Mughal-e-ajam handed over all the powers to East India Company and English Govt. got the Dept. of Finance and collection of Revenues and also court of Judgement. In this year (1765) Clive institutionalised the system of judicial dept. of India as per British Govt.As a result they got to rule over two and half crores of people and had an arrangement of getting revenue of 4 crores of rupees annually.
The responsibility of ruling the Indian people was given to Hastings not earlier than 1772.
During the absence of Clive, the Directors of East India Company gave permission to their native personel of exclusive right of import and export. But a revolt flared up amongst the Riotdars which was subdued by Robert Clive by forming a society of encouraging the development of import and export business.After two years the Board of England abolished the society and formed a permanent Commission.
Warren Hastings became Governor during 1772 to 1785.
Incidents that took place in India in seventies of the eighteenth century was heavily criticised in England due to the behavior and attitude of the officers towards the Indians.Because they earned a lot of money by torture, force, and irrespective removal of the local kings. All these were discussed in their Parliament. Moreover, any one with 500 pounds as Bank Balance would be able to belong in the group of owners of the Company. As such the new directors used the path of bribery and irregularities. Lord Selburn spent 1,00,000 pounds to be elected as a director. India House was the main site for this unlimited conspiracy and brokery.
In 1771, Parliament intervened and sent a team of three persons namely Vancitart, Scrafton, and Colonel Ford. But god saved them, because the ship was drowned near Capetown.
After some few days the real contradiction developed between East India Company and British Government and it was revealed that the Company was bankrupt for the time being. They incurred a deficit of pound 10 lakhs in India and pound 15 lakhs in England.To make up the deficit they appealed to the Parliament for a permission to raise National debt. They had got a rude shock of the idea that India was having enormous wealth.
In 1772, a special committee was appointed by the Parliament to investigate the illegal, inhuman activities of the officers of the East India Company with which they had earned huge amount of money. In this respect there had been an emotional debate in the Parliament. Lord Clive also spoke a famous lecture there.
In 1773, the reconstitution of East India Company was accepted in both the house. The amount of deposit of an owner had been increased from 500 pounds to 1000 pounds. The designation of Governor of the Calcutta Port had been changed to Governor General with supreme power to all the presidencies. The Governor General would be nominated by the Parliament in every 5 years.The Judicial system also had been changed. Some suggestions of Warren Hastings was also accepted. It was decided to have a post of Moulabi for Muslims.