2. Who introduced the permanent settlement? Explain?
3. Why did the permanent settlement fail to generate desired revenue for the British?
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- Cornwallis believed that they would immediately accept it and so begin investing in improving their land. In 1790, the Court of Directors issued a ten-year (decennial) settlement to the zamindars, which was made permanent in 1793.
- The company feared that if agricultural prices rose in future then it wouldn't be able to claim the revenue on increased income of peasants. The zamindars were never able to pay all the revenue demands. The consequence was that a number of zamindars were auctioned.
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