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In 1772, the Company appointed Warren Hastings as the Governor of Fort William
Reforms of Warren Hastings
1. Abolition of the Dual System
• The East India Company decided to act as Diwan and to undertake the collection of revenue by its own agents.
• Hence, the Dual System introduced by Robert Clive was abolished
• Warren Hastings reduced the Nawab’s allowance of 32 lakhs of rupees to half that amount
• He also stopped the annual payment of 26 lakhs given to the Mughal Emperor
• A Board of Revenue was established at Calcutta to supervise the collection of revenue.
• English Collectors were appointed in each district.
• The treasury was removed from Murshidabad to Calcutta and an Accountant General was appointed
• Calcutta thus became the capital of Bengal in 1772and shortly after of British India
• The Board of Revenue farmed out the lands by auction for a period of five years instead of one year in order to find out their real value.
• Yet, the system was a failure. Many zamindars defaulted and the arrears of revenue accumulated.
2. Reorganisation of the Judicial System
• The judicial system at the time of Warren Hastings’ ascendancy was a store-house of abuses.
• The Nawab who was hitherto the chief administrator of justice, misused his powers.
• The zamindars who acted as judges at lower levels within their own areas were highly corrupt and prejudiced
• Each district was provided with a civil court Under the Collector A criminal court under an Indian Judge
• To hear appeals from the district courts two appellate courts, one for civil cases and another for criminal cases, were established at Calcutta
• The highest civil court of appeal was called Sadar Diwani Adalat,
• Which was to be presided over by the Governor and two judges recruited from among the members of his council.
• Similarly, the highest appellate criminal court was known as Sadar Nizamat Adalat
• Which was to function under an Indian judge appointed by the Governor-in-Council
• Experts in Hindu and Muslim laws were provided to assist the judges.
• An English translation of it – Code of Hindu Laws – was prepared by Halhed.
3. Trade Regulations and other Reforms
• Warren Hastings abolished the system of dastaks, or free passes and regulated the internal trade.
• He reduced the number of custom houses and enforced a uniform tariff of 2.5 percent for Indian and non-Indian goods
• He reduced the number of custom houses and enforced a uniform tariff of 2.5 percent for Indian and non-Indian goods
• Weavers were given better treatment and facilities were made to improve their condition.
• He also introduced a uniform system of pre-paid postage system.
• A bank was started in Calcutta.

Expansionist Policy of Warren Hastings
1. Warren Hastings was known for his expansionist policy. His administration witnessed the Rohilla War.
2. The First Anglo-Maratha War and the Second Anglo-Mysore War.
The Rohilla War (1774)
1. Rohilkand was a small kingdom situated in between Oudh and the Marathas.
2. Its ruler was Hafiz Rahmat Khan.
3. He concluded a defensive treaty in 1772 with the Nawab of Oudh fearing an attack by the Marathas.
4. But no such attack took place. But, the Nawab demanded money.
5. When Rahmat Khan evaded, the Nawab with the help of the British invaded Rohilkand
6. Warren Hastings, who sent the British troops against Rohilkand was severely criticised for his policy on Rohilla affair
First Anglo-Maratha War (1775-82)
1. The Marathas were largely remained disunited since the Third Battle of Panipat (1761).
2. The internal conflict among the Marathas was best utilized by the British in their expansionist policy.
3. In 1775, there was a dispute for the post of Peshwa between Madhav Rao and his uncle Raghunatha Rao.
4. The British authorities in Bombay concluded the Treaty of Surat with Raghunatha Rao in March 1775.
5. Raghunatha Rao promised to cede Bassein and Salsette to the British but later when he was unwilling to fulfil his promise, the British captured them.
6. This action of the Bombay Government was not approved by Warren Hastings. In 1776, Warren Hastings sent Colonel Upton to settle the issue
7. He cancelled the Treaty of Surat and concluded the Treaty of Purander with Nana Fadnavis, another Maratha leader
8. According to this treaty Madhava Rao II was accepted as the new Peshwa and the British retained Salsette along with a heavy war indemnity
9. However, the Home authorities rejected the Treaty of Purander. Warren Hastings also considered the Treaty of Purandar as a ‘scrap of paper’
10. In 1781, Warren Hastings dispatched British troops under the command of Captain Popham.
He defeated the Maratha chief, Mahadaji Scindia, in a number of small battles and captured Gwalior.
11. Later in May 1782, the Treaty of Salbai was signed between Warren Hastings and Mahadaji Scindia
12. Accordingly, Salsette and Bassein were given to the British.
13. Raghunath Rao was pensioned off and Madhav Rao II was accepted as the Peshwa.
14. The Treaty of Salbai established the British influence in Indian politics.
15. It provided the British twenty years of peace with the Marathas
16. The Treaty also enabled the British to exert pressure on Mysore with the help of the Marathas in recovering their territories from Haider Ali.
17. Thus, the British, on the one hand, saved themselves from the combined opposition of Indian powers and on the other, succeeded in dividing the Indian powers.
The Second Anglo-Mysore War (1780-84)
1. The first Anglo-Mysore War took place in 1767-69.
2. Haider Ali emerged victorious against the British and at the end of the War a defensive treaty was concluded between Haider Ali and the British.
3. After eleven years, the Second Mysore War broke out
The main causes for the second Anglo-Mysore War were:
• The British failed to fulfil the terms of the defensive treaty with Haider when he was attacked by the Marathas in 1771
• There was an outbreak of hostilities between the English and the French (an ally of Haider) during the American War of Independence
• The British captured Mahe, a French settlement within Haider’s territories
• Haider Ali formed a grand alliance with the Nizam of Hyderabad and the Marathas against the British in 1779.
• The War began when the British led their forces through
• Haider’s territory without his permission to capture Guntur in the Northern Sarkars.
• Haider Ali defeated Colonel Baillie and captured Arcot in 1780.
• In the next year, Warren Hastings, by a clever stroke of diplomacy, divided the Confederacy.
• He made peace with the Nizam, won the friendship of Bhonsle and came to an understanding with the Scindia (both Marathas)
• Consequently, Haider was isolated without any alliance.
• He was defeated by Sir Eyre Coote at Porto Novo in March 1781.
• In December 1782, Haider died of cancer at the age of sixty and his death was kept secret till his son Tipu Sultan assumed power.
4. The Second Mysore War came to an end by the Treaty of Mangalore in 1783.
Pitts India Act of 1784 >>  read from here

The Impeachment of Warren Hastings
1. The Pitt’s India Act of 1784 was a rude shock and bitter disappointment for Warren Hastings.
2. His image and reputation were tarnished in England. Therefore, he resigned and left India in June 1785
3. In 1787, Warren Hastings was impeached in the Parliament by Edmund Burke and the Whigs for his  administrative excess.
4. Burke brought forward 22 charges against him
5. He received pension from the Company and lived till 1818.
Estimate of Warren Hastings
1. He was a gifted personality endowed with ‘strong will, great energy and resourcefulness’.
2. Since he considered Indian culture as a basis for sound Indian administration, he patronized the learning of Indian languages and arts.