What is Regulating Act 1773?
The Regulating Act of 1773 assumes great significance in the constitutional history of British India because it was the first time the British Government in London tried to control and regulate the English East India Company’s rule in India.
This Act marked the beginning of a series of constitutional and administrative changes that greatly altered and anglicized the Indian polity and administration.
The Regulating Act of 1773 also set up a system whereby the British Government began to supervise and regulate the work of the East India Company, especially in matters of governance.
Most importantly, this Act marked the first step to the eventual British parliamentary takeover of the English East India Company’s territorial possessions in India.
The rationale behind the Regulating Act 1773
One of the main reasons for the British Government’s intervention in the Company’s affairs in India was to ensure a smooth recovery of its taxes as well as some loans it gave to the company.
Due to financial mismanagement and misgovernance, the Company was threatened with dire financial problems even though it had acquired large territorial possessions in India.
Another important reason was to contain the company’s misgovernance of its territorial possessions in India, especially Bengal.
This misgovernance brought about a financial crisis and threatened with the prospects of bankruptcy, the company made demands for a government loan.
For the unversed, the English East India Company became the virtual ruler of Bengal Province of the Mughal Empire after its decisive victory in the Battle of Plassey in 1757 with the help of traitors and defectors.
Further, the Company’s men were mostly traders and merchants. They were not trained to govern and hence, the British government interfered as it began to perceive India as a matter of national importance.
Important Features of the Regulating Act 1773
The distinguishing features of the Regulating Act 1773 are as follows-
Governor-General of Bengal
It redesignated 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.
Supremacy of Governor-General of Bengal
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.
Supreme Court at Calcutta
The Regulating Act provided for the establishment of a Supreme Court at Calcutta in 1774 comprising one chief justice and three other judges.
The court was competent to try all British subjects including Indians and Europeans within Calcutta and the subordinate factories. It also had original and appellate jurisdictions.
Prohibition on Private Trade by the Company
The Act prohibited the servants of the Company from engaging in any private trade or accepting presents or bribes from local Indians.
Further, the Act restricted the Court of Directors to four-year fixed terms and limited Company dividends to 6% until it repaid £1.5m loans to the British Government.
Court of Directors
The Act mandated the governing body of the Company i.e. the Court of Directors to submit all correspondence regarding its revenue, civil, and military affairs in India to the British Government in England.
Thus for the first time, the British cabinet was given the right to exercise control over Indian affairs.
Defects in the Regulating Act 1773
The Regulating Act 1773 suffered from many defects.
While the Act made the Governor-General of Bengal more powerful vis-a-vis his Bombay and Madras counterparts, he was not bestowed with any veto powers in the Executive council. This often led to quarrels with his councilors.
The Act also failed to elaborate on the supreme court’s defined powers and this resulted in many legal disputes and anomalies.
The act was finally amended and replaced with the Pitt’s India Act of 1784.
Conclusion
The Regulating Act 1773 is significant in the constitutional history of British India because of the following reasons-
- It laid the foundations of a Central administration in British India.
- Elevated the status of Governor of Bengal as Governor-General of Bengal
- Established the Supreme Court at Calcutta in 1774
- Outlawed the commercial functions of the English East India Company.
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