Question

What is ijarah system?

Answer 1

Ijarah system involved giving a formed assignment in return of a lump-sum amount to one who bid highest. It was practised widely during the Mughal rule. Ijarah system was a revenue farming system introduced by Jahadar Shah (1712 to 1713).

• The ijarah method of revenue assessment and collection became popular in the 18th century.
• When peasants lacked the means to cultivate their land or cultivation was impossible due to a calamity, the lands were farmed out on ijarah to a third party known as revenue farmers.
• It was forbidden for revenue officials or their families to take land on ijarah.
• It was anticipated that revenue farmers would not take more from peasants than the stipulated land revenue.
• The revenue farmer paid nine-tenths of the total collection to the government and retained the remainder as collection charges.