Regulating act of 1773

 

  The reasons why regulating act of 1773 came into force : The east india company(EIC) was almost becomes bankruptcy and it asks loan  british government a loan of one lakh pound in 1772. To revive and supervise the east india company the government passes regulating act of 1773.why EIC becomes bankruptcy: In 1769 bengal famine came and there is no food for people .so many people died because of famine 1st anglo mysore war(1766-1769) - The war is between east india company and hyder ali.  and its continuesto three years. Because of war there is no benefit for EIC but they invest lot of  money.The EIC employees do  lot of corruption in  the company.There is a loss in tea bag trading. Because there is no demand in america .Dutches also do tea bag trading and it has demand in america. 

Main Features of regulating act 1773Starting the three presidencies (bengal, bombay, madras) works independently and report to court of directors. but later it changes i.e. the presidencies works and report to governor general of bengal. The general reports to court of directors. The bengal stops dual form government. The trade of monopoly -  There is no permission for  india and other countries to trade in east india countries. it has control of company Governor General has 4 members of executive council.  In central legislature to pass any law they consider voting  of 2 of 4 members of executive council. provisional legislature makes laws on local issues. Revenue comes from commercial trade & revenue generated from EIC territorial posessios and salttax.