Why were the estates of the …

(a) Many zamindaris were auctioned because the zamindars failed to pay the revenue demand on time. This was because the initial demands were very high.
(b) Moreover this high demand was imposed at a time when prices of agricultural produce were depressed making it difficult for the ryot to pay their duces to the zamindar.
(c) Thirdly revenue had to be paid punctually regardless of the harvest. According to the Sunset law if the zamindar did not pay by sunset of the specified date his estate was likely to be auctioned.
(d) Initially the Permanent Settlement limited the power of the zamindar to exploit the peasantry and also reduced his powers. His troops were disbanded, custom duties were abolished and their power to meet out local justice was curbed.
(e) This made it difficult for him to assert his power over the peasants and jotedars to ensure timely payment. Rent collection remained a perennial problem. Sometimes the ryots and jotedars deliberately delayed payment to get the zamindar into trouble. This delayed the zamindar’s payment to the state and often led to his zamindari being auctioned.