LAND REVENUE SYSTEM UNDER BRITISH RULE

ARMY INSTITUTE OF LAW, MOHALI

SUBMITTED TO: Ms. Upagya Sharma

SUBJECT: Land Laws

SUBMITTED BY: Mrityunjai Rai (2038)

Submitted in partial fulfillment of the requirements for the award of the

degree of B.A. LL.B.

PUNJABI UNIVERSITY, PATIALA

 ACKNOWLEDGEMENT

In the accomplishment of this project successfully, many people have bestowed upon me their
blessings and heart-pledged support, this time I am utilizing to thank all the people who have
been concerned with this project.

Primarily I would like to express my special thanks of gratitude to my teacher Ms Upagya

Sharma and my principal Mrs. Tejinder Kaur who gave me the golden opportunity to do this
wonderful project of IPC on “Land Revenue System Under British Rule”, who gave me
regular guidance at every step of the project completion.

Then I would like to thank my parents and friends who have helped me with their valuable
suggestions and ideas have been very helpful in making the project a full proof success.

Last but not the least I would like to thank my seniors and batch mates who have helped me a
lot.
 DECLARATION
It is certified that the project work presented in this report entitled “Land Revenue System
Under British Rule” is the result of original research work carried out by me and all the ideas
and references have been duly acknowledged.

Date : 19 October 2023

Place : Mohali

Name : Mrityunjai Rai

Roll No. : 2038

 INDEX

S. NO. TOPIC PAGE NO.

1. Introduction 5

2. Land Revenue System Before British Rule 5

3. Land Revenue System Under British Rule 6

4. Zamindari System 6-7

5. Rayotwari System 7-8

6. Mahalwari System 8-9

7. Conclusion 9
 INTRODUCTION
The land sustains all aspects of life: be it biological, economic, or cultural. According to the
2011 Agricultural Census of India, agriculture is the main source of livelihood for around
61.5% of the population. Agriculture contributes around 18.8% to the Gross Value Added in
the Indian economy, according to the Economic Survey of India, 2022-23.1 Thus, given its
importance, land has always been the focus of the policies of rulers and governments
throughout history. One such policy concerning land is the land revenue policy.

Land revenue means any amount of money that is payable to the government in lieu of owning
a piece of land by the owner. It is a form of tax paid to the government. In order to determine
the amount of land revenue that is payable to the government, an assessment of the piece of the
land is carried out, which is known as land settlement.

The land revenue may be payable in cash or in kind according to the policies of the government.
Payment in kind is usually in the form of a fixed share of the product. For example, the Maratha
Empire imposed a tax that was known as Chauth, which was fixed at 1/4th of the produce.

LAND REVENUE SYSTEM BEFORE BRITISH RULE

In ancient India, land ownership was majorly community-based. The majority of land belonged
to the village community collectively and private ownership of land was generally unheard of.

However, in the medieval period, a wealthy class of Zamindars emerged who came to own the
majority of the land. Zamindars collected revenue from the peasants and delivered a certain
share of the revenue to the rulers while keeping the rest for themselves. This was the land
revenue policy in the medieval period.

Many rulers in different regions of India had instituted different methods of land assessment
for revenue collection, but for the first time, a formal land revenue system was initiated during
the rule of Mughal king Akbar, by his minister Raja Todar Mal in 1580 A.D. This system was
called the Dahsala system.

Under this system, the land was measured with standard measurement units and then classified
according to the level of productivity. The revenue was then fixed accordingly. There was
general goodwill, understanding, and a mutually beneficial relationship between the zamindars

1
https://www.indiabudget.gov.in/economicsurvey/ (last visited on 19.10.2023).
and peasants. The revenue was also fixed reasonably and remissions were given on the
occurrence of natural disasters like drought.

LAND REVENUE SYSTEM UNDER BRITISH RULE

In the pre-colonial period, the Indian economy was predominantly agrarian and the primary
occupation of the people was agriculture. The British conquerors tried to derive the maximum
economic advantage and therefore had to rely on land revenue as the principal source of income
for the state. After the battle of Plassey, the British secured the right to collect revenue from
the province of Bengal.

The first land income settlement was introduced by Warren Hastings assuming that all land
belonged to the sovereign. The changes introduced by him include:

1. Auctioning the land to the highest bidder.

2. Old zamindars /families were thrown away, and the annual settlement was changed to
quinquennial (five-yearly) and back to normal again.

The early administrators of EIC acted on the principle that the company was entitled to the
entire economic rent leaving merely the expenses of cultivation and wages to the cultivators,
which resulted in the decline of agriculture. Large areas went out of cultivation, and famines
occurred frequently. The excessive demand for income from land has been shown to be
counterproductive. This adverse situation forced the policy framers to experiment with land
tenures in India.

