Choose whether the statement is true/false:

The Permanent Settlement of Bengal was an agreement between the East India Company and Bengali landowners to fix the revenues raised from land.

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Detailed Solution

The above statement is true.
The Permanent Settlement of Bengal was an agreement between the East India Company and Bengali landowners to fix the revenues raised from land. It had significant repercussions for both agricultural practices and productivity throughout the British Empire, as well as the political landscape of rural India. Through the Permanent Settlement Act, Cornwallis instituted the Zamindari System in 1793. It first appeared in the Bengal, Bihar, Orissa, and Varanasi provinces. Zamindars were the real owners of the land. They were made responsible for collecting revenue and giving it to the British. The genuine farmers were made tenants, while the zamindars acquired land ownership. Even in times of low yield, the tax had to be paid compulsorily. Cash was used to pay the tax. The tax might have been paid in kind before the implementation of this scheme.

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