After the battle of Buxar 1764, the East India Company acquired the Diwani of Rights (The right to collect revenue) over Bengal, Bihar and Orissa.
Initially, the company attempted to continue the old system of revenue collection . Warren Hastings auctioned the right to collect revenue to the highest bidder. However this system was not successful and hence the idea to look into different revenue models was started by the East India Company.
Mahalwari System
1. This system was introduced in Ganga valley, North West provinces,parts of Central India and Punjab.
2. In this system, the revenue settlement was made village by village or estate (mahals) by estate with landlords or heads of families who collectively claimed to be the landlords of the village/estate.
