Constitutional Developments under East India Company & Crown

1. Company Rule: Regulating to Pitt's India Act

After winning the Battle of Buxar (1764) and acquiring the Diwani of Bengal, the East India Company became a sovereign power. However, corruption was rampant, and the Company was near bankruptcy while its servants returned to Britain fabulously wealthy ("Nabobs"). The British Parliament decided to intervene.

Regulating Act of 1773:

• First step by the British Government to control and regulate EIC affairs in India.
• Recognized, for the first time, the political and administrative functions of the Company.
• Subordinated the Governors of Bombay and Madras to the Governor of Bengal, designating him the Governor-General of Bengal (Lord Warren Hastings).
• Created an Executive Council of four members to assist the Governor-General.
• Provided for the establishment of a Supreme Court at Calcutta (1774) (Sir Elijah Impey as first Chief Justice) with one Chief Justice and three other judges.
• Prohibited Company servants from engaging in private trade or accepting bribes (presents) from natives.
• Required the Court of Directors (governing body of EIC) to report on its revenue, civil, and military affairs in India.

Pitt's India Act of 1784:

• In a bid to rectify the defects of the 1773 Act, the British Parliament passed the Amending Act of 1781 (Act of Settlement) and then the Pitt’s India Act (named after PM William Pitt the Younger).
• Distinguished between the commercial and political functions of the Company.
• Created a new body called the Board of Control to manage political affairs (civil, military, revenues), while the Court of Directors continued to manage commercial affairs. This established a system of Double Government.
• For the first time, Company territories in India were officially termed the "British possessions in India."
• The British Government was given supreme control over Company affairs.

2. The Era of Charter Acts (1813 – 1853)

The Company's charter was renewed every 20 years, gradually stripping away its privileges.

Charter Act of 1813:

• Ended the Company's monopoly over trade in India (opened it to all British merchants).
• Exception: The Company retained its monopoly over trade with China and the trade in tea.
• Asserted the sovereignty of the British Crown over Indian territories.
• Allowed Christian missionaries into India.
• Appropriated ₹1 Lakh annually for the promotion of education and sciences among Indians.
• Empowered Local Governments in India to impose taxes on persons.

Charter Act of 1833 (Saint Helena Act):

• The final step towards centralization in British India.
• Redesignated the Governor-General of Bengal as the Governor-General of India (Lord William Bentinck). Vested him with all civil and military powers over entire British India.
• Deprived Bombay and Madras Governors of their legislative powers. The Governor-General of India now had exclusive legislative powers.
• Ended the Company's commercial activities completely (including the China and tea trade monopoly). The EIC became purely an administrative body.
• Attempted to introduce an open competition for civil services (stating Indians should not be barred based on religion/color/birth), but this was thwarted by opposition from the Court of Directors.
• Added a Law Member (Lord Macaulay) to the Governor-General's council.

Charter Act of 1853:

• Last of the series of Charter Acts. (Did not specify a 20-year period, implying the Crown could take over anytime).
• For the first time, separated the legislative and executive functions of the Governor-General's council. Created a special Indian (Central) Legislative Council of 6 members.
• Introduced an open competition system for selection and recruitment of civil servants. The covenanted civil service was thrown open to Indians (Macaulay Committee, 1854).
• Introduced local representation in the Indian (Central) Legislative Council (4 members appointed by local governments of Madras, Bombay, Bengal, and Agra).

3. Crown Rule: Government of India Act 1858 to Indian Councils Act 1909

After the Revolt of 1857, power transferred directly from the EIC to the British Crown.

Government of India Act 1858 (Act for the Good Government of India):

• Abolished the EIC, Court of Directors, and Board of Control (ended Pitt's double government).
• India was now to be governed by, and in the name of, Her Majesty (Queen Victoria).
• The Governor-General of India received the additional title of Viceroy (Lord Canning)—the direct representative of the Crown.
• Created a new office: Secretary of State for India, vested with complete authority over Indian administration. He was a member of the British Cabinet.
• Created a 15-member Council of India to assist the Secretary of State (an advisory body).

