Answer:
Lord Cornwallis introduced the Permanent settlement in 1793 in Bengal and Orissa. The British hoped to achieve a number of objectives by this settlement. They wanted to have certainty in revenue collection and also wanted to ensure a minimum amount of revenue. Also/ they wanted a system which required less supervision by the company officials. In addition, they wanted to have an alliance with the zamindars. So, it was also called the Zamindari System. Under this system, the landholders and zamindars were absolute owners of the land. The farmers were reduced to the status of tenant on their land. The zamindars were entrusted with revenue collection and they had to pay a fixed amount to the British. The revenue was fixed and the British government could not increase it. However, the revenue, regardless of the harvest, had to be paid punctually. In fact, according to the Sunset Law, if payment did not come in by sunset of the specified date, the zamindari was would be auctioned. The British benefitted from the Permanent Settlement. The earning of the Company was thus assured as there was no shortage in the revenues. They also created a class of people who would be loyal to the British. The zamindars also benefitted because their ownership of the land was assured.
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