- It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China.
- It asserted the sovereignty of the British Crown over the Indian territories held by the Company.
- The revenues of India were now controlled by the British Parliament.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
- Answer: (a)
The British Parliament passed the Charter Act 1813 which is also known as the East India Company Act 1813, to renew the charter of British East India Company. The Act sought to redress these grievances by allowing all the British merchants to trade with India under a strict license system. Key Provisions of the Charter Act of 1813:
O The act regulated the company’s territorial revenues and commercial profits by asking territorial and commercial accounts to be kept separate.
O The Company’s monopoly over trade in India ended, but the Company retained the trade with China and the trade in tea. (Statement 1 is correct)
O The Company was to retain the possession of territories and the revenue for 20 years more, without prejudice to the sovereignty of the Crown. Thus, the constitutional position of the British territories in India was defined explicitly for the first time. (Statement 2 is correct and statement 3 is not correct)
A provision that the Company should invest Rs. 1 Lakh every year on the education of Indians was also proposed. The local governments, under this Act, were empowered to impose taxes on the persons subject to the jurisdiction of the Supreme Court.
Elimination Technique Statement 1 and statement 2 are closely related
