The main features of the permanent settlements are described below:
(i)The amount of revenue was fixed permanently, that is, it was not to be increased ever in future.
(ii) It was felt that this would ensure a regular flow of revenue into the Company’s coffers and at the same time encourage the zamindars to invest in improving the land.
(iii) Since the revenue demand of the state would not be increased, the zamindar would benefit from increased production from the land.
(iv) Under this system revenue had been fixed so high that the zamindars found it difficult to pay. Anyone who failed to pay the revenue lost his zamindari. Numerous zamindaris were sold off at auctions organised by the Company.
(v) Even when the income of zamindars increased with the expansion of cultivation, the company had no chance of gain because it could not increase a revenue demand that had been fixed permanently.
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