Correct Option
The correct option is 1 and 3 only.
Explanation
The Permanent Settlement was introduced by Lord Cornwallis in 1793, primarily in Bengal, Bihar, and Odisha. It recognized Zamindars as the owners of the land, provided they paid a fixed revenue to the British East India Company in perpetuity.
Statement-wise Analysis
- Statement 1 is Correct: The settlement was enforced through the strict 'Sunset Law'. This rule mandated that if a Zamindar failed to deposit the fixed revenue by sunset on the specified due date, their zamindari rights would be confiscated and auctioned to recover the arrears.
- Statement 2 is Incorrect: The British authorities anticipated that Zamindars, secure in their ownership and fixed tax liability, would invest capital to improve agriculture (similar to landlords in England). However, in practice, Zamindars rarely invested in agricultural productivity. They largely became absentee landlords living in cities, showing little interest in the actual condition of the land or the peasantry.
- Statement 3 is Correct: Since the revenue demand from the state was fixed, any surplus rent extracted from the peasants became the profit of the Zamindar. Consequently, their primary economic interest was the maximization of rent collection. This often led to sub-infeudation, where layers of intermediaries were created between the Zamindar and the actual cultivator to maximize rent extraction.
Key Takeaway
Key Takeaway: The Permanent Settlement created a class of loyalist absentee landlords who were subject to the rigid Sunset Law and focused on rent-seeking rather than agricultural innovation.