INSIGHT UPSC QUIZ

GS History Modern India
Q.

Consider the following statements:

1. After abolition of the Dual system, the East India Company had to act as Diwan.

2. Establishment of civil courts reduced the corruption in judiciary.

3. Abolition of Dastaks in trade and commerce completely eliminated private trade by the company’s servants.

Which of the statement(s) given above is/are correct?

Explanation:

Statement 1 is correct. Following the Treaty of Allahabad (1765), Robert Clive set up the infamous dual system of administration in Bengal wherein the East India Company acquired the real power, while the responsibility of administration rested on the Nawab of Bengal.

  • Under the 'dual' or double government system, the Company got both the diwani (revenue) and nizamat (civil administration) functions of Bengal from two different sources-diwani from the Mughal emperor and nizamat from the nawab of Bengal.
  • When Warren Hastings assumed the administration of Bengal in 1772, he found it in utter chaos. The financial position of the company became worse and difficulities were intensified by famine. Therefore, he realized the immediate need for introducing reforms and abolition of dual System. Thus, the East India Company decided to act as Diwan and to undertake the collection of revenue by its own agents.

Statement 2 is correct. The judicial system at the time of Warren Hastings’ ascendancy was a store-house of abuses. The Nawab who was hitherto the chief administrator of justice, misused his powers. Often, his judgments were careless. The zamindars who acted as judges at lower levels within their own areas were highly corrupt and prejudiced. Thus, establishment of civil courts reduced the corruption in judiciary.

Statement 3 is incorrect. Abolition of Dastaks in trade and commerce did not completely eliminate private trade by the company’s servants.

  • Warren Hastings abolished the system of dastaks, or free passes and regulated the internal trade. He reduced the number of custom houses and enforced a uniform tariff of 2.5 percent for Indian and non-Indian goods. Private trade by the Company’s servants continued but within enforceable limits. Weavers were given better treatment and facilities were made to improve their condition. He also introduced a uniform system of pre-paid postage system. A bank was started in Calcutta. He improved the police in Calcutta and the dacoits were severely dealt with.

Thus, Option B is Correct.

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