Which one of the following statements is not true about Ijarah system

Which one of the following statements is not true about Ijarah system ?

It was a system of revenue farming.
It encouraged the role of middlemen.
Under this system, land revenue was fixed for the peasant.
The ijaradar paid a fixed amount to the State treasury.
This question was previously asked in
UPSC NDA-2 – 2019
The correct option is C) Under this system, land revenue was fixed for the peasant.
The ijarah system (revenue farming) involved leasing out the right to collect land revenue to the highest bidder (ijaradar) for a fixed amount. The ijaradar then collected revenue from the peasants. The amount collected by the ijaradar from the peasants was not fixed by the state; it was often maximized by the ijaradar, leading to exploitation.
The ijarah system was primarily a feature of the Mughal administration, especially in later periods, and continued into the British era. It encouraged revenue maximization at the expense of peasant welfare and agricultural development and strengthened the position of intermediaries.