The Charter Act of 1813

In England, the business interests were pressing for an end to the Company’s monopoly over trade in India because of

a spirit of laissez-faire and the continental system by Napoleon by which the European ports were closed for Britain. The 1813 Act sought to redress these grievances—

● The Company’s monopoly over trade in India ended, but the Company retained the trade with China and the trade in tea.

● The Company’s shareholders were given a 10.5 per cent dividend on the revenue of India.

● 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.)

● Powers of the Board of Control were further

enlarged.

● A sum of one lakh rupees was to be set aside for the revival, promotion and encouragement of literature, learning and science among the natives of India, every year. (This was an important statement from the point of State’s responsibility for education.)

● The regulations made by the Councils of Madras, Bombay and Calcutta were now required to be laid before the British Parliament. The constitutional position of the British territories in India was thus explicitly defined for the first time.

● Separate accounts were to be kept regarding

commercial transactions and territorial revenues. The power of superintendence and direction of the Board of Control was not only defined but also enlarged considerably.

● Christian missionaries were also permitted to come to India and preach their religion.