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Charter Act 1813

The Charter Act, 1813

July 8, 2022

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This article is written by Daisy Jain, from the Institute of Law, Nirma University. This is an exhaustive article that deals with the Charter Act, 1813, its history, objectives, features and drawbacks.

This article has been published by Sneha Mahawar.

Introduction

The Charter Act of 1813 is also known as the East India Company Act of 1813. The British East India Company’s provisions for the Charter were revived by the British Parliament in this Act. Then they carried out the rule of the company in India. By outlining the British government’s constitutional stance in India, the Charter Act of 1813 affirmed the Crown’s authority over British India. Additionally, it broadens the scope of private trade for British merchants. Thus, it terminated the company’s long-standing monopoly rights over Indian trade while also renewing its dominance over its Indian territory and revenue for a further term of years. It also implemented numerous other modifications, particularly in the social and religious policies.

Historical background of the Charter Act, 1813

A charter is a sanction needed by a company from the British Parliament in order to conduct overseas trade. Queen Elizabeth chartered the East India Company as a company in 1600 to do trade with the East Indies. “The Governor and Company of Merchants of London Trading into the East Indies” was the name of the company at the time. East Indies refers to both India and Southeast Asia in the light of the British Raj in India in the eighteenth century. After 1623, the East India Company focused on the Indian subcontinent instead of the vast regions of the East Indies.

The primary goals of the Charter Act are to regulate and establish the British East India Company’s rights and responsibilities. The British Parliament or the British Crown assessed the advantages and disadvantages of the Act and the rules and regulations. In other terms, the British Parliament has been given the authority to rule and control the British East India Company. Because the East India Company also provided revenue for the British Crown, the Act granted to it gave it a plethora of commercial advantages. In order to obtain governmental immunity from maritime pirates and intruders in distant lands and seas, the East India Company also needed a Charter from the British Parliament. The Charter Act, therefore, safeguarded the common advantage of the East India Company and the British Parliament.

The British Parliament was given the sole authority to govern and control the East India Company, yet the Company nevertheless had a lot of influence during its early years in India. The East India Company was rigidly limited to the trading area in the first few Charter Acts, with no access allowed to the fields of education, culture, etc.

The commercial authority of the Company had been transformed into political dominance over India within the context of trade and profit between the British Parliament and the East India Company. The Company and the Parliament shared the early years’ financial success and political advantages over India. But gradually, by 1773, the British Parliament had started to exert authority over the Company by limiting its monopoly commerce in India and political influence.

The Governor-General of Fort William had extensive authority over the Indian presidential elections. The rights of the Company’s Court of Directors were constrained by this manner of appointing the Governor-General. By the middle of the eighteenth century, the British Parliament finally gained control over the Indian territories entirely.

Charter Act, 1813 and India

The Charter Acts were also known as the India Acts after the 1760s. For trade and financial gain through commerce, the East India Company established a presence in India. India had until the eighteenth century been a major source of revenue for the British Crown and East India Company as a colony. The British Parliament subsequently granted the Company a Charter that was valid for fifteen years. Later, when the Charter is renewed, the duration is increased to twenty years. Trading in the presidencies of Calcutta and Bombay was accorded great priority in the First Charter Act, 1767.

The Charters issued between 1661 and 1683 increased the East India Company’s authority and governance in various ways. The Company attacked Mughal Bengal in 1680 using the authority granted by the Charter Act and afterwards built towns and fortifications at Calcutta. The Company grew its influence in North India by the 1760s.

The first Charter Act, also known as Townshend’s Act, was enacted in 1767 after the Company successfully took power over Bengal. Townshend served as England’s Chancellor of the Exchequer. This Act validated the purchase of Bengal, Orissa, and Bihar, in place of the yearly profit provided to the Crown’s Exchequer. At that point, the Company had already formed its political and commercial dominance throughout much of India. The British Parliament starts to limit the Company’s economic liberties and political authority with the passage of the subsequent Charter Act.

Thus, the Charter Act of 1773 was referred to as the Regulating Act since it started the process of the Parliament regaining authority over the Company’s rights. Through the subsequent Charter Acts of 1781, 1784, and 1793, respectively, this parliamentary power over the Company was gradually reinforced. Because it was proposed by William Pitt, the country’s then Prime Minister, the Charter Act of 1784 is often referred to as Pitt’s India Act.

The Charter Acts opened the door for a major private company to enter India and interfere in its political, cultural, and governmental spheres, even though they were intended to limit East India Company’s power and control in its business dealings with India. Even if the quality and dependability of Indian-made products and raw materials made them highly regarded outside of India, the East India Company and the Crown of England received the profits.

