The Permanent Settlement of Bengal was brought into effect by the East India Company headed by the Governor-General Lord Cornwallis in 1793. This was basically an agreement between the company and the Zamindars to fix the land revenue. First enacted in Bengal, Bihar and Odisha, this was later followed in northern Madras Presidency and the district of Varanasi. Cornwallis thought of this system inspired by the prevailing system of land revenue in England where the landlords were the permanent masters of their holdings and they collected revenue from the peasants and looked after their interests. He envisaged the creation of a hereditary class of landlords in India. This system was also called the Zamindari System.
NCERT Notes: The Permanent Settlement of Bengal