jun 10, 1773 - Regulating Act 1773 Warren Hastings becomes 1st GovGen of Bengal

Description:

Imp: It designated the Governor of Bengal as the ‘Governor-General of Bengal’ and created an Executive Council of four members to assist him. The first such Governor-General was Lord Warren Hastings.
It made the governors of Bombay and Madras presidencies subordinate to the governor-general of Bengal


This act is of great constitutional importance as (a) it was the first step taken by the British Government to control and regulate the affairs of the East India Company in India;
(b) it recognised, for the first time, the political and administrative functions of the Company; and
(c) it laid the foundations of central administration in India.

Background/Reasons for passing the Act
1. The East India Company was in severe financial crisis and had asked a loan of 1 million pounds from the British government in 1772.
2. Allegations of corruption and nepotism were rampant against company officials.
3. There was a terrible famine in Bengal where a huge population perished.
4. The Dual form of administration instituted by Robert Clive was complex and drawing a lot of complaints. According to this system, the company had Diwani rights (obtained after the Battle of Buxar) in Bengal and the Nawab had Nizamat rights (judicial and policing rights) as secured from the Mughal Emperor. In reality, both powers were vested with the company. The farmers and the general population suffered as their improvement was neglected and the company was only concerned with maximising revenue.
5. Lawlessness increased in Bengal.
6. The defeat of the company against Mysore’s Hyder Ali in 1769.

Features of the Act
1. It designated the Governor of Bengal as the ‘Governor-General of Bengal’ and created an Executive Council of four members to assist him. The first such Governor-General was Lord Warren Hastings.
2. It made the governors of Bombay and Madras presidencies subordinate to the governor-general of Bengal, unlike earlier, when the three presidencies were independent of one another.
3. It provided for the establishment of a Supreme Court at Calcutta (1774) comprising one chief justice and three other judges.
4. It prohibited the servants of the Company from engaging in any private trade or accepting presents or bribes from the ‘natives’.
5. It strengthened the control of the British Government over the Company by requiring the Court of Directors (governing body of the Company) to report on its revenue, civil, and military affairs in India.

Defects of Regulating Act 1773
The major drawbacks of The Regulating Act of 1773 are stated below:

The Governor-General had no veto power.
It did not address the concerns of the Indian population who were paying revenue to the company.
It did not stop corruption among the company officials.
The Supreme Court’s powers were not well-defined.
The parliamentary control that was sought in the activities of the company proved to be ineffective as there was no mechanism to study the reports sent by the Governor-General in Council.

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