Question

UPSC Prelims 2019 Question:

the Charter Act of 1813

Consider the following statements about

  1. It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China.
  2. It asserted the sovereignty of the British Crown over the Indian territories held by the Company.
  3. The revenues of India were now controlled by the British Parliament.

Which of the statements given above are correct?

  1. 1. 1 and 2 only
  2. 2. 2 and 3 only
  3. 3. 1 and 3 only
  4. 4. 1, 2 and 3

Answer (Detailed Solution Below)

Option 1: 1 and 2 only

Detailed Solution

Explanation:

  • The Charter Act, 1813, was passed as a result of the renewal of the East India Company’s commercial privileges 20 years after the Charter Act of 1793. The major provisions of the Act were:

  • It ended East India Company’s monopoly over trade in India, but the Company retained the trade with China and the trade in tea. So, statement 1 is correct.

  • The Company was to retain the possession of territories and the revenue for 20 years more, without prejudice to the sovereignty of the Crown. The regulations made by the Councils of Madras, Bombay, and Calcutta were now required to be laid before the British Parliament. Hence, this Act asserted the Crown’s sovereignty over British India by defining the constitutional position of the British in India. So, statement 2 is correct.

  • The Company’s control over revenue, administration, and appointments remained untouched. Only the power of superintendence and direction of the Board of Control was enlarged. So, statement 3 is not correct.

Therefore, option (1) is the correct answer.

Subject: History | British Administrative Reforms

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