📌 Snapshot
- How Company revenue rules reshaped Bengal and the Deccan: zamindars, jotedars, Santhals and ryots explained.
- Three regions, three experiments: the Permanent Settlement in Bengal, hoe and plough in the Rajmahal hills, ryotwari in the Deccan.
- The cause and effect chain from the American Civil War to cotton prices, debt and the Deccan revolt of 1875.
- How historians read official records such as the Fifth Report and the Deccan Riots Commission report, and why they read them with care.
📖 Detailed Notes
Written and reviewed by Subhra Gupta, Humanities faculty at UniDrill (M.A. Sociology, University of Delhi · 7 years teaching Humanities). Based on NCERT History Class XII (Themes in Indian History Part III), Chapter 9.
An auction where the buyers were the seller's own men
In 1797 a huge crowd gathered in Burdwan, in Bengal, for the auction of the estates of the Raja of Burdwan, who had failed to pay his revenue to the Company. Many bidders raised their hands and the prices climbed. When the hammer fell, the winning bidders turned out to be agents of the Raja himself. Over 95 per cent of the sale was fictitious.
How could a Company that fixed the rules be fooled so openly? The answer lies in how colonial rule changed the countryside. This chapter follows that change through three regions and three systems, and ends by asking how a historian should read the official records that survive.
The big idea: one Company, three experiments
The Company wanted steady revenue from the land, and it tried different arrangements in different places. Each arrangement created winners and losers, and each produced its own kind of resistance.
| Region | System | Revenue settled with | What followed |
|---|---|---|---|
| Bengal | Permanent Settlement (1793) | Zamindars, who paid a fixed sum forever | Defaults, auctions, rise of jotedars, benami sales |
| Rajmahal hills | Land clearing and a settled frontier | Santhals brought in to plough; Paharias pushed back | Damin-i-Koh (1832), Santhal revolt (1855 to 1856) |
| Bombay Deccan | Ryotwari (from the 1820s) | The individual ryot, with resurvey every 30 years | Cotton boom, debt to sahukars, revolt of 1875 |
Why Bengal came first: the Permanent Settlement
Bengal was the first region where the Company ruled over a large agrarian society, so it was where the first attempts were made to reorder rural life. In the 1770s the Bengal economy was in crisis, with repeated famines (including the great famine of 1770) and falling cultivation. Company officials believed that fixing the revenue would give the Company a regular income and would also encourage investment in land, producing improving landlords and prosperous farmers.
The Permanent Settlement of 1793 was made with the rajas and taluqdars of Bengal, who were classed as zamindars. A zamindar was not a landowner in the village. He was a revenue collector of the state, who paid a sum fixed in perpetuity and collected rent from the ryots.
Why the demand was set so high. Because the revenue was fixed forever, Company officials feared losing out if prices rose and cultivation expanded later. To reduce that future loss, they set the initial demand high. This one decision explains much of what followed.
Why zamindars defaulted. Four pressures worked together.
| Pressure | What it meant for the zamindar |
|---|---|
| Very high initial demand | The sum due was heavy from the start |
| Low agricultural prices in the 1790s | Ryots found it hard to pay rent, so zamindars had less to hand over |
| Revenue invariable and punctual | The sum was due whatever the harvest, and the Sunset Law let the Company auction an estate if payment did not arrive by sunset on the due date |
| Limited control over rent and management | The Settlement initially weakened the zamindar's power to collect rent and manage the estate |
The Company also disbanded the zamindars' troops, abolished their customs duties and placed their cutcheries (courts) under a Collector. A zamindar's amlah (rent-collecting officer) often could not force payment from ryots, and the Company would not wait.
The result. Estates were auctioned in large numbers, and over 75 per cent of the zamindaris changed hands in the early decades after the Settlement.
Pause and predict: After about 1810 prices of agricultural produce rose and cultivation expanded. Who gained from this under the Permanent Settlement, and what would a Company official conclude?
Check your answer: The zamindars gained, because their payment to the Company stayed fixed while their income from ryots grew. The state lost its share of the rise. For this reason the Permanent Settlement was rarely extended beyond Bengal, and newer territories were given temporary settlements that could be revised.
