With reference to revenue collection by Cornwallis, consider the following statements : 1. Under the Ryotwari Settlement of revenue collection, the peasants were exempted from revenue payment in case of bad harvests or natural calamities. 2. Under the Permanent Settlement in Bengal, if the Zamindar failed to pay his revenues to the state, on or before the fixed date, he would be removed from his Zamindari. Which of the statements given above is/are correct?

Statement 2 is correct because the Permanent Settlement (1793) included the "Sunset Law," which mandated that if a Zamindar failed to remit the fixed revenue by sunset on the specified date, their estate would be auctioned by the state. Statement 1 is incorrect because the Ryotwari system was notorious for its rigidity, where revenue was strictly collected even during bad harvests or calamities, often forcing peasants into the clutches of moneylenders. This question tests the core concept of the administrative mechanisms and socio-economic impacts of British land revenue systems in India.