Ijara system

Ijara / Izara system: It was the practice of revenue farming. According to this practice, the right to farm or collect revenue was granted temporarily to the highest bidder in an auction by the government through the zaminder. In return for this function, the ijaradar (revenue farmer) was rewarded with a commission of 4 to 6 per cent and few other benefits. Having its origins in the reign of Shah Jahan, it become common during Aurangzeb’s period and widely practiced under the Later Mughals. The British also used this practice for some time in eastern India.