Permanent settlement system UPSC

Permanent Settlement System

Note:- Also known as - Zamindari , Jagridari , inamdari systems.

Features of Permanent Settlement System :

It was introduced in Bengal, Bihar, Orissa, Banaras division of modern UP, and Northern Carnatic in the 18th century. The zamindars were recognised as the owners of land and a ten years’ settlement was made with them in 1790. 

In 1793, under Governor General Lord Cornwallis the decennial settlement was declared permanent and the zamindars and their legitimate successors were allowed to hold their estates at that very assessed rate for ever. The state demand was fixed at 89% of rental.

Reasons for the introduction of Permanent Settlement system:

• This ensured a fixed and stable income for Company. It also saved the government from the expensed on making periodical assessments and settlements.

• A permanent settlement, it was hoped would end corruption as the officials would not be able to alter assessment at will.

• The burden of revenue collection was given to the intermediaries or Zamindars. This eased the burden of administration on the part of Company.

• It was thought at that time, that a revenue demand which was fixed, would lead to investments in agriculture on the part of the Zamindars as the increase in revenue would benefit them.Cornwallis thought that the company could increase its revenue by taxing trade and commerce. However, this did not happen.

• A loyal group was created whose interests were in the continuation of British rule in India.

Consequences of Permanent Settlement System :

• State proved to be a great loser in the long run as prospective share in the increase in land revenue were sacrificed.

• Since the land revenue was to be fixed for perpetuity, it was fixed at a high level – the absolute maximum, and the customary rates were increased. This placed a high burden of revenue.

• Though a fixed revenue demand was placed with the Zamindars, no rules were placed regulating the collection of revenue from the peasants. As a result, Zamindars placed exorbitant demands.

• Absentee landlordism was a consequential feature. Zamindars took no interest in the development of agriculture.

• Peasants suffered from the double injustice of surrendering their property rights and being left entirely at the mercy of Zamindars.