How zamindars fought back
The old zamindars did not accept their fall quietly. They found ways to keep their estates.
| Method | How it worked |
|---|---|
| Fictitious sale (benami) | A transaction in the name of a fictitious or insignificant person, while the real buyer stays unnamed. The zamindar's agents bought the estate at auction, then refused to pay, so it was sold again, until it came back cheaply to the family |
| Transfer to women | The Raja of Burdwan transferred part of his estate to his mother, since the Company had decided that women's property would not be taken over |
| Lathyals | Stickmen of the former zamindar attacked outsiders who bought the estate, so they could not take possession |
| Loyalty of the ryots | Ryots saw themselves as subjects (proja) of the zamindar and often did not welcome the new buyer |
Between 1793 and 1801 four of the biggest zamindaris of Bengal made benami purchases amounting to about Rs 30 lakh. The power of the zamindars was finally broken only in the 1930s, in the Great Depression, when prices collapsed and the system was no longer viable.
The rise of the jotedars
While zamindars struggled, another group grew stronger inside the villages. Francis Buchanan's survey of Dinajpur describes the jotedars: rich peasants who by the early nineteenth century had acquired vast areas of land, sometimes several thousand acres. They controlled local trade and moneylending and had a hold over poorer cultivators.
Jotedars lived in the villages, unlike the zamindars who often lived in towns. They got their land cultivated by sharecroppers called adhiyars or bargadars, who handed over half the produce. Jotedars resisted the zamindars' attempts to raise rent, mobilised the ryots who depended on them, and delayed payment of revenue, so that when an estate was auctioned they were often among the buyers. They were strongest in North Bengal.
Why it matters. The Permanent Settlement was meant to create a class of loyal landlords. In practice it also made room for rich peasants who undermined them from below.
Reading the Fifth Report
The Fifth Report was submitted to the British Parliament in 1813. It was the fifth in a series of reports on the Company's administration, ran to 1,002 pages, and included more than 800 pages of appendices: petitions of zamindars and ryots, reports of Collectors, revenue statistics and notes on revenue and judicial administration. It became the basis for parliamentary debates on Company rule, as the Company's trading monopoly came under attack in Britain.
Two views. For the exam: the Fifth Report is a key source on Bengal, but it must be read with care, because its authors wanted to show the Company's rule as a failure of order. Another reading: later research shows that the Report exaggerated the collapse of the old zamindars. Many zamindars survived the auctions through benami sales and other methods, so the picture of complete ruin does not fit the evidence.
Hoe and plough: Paharias and Santhals
The next case moves to the Rajmahal hills, in the east of present day Jharkhand. Two communities appear here, with two ways of using land.
| Feature | Paharias | Santhals |
|---|---|---|
| Land use | Shifting cultivation with the hoe, in patches cleared in the forest | Settled cultivation with the plough |
| Food and produce | Pulses and millets; forest produce such as mahua, silk cocoons, resin and wood for charcoal | Settled farming on land they cleared from the forest |
| Relation to the plains | Raided the plains in hard times; zamindars paid them tribute and traders paid tolls to use the passes | Invited to the area by zamindars and the Company to reclaim land |
| Colonial view | Seen as unruly and wild | Seen as ideal, hard working settlers |
The Paharias. In the 1770s the British followed a brutal policy of extermination against the Paharias. In the 1780s Augustus Cleveland, Collector of Bhagalpur, proposed a policy of pacification: Paharia chiefs were given an annual allowance and made responsible for the good conduct of their people. Many chiefs refused, and those who accepted lost authority among their own people. The Paharias retreated deeper into the hills, and their world became poorer and more isolated.
The Santhals. Santhals began arriving in the region from around the 1780s, and zamindars and Company officials welcomed them as cultivators who cleared forest and ploughed the land. In 1832 a large area was demarcated as Damin-i-Koh and declared the land of the Santhals. They were asked to clear a part of it (a tenth in the first ten years) and settle as cultivators. Santhal villages grew from 40 in 1838 to 1,473 by 1851, and their population rose from about 3,000 to over 82,000.
