State and Government in Ancient India c18.s1.94

c18.s1.94

South Indian inscriptions show that the village councils used to transact business as bankers as well. They used to receive perpetual deposits and guarantee the utilisation of their interest according to the desires of the donors.³ They used to capitalise the value of the government tax of a particular land and make it tax-free on receiving its capitalised value, arranging to pay the tax out of the interest annually accruing. It was always understood that the obligations undertaken on such occasions were binding on the *sabhā* in its corporate capacity, though its membership may change. We have an interesting case of the temple authorities at Uttaramerur demanding in 1215 A.D. the fulfilment of certain of obligations, which the *sabhā* had undertaken three centuries earlier, but which had not been carried out for some time. The *sabhā* readily recognised its responsibility and gave fresh undertaking to meet its obligation, though on a somewaht reduced scale.¹