● Statement 1 is correct: Doctrine of Lapse - According to this doctrine, the adopted son could not be the heir to the state owned by his foster father. His claim was limited to his private property only. The decision of inheritance was dependent on the paramount power (the British). The doctrine was justified by a claim that it is based on Hindu law and Indian customs, despite Hindu law being inconclusive on this point. Such annexation of the vassal by the sovereign was rare in Indian tradition. ● Statement 2 is correct: Under this doctrine 7 states including Satara (1848), Jhansi, and Nagpur (1854), Jaitpur (Bundelkhand), Sambhalpur (Orissa), and Baghat (Himachal Pradesh) were annexed under the Doctrine of Lapse.