The Company had first set up its trading activities in the well-established port of Surat on the west coast. Subsequently, the search for textiles brought British merchants to the east coast. In 1639 they constructed a trading post in Madraspatnam.  This settlement was locally known as Chenapattanam. The company had purchased the right of settlement from the local Telugu Lords,  The Nayaks of Kalahasti, who were eager to support trading activities in the region. Rivalry with the French East India Company led the British to fortify Madras and give their representatives increased political and administrative functions. With the defeat of the French in 1761, Madras became more secure and began to grow into an important commercial town. It was here that the superiority of the British and the subordinate position of the Indian merchants was most apparent. Fort St George became the nucleus of the White Town where most of the Europeans lived. Walls and bastions made this a distinct enclave.

Fort St. George became the nucleus of the white town where most of the Europeans lived. On what basis it was decided who will live within the fort and who will not?

Colour and Religion.

The correct answer is Option 4 - Colour and Religion.

Fort St George became the nucleus of the White Town where most of the Europeans lived. Walls and bastions made this a distinct enclave. Colour and religion determined who was allowed to live within the Fort. The Company did not permit any marriages with Indians. Other than the English, the Dutch and Portuguese were allowed to stay here because they were European and Christian. The administrative and judicial systems also favoured the white population. Despite being few in number the Europeans were the rulers and the development of Madras followed the needs and convenience of the minority whites in the town.

The Black Town developed outside the Fort. It was laid out in straight lines, a characteristic of colonial towns. It was, however, demolished in the mid-1700s and the area was cleared for a security zone around the Fort.