Governor General Cornwallis, himself a big landlord in England, wanted to create landlords in India on the English model. There were already revenue farmers under the Mughals. Cornwallis came to a settlement with them, treating them as landlords. The outcome was that for the first time in India there was a class of zamindars or landlords with a right to own, bequeath and inherit land. The cultivators, on the other hand, were reduced to the position of mere tenants. The British dealt with the landlords or zamindars directly, and gave them total freedom to do what they liked with their tenants. This settlement made with the zamindars of Bengal, Bihar and Orissa is called the Permanent Settlement (1793). The Ryotwari System was a different revenue system introduced in south India.
Under the system, the peasant was the proprietor and paid tax on the land. The government dealt with him directly, without the intervention of a middleman or a tax-farmer. He was entitled to remain in possession of land acquired by him so long as he paid the land revenue. In case of default, apart from eviction and attachment of livestock, even household property or .personal belongings could be attached. The Ryotwari System introduced the concept of private property in land. The individual holders were registered and permitted to sell, lease out, mortgageor transfer their right over the land.
