With reference to revenue collection by Cornwallis, consider the following statements: 1. Under the Ryotwari Settlement of revenue collection, the peasants were exempted from revenue payment in case of bad harvests or natural calamities. 2. Under the Permanent Settlement in Bengal, if the Zamindar failed to pay his revenues to the state, on or before the fixed date, he would be removed from his Zamindari. Which of the statements given above is/are correct?

The Ryotwari Settlement was introduced by Thomas Munro and Captain Read, not by Cornwallis, and it operated in the Madras and Bombay Presidencies. Under it, revenue had to be paid by the peasant directly to the state regardless of crop failure — there was no automatic exemption for bad harvests; in fact, this rigidity caused great peasant distress. So statement 1 is incorrect. The Permanent Settlement of 1793, introduced by Cornwallis in Bengal, included the Sunset Clause under which if a Zamindar failed to pay the fixed revenue by sunset of a specified date, his Zamindari would be auctioned off and he would be removed. So statement 2 is correct. Hence only 2 is correct.