Cause to effect. The state's tax demand on Santhal land rose, moneylenders (whom Santhals called dikus, or outsiders) charged high interest and took their land, and zamindars asserted control over the Damin. The Santhals saw that the land meant to be theirs was slipping away.
| Cause | Effect |
|---|---|
| Heavy tax on Damin-i-Koh land | Santhals fell into debt |
| High interest from dikus | Land passed to moneylenders |
| Zamindars asserting control over the Damin | Santhals lost hope of a secure homeland |
| All three together | Santhal revolt of 1855 to 1856, led by Sidhu Manjhi and his brother Kanhu |
After the revolt was suppressed, the Santhal Pargana was created, carving out 5,500 square miles from the districts of Bhagalpur and Birbhum, where Santhals were given special protection. Do not confuse the two: Damin-i-Koh (1832) came before the revolt, Santhal Pargana came after.
Pause and predict: A colonial surveyor travels through the Rajmahal hills in the early nineteenth century and writes about the forest and the hill people. Would he describe the forest as valuable in itself, or as land waiting to be cleared?
Check your answer: As land waiting to be cleared. Francis Buchanan, a physician of the Bengal Medical Service from 1794 to 1815 who conducted surveys for the Company, saw the world through the Company's commercial interests. He saw forests as wasteful and favoured cultivated fields, which tells us how a source's purpose shapes what it records.
The Bombay Deccan: ryotwari, cotton and debt
In the Bombay Deccan the Company used the ryotwari system. Revenue was settled directly with the ryot rather than with a zamindar. Soils were classified, the revenue paying capacity of each plot was assessed, and the land was resurveyed every 30 years, with revenue raised each time.
Beyond the textbook. For the exam: the ryotwari system was influenced by the ideas of David Ricardo, whose theory of rent said that the surplus a landowner earns above the average profit of the land is "rent", which the state may claim. In reality: historians such as Eric Stokes (The English Utilitarians and India, 1959) argued that British economic thinking of this kind shaped revenue policy in India, with officials trained in these ideas seeing the state as the rightful claimant of the land's surplus. This explains why the demand was set on the land's productive power rather than on what the peasant could actually pay.
The first settlement in the 1820s set the demand so high that many peasants deserted their villages. Later, from 1832 to 1834, famine devastated the Deccan. Agricultural prices fell and did not recover for years, and peasants borrowed to pay the revenue. They borrowed from the sahukar, a person who acted both as a moneylender and a trader.
The cotton chain. The next table is the heart of the chapter, and CUET likes to test its order.
| Step | Event | Effect |
|---|---|---|
| 1 | Cotton Supply Association founded in 1857 and Manchester Cotton Company in 1859 | British manufacturers looked for sources other than the United States |
| 2 | American Civil War breaks out in 1861 | Raw cotton imports from America into Britain collapsed from about 2,000,000 bales in 1861 to about 55,000 bales in 1862 |
| 3 | India becomes the main supplier | By 1862 over 90 per cent of Britain's cotton imports came from India |
| 4 | Credit flows to the Deccan | Export merchants gave advances to sahukars and sahukars lent to ryots to grow cotton, and cotton acreage in the Deccan doubled between 1860 and 1864 |
| 5 | Civil War ends in 1865 | American cotton returned to the market, so the demand for Indian cotton fell |
| 6 | Credit stops | Merchants and sahukars stopped lending and demanded repayment, while the next revenue settlement raised the demand by 50 to 100 per cent |
During the boom, many ryots were persuaded that high prices would last forever and borrowed freely. After it ended, they found they could not repay.
The debt trap. The old custom that the interest charged could not exceed the principal broke down. The Deccan Riots Commission found a case where Rs 2,000 interest was charged on a loan of Rs 100. The Limitation Law of 1859 made a loan bond between a moneylender and a ryot valid for only three years, but moneylenders got around it by forcing ryots to sign a new bond every three years, adding the unpaid sum to the new principal.
Pause and predict: After 1865, ryots could not repay their loans and sahukars stopped lending. Who would the ryots blame, and what would they do with the evidence of debt?