Indian Councils Act of 1861:

• Initiated the process of decentralization by restoring legislative powers to Bombay and Madras Presidencies.
• Associated Indians with the law-making process for the first time. The Viceroy nominated three Indians to his expanded legislative council: Raja of Benares, Maharaja of Patiala, and Sir Dinkar Rao (1862).
• Recognized the Portfolio System introduced by Lord Canning (each member responsible for specific departments).
• Empowered the Viceroy to issue ordinances during emergencies (life of 6 months).

Indian Councils Act of 1892:

• Increased the number of additional (non-official) members in Central and Provincial legislative councils (though official majority remained).
• Increased the functions of legislative councils: gave them the power to discuss the budget and ask questions to the executive (but no right to vote on it or ask supplementary questions).
• Introduced a form of indirect election for non-official members based on recommendations from universities, district boards, etc.

Indian Councils Act of 1909 (Morley-Minto Reforms):

• John Morley (Secretary of State) and Lord Minto (Viceroy, known as Father of Communal Electorate).
• Substantially increased the size of legislative councils (Central from 16 to 60).
• Allowed provincial councils to have a non-official majority.
• Members could now ask supplementary questions and move resolutions on the budget.
• Allowed for the first time, the association of Indians with the executive councils of viceroys and governors. Satyendra Prasad Sinha became the first Indian to join the Viceroy’s Executive Council as a Law Member.
• Crucial Feature: Introduced a system of communal representation for Muslims by accepting the concept of separate electorates. (Muslim members were to be elected only by Muslim voters).

4. The Final Acts: 1919 and 1935

Government of India Act 1919 (Montagu-Chelmsford Reforms):

• Goal: Gradual introduction of responsible government in India.
• Separated Central and Provincial subjects. The central and provincial legislatures were authorized to make laws on their respective lists.
• Diarchy in Provinces: The provincial subjects were further divided into two parts—Transferred subjects (administered by Governor with the aid of ministers responsible to the legislative council; e.g., education, health) and Reserved subjects (administered by Governor and his executive council without responsibility to the legislature; e.g., police, land revenue, justice).
• Bicameralism & Direct Elections: For the first time at the Centre. The Indian Legislative Council was replaced by a bicameral legislature consisting of an Upper House (Council of State) and a Lower House (Legislative Assembly). Both houses had a majority chosen by direct election (though franchise was restricted to property/tax/education criteria).
• Extended communal representation to Sikhs, Indian Christians, Anglo-Indians, and Europeans.
• Created a new office of the High Commissioner for India in London.
• Provided for the establishment of a Public Service Commission (Central PSC set up in 1926).
• Separated provincial budgets from the central budget.

Government of India Act 1935:

• A lengthy and detailed document (321 sections, 10 schedules) that forms the structural basis of the present Constitution of India.
• All-India Federation: Envisaged a federation comprising British Provinces and Princely States (as units). Powers divided into Federal List, Provincial List, and Concurrent List. Residuary powers were given to the Viceroy. (The federation never came into being as princely states did not join).
• Abolished Diarchy in the provinces and introduced 'Provincial Autonomy'. The Governor was now required to act with the advice of ministers responsible to the provincial legislature.
• Introduced Diarchy at the Centre (Federal subjects divided into reserved and transferred). This provision never came into operation.
• Introduced bicameralism in 6 out of 11 provinces (Bengal, Bombay, Madras, Bihar, Assam, UP).
• Further extended communal representation to Depressed Classes (Scheduled Castes), women, and labor/workers.
• Abolished the Council of India (established in 1858) for the Secretary of State.
• Established the Reserve Bank of India to control the currency and credit of the country.
• Established the Federal Court (set up in 1937) to resolve federal disputes.