Examine these two statements carefully and select the correct answer using the code given below Stat...........

Indian Freedom Struggle (1857-1947) History

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Examine these two statements carefully and select the correct answer using the code given below.

Statement I:

The Permanent Settlement was rarely extended to any region beyond Bengal.

Statement II :

After 1810, the agricultural prices declined affecting adversely the income of the Bengal Zamindars.

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Both the statements are individually true and Statement II is the correct explanation of Statement I

Both the statements are individually true but Statement II is not the correct explanation of Statement I

Statement I is true but Statement II is false

Statement I is false but Statement II is true

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Explanation:

The permanent settlement was introduced by Lord Cornwallis in the year 1793 in the region of Bengal. Following are the reasons why this system did not extend to any other region beyond Bengal:

1. Under this system, a new class of Zamindars emerged, who were given the right to collect the reve-nue from the peasants, by the colonial government. But they failed to collect the estimated revenue. This became a sign of loss for the colonial government.

2. Secondly, the colonial administration realized that if the demand was fixed for all the time, the com-pany would never be able to demand a share in the increased revenue from the property.

This is why the permanent settlement did not extended to any other region beyond Bengal