Lord Cornwallis introduced the Permanent Settlement in Bengal and Bihar in 1793. It made the landlord or zamindar deposit a fixed amount of money in the state treasury. In return they were recognised as hereditary owners of land. This made the zamindar the owner of the land. The amount of revenue to be paid to the Company was fixed for a period of time which made the British financially secured. Now they knew in advance as to how much revenue was coming in form the State. The zamindar also knew how much revenue was to be paid. So to get surplus revenue for themselves they asked the peasants to increase production. But, if the zamindar failed to pay the fixed revenue on time his land was sold off to another zamindar. The British stood to benefit from this settlement as the new class of zamindars that emerged became their political allies. They supported the British in times of need and acted as a buffer between them and the peasants. This class, in fact, supported the British against the freedom movement. Click Here
EXAMIANS