Check your answer: They blamed the sahukars, and they destroyed the evidence. On 12 May 1875 at Supa, a large village of Poona district, ryots gathered and attacked shopkeepers and moneylenders, demanding and burning their bahi khatas (account books) and debt bonds, and looting grain shops. The revolt spread over some 6,500 square km and to more than 30 villages.
Official archives: how to read them
Much of what we know about this chapter comes from official records, so the chapter also teaches a method. Reports are produced by people with a purpose, and a historian must ask who wrote them, why and for whom.
After the revolt the government set up the Deccan Riots Commission, which collected evidence from the districts. Its report was presented to the British Parliament in 1878. The Commission was asked to judge whether the government's revenue demand had caused the revolt, and it concluded that the moneylenders, and not the government, were to blame.
Two views. For the exam: the Commission's report is a valuable source, with details of debt, interest rates and bonds, but its conclusion shows the colonial reluctance to admit that popular anger might be directed at government action. Another reading: later historians looking at the same evidence point to the high revenue demand, the fall in cotton prices after the boom and the pressure to borrow. They argue that the revolt cannot be explained by the moneylenders alone, and use the Commission's own records to make the case.
Why it matters. Official records are indispensable and also biased. The skill CUET tests is to read them against other evidence such as petitions, newspapers, private papers and oral memory, and to ask what is missing.
Key people, places and terms
| Term | What it means |
|---|---|
| Zamindar | Revenue collector of the state under the Permanent Settlement, not owner of the village |
| Raja, taluqdar | Powerful zamindars, and holders of a taluq (a territorial unit or connection) |
| Ryot (raiyat) | Peasant; in Bengal often leased land to under-ryots |
| Amlah | Rent-collecting officer of the zamindar |
| Jotedar | Rich peasant of Bengal (strongest in North Bengal) controlling land, trade and moneylending |
| Adhiyar, bargadar | Sharecropper who gave half the produce to the jotedar |
| Benami | A transaction in a fictitious name, with the real beneficiary unnamed |
| Lathyal | One who wields a lathi; strongman of the zamindar |
| Paharias | Hill people of the Rajmahal hills who practised shifting cultivation with the hoe |
| Damin-i-Koh | Land demarcated in 1832 as the land of the Santhals |
| Diku | Santhal word for outsiders, especially moneylenders |
| Ryotwari | Revenue settled directly with the ryot, resurveyed every 30 years |
| Sahukar | Moneylender and trader |
| Bahi khata | Account book kept by moneylenders and shopkeepers |
| Francis Buchanan | Physician who surveyed districts for the Company; described Dinajpur jotedars and Rajmahal hills |
| Augustus Cleveland | Collector of Bhagalpur, who proposed pacification of the Paharias in the 1780s |
| Sidhu Manjhi | Leader of the Santhal revolt of 1855 to 1856 |
Timeline
| Year | Event | Why it mattered |
|---|---|---|
| 1765 | Company obtains the Diwani of Bengal | Began Company rule over land revenue |
| 1770s | Bengal in crisis; brutal campaign against the Paharias | Pushed the Company to reorder revenue and subdue the hills |
| 1780s | Cleveland's pacification of the Paharias; Santhals begin arriving | Hill people retreat; plough cultivators move in |
| 1793 | Permanent Settlement in Bengal | Fixed revenue forever, with zamindars as collectors |
| 1797 | Burdwan auction | Showed how fictitious sales worked |
| 1813 | Fifth Report presented to Parliament | Shaped debates on Company rule; later questioned by historians |
| 1820s | First ryotwari settlements in the Bombay Deccan | Demand so high that peasants left villages |
| 1832 | Damin-i-Koh demarcated | Santhal homeland created |
| 1857 and 1859 | Cotton Supply Association; Manchester Cotton Company | Britain looks for cotton beyond America |
| 1855 to 1856 | Santhal revolt | Led to creation of the Santhal Pargana |
