Exp—Lord Cornwallis introduced the system of Permanent settlement. The rajas and taluqdars were recognised as zamindars. They were asked to collect rent from the peasants and pay revenue to the Company. In 1786. Charles Cornwallis was sent out to India to reform the company's practices. In 1786, the East India Company Court of Directors first proposed a permanent settlement for Bengal, changing the policy then being followed by Calcutta, which was attempting to increase taxation of zamindars.