Read the passage given below and answer.

From the Fifth Report

Referring to the condition of zamindars and the auction of lands, the Fifth Report stated: The revenue was not realised with punctuality, and lands to a considerable extent were periodically exposed to sale by auction. In the native year 1203, corresponding with 1796-97, the land advertised for sale comprehended a jumma or assessment of sicca rupees 28,70,061, the extent of land actually sold bore a jumma or assessment of 14,18,756, and the amount of purchase money sicca rupees 17,90,416. In 1204, corresponding with 1797-98, the land advertised was for sicca rupees 26,66,191, the quantity sold was for sicca rupees 22,74,076, and the purchase money sicca rupees 21,47,580. Among the defaulters were some of the oldest families of the country. Such were the rajahs of Nuddea, Rajeshaye, Bishenpore (all districts of Bengal),... and others, the dismemberment of whose estates at the end of each succeeding year, threatened them with poverty and ruin, and in some instance presented difficulties to the revenue officers, in their efforts to preserve undiminished the amount of public assessment.

Consider the following statements regarding the establishment of British East India Company rule in Bengal.
Which of the following statement(s) is/are correct.

(A) The Permanent Settlement had come into operation in 1798
(B) Under this system, zamindar was not a land owner in the village, but revenue collector of the state
(C) Due to high initial demands, zamindars defaulted on payments
(D) Faced with an exorbitantly high revenue demand, zamindars fled to forests

Choose the correct answer from the options given below:

(B) and (C) only

The correct answer is Option (2) → (B) and (C) only

Given statements regarding the establishment of British East India Company rule in Bengal:

(A) The Permanent Settlement had come into operation in 1798 (Incorrect)
(B) Under this system, zamindar was not a land owner in the village, but revenue collector of the state (correct)
(C) Due to high initial demands, zamindars defaulted on payments (correct)
(D) Faced with an exorbitantly high revenue demand, zamindars fled to forests (Incorrect)

Correction:

Statement (A): Incorrect. The Permanent Settlement was introduced in 1793 by Lord Cornwallis and it became operational in the same year, not in 1798.

Statement (D): Incorrect. While some zamindars faced difficulties due to high demands, there is no historical evidence that they fled to forests as a response to revenue demands.