3

After a prolonged debate amongst Company officials, the Permanent Settlement was made with the rajas and taluqdars of Bengal. They were now classified as zamindars, and they had to pay the revenue demand that was fixed in perpetuity. In terms of this definition, the zamindar was not a landowner in the village, but a revenue Collector of the state. The Company fixed the total demand over the entire estate whose revenue the zamindar contracted to pay. The zamindar collected rent from the different villages, paid the revenue to the Company, and retained the difference as his income. He was expected to pay the Company regularly, failing which his estate could be auctioned.