|General Characteristics of Mahalwari System:|
(1) Proprietory rights in land were created.
(2) Rent or revenue was fixed (either permanent or for long periods) irrespective of the produce of the land.
(3) Till 1822 no relief was given to the peasants.
(4) The share of the state was very high.
(5)The traditional right of the cultivators viz; grazing, fishing etc. were abolished.
(6) Commercialization of agriculture; the middlemen exploited the peasants.
(7) Money transaction led to rural indebtedness.
(8) Tenancy Reform Acts were insufficient. Initially, the state took 80%of the gross rental but later it was reduced to 66%.
(9) The settlement was made for thirty years and in some places for twenty years.
Even the 66% rental demand formula proved to be harsh and unworkable. Consequently, Lord Dalhousie revised it and the state demand was limited to 50% of the rental value. Unfortunately, the Settlement Officers evaded the new rules in practice. Thus, the system fell heavily on the agricultural classes.