Although it is well known that the colonial state embarked upon creating a “rule of property” in India from the eighteenth century onward, the manner in which this project unfolded in early East India Company settlements such as Bombay was different from the territories that only later came under British control. In the latter, a confident and assertive colonial state executed its agenda; in the former, a tentative Company was concerned initially with asserting its sovereignty by asserting that all the land in Bombay belonged to it. In cities like Bombay, thus, a deep and enduring tension lay at the heart of the rule of property: between a state that endorsed a liberal vision sanctifying private property, on the one hand, and a state that jealously guarded its proprietary rights over lands, on the other hand. This tension was deployed by state and nonstate actors to pursue their own ends.