Pitt's India Act

Pitt's India Act of 1784 was the enactment of the British Parliament to bring the administration of the British East India Company under the control of the British Government. It was made necessary to address the shortcoming of the East India Company Act (also known as the Regulating Act of 1773). The Regulating Act had been enacted to primarily weed-out corruption in the East India Company in the Bengal. Pitt's India Act provided for the appointment of a Board of Control and provided for a joint government of the Company and the Crown.

Background

By 1773, the East India Company was in dire financial straits and asked for assistance from the British Government. Faced with corruption and nepotism amongst the company officials in India, the British Government enacted the Regulating act in 1773 to control the activities of the East India Company. The Act set up a system whereby it supervised (regulated) the work of the East India Company but did not take power for itself. It had, however, proven to be a failure within a few years and the British government decided to take a more active role in the affairs of the Company.

India Act (1784)

A governing Board was constituted with six members two of whom were members of the British Cabinet and rest from the Privy Council. The Board also had a President, who soon became, effectively, the minister for the affairs of the East India Company. The Board had all the powers and control over all the acts and operations relating to the civil, military and revenues of the Company. The governing council of the Company was reduced to three members and the Governor General was authorised to veto the majority decisions. The Governors of Bombay and Madras were also deprived of their independence. Calcutta was given greater powers in matters of war, revenue, and diplomacy, thus becoming in effect the administrative capital of Company possessions in India. By a supplementary the Bill passed in 1786, Lord Cornwallis was appointed as the second Governor-General, and he then became the effective ruler of British India under the authority of the Board of Control and the Court of Directors. The constitution set up by the Pitt's India Act did not undergo any major changes during the existence of the Company's rule in India.

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