Government of India Act, 1858

Whigs and Tories had joined hands to complete without delay the process of extendihg crown government over India. Lord Palmerston, the British Prime Ministdr, declared his Government's decision to assume directly the Government of lndia by the British Crown. John Stuart Mill prepared-a dignified and weighty petition which was presented by the Company against the Government decision to both the Houses of Parliament. But no petition could any longer stem the tide of mounting criticism against the Company's administration. Lord Stanley. President of the Board of Control introduced a bill for the 'Better Government' of lndia which became an Act of Parliament in August 1858. 

The Government of lndia passed from the hands of the English East lndia Company to the crown. The armed forces of the company were transferred to the crown. The Board of control and court of Directors were abolished. Their place was taken by the Secretary of State of lndia and his lndia Council. They were to govern lndia in the name of her majesty. The Secretary of State was to sit in Parl~ament. He was a cabinet minister of England and as such was responsible to Parliament. Ultimate power over lndia remained with Parliament. 

The Act created an lndia council of fifteen members. It was to advise the Secretary of State who could overrule its decisions. Approval of the Council was essential in financial matters. Most of the members of the lndia Council were those who had retired from Indian services. The Secretary of State was given the power of sending and receiving secret messages and despatches from the Governor General without the necessity of communicating them to the lndia Council. The Secretary of State was to present to the House of Comqons periodically report on the moral and material progress of India. 

The Government of India in its dealings with England was guided by the directions laid down by the Secretary of State in Council. All matters concerning legislation. land revenue. public works, railways, jobs, new expenditure and policies were rigidly scrutinised and controlled by the Secretary of State. The Rules and Regulations made in lndia by the secretary of state were to be laid on the table of the House of Commons. 

The Governor General became known from now as the Viceroy or Crown's representative. In matters of policy and its execution the viceroy was increasingly reduced to a subordinate position in relation to the British Government. The Govetnrnent of lndia was finally directly controlled from London.