Regulating Act 1773: Background, Features, Significance in Indian History and Constitutional Development of India

The Regulating Act 1773 (also written as the Regulating Act of 1773) was a significant legislative measure passed by the British Parliament to address the administrative and financial problems faced by the East India Company in India. It marked the beginning of British government control over the company’s affairs and laid the foundation for modern governance in India.

The Regulating Act 1773 was introduced in the British Parliament in May 1973 by Prime Minister Lord North (1770-82). Officially the Act was named as “An Act for establishing certain Regulations for the better Management of the Affairs of the East India Company, as well in India as in Europe.”

Background of the Regulating Act 1773

1. The East India Company had gained significant territorial and financial power in India after its victories in Bengal, particularly after the Battle of Plassey (1757) and the Battle of Buxar (1764). However, the company’s administration was marked by widespread corruption and inefficiency.
2. The company’s mismanagement led to financial crises, including the Bengal famine of 1770, which exposed the flaws in governance.
3. The company’s financial troubles forced it to seek loans from the British government, prompting Parliament to intervene and regulate its activities.

Key Provisions of the Regulating Act 1773

1. Governance Structure

• The Governor of Bengal was elevated to the newly created post of Governor-General of Bengal.
• The Governors of Madras and Bombay were brought under the Governor General of Bengal.
• Warren Hastings was the first Governor-General of Bengal.

2. Territorial Jurisdiction

• The Governor-General of Bengal was given authority over the presidencies of Madras and Bombay in matters of war and diplomacy.

3. Governing Council

• A council of four members was established that would help the Governor General of Bengal in governance.
• The decisions by the council were to be made by majority vote, though this often led to conflicts.

4. Judiciary Reforms

• A Supreme Court of Judicature was established in at Fort William in Calcutta to handle civil and criminal cases involving British subjects and company officials.
• The court consisted of a Chief Justice and three other judges.
• Sir Elijah Impey, was the first Chief Justice. Lemester, Chambers, and Hyde were the other first three other judges of the Supreme Court.

5. Control by the British Crown

• The Court of Directors, which was the governing body of the Company,  to report its revenue, civil and military activities to the British government.
• This marked the first instance of British parliamentary control of the company’s Indian territories and affairs.

6. Prohibition of Private Trade

• Company officials were prohibited from engaging in private trade or accepting presents or bribes from the “natives”.
• This was done to curb corruption and exploitation by the Company officials.

Significance of the Regulating Act 1773

• Beginning of Parliamentary Control: The Regulating Act was the first step toward the British government’s direct control over India, which culminated in the Crown assuming sovereignty after the Revolt of 1857.
• Centralized Administration: The Act introduced a centralized administrative structure, a precursor to later developments in governance.
• Judicial Foundation: The establishment of the Supreme Court laid the groundwork for an independent judiciary in India.

Limitations of the Regulating Act 1773

• The Regulating Act 1773 did not provide clear guidelines for the functioning of the Supreme Court, leading to jurisdictional conflicts.
• The council structure often led to deadlocks, as the Governor-General did not have overriding authority.
• The Act failed to address the grievances of Indian subjects effectively.

The Regulating Act 1773 was a landmark in the history of British rule in India. While it was primarily aimed at reforming the East India Company’s administration, it also marked the beginning of institutionalized governance and judicial systems in the country. Despite its limitations, the Act laid the foundation for subsequent reforms such as the Pitt’s India Act of 1784, which further streamlined British control over Indian administration.

Major Acts Passed during the British Period (1773-1947)

Check out all the acts passed during the British period.

1. Regulating Act 1773
2. Act of Settlement 1781 or Declaratory Act of 1781
3. Pitt’s India Act 1784

Also see: Constitution of India