- Statement 1 is correct: The Mahalwari system was indeed a modified version of earlier land revenue systems. It differed from the Permanent Settlement and Ryotwari system, incorporating elements but with a focus on the village (mahal) as the unit of assessment. It was introduced in regions like the North-Western Provinces. - Statement 2 is incorrect: In the Mahalwari system, the land revenue was not fixed permanently. The revenue demand was assessed periodically, typically for 20 to 30 years, and subject to revision. The assessment was based on the estimated produce of the entire village or mahal.