The Charter Act of 1833

The Charter Act of 1833 marked a major change as it transformed East India Company from a commercial body to an administrative body, acting as an extension of the British Crown. The Charter of 1833 renewed the EIC’s privileges in India for a period of 20 years. The Act enhanced the Governor General’s power and centralised the power to the Governor General. The Charter is also responsible for setting up the first Law Commission of India.

Charter: It was a document granted either to an individual or a group of individuals (like a corporation or a company) given by the British Crown. It laid down the purpose, objective and structure of a corporation or the company and the rights it will have. Charters were used to create new organisations or separate governing bodies or to extend or limit the rights of a pre-existing company. E.g. Marta Carta was a charter. The East India Company (“EIC”)was granted the Royal Charter on 31.12.1600 by Queen Elizabeth I, which allowed EIC to set up trading establishments in India.

Charter of 1813: Before the Charter of 1833, the Charter of 1813 was sanctioned by the Queen extending the term of the EIC for 20 years and allowing it to trade and perform other functions in India. The key features of the Charter of 1813:

1. Introduction of English education in India
2. Introduction of Christian Missionaries: who started schools, promoted christianity and missionaries of any other European country had freedom to visit India to educate and propagate christianity.
3. Abolished trade monopoly of the EIC in India: Trading in India was no longer an exclusive privilege of the EIC and it was made open to all the british merchants.

The Charter Act of 1833 also known as ‘Saint Helena Act 1833’ or ‘Government of India Act 1833’ was given to the EIC with a view to renew the Charter of 1813. By means of the Charter of 1833, the privileges relating to trade and administration of EIC were renewed for a further period of 20 years. This charter marks the beginning of the end for EIC as a trade and administrative body in India as EIC privileges from this charter onwards were eroded slowly & eventually India was turned to a colony of the British empire.
The following were the key features of the Charter of 1833:

1. End of EIC as a Commercial Body: The British Government greatly restricted the powers of the EIC as a commercial/trading body and the new powers and privileges bestowed on the EIC made it more of an administrative body or a political agent of the Crown. This was a crucial first step to establishing India as a colony of the British.
2. End of EIC’s tea trade monopoly: the charter abolished the EIC’s trade monopoly over tea trade in China, opening the trade to other english merchants
3. Restrictions on European immigration and acquisition of property removed: the charter removed the restriction on the migration of european merchants and the restrictions on the purchase of Property in the Indian territory, this marked the wholesale colonisation of India by the British.
4. Split in Bengal Presidency: the Charter provided for the splitting of the presidency of Bengal into the Presidencies of Agra and Fort Williams. However, this change was never put into effect.
5. Admission of Indians in the Government Services: The Charter stated that merit, not birth, colour, religion or race should be the basis of employment of civil servants. Therefore, with the Charter of 1833 Indians for the first time in British rule were allowed to participate in the administration of their own country.
6. Abolition of slavery: the Charter provided for putting an end to slavery. Eventually in 1843 slavery was abolished.
7. Centralisation of Power:
   • made the Governor General of Bengal the Governor General of British India. Lord William Bentick became the first Governor General of British India.
   • All the financial, legislative, administrative & military powers were centralised in the hands of the Governor General.
   • Governor General was empowered to repeal, amend or alter any law or regulations,
8. Deprived the Governors of Bombay and Madras of their legislative powers and made them subordinate to the Governor General of India.
9. Checks & Balances: The Board of Control was given the power to veto any of the laws made by the Governor General-in-council. (Governor-General while acting on the advise of the Council was referred to as the Governor-General in Council)
10. Added a fourth Law member to the Council of the Governor General:
    1. As per Pitts India Act of 1784, the council consisted of 3 members.
    2. Law Member added: He had no say in the council’s other decision making aspects, he could only voice his opinion solely on legislative matters. Lord Macaulay was the first law member.
11. Codification of Indian Laws: All laws made in India were to be laid before the British Parliament and were now called as Acts. Earlier their laws were called regulations, not Acts.
12. First Indian Law Commission: With Lord Macaulay as its Chairman.
    1. to inquire into the Jurisdiction, powers and rules of the courts of justice, police establishments, existing forms of judicial procedure, nature and operation of all kinds of laws.
    2. Preparation of the report by the Commission: After carrying out the tasks set out, the Commission was required to submit its report to the Governor General-in-Council who was then required to submit its report to the British Parliament.

The Charter of 1833 brought centralisation of power and rule of EIC in name of the British Crown. The Governor General of Bengal was promoted to the position of Governor General of India and now ruled over Bombay and Madras Presidencies as well. EIC transformed from a commercial entity to a trustee of the British Crown. Additionally, the act also introduced a rather groundbreaking centralisation of power to the Governor General-in-Council. The British Parliament continued to erode the powers of the EIC by subsequent charters and eventually in 1858 established the direct Crown Rule in India which lasted till 1947 when India got its long due Independence.