Correct Option (Question Dropped by UPSC)
Statement 2 is correct. The Permanent Settlement was introduced by Lord Cornwallis in 1793 in Bengal, Bihar, and Odisha. Under this system, Zamindars were recognized as landowners and were responsible for collecting revenue from the cultivators. A crucial provision of the Permanent Settlement was the 'Sunset Law', which mandated that Zamindars pay a fixed amount of revenue to the East India Company by a specific date. Failure to remit the revenue by the stipulated deadline would lead to the forfeiture of their Zamindari, which would then be auctioned off. This measure aimed to ensure a consistent and predictable revenue stream for the Company.
Incorrect Options
Statement 1 is incorrect. The Ryotwari Settlement was not introduced by Lord Cornwallis. It was primarily implemented in parts of the Madras Presidency by Thomas Munro and Alexander Read in the early 19th century. Under the Ryotwari system, revenue was collected directly from the cultivators (ryots). Although the system theoretically allowed for revenue remission during instances of crop failure or natural calamities, in practice, such exemptions were rarely granted. Revenue demands often remained inflexible, causing considerable hardship to the ryots even during periods of poor harvests.