Essence
Rivalry b/w Brit State & EIC eventually EIC rule ended
Reason
- EIC was non state entity which entered domain of state
- EIC became very powerful (economically, militarily)
- concern for Brit taxpayer money which EIC investing in empire building
- monopoly of EIC no longer in line with Brit national interest
- EIC was trading company with no purpose after Industrial Revolution
Select Committee of Parliament 1772
- EIC requested 1M pound loan as it was going bankrupt 👀
- After Great Bengal Famine 1770, LR income declined trade income declined EIC bankrupt
- acted as opportunity for brit parl to bring EIC under regulation
- Select Committee set up to look into EIC affairs in India and its rel w/ Brit state
- issue of high war expenditure main reason why EIC bankrupt
Result
- Court of Directors (CoD) of EIC made accountable for EIC administration in India + also led to Regulating Act 1773
- CoD made accountable because EIC redirected all questions to governors in india