Beginning of the British Rule in India ( Second Phase of Constitutional History from 1765 to 1858)

Second Phase: 2. 1765 to 1858: The Beginning of the British Rule:
The grant of Diwani power to the East India Company made it real master of Bengal, Bihar and Orissa.
As a result of this, the Company became responsible for the administration of Justice and Collection of land revenue.
But it was very difficult for the Company to administer that vast territory.
Therefore the administration of the civil justice and collection of land revenue was left to the Indians. However the Company appointed two English Officers to supervised the working of this system.
This system was proved to be harmful for the India.
The Indian Officials who were responsible for the administration of Justice and Collection of land revenue had no effective power to enforce their decisions.
On the other hand, the company’s servants were directly responsible to the Court of Directors in England.
The Governors and Councilors were appointed from among the Senior Servants of the Company.
The Servants of the Company exploited the Indians, earn their wealth and returned to England, which increased the sufferings of the Indians in the hands of East India Company.
Not only this, the East India Company approached the British Government for a huge loan.
It was very strange for the British Government while the Servants of the Company were getting richer on the hand the company was going towards its bankruptcy.
All these facts led the British Government to suspect that something was wrong with the administration of the Company.
The members of the British Parliament attracted the attention of the British Government towards the poor conditions of the company’s administration.
Thereafter a Secret Committee was appointed by the House of Commons to inquire into the affairs of the company on 13/04/1772.
Many defects and deficiencies in the administration of East India Company were found in the inquiry reports of the Secret Committee.
This Committee also suggested that the affairs of the company must be regulated by the British Parliament.
Consequently, the British Parliament passed the Regulating Act of 1773.