In 1793, Lord Cornwallis implemented the Permanent Settlement System in Bengal under British rule. This agreement fixed land revenue between the East India Company and zamindars (landlords). Intended to ensure stable income for the Company and promote agricultural development, the system had wide-reaching effects on peasants, landlords, and colonial governance.

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• Introduced in 1793 by Lord Cornwallis in Bengal, later spread to Bihar, Odisha, Madras, Varanasi
• Fixed land revenue permanently; zamindars paid fixed amount yearly to East India Company
• Zamindars got hereditary rights; could sell or transfer land freely
• Peasants often exploited; evicted for non-payment, charged high rent
• Company got predictable income, but lost out when farm output and prices rose
• Many zamindars didn’t invest in land; moved to cities, sublet land to middlemen
• Tenants expected to get ‘patta’ (land deed), but rarely benefited in reality
• Rich zamindars lived lavishly, ignored poor farmers’ needs and local conditions
• System ignored soil fertility; taxed fertile and barren land the same
• Gave British stable revenue but created a landlord elite loyal to colonial rule