Q. With reference to the Civil Reforms introduced by Robert Clive during his second governorship (1765–1767), consider the following statements:
1.Clive compelled the servants of the EIC to sign covenants that prohibited them from engaging in private trade, making them dependent solely on their official salaries.
2.He instituted the Society of Trade to pool the profits from the monopolized trade in salt, betel nut, and tobacco, and distribute them among the Company’s senior civil and military officials.
3.He strictly enforced the rule that all payments above a certain minimum received by Company servants from Indian rulers or officials had to be deposited into the Company treasury.
Which of the statements given above is/are correct?
Answer: D
Notes:
Explanation:
- Statement 1 is correct. Clive introduced stringent covenants, forcing EIC servants to declare their assets and preventing them from accepting nazarana or engaging in the hugely profitable (and corrupt) private internal trade.
- Statement 2 is correct. As the officials’ salaries were low, Clive established the Society of Trade to compensate them by monopolizing the trade of specific items (salt, betel nut, tobacco). The profits were divided among the staff based on rank. This system, though intended to curb corruption, was itself a source of monopoly and was later abolished.
- Statement 3 is correct. Clive prohibited the acceptance of all “gifts” or nazarana above Rs. 1,000 from Indians. Any payments above this threshold had to be surrendered to the Company to curb personal enrichment from political influence.
