Consider the following statements : I. The Charter Act of 1853 abolished East India Company’s monopoly of India trade. II. Under the Government of India Act 1858, the British Parliament abolished the East India Company altogether and undertook the responsibility of ruling India directly. Which of the following statements given above is/are correct?

Statement I is incorrect. The Company’s commercial monopoly had been ended prior to 1853—the Charter Act of 1833 ended the Company’s commercial activities and its monopoly over trade, while the 1853 Act chiefly reorganised administrative/legislative arrangements rather than abolishing the trade monopoly [1]. Statement II is correct. The Government of India Act (1858) effectively abolished the East India Company’s rule and transferred governance, territories and revenues to the British Crown, placing administration under a Secretary of State for India responsible to Parliament and vesting ultimate authority in the Crown [2]. Therefore only statement II is correct.

Sources

1. [1] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 5: The Structure of the Government and the Economic Policies of the British Empire in India, 1757—1857 > The Structure of Government > p. 92
2. [2] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 1: Historical Background > Government of India Act of 1858 > p. 4