What were the financial problems of the company regarding the permanent settlement?
Financial problems of the Company regarding the Permanent Settlement were:
According to the terms of Permanent Settlement, the zamindars had to collect the revenues from the peasants and after deducting their commission, they had to deposit the collected revenues to the Company. The amount to be paid to the Company was fixed permanently.
Since the revenue which was to be paid was so high that zamindars did not do any thing to improve the quality of land due to financial stress. Also when the increased revenues were collected by the zamindars, they continued to pay the same amount to the Company as the revenues were fixed and could not be increased. This resulted the loss of the Company’s revenues.