Charter Act of 1813

The Charter Act

The basic aim of the 1793 or the East
The east India company was in serve financial crisis and asked for loan of 1 million pound
Act of Settlement 1781 India Company Act
1793 was passed by
Allegations of corruption and nepotism were rampant against company officials.

There was a terrible famine in Bengal where a huge population perished. was to establish a new
Dual system of government.

Lack of law [lawlessness increased in bengal]

system of courts to the British Parliament
remove the grievances to renew the charter
insiishozoan reasonpannkropicalistical res
against the Supreme of the East India
Court. Company.
Reasons that lead to
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Regulating Act 1773

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private trade political Company’s charter for
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Governor of Bengal changed Company.
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established in Bengal
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Charter Act of 1813 

Long Title An Act for continuing in the East India Company, for a further Term, the
Possession of the British Territories in India, together with certain
exclusive Privileges; for establishing further Regulations for the
Government of the said Territories, and the better Administration of
Justice within the same; and for regulating the Trade to and from the
Places within the Limits of the said Company’s Charter

Territorial Territories under direct British control 

Extent

Enacted by Parliament of United Kingdom

Royal 21 July 1813

Assent

Status Repealed by Government of India Act, 1915

 Background of Charter Act 1813
• Due to Napoleon Bonaparte’s Continental System in Europe (which prohibited the
import of British goods into French allies in Europe), British traders and
merchants suffered.
• So they demanded they be given a share in the British trade in Asia and dissolve
the monopoly of the East India Company.
• The company objected to this.
• Finally, British merchants were allowed to trade in India under a strict licensing
system under the Charter Act of 1813.
• But in trade with China and the tea trade, the company still retained its
monopoly.

Objective of Act

The main object of the charter act of 1813 was to extend the control over the
company for another 20 years.

The company’s charter was previously renewed in 1793, and the ulterior was
renewed in 1833.

Provisions of the Charter Act of 1813 

1 Charter act of 1813 ended the monopoly of the East India Company in India, the
company’s monopoly in trade with china and trade in tea with India was kept intact.
2 The company’s rule was extended to another 20 years.
3 The act granted permission to the persons who wished to go to India for promoting
moral and religious improvements. (Christian Missionaries)
4 This act regulated the company’s territorial revenues and commercial profits. It was
asked to keep its territorial and commercial accounts separate.
5 The company’s dividend was fixed at 10.5% per annum.
6 There was also a provision that Company should invest Rs. 1 Lakh every year on the
education of Indians.
7 It empowered the Local Governments in India to impose taxes on persons and to
punish those who did not pay them.