Features of Diwani Rights
One of the most significant features of the Diwani rights was the establishment of a new system of profit collection. The East India Company introduced the endless agreement System, which fixed the land duty at a certain rate and made it heritable. This system was designed to give stability to the profit collection process and was intended to profit both the East India Company and the original coproprietors. The endless agreement System, still, had some negative consequences for the peasants and growers who were the factual tillers of the land. The fixed land duty rate meant that the profit collection process was inflexible and didn’t take into account changes in agrarian productivity or other factors that affected the income of the growers. This redounded in wide neediness and debt among the peasantry.
Another significant point of the Diwani rights was the establishment of a new class of profit officers who were responsible for the collection of profit and the administration of justice. These officers were known as zamindars and were given heritable rights to collect profit from specific areas. The zamindars were frequently members of the original quality and were given considerable powers to maintain law and order in their separate areas. The establishment of the Zamindari system was intended to give a stable and effective system of profit collection, but it also had some negative consequences. The zamindars frequently abused their powers and assessed onerous levies on the peasants and growers. They also constantly banded with the British authorities and helped to suppress popular revolutions and movements against British rule.
How did the Assumption of Diwani Benefit the East India Company?
In 1765, the British East India Company acquired the Diwani rights from the Mughal Emperor Shah Alam II. The Diwani rights were basically the right to collect profit from the businesses of Bengal, Bihar, and Orissa, which were inclusively known as the Bengal Presidency. This was a significant moment in the history of British India, as it marked the morning of the company’s direct involvement in Indian administration and established the base of British rule in India.
Diwani Rights