The Regulating Act 1773

The East India Company came to India with a motive of trading and business. But with their growing expansion and greed, they also indulged in the political affairs of the country. The senior officials of the company became corrupt. It was also around that time when the company faced a financial crisis and asked for a loan of one million pounds from the British Government. The chaotic situation 21st 9 pm from the misgovernance in Bengal also made the British parliament take some actions. These situations made the government pass the Regulating Act 1773. 

The Regulating Act made the British Rule more deeply rooted in India. It marked the transition of the British from just doing business to ruling the country. The British government started interfering in the affairs of India with the onset of this law. The president of the company was made the governor-general of the country and various other reforms were brought by the parliament to stabilize the situation.

Reasons for the Act Being Introduced

The chaotic and lawless situation in Bengal made the British Parliament pass the act in 1773. They wanted to authorize the power and stand of the East India Company with the act. The following are some of the reasons as to why the regulating act 1773 was passed:

• There were serious allegations of nepotism and corruption against the company officials and this was not taken in creating a huge mess.

• The company was in a financial crisis and had asked the government for a loan of one million pounds in 1772. 

• Bengal was hit by a severe famine which perished a lot of people and nothing was done for them. This made the people angry against the company.

• After the defeat of the company against Hyder Ali of Mysore, lawlessness increased. 

• Robert Clive’s system of administration was drawing a lot of complaints and had a lot of problems in it. The farmers along with the normal population suffered and the main aim of the company was to maximize the revenue. With the passing of the act, they started indulging in the political affairs of the country.

Features of the Regulating Act 1773

The British government brought a lot of reforms with the act by putting an end to the arbitrary rule of the company and providing them a framework for the governance of the country. The Regulating Act 1773 had the following features:

• The law made Lord Warren Hastings the first governor-general of Bengal for a term of 5 years. An executive council consisting of four members would be made to assist him on issues related to political affairs. 

• The subordinates of the governor-general of India would be the governors of Bombay and Madras. They would help Lord Hastings with different issues related to politics. 

• A supreme court would be established at Fort William in Calcutta (1774) consisting of a chief justice and three other judges to dispense proper law and enforcement in the country. This court later resulted in a lot of problems as the judges were unaware of which law to follow, whether Indian law or British law. They were also unknown about the conditions of the people of the country.

• The law prohibited the officials of the company from doing any private trade or accepting bribes from any native individuals. 

The Regulating Act 1773 was the first step taken by the British government to start ruling India and take decisions of the country. 

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Defects of the Regulating Act 1773

The features of the Regulating Act 1773 brought with it several defects which the British parliament was unaware of. However, they soon realized the defects and amended it by the Amending Act, 1781, and later by the Pitt’s India Act, 1784. The defects of the act are mentioned below as follows:

• There were constant quarrels between Lord Hastings and his subordinates, this is, his council of ministers regarding issues of governing the country. The main problem lies in the language barrier between the common people and the officers. They were unaware of the problems faced by the people and their lifestyle, due to which they were not able to make strong decisions on their own. This was quite evident as they had earlier come for trading and business purposes and then shifted their interest to ruling the country. Moreover, no veto power was given to the governor-general.

• The supreme court established at Calcutta could not function properly as its internal laws were not made clear. It too did not have proper relations with the council of ministers. The judges were in doubt as to which law to follow, the Indian law or the British law. The court sentenced Maharaja Nanda Kumar to death, who was the ex-Diwan of Murshidabad and a brahmin by caste. He was charged with forgery by the Britishers. They were unaware that in India, brahmins could not be sentenced to death. This decision again led to a chaotic situation in Bengal and created a sensation all over. 

• The British government's power or motive was still not clearly stated even after passing the regulating act in 1773. This led to more confusion and chaos among the officials and the corruption did not stop. More strong and definite laws must have been passed to create a stronger hold of the British government on the company and the country. Moreover, the concerns of the people of India were not looked after by the act, and the reports of the governor-general and his council were not studied.

Did you Know?

• The features of the regulating Act 1773 were also brought to tighten its hold in India as the East India Company had been defeated by Hyder Ali of Mysore in 1969 and they feared another big blow for the rulers.

• The East India Company started its expansion in India and started moving towards the north on the order of the parliament, although the shareholders of the company opposed the act.

• The company had a strong and powerful hold in the British parliament in spite of going through a financial crisis. 

• Although a governor-general was appointed by the regulating act, he had no veto power.