Step 1: Understanding the Concept:
The question asks to identify the incorrect reason for why many zamindars defaulted on their revenue payments to the East India Company after the implementation of the Permanent Settlement in 1793.
Step 2: Detailed Explanation:
Let's analyze the reasons for the defaults:
(1) The initial demands were very high: This is a well-established reason. The Company fixed the revenue at a very high level to maximize its income, making it difficult for zamindars to pay. This is a valid reason.
(3) High demand was imposed at a time when the prices of agricultural produce were depressed: This is also true. At the time of the settlement, agricultural prices were low, reducing the income of the ryots and making it harder for zamindars to collect the fixed high revenue. This is a valid reason.
(4) The revenue was invariable... and had to be paid punctually: This refers to the "Sunset Law," which stipulated that if the payment did not come in by sunset of the specified date, the zamindari would be auctioned. This inflexibility was a major cause of default. This is a valid reason.
(2) The zamindars' were allowed to organise troops...: This statement is false. In fact, the opposite was true. The Permanent Settlement severely restricted the power of the zamindars. Their troops were disbanded, their local courts (\textit{cutcheries}) were brought under the supervision of the Company's Collector, and their power of local justice and police was taken away. This reduction in their authority made it even more difficult for them to assert pressure on the ryots to collect the revenue. Therefore, this was a cause of their problems, not something they were "allowed" to do to increase their authority.
Step 3: Final Answer:
The statement that is not a reason for default (and is factually incorrect) is that zamindars were allowed to organize troops and cutcheries to increase their authority.