[UPSC Notes] The Regulating Act of 1773 – Indian Polity Notes For UPSC IAS Preparation

Introduction

The Regulating Act of 1773 was the first step taken by the British government to control and regulate the affairs of the East India Company in India, as well as the first time the Company’s political and administrative functions were recognized.

This act was created as a result of the British East India government’s mismanagement, which caused the company to go bankrupt, forcing the government to intervene.

The UPSC Indian Polity and Governance Syllabus include The Regulating Act of 1773 which is described in this article.

Indian Polity Notes For UPSC IAS Preparation

Historical Background

• The East India Company started trading with eastern countries after its establishment in 1600.
• After the Battle of Buxar in 1764, the company gained political power in Bengal, Bihar, and Orissa.
• The company was in financial difficulty due to the expansion of the frontier and heavy expenditure in various wars.
• It was passed by the British Parliament after Lord North presented his famous bill in Parliament on May 18, 1773.
• This Regulating Act (1773), passed by the British Parliament, was the first important step towards parliamentary control over the Indian administration of the Company.

Objectives

• The major goal of enacting the Regulating Act was to keep track of the Company’s operations in India and England, as well as to eliminate any existing flaws.

Indian Polity Notes For UPSC IAS Preparation

Key Provisions

• The Governor of Bengal’s name was changed to ‘Governor-General of Bengal’ and he was also given the responsibility to oversee the presidencies of Madras and Bombay.
• Four Board of Administrators members were selected by the Governor-General in Bengal (Philip Francis, Clavering, Monson, and Barwell).
• Warren Hastings was the first Governor-General, and he was joined by four boards of administrators.
• Only the British monarch on the recommendation of the Court of Directors could remove these.
• The five-year term for board members had to be completed by the members of the board of directors. 
• The High Court was inaugurated in Calcutta. There were four judges in total, including the Chief Justice.
• Primary and appellate jurisdiction was assigned to the Supreme Court.
• Sir Elijah Impey served as the Chief Justice, while Lemester, Chambers, and Hyde were the other judges of the court established in 1774.
• Military and civilian officers under the Company were prohibited from accepting any gifts, donations, or prizes from private businesses and Indians, according to this Act.
• This law established that the board of directors’ term would be 4 years and the number of members would be increased to 24, with 6 members having a one-year leave of absence.
• The Crown’s authority was further enhanced by the “Court of Directors” via this act.
• India’s civil and military affairs as well as its revenues were required to be disclosed to the British Crown.
• The company’s officers and staff were given a pay raise.

Indian Polity Notes For UPSC IAS Preparation

Defects

• The parliamentary control on the company proved ineffective because there was no effective mechanism to study the reports sent by the Governor-General in Council.
• The Governor-General had no veto power.
• The powers of the Supreme Court were not well defined.
• This act did not address the concerns of the Indian population who were paying revenue to the company.
• This Act did not stop corruption among the officials of the company.

What is meant by Regulating Act?

It was the first time the East India Company’s authority and jurisdiction over its Indian possessions were ratified and implemented. The Regulating Act was passed by the British Parliament in June 1773.

Conclusion

The Regulating Act of 1773 holds a special significance in the constitutional history of India. By this act, a written constitution was introduced for the first time for the governance of the company in India. This Act was the beginning of efforts for British parliamentary controls on the administration of the Company in India. As a result, the administration of the areas under the Company’s rule was no longer a private affair of the Company’s merchants.

Indian Polity Notes For UPSC IAS Preparation

Frequently Asked Questions (FAQs)

How legislative changes led to the evolution of the Viceroy position in India?

Various legislative changes led to the evolution of the viceroy position as follows:

• The Governor of Bengal came before the office of the Governor-General of India and Viceroy.
• The East India Company ruled Bengal through the office of Governor of Bengal when it arrived in India.
• Robert Clive was the first governor of Bengal. Following the Regulating Act of 1773, the governorships of Madras and Bombay passed to the governor of Bengal, who became the Governor-General of Bengal.
• Lord Warren Hastings was the first governor-general of Bengal.
• The office of the Governor-General of Bengal was transformed to the Governor-General of India after the Regulating Act of 1833.
• Through the Government of India Act of 1858, this position was elevated to Viceroy of India.

How were the Regulating Act’s flaws corrected?

• Some of these issues were addressed in the Amending Act 1781, as well as subsequent acts, which amended the Regulating Act.
• The Amending Act of 1781 lowered the Supreme Court’s authority to that of the Governor-General in Council.
• The Pitts India Act of 1784 granted the Governor -General veto authority and made the presidencies subject to the Governor-General.

What were the objectives of The Regulating Act of 1773?

The Regulating Act of 1773 had three main goals: to solve the problem of company administration in India, to address the problem of Lord Clive’s dual system of governance, and to control the company, which had transformed from a corporate entity to a semi-sovereign political institution.

UPSC Mains Practice Question

Discuss the significance of the Regulating Act (1773) in the evolution of the Indian Constitution.