The Permanent Settlement was an agreement between the East India Company and Bengali landlords to fix revenues to be raised from land. It was concluded in 1793 by the Company administration headed by Lord Cornwallis. The Permanent Settlement had the features that state demand was fixed at 89% of the rent and 11% was to be retained by the zamindar. The state demand could not be increased and failure to pay led to the sale of land to the highest bidder.