| 1859 | Limitation Law | Bonds valid for three years; moneylenders respond with new bonds |
| 1861 | American Civil War begins | Cotton boom in the Deccan |
| 1865 | Civil War ends | Boom ends; credit dries up |
| 1875 | Deccan revolt begins at Supa (12 May) | Attacks on moneylenders and burning of bonds |
| 1878 | Deccan Riots Commission report presented | Blamed moneylenders; an official view |
Exam traps
| The trap | Why it's tempting | The truth |
|---|---|---|
| "Jotedars were zamindars." | Both held a lot of land | Jotedars were rich peasants in the villages who often resisted zamindars |
| "Ryotwari was introduced in Bengal." | Both are revenue systems | Bengal had the Permanent Settlement with zamindars; ryotwari was in the Bombay Deccan |
| "Santhal Pargana was created before the revolt." | Both are Santhal land names | Damin-i-Koh (1832) came first; Santhal Pargana was created after the revolt |
| "Paharias were plough cultivators." | Both lived in the Rajmahal area | Paharias used the hoe for shifting cultivation; Santhals used the plough |
| "The Deccan Riots Commission blamed the revenue demand." | The demand was very high | The Commission blamed moneylenders and not government policy |
| "The Fifth Report was submitted in 1793." | Both are early dates | The Permanent Settlement is 1793; the Fifth Report is 1813 |
| "The Permanent Settlement was extended all over India." | The name sounds all India | It was rarely extended beyond Bengal after prices rose in the 1810s |
60-second revision
| Topic | Lock this in |
|---|---|
| Permanent Settlement | 1793 · fixed revenue forever · zamindar = collector, not owner |
| Why default | High demand · low prices · fixed and punctual · Sunset Law |
| Zamindar resistance | Benami sales · transfer to women · lathyals · loyal ryots |
| Jotedars | Rich peasants · strongest in North Bengal · sharecroppers called adhiyars |
| Fifth Report | 1813 · 1,002 pages · exaggerated the zamindars' collapse |
| Paharias and Santhals | Hoe and shifting cultivation · plough and settled farming |
| Damin-i-Koh and Santhal Pargana | 1832 before the revolt · after the revolt (5,500 sq miles) |
| Ryotwari | Settlement with ryot · resurvey every 30 years · Ricardo's ideas |
| Cotton chain | Civil War 1861 · acreage doubles · war ends 1865 · credit stops · revolt 1875 |
| Deccan Riots Commission | Report 1878 · blamed moneylenders |
Where this chapter connects
- Before this: Peasants, Zamindars and the State shows the Mughal zamindar and village, a useful contrast with the colonial zamindar.
- Next: Rebels and the Raj shows how land and revenue grievances, such as those of the taluqdars of Awadh, fed the revolt of 1857.
- Also read: An Imperial Capital for another side of colonial rule, as seen in towns.
🎯 Practice MCQs
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Q1. Arrange these events in chronological order. (i) Damin-i-Koh is demarcated (ii) The Fifth Report is presented to Parliament (iii) The Santhal revolt (iv) The Deccan revolt begins at Supa
▸ Show answer & explanation
Answer: A
The Fifth Report was presented in 1813, Damin-i-Koh was demarcated in 1832, the Santhal revolt took place in 1855 to 1856 and the Deccan revolt began in 1875. Options B, C and D put the first two or the middle two out of order.
Q2. Why did the Company fix the initial revenue demand at a very high level under the Permanent Settlement?
▸ Show answer & explanation
Answer: B
Because revenue was fixed forever, officials expected to lose the benefit of future rises, so they set the demand high from the start. The other options are not the reason given for the high demand.
Q3. Consider the following statements about the Permanent Settlement. Statement I: The zamindar was classified as a revenue collector and not the owner of the village. Statement II: The revenue demand was revised every 30 years. Statement III: An estate could be auctioned if revenue did not arrive by sunset on the due date.
▸ Show answer & explanation
Answer: B
Statements I and III are correct. Statement II is wrong because the demand was fixed forever. A 30 year resurvey belongs to the ryotwari system.
