Regulating Act of 1773 [UPSC History Notes]

By Aarna Tiwari|Updated : May 24th, 2022

The Regulating Act of 1773 was passed to control the territories of the East India Company majorly in Bengal by the British Parliament. The East India Company was in a severe financial crisis and had taken a loan from the British government in 1772. The British were slowly being influenced by Adam Smith’s free trade and resented the monopolistic control of the Company in trade with India. So when the Company’s finances were strained due to Wellesley’s wars, the parliament thought it to be pertinent to pass the Regulation Act of 1773.

The Regulating Act of 1773 UPSC Notes allows you to prepare the topic in a comprehensive manner for the upcoming IAS Exam.

What is the Regulating Act 1773?

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Regulating Act 1773 [Modern History of India UPSC Notes]

Introduced by 

The British Parliament

Purpose of Regulating Act 1773

  • Control the territories of the East India Company, mainly in Bengal.
  • First parliamentary ratification and authorization defining the powers and authority of the East India Company

Regulating Act 1773 Governor-General

Warren Hastings

Importance of the Regulating Act 1773

  • Governors in the Councils at Madras and Bombay were brought under the control of Bengal.
  • The Supreme Court of Judicature was established at Calcutta.
  • The Governor-General had no veto power.

Territories Affected 

Territories under British possession in India

Regulating Act 1773 UPSC 

The Regulating Act 1773 notes for UPSC are necessary to cover the History Syllabus. Over the years, History has occupied an important place in both UPSC Prelims and UPSC Mains GS Paper- 1. To cover Regulating Act 1773, a candidate needs to be well versed with the Indian History Notes for UPSC, along with readings of the NCERT Books for UPSC and the UPSC Books.

The importance of the Regulating Act 1773 must be understood in a detailed manner along with the comparison between several other charters acts such as Charter Act 1813Charter Act 1853, and Morley-Minto Reforms.

Regulating Act 1773 Notes [Important Points]

  • The East India Company was in a severe financial crisis and allegations of corruption and nepotism were rampant against company officials. The Company was heading to bankruptcy, while the servants were flourishing.
  • After the Battle of Buxar in 1764, the EIC got the Diwani Rights of Bengal, Bihar and Orissa and gradually, it started interfering in Indian affairs.
  • The Regulating Act 1773 was the first step taken by the British Government to control and regulate the affairs of the East India Company in India.
  • There was a terrible famine and lawlessness in Bengal.
  • The Regulating Act 1773 recognized the political and administrative functions of the Company and laid the foundations of central administration in India.
  • The Governor of Bengal was designated as the ‘Governor-General of Bengal’ and created an Executive Council of four members to assist him. It made the governors of Bombay and Madras presidencies subordinate to the Governor of Bengal.
  • The act established a Supreme Court at Calcutta (1774) comprising one chief justice and three other judges. Sir Elijah Impey was the first Chief Justice.
  • The British Government strengthened its control over the EIC by ordering the Court of Directors to report the matters on revenue, civil, and military affairs in India to the British authorities.
  • The Regulating Act 1773 also prohibited the servants of the EIC from engaging in any private trade or accepting gifts or bribes from Indians.

Drawbacks of Regulating Act 1773

  • The Regulating Act 1773 did not address the concerns of the Indian population who were paying revenue and could not stop corruption among the company officials
  • . The Supreme Court's powers were not well-defined. 
  • As there was no mechanism to study the reports sent by the Governor-General in Council, the parliamentary control proved to be ineffective.
  • The Governor-General had no veto power.

☛ Also Read:- How to Crack UPSC Prelims in 30 Days

Regulating Act 1773 UPSC Notes PDF Download

The Regulating Act 1773 is an important topic to understand the beginning of British rule in India along with its administration. Students can download the Regulating Act 1773 Notes UPSC PDF to cover the topic in a detailed manner. It recognized the political and administrative functions of the Company and laid the foundations of central administration in India

☛ Download Regulating Act 1773 Notes PDF for UPSC Exam

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Regulating Act of 1773 FAQs

  • The Regulating Act of 1773 was passed to control the territories of the East India Company majorly in Bengal by the British Parliament. The act also made the Governor of Bengal the ‘Governor-General of Bengal’. The governors of Bombay and Madras presidencies were made subordinate to the Governor of Bengal.

  • The main objectives of passing the Regulating Act of 1773 were:

    • Address the issues arising because of Lord Clive's dual system of governance.
    • Solve the problem of the company’s administration in India.
    • Control the EIC, which had transformed from a corporate entity to a semi-sovereign political institution.


  • The importance of the Regulating Act of 1773 is that it was the first step taken by the British Government to control and regulate the affairs of the East India Company in India. The British Crown recognized the political and administrative functions of the Company for the first time.

  • The first Governor-General of Bengal was Warren Hastings, whereas the first official Governor-General of British India was Lord William Bentinck. The first Governor-General of the Dominion of India was Lord Mountbatten.

  • To download the Regulating Act 1773 Notes UPSC PDF, you can directly download it from here. Other than this, you can also refer to the article given above.

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