Ruling the Countryside, On 12 August 1765, the Mughal emperor appointed the East India Company as the Diwan of Bengal. The company came to colonize the countryside, organize revenue resources, redefine the rights of people and produce the crops it wanted. Munro system of fixing revenue was: The revenue demand was set too high that could not be met by the peasants. Mahalwari Settlement - Mackenzie was convinced about the importance of village in the north Indian society. He wanted to preserve this important social institution.