Consider the following statements:
Statement I:
The Regulating Act of 1773 required the English East India Company (EEIC) to report on its revenue, civil and military affairs in India.
Statement II:
While the EEIC was on the verge of bankruptcy, the Company’s officials made huge profits from private trade and returned to England loaded with wealth.

Which one of the following is correct with respect to the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct

Question

Consider the following statements:
Statement I:
The Regulating Act of 1773 required the English East India Company (EEIC) to report on its revenue, civil and military affairs in India.
Statement II:
While the EEIC was on the verge of bankruptcy, the Company&rsquo;s officials made huge profits from private trade and returned to England loaded with wealth.

Which one of the following is correct with respect to the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct

ONLiNE UPSC · Accepted Answer

In the 8 years after the Treaty of Allahabad in 1765, the EEIC had reached the brink of bankruptcy due its misrule in Bengal and had demanded a loan of one million pounds from the British government in August 1772. During the same period, the Company&rsquo;s officials made huge profits from private trade and returned to England loaded with wealth.

The company's administration of Bengal was criticised by merchants and free enterprise enthusiasts in Britain. Thus, the British Government brought the Regulating Act of 1773 to control and regulate the affairs of the East India Company in India and recognize the political and administrative functions of the Company. One of the provisions of the Act required the Court of Director (governing body of the Company) to report on its revenue, civil and military affairs in India.

Hence, both the statements are correct and Statement-II is the correctof Statement-I.

British Rule in India

Regulating Act of 1773 and East India Company

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M Question 1	⏱ 0
Consider the following statements: Statement I: The Regulating Act of 1773 required the English East India Company (EEIC) to report on its revenue, civil and military affairs in India. Statement II: While the EEIC was on the verge of bankruptcy, the Company’s officials made huge profits from private trade and returned to England loaded with wealth. Which one of the following is correct with respect to the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct