The Permanent Settlement of Cornwallis was bitterly criticised on the point that it was adopted with ‘undue haste’. The flagrant defect of this arrangement was that no attempt was made ever either to survey the lands or to assess their value. The assessment was made roughly on the basis of accounts of previous collections and it was done in an irregular manner. The effects of this system both on the zamindars and ryots were disastrous. As the revenue fixed by the system was too high, many zamindars defaulted on payments. Their property was seized and distress sales were conducted leading to their ruin. The rich zamindars who led luxurious lives left their villages and migrated into towns. They entrusted their rent collection to agents who exacted all kinds of illegal taxes besides the legal ones from the ryots. This had resulted in a great deal of misery amongst the peasants and farmers. Therefore Lord Cornwallis’ idea of building a system of benevolent land-lordism failed.

Baden Powell remarks, “The zamindars as a class did nothing for the tenants”. Though initially the Company gained financially, in the long run the Company suffered financial loss because land productivity was high, income from it was meagre since it was a fixed sum. It should be noted that in pre- British period a share on the crop was fixed as land tax.

Nevertheless, this system proved to be a great boon to the zamindars and to the government of Bengal. It formed a regular income and stabilised the government of the Company. The zamindars prospered at the cost of the welfare of the tenants.

Ryotwari Settlement

The Ryotwari settlement was introduced mainly in Madras, Berar, Bombay and Assam. Sir Thomas Munro introduced this system in the Madras Presidency. Under this settlement, the peasant was recognised as the proprietor of land. There was no intermediary like a Zamindar between the peasant and the government. So long as he paid the revenue in time, the peasant was not evicted from the land. Besides, the land revenue was fixed for a period from 20 to 40 years at a time. Every peasant was held personally responsible for direct payment of land revenue to the government. However, in the end, this system also failed. Under this settlement it was certainly not possible to collect revenue in a systematic manner. The revenue officials indulged in harsh mesuares for non payment or delayed payment.

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