Cornwallis was the first Governor General who paid his attention to the revenue reforms.
Cornwallis resorted to Permanent Settlement for the good of the farmers.
With the permanent settlement, the auctioning of land (Izaredar system in Bengal) came to at an end.
The Zamindars were made hereditary owners of the land under their possession. They and their successors exercised total control over lands.
The Zamindars could sell and purchase lands.
The state had no direct contact with the peasants.
The company’s share in the revenue was fixed permanently with the Zamindars.
Thus the Permanent Land Revenue settlement involved three parties, the government, the Zamindar and the ‘ryot’ or the cultivator.
This permanent settlement continued in India till India achieved freedom.
It chief aim was to impart stability to the revenue system.
The Zamindars needed to pay a fixed amount of land revenue on a fixed date every year.
This amount could not be increased later, however, if the Zamindar failed to pay the amount on fixed date, the Company could sell their land via public auction.
This made sure that Zamindars were strict enough to collect revenues from peasants and pay it to company at fixed time.
The cultivators who were reduced to the position of tenants suffered miserably at the hands of their landlords.