Benefits gained by India with the enactment of the Charter Act, 1813

Through the Charter Acts, several beneficial actions have been implemented. The most notable one was when slavery was abolished in India. The advent of centralization in the legislative and administrative functions was another advantage. An additional important step was the codification of the Criminal Procedural and Penal Codes. The Company had made numerous improvements to higher education.

The Parliament provided a sum of one lakh rupees per year in 1813 for the advancement of Indian literature and education. They had previously supported both western and regional education. However, the Company later discontinued providing financial assistance for schooling in the vernacular. The Company placed no value on improving the quality of elementary education. The missionaries made significant contributions to India’s progress in primary education.

Circumstances that lead to the advent of the Charter Act, 1813

Napoleon Bonaparte’s Berlin Decree of 1806 and Milan Decree of 1807, forbade the entry of British commodities into European nations that were allies or reliant on France respectively and created the Continental System throughout Europe. Due to these challenges, British traders urged that the East India Company’s monopoly be broken as well as admittance to Asian ports.

On the other hand, The East India Company contended that its commercial privileges and political influence could not be dissociated. The dispute was finally settled by mandating that all British traders with India get a license. The British East India Company Act of 1813, also recognized as the Charter Act of 1813, was a law passed by the British Parliament that extended the Company’s authority over India and reaffirmed the Company’s Charter. A further 20 years were added to the company’s trade monopoly. The Company’s Charter was then renewed by the Charter Act of 1833.

What is the Charter Act, 1813

On July 21, 1813, the Act was approved to extend the East India Company’s trading monopoly in India for the next twenty years. The Company’s trade monopoly was eliminated by this Act, except for tea and commerce with China. Britain was forced to consider modifying its policies in India as a result of the development of its possessions and the responsibility of creating standard administrative regulations that followed. Both the mofussil towns and the Presidencies had different laws.

The British Raj found it extremely challenging to manage and control the population of India due to the diversity of culture, education, and law. The elites of India’s educated class also called for standard policies and restructuring in the educational field. Because the majority of Indians appeared to be oblivious of Company regulations and commands and to be unwilling to follow them, educational changes were necessary for the Company and the colonial authority. Therefore, they must be educated so that they may comprehend and abide by the laws and regulations of the colonial state and develop into obedient and orderly citizens. Thus, one of the Charter Act of 1813’s significant contributions was in the field of education.

Objectives of the Charter Act, 1813

The British Parliament of the United Kingdom passed the East India Company Act 1813, sometimes referred to as the Charter Act 1813, which extended the British East India Company’s charter and prolonged the Company’s authority in India. However, the Company’s monopoly on trade was broken, with the exception of the trade-in of tea, opium, and goods with China. The three main objectives of the Charter Act of 1813 were to continue the program of territory development, disseminate and promote Christian missionaries, and retain authority over the business for an additional 20 years.

Features of the Charter Act, 1813

The following are the features of the Charter Act of 1813:

The Company’s monopoly on trade was broken, with the exception of the trade-in of tea, opium, and goods with China.
A Bishop was appointed to lead the Church, which was supported by Indian tax money. Under a system of licensing, the Englishmen were given permission to live in India and possess the land. Missionaries were also given permission to introduce valuable information and spread religious and moral betterment, while traders were given permits for legal purposes.
Total control over territory revenue belonged to the crown.
A grant of one lakh was allotted for the promotion of education.

Provisions of the Charter Act, 1813

The Crowns’ authority over the British corporations in India was upheld by this charter legislation from 1813.
Opium, tea, and China’s trade continued despite the fact that their monopoly had been shattered with every other corporation.
The corporation’s authority was prolonged for an additional 20 years, giving the local government the chance and power to collect taxes under Supreme Court’s jurisdiction. This held the Company’s dividend by 10.5 percent.
The 1813 Charter Act gave numerous Indian officials and the Indian Court the power to decide on issues pertaining to Britain and Europe.
Many missionaries have the ability to visit India and indulge in different religious activities according to the Charter Act of 1813. The missionary was effective in getting British India’s Bishop appointed within the Calcutta headquarters.
The 1813 Charter Act, also known as the Financial Current, was utilized to assist the revival of Indian literature, the growth of science, and the Corporation’s acquisition of expanded responsibilities in the education sector of India. For this reason, Rs. 100000 was set aside.

