Need for the Enactment of the Regulating Act of 1773

(1.1) Conditions prior to the act of 1773

The conditions or the state of   places like Bihar, Bengal and Orissa was the main reason for which the regulating act was passed, these places were under chaos, confusion and disturbance because of the misuse of powers by the company servants and other such reasons. To counter all these problems the british parliament decided to pass an act with provisions which could later solve the problems and this act was the Regulating Act of 1773. The conditions can be put under 3 main points, namely:

(a) Misuse Of Powers By The Company’s Officials: after the battles of plassey (1757) and buxar (1764), the company established military supremacy over the areas of Bihar, Bengal and Orissa, because they captured or took control over the Diwani and the Nizamat. This bought a great deal of confusion and anarchy in these places and the company’s servants were given to their obsession for wealth. Corruption was widespread among them and they exploited the people to amass huge fortune for themselves so that they can return to England quickly.# and when they returned back to England they participated in politics and with their illegal money they used to get the/ purchase the seat in House of   Commons. This vulgar display of the display of wealth earned them the nickname of ‘nabobs’.#   Thus this clearly distinguished the fact that the company servants used to exploit the poor Indians and used to run away to use this illegal wealth looted by them.

(b) The Company’s Political Ambitions: the british parliament realized that the company’s motives had started   to change from a mere commercial basis and started to come to the political arena, and at this point of time the parliament in Britain thought that the company should not have any political powers because they have zero experience and they just have knowledge about how to trade. The mess that they made in Bengal and other places surrounding it was all the more reason for the british...