East India Company. It empowered the British government to regulate the company’s affairs, appointing a Governor-General and establishing a Supreme Court. This legislation laid the groundwork for subsequent reforms, shaping the governance of colonial India.

What Is the Regulating Act (1773)

The Regulating Act of 1773 was passed by the British Parliament. The act was passed to control the East India Company’s properties in India, primarily in Bengal. The incompetence of the East India Company resulted in a bankruptcy situation and pushed the government to interfere in the Company’s activities which is why this act was passed. It is known to be a turning point in the involvement of the British Government in Indian Affairs.

The Regulating Act 1773 established the office of governor-general and Warren Hastings was the first to occupy that position. The law aimed to bring better governance, transparency and accountability.

Regulating Act 1773

Background of the Regulating Act of 1773

The Regulating Act of 1773 was an important moment in the history of British India. It made a key shift in the governance of the East India Company’s territories.

The British Parliament took action against the Company because of the increasing concerns about the Company in India.

To understand the significance of the Regulating Act it is necessary to understand the circumstances that existed in British India during the eighteenth century.

It was a trade company initially and the East India Company grew over time to become a powerful political force that influenced local governance and acquired territory.

The company’s policies clashed with the British Crown and the parliament and thus a change was required The 1760s, the company witnessed many battle victories such as the Battle of Plassey (1757) and the Battle of Buxar (1764).

In London, concerns were raised about territorial expansion, power abuse and corruption. Following these concerns, the Regulating Act was passed, seeking to change India’s administrative system.

Reasons for Passing the Act of 1773

Few of the reasons that led an importance for passing on the act of 1773 are stated below-

• In 1772, the East India Company requested a one million pound loan from the British government due to a severe financial situation.
• There were many accusations of nepotism and corruption against officials.
• Bengal experienced a catastrophic famine that claimed a great number of lives.
• There was an increase in crime in Bengal.
• The company’s 1769 defeat by Mysore’s Hyder Ali.

Provisions of the Regulating Act

The provisions of the regulating act include-

• The Governor-General of Bengal was formerly known as the Office of the Governor of the Presidency of Fort William and it replaced the Governor of Bengal’s position. Lord Warren Hastings was the first to hold this title.
• In 1774, the Supreme Court of Judicature at Fort William was established in Calcutta. It had one Chief Justice and three additional judges. The jurisdiction of the court included the areas under the Presidency of Bengal, Madras and Bombay
• A four-member Executive Council was established to help the Governor-General.
• Servants of the company were prohibited by this act from doing any private trade, from taking gifts or bribes from locals. Previously, after being voted to office for a five-year term, one-fourth of the company’s directors retired each year. Reelection procedures were nonexistent.
• The Governor General of Bengal was elevated to absolute authority and given authority over the governors of Madras and Bombay.
• The term of office for the Court of Directors was limited to four years.

Drawbacks of the Regulating Act of 1773

There are drawbacks of the regulating act of 1773, few of which are stated below

• The Governor-General was not given veto power.
• The company failed to answer the problems of the Indian population who were paying revenue to it.
• The powers of the Supreme Court were not demarcated.
• The act failed to empower parliament to examine the reports submitted by the Governor-General which hindered India’s governance in terms of accountability and transparency.
• The corruption of company officials continued.
• The Bengal Governor General’s authority was extremely limited. The decisions were made according to the executive council’s majority. It was one of the main drawbacks of the Charter Act of 1773

Difference between the Regulating Act and the Pitts India Act

To correct the shortcomings of the Regulating Act 1773, the British Parliament passed Pitt’s India Act 1784 which is sometimes referred to as the East India Company Act 1784. As a result of Pitt’s India Act, the British Government controlled the East India Company’s rule in India.

The Regulating Act of 1773 will always be remembered throughout history as an important turning point in the development of British control in India. With its implementation, a new age of governance came into effect. It introduced judicial reforms, economic regulation etc. The act also had its limitations.

It attempted to achieve an appropriate balance between the Company’s interests and the British Crown. However, the implementation of the law faced many challenges and was later replaced by the Pitts India Act of 1784.

Conclusion

The Regulating Act of 1773 was designed to reduce corruption and improve government, it eventually had a complex effect on India. Even while it created a centralized government and signaled the beginning of British parliamentary rule, it also sowed the seeds of discontent among the Indian popular. The act was a significant turning point that opened the door for more British colonization and ultimately aided in the emergence of Indian nationalism and the independence movement.

Regulating Act of 1773 – FAQs

What was the Regulating Act of 1773?

The Regulating Act of 1773 established the framework for India’s centralized administration. For the first time, responsibility for Indian affairs was given to the British Cabinet. It was the first time that the East India Company’s operations were taken over and regulated by the British government.

What were the main causes of Regulating Act 1773?

The officials of East India Company collected enormous wealth while they worked in India. Many people in Britain feared they would upset the country’s political stability. The Regulating Act of 1773 was passed to change the East India Company’s control of its rule in India.

Which viceroy passed the Regulating Act of 1773?

The Regulating Act of 1773 was passed while Governor-General Warren Hastings was in office. He was also the first Governor-General of Bengal in 1774.

According to the Regulating Act of 1773 where was the Supreme Court established?

In Calcutta, the “Supreme Court of Judicature” was established by the Regulating Act 1773.

When and why was the Regulating Act passed?

The British Parliament passed the Regulating Act of 1773 to establish authority over the East India Company’s territories located in Bengal.