An Auction In Burdwan

Background — The Permanent Settlement: The Permanent Settlement of 1793 was a system introduced by the East India Company in Bengal and Bihar. Under this system, zamindars (landlords) were recognised as the land’s owners and were given the rights to collect rents from peasants. In return, they had to pay a fixed revenue to the Company. The revenue demand was made permanent, meaning it wouldn’t increase over time. This was aimed at stabilising the Company’s income and transferring the risk of agricultural uncertainty onto the zamindars.

Consequences Of The Settlement: If a zamindar failed to deliver the fixed revenue, even in times of agricultural distress or famine, their land could be auctioned off to recover the due amounts. This created significant pressure on zamindars, many of whom often fell into arrears.

The Auction In Burdwan: In 1797, due to accumulated arrears, the estates held by the Raja of Burdwan [Raja (literally king) was a term that was often used to designate powerful zamindars] were put up for auction. This was supposed to be a public event, where various bidders would compete, and the highest bidder would take ownership of the estates.

The Twist: After the auction, the Collector found that many of the new owners of the estates were, in fact, agents or servants of the Raja of Burdwan. Over 95% of the sales were found to be fictitious. This meant that while on paper, the Raja’s lands were sold, the real control of the land never left him. His agents would have bought the land on his behalf and would transfer it back to him, ensuring the Raja’s continued dominance over his zamindari.

Significance And Interpretation

The episode highlights several key points:

1.Ingenuity Of Native Aristocracy: Despite the overwhelming power and control of the East India Company, local rulers and zamindars employed creative strategies to retain their wealth and power. The Raja of Burdwan’s move to use his agents to buy back his land is an example of such a strategy.