The feudatory states suffered from the misrule of their chiefs. Beings assured of British patronage, the feudatory chiefs did not pay heed to the welfare of the people. Appalling economic, political and social conditions prevailed in most of the states.

Peasants were oppresed, and revenue and taxation were excessive and unreadable, education was retraded, health and other social services were extremely backward, and freedom of press and other civil rights hardly existed.

The feudatory chiefs indulged themselves in luxurious way of life and squandered the treasury. All these led to ruination of the people’s economy and promoted them to revolt against feudatory chiefs.

Besides the system of taxation in the princely states was unjust and oppressive. In addition to normal tax the subjects were forced to different types of contribution, contribution of free and unpaid labour for the construction of royal palaces and beatings of the drums in the jungle when the rulers were going on hunting and were denied of ordinary civil rights.

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The forced contributions were known as “Bethi”, “Begar”, “Magana”, “Rasad”, “Bheti”, and “Kara Samagri”. Bethi implies forced service of the subject for gardening, construction of palaces etc.

To carry on luggages of royal servants from one place to another freely was known as “Begar”. “Magan” was the cash or kind contribution of the subjects at the time of any ceremony in the royal family. Rasad was the free fooding by the subjects to the royal house half of the actual cost of any of the product. Thus people in feudatory states were being harassed by feudal exactions and arbitary tax collection.

The unofficial State Enquiry Committee’s report on the condition of people in feudatory States provides sufficient explanation to the outbreak of Prajamandal MovementT impact of Congress movement of Non-Co-operation and Civil Disobedience, declared policy of the Congress party in support of people’s struggle in Garjat states, role of the enlightened people and convocation of Orissa State People Conference contributed to the mighty popular revolt in Garjat states. Thus the nature of misrule in feudatory states coupled with active support of Congress Party and role of intellectuals of the state resulted in Prajamandal Movement.