Modern Indian History Part 7 - British Rule - Lord Wellesley
During pre-British period a share on the crop was fixed as land tax which led to variable revenue to the land lord. When Warren Hastings came to power he introduced the annual lease system of auctioning the land to the highest bidder. This led to getting a fixed revenue to the British EIC. But it created chaos in the revenue administration and the leased land holders failed to repay the agreed amount. As the period was fixed for only 1 year, the land holders were not interested to invest for increasing the productivity of land. Thus the productivity of land decreased every year along with increase in defaulters.