Question

Q. The period of Dual System of Administration of East India Company in Bengal is characterized by which of the following?

Which of the statements given above is/are correct?

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is D 1, 2 and 3

Explanation:

Statements 1, 2, and 3 are correct: The dual system of government where the Company had the authority but no responsibility & its Indian representative had all the responsibility but no authority continued for 7 years. This period was characterized by:

• Rampant corruption among servants of the Company who made full use of private trading to enrich themselves;
• Excessive revenue collection & oppression of peasantry;
• The Company's bankruptcy, while the servants were flourishing because they engaged in private trade which was later restricted by Regulating Act 1773.