There was internal disturbance in Pondicherry and the British utilized this opportunity in August 1793 to gain Pondicherry under their control and it was administered as part of Madras till 1815. However, after the Treaty of Paris in 1814, the British restored the possession of the settlements, which the French possessed on 1.1.1792 back to the French in 1816. Since then the French rule continued till 31-10-1954.

Pondicherry helped in the freedom movement in British India since 1910. Sri Aurobindo Ghosh of Bengal came to Pondicherry in 1910 followed by patriots like Poet Subramania Bharathi, V.V.C Iyer and others. In 1918, the British demanded the extradition of Sri Aurobindo Ghosh and other freedom fighters. The French government did not comply with this.

The father of the nation Mahatma Gandhi visited Pondicherry in 1934 and Jawaharlal Nehru in 1939.

With India becoming independent in August 1947, the citizens of French India hoisted Indian national flag all over the French settlements. The Jaipur session of Indian national Congress passed a resolution for peaceful merger of PONDICHERRY with mother India. The Indo French agreement of June 1948 was signed and the French gave freedom to the French Indian population to choose their political status by a referendum. While Chandernagar merged with India on the basis of referendum, Pondicherry could not enjoy that facility because of different system and practice of elections. On 23rd March 1954, Nettapakkam and Madukarai areas were liberated and a French India Liberation government was set up on 16.5.1954.

As per the understanding reached between the Governments of India and France, the question of merger of Pondicherry with Indian Union was referred to the elected representatives of the people for decision in a secret ballot on 18.10.1954, 170 out of 178 elected representatives favored the merger. This is de facto transfer of power took place on 1.11.1954 and de jure-transfer on 16.8.1962.