The Regulating Act of 1773 was legislative measure by the British Parliament. It aimed to control the East India Company’s operations in India. This act marked a very important shift in British colonial governance, laying the groundwork for future reforms.
Background
The East India Company was established in 1600. By the 18th century, it had amassed substantial power in India, governing large territories. Its unchecked authority raised concerns in Britain, prompting the need for regulation. The Regulating Act was a response to these concerns and aimed to address the chaotic governance of the Company.
Key Features
The act introduced several crucial features that shaped the administration of British India.
- Governor-General of Bengal – The act designated the Governor of Bengal as the ‘Governor-General of Bengal’. This position was created to centralise authority in India. The first Governor-General was Lord Warren Hastings.
- Executive Council – An Executive Council of four members was established to assist the Governor-General. This council was responsible for advising and supporting the Governor-General in decision-making.
- Subordination of Presidencies – The Governors of Bombay and Madras presidencies were made subordinate to the Governor-General of Bengal. This marked change from their previous independent status.
- Establishment of a Supreme Court – The act provided for the establishment of a Supreme Court at Calcutta in 1774. This court consisted of a Chief Justice and three judges. It had jurisdiction over appeals from the presidencies and could try Company servants for offences.
- Prohibition of Private Trade – The act prohibited Company servants from engaging in private trade or accepting gifts and bribes from local inhabitants. This provision aimed to prevent corruption and ensure that officials acted in the interests of the Company and the British Crown.
- Reporting Requirements – The Court of Directors was mandated to report on the Company’s revenue, civil, and military affairs in India. This requirement aimed to enhance accountability and oversight from the British Government.
Objectives of the Act
The Regulating Act of 1773 sought to achieve several objectives:
- Control of the East India Company – The act aimed to bring the Company’s political and administrative functions under British Government control.
- Removal of Political Power – It sought to strip the East India Company of its political power, transitioning governance to a more structured system.
- Recognition of Authority – The act recognised the political and administrative authority of the Company, albeit under British oversight.
- Administrative Reforms – It aimed to implement new administrative reforms to establish a centralised system of governance.
- Anti-Corruption Measures – By prohibiting private trade and bribery, the act aimed to improve governance and reduce corruption.
- Resolution of Dual Government Chaos – The act addressed the confusion arising from the dual government system previously in place.
Historical Context
The Regulating Act emerged during a period of growing discontent with the East India Company’s governance. The Company’s expansion led to conflicts and unrest among local populations. The British Parliament’s intervention was seen as necessary to restore order and ensure fair administration.
Impact on Governance
The Regulating Act laid the foundation for a more structured governance system in India. It marked the beginning of British governmental oversight over the East India Company. This act was a precursor to further reforms in colonial administration, including the Government of India Act of 1858.
Act’s Significance
The Regulating Act of 1773 was a landmark in British colonial history. It introduced important changes in the governance of India, establishing a framework for future administrative reforms. The act’s provisions aimed to enhance accountability and reduce corruption, fundamentally altering the relationship between the British Government and the East India Company.

