Due to a tussle between Supreme Court and Governor General’s council, British government constituted a select committee to investigate the relation between these two bodies, and another to find the causes of the Anglo-Maratha war. Recommendations of these two committees led to the Pitt’s India Act of 1784 aiming to enhance the control of the British government over EIC. This increased control can be seen in the provisions of the Act as follow:
- Distinguished between the commercial function of the company under the Court of Directors and political functions under the Board of Control. The Board of Control consisted of the chancellor, the secretary of state, and four members of the Privy Council.
- Board of Control was allowed to supervise all civil and military operations of the company.
- Number of members in the Executive Council was reduced to three, of whom the commander-in-chief was to be one. (Later in 1786, Executive Council’s decision was made not binding on Governor-General).
Importance
- Company’s territories in India were for the first time called ‘British Possessions in India.’
- British Crown was given supreme control over the company’s affairs & administration in India.
Criticism
- Introduced a new version of dual government i.e., company and Board of control.
- Board of Control was empowered to supervise all civil, military and revenue operations of the company but it had no independent executive power.