2. PITT'S INDIA ACT, 1784

2. PITT'S INDIA ACT, 1784

Background: Passed to remove the defects of the Regulating Act 1773; named after British PM William Pitt (the Younger).

Key Provisions

• Distinguished between the Company's commercial and political functions.
• Court of Directors (commercial) allowed to manage commercial affairs but a new body — the Board of Control — created to manage political affairs.
• Board of Control: consisted of 6 members appointed by the Crown (including the Chancellor of Exchequer and a Secretary of State), overseeing civil, military, and revenue affairs of the Company in India.
• This created a system of DOUBLE GOVERNMENT — Court of Directors + Board of Control.
• Reduced the strength of the Governor-General's Council from 4 to 3 members.
• Made subordinate governments (Bombay, Madras) more subordinate to the Governor-General.
• Governor-General's Council given more powers over subordinate presidencies in matters of war, revenue, and diplomacy.
• Company's territories in India termed "British possessions in India" for the first time.

Significance/Impact

• Beginning of British Government control over EIC's Indian policy and administration.
• Established dual/double government system — Company + Crown jointly controlled Indian administration — this lasted till 1858.
• Placed the Company under firm British Government control, though the Company retained the administration.

Key Facts / Quick Revision Points

• Year: 1784; PM: William Pitt the Younger
• Created: Board of Control (political) + Court of Directors (commercial)
• System introduced: "Double Government"
• Council strength reduced to 3

Additional Notes

• The Board of Control could, in effect, overrule the Court of Directors on political matters — real power gradually shifted towards the Crown-appointed Board, even though the Company continued to run day-to-day administration in India, hence "double" (dual/joint) government.
• Also empowered the Governor-General-in-Council to override the decisions of subordinate presidencies (Bombay/Madras) and control their revenue, military affairs and diplomatic relations — an important step toward centralization completed later by the 1833 Act.
• The Act also forbade the Company from waging wars or entering treaties with Indian rulers without the sanction of the Board of Control — a further check on Company autonomy in foreign policy.