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Regulating Act 1773

regulating act 1773
regulating act 1773

Regulating Act 1773

British Parliament passed Regulating Act, 1773 to regulate the British East India Company’s Indian territories, especially in Bengal. The Regulating Act of 1773 banned the employees of East India Company from doing any kind of private trade or from receiving gifts or bribes from the “natives”. This 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. The topic “Regulating Act of 1773” is an important part of the Indian Polity and Governance Syllabus which is discussed in this article in detail.

Table of Contents

Regulating Act 1773 - Historical Background
Regulating Act (1773) - Objective
Regulating Act, 1773 Act - Key Provisions
Regulating Act,1773 Act- Defects

Regulating Act 1773 – Historical Background

  • Regulating Act, 1773, was passed by the British Parliament after Lord North presented his famous bill in Parliament on May 18, 1773. It is also known as the East Indian Company Act of 1772.
  • 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.
  • Regulating Act 1773 was introduced because of the British East India government’s misgovernance which caused the company to go bankrupt, forcing the government to intervene. 
  • This Regulating Act (1773), passed by the British Parliament, was the first important step towards parliamentary control over the Indian administration of the Company.

Regulating Act (1773) – Objective

  • 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.

Key Provisions

Regulating Act, 1773 Act – Key Provisions

  • Governor-General of Bengal: The post of “Governor of Bengal” 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: 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. 
  • High Court Inauguration: The High Court was inaugurated in Calcutta. There were four judges in total, including the Chief Justice.
  • Primary & Appellate Jurisdiction: 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.
  • Prohibited from Bribes & Gifts: 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.
  • Term & Members: 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.
  • Court of Directors: The Crown’s authority was further enhanced by the “Court of Directors” via this act.
  • Civil & Military Affairs: India’s civil and military affairs as well as its revenues were required to be disclosed to the British Crown.
  • Pay Rise: The company’s officers and staff were given a pay raise.

Defects

Regulating Act,1773 Act – Shortcomings

  • 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.

Conclusion

The Regulating Act of 1773 holds special significance in the constitutional history of India. Through 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.