During the late 1700s, the British East India Company (EIC) had become incredibly powerful and wealthy in India, but it was also horribly corrupt. To control this private company, the British Government passed a famous law: the Pitt's India Act of 1784.
Year: Passed in 1784.
Named After: William Pitt the Younger (British Prime Minister).
System Created: 'Double Government' (Board of Control for politics, Court of Directors for trade).
Significance: It gave the British Government supreme control over the East India Company's Indian affairs.
The East India Company officials were making millions in India through illegal private trade and corruption, while the Company itself was going bankrupt and begging the British government for loans. The previous law (Regulating Act of 1773) had failed to stop this corruption. Therefore, the British Prime Minister, William Pitt the Younger, introduced a new, stricter law.
The main goal of the act was to establish a system of 'Double Government'.
The Result: For the very first time, the British Government took direct, supreme control over the administration of Indian territories, officially calling them the 'British possessions in India'.
The main purpose of Pitt's India Act of 1784 was to fix the corruption in the East India Company by establishing a system of double government, giving the British Crown supreme control over the Company's political and military affairs in India.
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