How was the Mahalwari System Different from the Permanent Settlement?

By BYJU'S Exam Prep

Updated on: November 14th, 2023

The Mahalwari system was different from the Permanent Settlement on the basis of the revenue generated. In the Mahalwari system, revenue was collected from the entire village and this revenue was called Mahal, whereas in the Permanent Settlement there was a fixed revenue that was pre-determined on the basis of the land owned by the peasants.

Difference between Mahalwari System and Permanent Settlement

Lord Cornwallis, Governor General of India, introduced the Permanent Settlement in 1793, while Holt Mackenzie introduced the Mahalwari system in Bengal in 1822.

  • The Permanent Settlement ensured stable revenue for the smooth functioning of the East India Company, while the other was an alternative to it.
  • The new Mahalwari System came into effect in the Bengal Presidency (the majority under the current state of Uttar Pradesh) and in the North-Western Regions.

The Mahalwari system and the Permanent Settlement differ from each other depending on the following criteria.

  1. Revenue– In the permanent settlement, the peasants had to pay revenue. In the Mahalwari system, revenue is collected from the village.
  2. Rate of Revenue– In Permanent Settlement, the rate of revenue is fixed and never increased, whereas, in the case of the Mahalwari system, the rate of revenue is revised from time to time. It was collected on a joint land basis in a village.
  3. Mode of Collection– In the Mahalwari system, the revenue was collected by the headman, while in the case of permanent settlement, it was collected by the zamindars, rajas, and talukdars.

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