Bombay as an English Company Settlement

Bombay (now Mumbai) developed into the primary English commercial and naval hub on the western coast of India. Originally a group of seven marshy, low-lying islands, its acquisition marked a key shift in the East India Company’s posture from rented factory houses to direct territorial possession.

Acquisition and Transfer to the Company

Portuguese Control and the Royal Dowry

The Portuguese acquired the seven islands of Bombay from Sultan Bahadur Shah of Gujarat through the Treaty of Bassein in 1534. King Charles II of England married Catherine of Braganza, the sister of King Afonso VI of Portugal, in 1661. As part of the royal marriage treaty, the Portuguese Crown ceded Bombay to the British Crown as part of the dowry.

Transfer to the East India Company (1668)

The English Crown found direct administration of the distant island group financially burdensome. On March 27, 1668, King Charles II issued a Royal Charter transferring Bombay to the East India Company. The company agreed to pay a nominal annual rent of £10 in gold. The charter empowered the company to fortify the islands, enlist troops, raise naval forces, mint currency, and establish laws for governance.

Gerald Aungier and the Growth of the Settlement

Leadership of Gerald Aungier

Gerald Aungier served as the Governor of Bombay and President of the Surat Factory from 1669 to 1677. Aungier recognized the strategic advantage of Bombay’s natural deep-water harbor compared to the silted mouth of the Tapti River at Surat. He laid the structural foundations of the island city, famously predicting that Bombay was “the city which by God’s assistance is intended to be built.”

Policy Innovations and Population Growth

Aungier introduced policies to transform the sparse fishing villages into a bustling commercial center:

• Religious Tolerance: He offered freedom of worship, attracting religious minorities fleeing persecution or trade disruptions elsewhere, including Parsis, Jain merchants, Gujarati Banias, and Armenian traders.
• Land Grants and Reclamation: He leased land on liberal terms to merchants and initiated initial land reclamation projects to link the islands.
• Judicial and Administrative Systems: He established the first Court of Judicature in 1672, appointing George Wilcox as the first Chief Justice, replacing Portuguese laws with English common law traditions.
• Mint and Security: He established a company mint in Bombay to issue silver, copper, and tin coins, and created a militia force while strengthening the fortifications of Bombay Castle.

Commercial Superiority and Shift of Headquarters

Decline of Surat

Surat faced multiple disruptions in the late seventeenth century, including recurring Maratha raids led by Chhatrapati Shivaji Maharaj in 1664 and 1670, persistent silting of the Tapti River, and harassment from Mughal customs officials. Bombay offered an defensible island sanctuary with direct access to ocean shipping lanes.

Transfer of the Western Presidency Seat (1687)

In 1687, the East India Company officially transferred the seat of its Western Presidency from Surat to Bombay. Bombay became the supreme administrative and naval headquarters for English operations in the Arabian Sea and the Persian Gulf.

Military Challenges and the Child’s War

Conflict with the Mughal Empire

During the governorship of Sir John Child, the company engaged in an armed conflict with Mughal Emperor Aurangzeb between 1688 and 1690. Sir John Child attempted to seize Mughal shipping and enforce trade terms along the western coast.

The Siege of Bombay Castle (1689–1690)

In response, Aurangzeb ordered Sidi Yaqut Khan, the Abyssinian admiral of the Mughal fleet and ruler of Janjira, to attack Bombay. Sidi Yaqut landed troops on the island in 1689, captured Mazagaon Fort, and laid siege to Bombay Castle for over a year. The blockade reduced the English garrison to severe starvation and disease.

Submission to Aurangzeb

Facing complete destruction, the English sent envoys to Aurangzeb’s court in 1690 to sue for peace. Emperor Aurangzeb agreed to pardon the English on three strict conditions:

• Payment of a heavy indemnity of 150,000 rupees.
• Dismissal and expulsion of Sir John Child from India.
• Return of all captured Mughal merchant vessels and goods.

Following the settlement, the Mughal forces withdrew, and the company resumed its commercial activities under strict imperial oversight.

Key Historical Facts and Trivia

The name Bombay originated from the Portuguese phrase Bom Bahia, meaning “Good Bay,” referring to the natural deep-water harbor formed by the seven islands. The original Seven Islands of Bombay consisted of Bombay Island, Colaba, Old Woman’s Island (Little Colaba), Mahim, Mazagaon, Parel, and Worli. These islands were merged through centuries of land reclamation projects, beginning with the Hornby Vellard project in 1784. Gerald Aungier created the Bombay Marine, a private naval force designed to defend company shipping against pirates, Maratha fleets led by Kanhoji Angre, and European rivals. This force later evolved into the Royal Indian Navy. The English established the Court of Directors approved mint at Bombay in 1672, issuing coins stamped with the company arms and the Latin motto English Moneta Bombaiensis.