In the late eighteenth century, following the imposition of the Permanent Settlement, zamindars in Bengal faced significant challenges with unpaid revenue to the British East India Company (E.I.C.). The British aimed to stabilize the rural economy by fixing revenue demands to boost agricultural investment; however, this led to unintended consequences. Many zamindars, burdened by excessive revenue commitments—fixed at a time of low agricultural productivity—accumulated debts and defaulted on payments, resulting in the auctioning of their estates in over 75% of zamindaris. The high taxes imposed during a period of economic distress meant that zamindars struggled to collect rent, leading to their eventual displacement and a power shift towards local moneylenders and richer peasants (jotedars). The section illustrates the complexities of colonial revenue systems and how they transformed agrarian hierarchies, creating a context for ongoing peasant resistance to the British authorities.