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Q4. Match List I with List II. List I: (i) Jotedar (ii) Adhiyar (iii) Lathyal (iv) Benami. List II: (p) Strongman of the zamindar (q) Sharecropper (r) Transaction in a fictitious name (s) Rich peasant who controlled trade and moneylending
▸ Show answer & explanation
Answer: A
A jotedar was a rich peasant, an adhiyar a sharecropper, a lathyal a stick wielding strongman and a benami deal one made in a fictitious name.
Q5. Read the extract. A survey of a district in North Bengal in the early nineteenth century described a class of rich peasants who held thousands of acres, lent money, traded in grain and got their land cultivated by sharecroppers who gave half the produce. These peasants are best identified as:
▸ Show answer & explanation
Answer: B
The description matches jotedars, as surveyed by Francis Buchanan in Dinajpur. Zamindars were revenue collectors, Santhals were a tribal community and the Deccan sahukars belonged to another region.
Q6. Which of the following statements about the Fifth Report is correct?
▸ Show answer & explanation
Answer: B
The Fifth Report was presented in 1813 and ran to 1,002 pages, and researchers have shown that it overstated the ruin of the zamindars. It has nothing to do with the Santhals or the Deccan revolt, which came decades later.
Q7. Consider the statements. Statement I: The Paharias practised shifting cultivation with the hoe. Statement II: The Santhals were welcomed to the Rajmahal area as plough cultivators who cleared land. Statement III: The Paharias were encouraged by the Company to settle as plough cultivators in Damin-i-Koh.
▸ Show answer & explanation
Answer: B
Statements I and II are correct. Statement III is wrong because Damin-i-Koh was the land marked out for the Santhals. The Paharias were subdued and pushed deeper into the hills.
Q8. Damin-i-Koh was demarcated as the land of the Santhals in which year?
▸ Show answer & explanation
Answer: C
Damin-i-Koh was demarcated in 1832. The Permanent Settlement was in 1793, the Fifth Report in 1813 and the Santhal revolt began in 1855.
Q9. Assertion (A): The Permanent Settlement was rarely extended beyond Bengal. Reason (R): After about 1810 prices rose, so a revenue fixed forever brought gains to zamindars but not to the state.
▸ Show answer & explanation
Answer: A
Rising prices meant that a fixed revenue let zamindars keep the gain while the state lost, so the Company turned to temporary settlements in new territories. R therefore explains A.
Q10. Which of the following correctly describes the ryotwari system in the Bombay Deccan?
▸ Show answer & explanation
Answer: B
Ryotwari meant a settlement directly with the ryot, with periodic resurvey and revision. Option A describes the Permanent Settlement.
Q11. Arrange the following steps in the cotton chain in the Deccan. (i) Civil War ends and American cotton returns (ii) American Civil War begins (iii) Cotton acreage in the Deccan doubles (iv) Sahukars stop lending and demand repayment
▸ Show answer & explanation
Answer: A
The Civil War began in 1861, cotton acreage doubled between 1860 and 1864, the war ended in 1865 and then credit dried up. The other options reverse cause and effect.
Q12. What did the Limitation Law of 1859 provide, and how did moneylenders respond?
▸ Show answer & explanation
Answer: A
The law made a bond valid for three years, and moneylenders made ryots sign a new bond every three years, adding unpaid interest to the principal. The other options do not describe the law.
Q13. Read the extract. A government commission examining a peasant revolt in 1878 was asked to decide whether the revenue demand had caused it. It concluded that moneylenders were responsible. A historian reading this report today should:
▸ Show answer & explanation
Answer: C
Official reports are valuable but reflect the purposes of those who wrote them. The Commission was reluctant to admit that popular anger might be directed at government policy, so its conclusion needs to be tested against other sources.
Q14. The Deccan revolt of 1875 began at which place, and with what act?
▸ Show answer & explanation
Answer: B
The revolt began at Supa on 12 May 1875, when ryots attacked moneylenders and demanded and burned their bahi khatas. The other places belong to Bengal and the Rajmahal hills.
Q15. Which statement about the Santhal Pargana is correct?
▸ Show answer & explanation
Answer: B
The Santhal Pargana was created after the revolt, from parts of Bhagalpur and Birbhum districts. Option A confuses it with Damin-i-Koh, and the Paharias and the Deccan have no connection with it.
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