The Act abolished Dyarchy in the provinces and introduced 'Provincial Autonomy', giving provinces an independent legal status and power to administer their own affairs.

Led by C.R. Das and Motilal Nehru, they entered the councils to obstruct business and 'wreck the reforms from within'.

Administration of Justice, Police, Prisons, and Land Revenue were Reserved Subjects.

The 1853 Council had acted like a mini-parliament showing independence; the 1861 Act strictly limited its powers to prevent it from criticizing the administration, making it purely advisory.

The Council could not discuss the conduct of the administration, ask questions (interpellations), or discuss grievances; it was strictly confined to legislative measures.

This power is similar to Article 77 of the Indian Constitution, which empowers the President to make rules for the more convenient transaction of the business of the Government of India.

It reduced the Company to a mere trustee of the Crown for the administration of India, stripping it of any commercial privileges or independent tenure.

The annexation of Sind (1843) and Punjab (1849) had expanded the territory significantly, requiring administrative reorganization.

The Revolt of 1857 (Sepoy Mutiny) provided the immediate trigger for the British Crown to take over the administration, a process initiated by the indefinite renewal in 1853.

The Governor General was overburdened with the dual responsibility of India and Bengal. A separate Governor (or Lt. Governor) was appointed to manage Bengal's local administration.