Q. Consider the following statements:
1. Company’s territories in India were for the first time called the ‘British possessions in India’.
2. Establishment of a system of double government.
For which of the following Act, the above two statements are correct?
Red Book
Red Book

[A] Regulating Act of 1773

[B] Pitt’s India Act of 1784

[C] Charter Act of 1833

[D] Charter Act of 1853

Answer: B
Notes:

Pitt’s India Act of 1784

In a bid to rectify the defects of the Regulating Act of 1773, the British Parliament passed the Amending Act of 1781, also known as the Act of Settlement. The next important act was the Pitt’s India Act of 1784.

Features of the Act

  1. It distinguished between the commercial and political functions of the Company.
  2. It allowed the Court of Directors to manage the commercial affairs but created a new body called Board of Control to manage the political affairs. Thus, it established a system of double government.
  3. It empowered the Board of Control to supervise and direct all operations of the civil and military government or revenues of the British possessions in India.

Thus, the act was significant for two reasons: first, the Company’s territories in India were for the first time called the ‘British possessions in India’; and second, the British Government was given the supreme control over Company’s affairs and its administration in India.

Source: Indian Polity by Laxmikanth

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