Under the Permanent Settlement, revenue was fixed for all times to come. Britishers believed that fixing the revenue would encourage zamindars to improve their produce, but zamindars regularly failed to pay the revenue on time and their estates were auctioned. Reasons for this for various.

• The initial revenue was very high. The revenue was set such because Britishers believed that in case of increased harvest they would be unable to claim a share of interest, so to minimise their losses they set the initial revenue very high.

• During 1790s, the price of agricultural produce was very low and ryots were unable to pay dues to zamindars.

• According to the sunset law, if payment didn’t come until the sunset of a particular date, the property of zamindars was liable to be auctioned.