ZAMINDARI SYSTEM

In the year 1793, this system was introduced by Lord Cornwallis. This system was confined to
the areas of Bengal, Bihar, and Odisha. Under the system, the zamindar was recognized as the
owner of the land, who had the power to mortgage, bequeath and sell the land. They collected
land revenue of which one-eleventh was retained by them as their remuneration, and the rest
was deposited by the company. Land revenue demand was fixed, but the rent realized by the
cultivator remained unsettled.
 • Zamindars were recognized as the hereditary owner of the land and received the right
of inheritance.

• Landlords can sell or transfer the land as per their wishes.

• The landlord’s property remains as long as it pays a certain income to the government
on the specified day. If they don’t pay, their rights will be extinguished and the land
will be auctioned.

• The amount to be paid to the landlords was a fixed amount. It was decided that it would
not increase in the future (forever).

• The fixed amount was 10/11 of revenue to the Britishers and 1/11 of revenue to
zamindar. This tax rate was much higher than in England.

• The zamindar also had to give the tenant a patent describing the land given to him and
the rent that the zamindar had to pay.

• The responsibility of looking after the peasants fell on the shoulders of the Indian
landlords.

Because of the permanent nature of the arrangement, everyone had a sense of security. The
company knew how much profit it was making. The owner was also assured of the amount.
After all, the farmers also relied on their property instead of a hoof and knew how much rent
they would pay.

DEMERITS:

• The immediate effect of the land revenue system on the zamindars was disastrous.
Many of them could not derive land income from their tenants and therefore could not
pay the government money on time. As a result, their land was sold.

• Contrary to their expectations, the zamindars did not show any particular interest in
developing their land. The landlord became an absentee landowner in Calcutta or
country towns.

• The permanent settlement disregarded the rights of its inhabitants. They were
completely exposed to the landowners, making them insecure at any moment.
Landlords can ask the tenant for any amount.

• The government lost a share of the unearned increment forever.

 RAYOTWARI SYSTEM

The Ryotwari System was introduced by Thomas Munro in May 1820. This system was
confined in most of southern India, first introduced in Tamil Nadu, then the areas of Bombay,
Madras, some part of east Punjab, Coorg Province and Assam. Under this system, the Ryots
(peasants) had received the land rights of the land, and they were individually responsible for
the payment of land revenue to the states.

• Land revenue was paid by the farmers directly to the state, that’s why this system helped
to the elimination of the middlemen, who often oppressed villagers.

• As long as peasants paid the tax for the land, the peasants could not be evicted from
their land.

• The Assessment upon the individual cultivators, measurement of fields and estimate of
produce.

• In this system, the Government rates were fixed, for wetland and dryland, the rates were
60% and 50% respectively.

DEMERITS:

• Excessive rate of revenue due to which agriculture had become unremunerative.

• The method of collection was harsh.

• He revolutionized the relationship between creditors and debtors, creating a class of

usurers.

• The interest rate was high, and the cultivator could only pay the interest.

• The value of the landed property declined.

• The measurement was incorrect, and the production estimate was faulty.

• There was no appeal to the courts against the overvaluation.

MAHALWARI SYSTEM

The Mahalwari system was introduced by Holt Mackenzie in the year 1822 and this system
was modified by Lord William Bentinck in 1833. This version of settlement was introduced
into the Ganges Valley, the North-Western Provinces, parts of central India and Punjab.
 • In this system, the basis of assessment was the produce of a mahal, and all the
proprietors of a mahal were jointly responsible for the management and payment of the
revenues, sometimes, this Mahal was constituted by one or more villages.

• This was a two-fold settlement. The occupancy and ownership rights were reserved for
the individual peasants, and the cultivation was done individually.

• They were required to pay the land revenue through the village headman or village
leaders collectively. The cultivation was carried on individually, but the land revenue
was paid collectively.

• The state reserved the right to direct management of the agricultural economy by
introducing the concept of average rents for different soil classes.

• In this system, the Government’s revenue rate was fixed i.e. 66% and the agreement of
this settlement was done for up to 30 years.

DEMERITS:

• In actual practice, rights were made to certain leading groups of prominent families.

• The peasants, in general, were driven to the position of tenants, co-workers, etc.

• The economic and social inequalities increased, and the peasants were overburdened.

• There was no progress in the field of productivity.

CONCLUSION

British revenue systems, therefore, led to the impoverishment of peasantry. By making land a
transferable property, the British facilitated the rise of absentee landlords, oppressive
moneylenders and pushed the peasant further into misery.

The British by making land a commodity that could be freely bought and sold introduced a
fundamental change in the existing land systems of the country. The stability and continuity of
the Indian villages were shaken. The entire structure of rural society began to break up.
 BIBLIOGRAPHY
• Shilpa Singhania, Land Revenue System in British India, GeekforGeeks, (October 19,
2023, 4:00 p.m.) https://www.geeksforgeeks.org/land-revenue-systems-in-british-
india/.
• Team Samjho, Land Revenue System During British Rule in India, SAMJHO, (Oct. 19,
2023, 3;00 p.m.) https://samajho.com/upsc/land-revenue-system-during-british-rule-
in-india/.