What did the term 'Mahal' stand for in 1797?

Estate

The correct answer is Option (4) → Estate

The term 'Mahal' stood for an 'Estate'.

" In 1797 there was an auction in Burdwan (present day Bardhaman). It was a big public event. A number of mahals (estates) held by the Raja of Burdwan were being sold. The Permanent Settlement had come into operation in 1793. The East India Company had fixed the revenue that each zamindar had to pay. The estates of those who failed to pay were to be auctioned to recover the revenue. Since the raja had accumulated huge arrears, his estates had been put up for auction. Numerous purchasers came to the auction and the estates were sold to the highest bidder. But the Collector soon discovered a strange twist to the tale. Many of the purchasers turned out to be servants and agents of the raja who had bought the lands on behalf of their master. Over 95 per cent of the sale at the auction was fictitious. The raja’s estates had been publicly sold, but he remained in control of his zamindari.