Explanation:

• Poligars were the offshoots of the Nayankara system prevalent in the Vijaynagar Administration. The Poligars were quite similar to the Rajputs of North India and were given land in exchange for military service when called upon. However, their influence and power increased beyond the traditional lines and they often acted as sovereigns, even to the extent of extracting taxes from the people. Hence, Statement 1 is correct.
• As the company’s government wanted to augment its own sources of revenues, it sought to control the Poligars.
• In September 1799, in the first Poligar War, the poligars of Tirunelveli District rose up in open rebellion. A column of Company troops was speedily deployed against them, while dire warnings were issued to poligars in other parts of the south not to join the rebellion. Kattabomma Nayak of Panchalamkurichi was considered as the main leader of the rebellion. Subramania Pillai and Soundra Pandian Nayak were other important rebel leaders.
• The Second Poligar war of 1800-01, given the magnitude of participation, is also known as the “South Indian Rebellion”. It was directed by a confederacy consisting of Marudu Pandian of Sivaganga, Gopala Nayak of Dundigal, Kerala Verma of Malabar and Krishnappa Nayak and Dhoondaji of Mysore. The rebellion broke out when a band of Poligar armies bombed the combined forces of the poligars. The suppression was followed by the signing of the Carnatic Treaty on July 31, 1801, whereby the British assumed direct control over Tamilnadu.
• The Poligar system, which had flourished for two and half centuries, came to a violent end and the company introduced the Zamindari settlement in its place. Hence, Statement 2 is correct.
• The Poligar Rebellions happened from 1799-1805.