INSIGHT UPSC QUIZ

GS History Modern India
Q.

With reference to the British Land Revenue policy, consider the following statements:

1. Revenue farming was first introduced in British India by Lord Cornwallis in 1772.

2. Permanent settlement transformed the customary occupancy rights of peasants to tenancy.

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

Explanation:

Statement 1 is incorrect. Revenue farming was first introduced in British India by Warren Hastings in 1772. He assumed that all land belonged to the sovereign and thus introduced the system of revenue farming in 1772 whereby revenue collection rights were auctioned to the highest bidder.

  • The system failed and later Lord Cornwallis was sent to India to improve the conditions and rectify the errors made by revenue policies of Warren Hastings. Lord Cornwallis did this by introducing Permanent Settlement in 1784.

Statement 2 is correct. The nature of Permanent settlement invests ownership rights with Zamindar. The peasants actually lost out because of the change in the status of Zamindar from revenue collector to owner as it involved a corresponding transformation in customary occupancy rights of peasants to mere tenancy.

Thus, Option B is Correct.

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