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1917–1919: Rowlatt Act

In 1917, as Montagu and Chelmsford were compiling their report, a committee chaired by a British judge, Sidney Rowlatt, and was tasked with investigating "revolutionary conspiracies", with the unstated goal of extending the government's wartime powers. The Rowlatt Committee comprised four British and two Indian members, including Sir Basil Scott and Diwan Bahadur Sir C. V. Kumaraswami Sastri, the present and future Chief Justices of the High Court of Bombay and the High Court of Madras. It presented its report in July 1918 and identified three regions of conspiratorial insurgency: Bengal, the Bombay presidency, and the Punjab. To combat subversive acts in these regions, the committee unanimously recommended that the government use emergency powers akin to its wartime authority, which included the ability to try cases of sedition by a panel of three judges and without juries, exaction of securities from suspects, governmental overseeing of residences of suspects, and the power for provincial governments to arrest and detain suspects in short-term detention facilities and without trial.

With the end of World War I, there was also a change in the economic climate. By the end of 1919, 1.5 million Indians had served in the armed services in either combatant or non-combatant roles, and India had provided £146 million in revenue for the war. The increased taxes coupled with disruptions in both domestic and international trade had the effect of approximately doubling the index of overall prices in India between 1914 and 1920. Returning war veterans, especially in the Punjab, created a growing unemployment crisis, and post-war inflation led to food riots in Bombay, Madras, and Bengal provinces, a situation that was made only worse by the failure of the 1918–19 monsoon and by profiteering and speculation. The global influenza epidemic and the Bolshevik Revolution of 1917 added to the general jitters; the former among the population already experiencing economic woes, and the latter among government officials, fearing a similar revolution in India.

To combat what it saw as a coming crisis, the government now drafted the Rowlatt committee's recommendations into two Rowlatt Bills. Although the bills were authorised for legislative consideration by Edwin Montagu, they were done so unwillingly, with the accompanying declaration, "I loathe the suggestion at first sight of preserving the Defence of India Act in peacetime to such an extent as Rowlatt and his friends think necessary." In the ensuing discussion and vote in the Imperial Legislative Council, all Indian members voiced opposition to the bills. The Government of India was, nevertheless, able to use of its "official majority" to ensure passage of the bills early in 1919. However, what it passed, in deference to the Indian opposition, was a lesser version of the first bill, which now allowed extrajudicial powers, but for a period of exactly three years and for the prosecution solely of "anarchical and revolutionary movements", dropping entirely the second bill involving modification the Indian Penal Code. Even so, when it was passed, the new Rowlatt Act aroused widespread indignation throughout India, and brought Gandhi to the forefront of the nationalist movement.