<P> The English Education Act by the Council of India in 1835 reallocated funds from the East India Company to spend on education and literature in India . </P> <P> This Act (16 & 17 Vict . c. 95) provided that British India would remain under the administration of the company in trust for the Crown until Parliament should decide otherwise . It also introduced a system of open competition as the basis of recruitment for civil servants of the company and thus deprived the Directors of their patronage system . </P> <P> Under the act, for the first time the legislative and executive powers of the governor general's council were separated . It also added six additional members to the governor general's executive committee . </P> <P> The Indian Rebellion of 1857 (also known as the Indian Mutiny) resulted in widespread devastation in India: many condemned the East India Company for permitting the events to occur . In the aftermath of the Rebellion, under the provisions of the Government of India Act 1858, the British Government nationalised the company . The Crown took over its Indian possessions, its administrative powers and machinery, and its armed forces . </P>

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