Initial Control and Dual Government (1765-1772)

When the East India Company gained control over Bengal in 1765, its primary aim was to maintain profitable trade and collect taxes for remittance to England. The Company had little interest in administrative innovations. During this period, known as the Dual Government, Indian officials continued to function as before but under the overarching control of the British Governor and British officials.

1.Dual Government System: From 1765 to 1772, Indian officials were responsible for civil administration while British officials controlled revenue and military functions. This setup created a dichotomy where Indian officials had responsibility without power, and British officials had power without responsibility.

2.Corruption: Both Indian and British officials were venal and corrupt, exploiting their positions for personal gain, leading to widespread inefficiency and maladministration.

Direct Administration by the Company (Post-1772)

In 1772, the Company abolished the Dual Government and took direct administrative control over Bengal. This marked a shift towards centralization, but also highlighted the inherent issues in a commercial enterprise governing a large territory.

1.Centralization: The Company centralized its authority by placing its own servants in key administrative positions, thereby eliminating the dual structure.

2.Administrative Challenges: The direct administration by a commercial body led to various problems, such as inefficiency, corruption, and exploitation of resources for profit.