Importance of the Charter Act, 1813

The Charter Act has significant educational implications for India. It represents a turning point in Indian education history. It served as the cornerstone for contemporary Indian education and had a lot of impacts on subsequent breakthroughs in Indian education:

The company would bear educational obligation and duty for the Indian people, according to the first implication. With this goal in mind, the Company would spend one lakh rupees annually—a sum that was glaringly absent before 1813.
The Company would establish a separate agency to carry out Section 43 of the Act.
An educational incentive project was introduced. Prior to 1813, the Company occasionally gave financial aid indirectly through missionaries, but it now engaged in the sphere of managing and administering educational institutions directly. In India, public funds were needed for education.
The Charter Act marked the official start of the State system of education. Private business, namely missionary business, was also permitted to run concurrently. This educational collaboration between official and unofficial businesses is still going strong today.
The Charter Act put a stop to the period of protest that Charles Grant, Wilberforce, and others had begun. The well-organized modern educational system was established as a result of the missionaries’ ability to build modern English schools throughout India in great numbers.
As India’s borders were opened to missionaries, they flooded into the country from around, especially from Scotland, Germany, and America, as well as from England. Actually, it wasn’t until 1833 that missionaries from outside of Great Britain arrived in India. The Charter Act gave rise to a period of debates regarding the purpose, medium, and agency of education as well as its goals and substance.

Drawbacks of the Charter Act, 1813

The monopoly of East India Company ended with the advent of the Charter Act of 1813, but the Company’s predominance in the trade of tea in China and India was preserved. Therefore, trade with India was for all commodities but tea was made accessible to British subjects.

Changes brought by the Charter Act, 1813 in the field of education

The Company was required by the Charter Act of 1813 to invest 1 lakh rupees towards the education of Indians. This was the first action the British emperors took to promote the study of science and literature in India. However, the Charter Act did not provide any explicit rules. While a heated debate raged over the subject matter and delivery method of education, the funds approved for the project remained unutilized for 20 years. One faction was in favour of promoting traditional Indian education using Persian and classical Sanskrit as well as local tongues. The Orientalists were the name given to this group. The opposing side, led by Governor General’s Council member Lord Macaulay Law, insisted on introducing and promoting Western education. In order to provide education for a small number of Indians, the government started to establish English-medium schools and universities. The government declared that Indians educated in British schools would be offered work in government offices in 1844, the same year that English was made the official language. As a result, English-language education gained ground in India.

Subsequent Charter Acts

Charter Act, 1793

The Company’s trading monopoly with India was founded by the Charter Act of 1793. The Supreme Court of India’s jurisdiction was widened as a result. They could hire civil servants as magistrates and they could outlaw the sale of alcoholic beverages without a permit. The British Government made an effort to control the East India Company’s business through the British Charter Act of 1793. The East India Company had grown extremely powerful and influential in the Indian subcontinent from its first expedition in the early 17th century. The initial stage of that process was the 1793 Act, which established the groundwork for subsequent changes.

Charter Act, 1833

The Company was given a new lease on life for the following 20 years pursuant to the Saint Helena Act 1833, also referred to as the Government of India Act, 1833 or the Charter Act of 1833, an Act of the United Kingdom Parliament. The Charter was extended in 1813 for an additional 20 years, but it ran out in 1833. The authorities needed to investigate the company’s activities in India in great detail at this point. The corporation was asked to stop conducting business operations even though its Charter was extended for another 20 years. The Charter was thus extended this time with the stipulation that the Company stop all trading with China and India and permit free settlement of Europeans in India.

Charter Act, 1853

The Charter Act of 1853 was enacted when Lord Dalhousie served as Governor-General of India. The Charter Act of 1853 gave the authority to the British East India Company, to hold the territories and revenue in India under its control for an unspecified amount of time.

Conclusion

Without a question, the most significant law passed by the Parliament throughout the 19th century was the Charter Act of 1833. This Act opened the ground for British India to be unified and for a powerful Central Government to be established there. This Act eliminated the specific criteria for exclusion from the administration of the nation for the very first time in British India’s history. It also permitted the codification of the laws. This law gave Indian nationals the freedom to manage the county without being constrained by their race, creed, or other characteristics.

Frequently Asked Questions (FAQs)

What was the purpose of the Charter Act, 1813?

The British Parliament extended the East India Company’s charter by 20 years with the Charter Act of 1813 which is also known as the East India Company Act of 1813. This law is significant because it established the constitutional status of British Indian territory for the first time.

What are the main provisions of the Charter Act, 1813?

The main provisions of the Act include removing the Company’s monopoly on trade, increasing the Board of Control’s authority, allowing missionaries to practice their religion in India, allocating one lakh rupees for the improvement of India’s educational system, and more.

Why is the Act called the cornerstone of modern education?

The Charter Act of 1813 made it possible for missionaries to arrive in India in great numbers and established modern English schools, laying the groundwork for the development of the modern educational system.

References

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