Explanation: Under the Village Lease system, the assessment of each village was to be fixed for a period of three years based on the actual collections over a series of past years.

• In districts where mirasi rights existed, the mirasdar was made responsible for the rent collections.
• In districts where the mirasi rights did not exist, an arrangement was made with the village headman.
• This system failed due to various reasons such as bad monsoons, low price of grains and the short period of lease.

Source: Tamil Nadu NCERT