Administrative Relations

• Based on the allocation of legislative powers, the executive power has been shared between the centre and the states.
• On matters over which it has exclusive jurisdiction (union list), as well as the exercise of rights, authority, and jurisdiction conferred on it by any treaty or agreement, the centre’s power extends to the entire country.
• The state’s jurisdiction extends to the topics included in the state list.
• The executive power in matters relating to the concurrent list is vested in the states.
• States’ obligations to the centre:
  • The executive power of the state must be exercised in such a way that the laws passed by Parliament are followed.
  • And not to obstruct or prejudice the exercise of a state’s executive power.
• These instructions are coercive (Article 365), as any failure to follow them could result in the employment of Article 356.
• The Centre has been given the authority to give states guidance in the following situations:
  • Construction and maintenance of communication systems that the government has determined to be of national or military importance.
  • Measures to be done to ensure the safety of the state’s railways
  • Provision of suitable facilities for instruction in the mother language to students from linguistic minority groups at the primary level of school
  • The development and implementation of specific plans for the welfare of the ST in the various states.
• Article 365’s coercive sanction behind central directives is also relevant in this scenario.
• Mutual delegation of functions: The constitution allows for intergovernmental delegation of executive powers to reduce rigidity and avoid a deadlock situation.
  • The president may assign the executive duties of the union to the state government with the permission of the state government.
  • With the agreement of the federal government, the governor may assign the state’s executive functions to the union.
  • This mutual delegation may be conditional or unconditional.
  • The constitution also allows the state to delegate executive powers to the union without the state’s permission. However, Parliament, not the President, makes such delegations. However, a state’s executive power cannot be delegated in the same way.
• Cooperation between the centre and the states: To ensure cooperation and coordination between the centre and the states, the following provisions have been incorporated.
  • Any disagreement or complaint relating to the usage, distribution, and control of waters of any interstate river and river valleys can be adjudicated by Parliament.
  • The President has the authority to form an Inter-state council to research and discuss issues of mutual interest between the centre and the states.
  • Public acts, records, and judicial processes of the centre and each state are to be granted full faith and credit throughout India.
  • Parliament has the authority to appoint an appropriate authority to carry out the constitutional provisions relating to interstate trade, commerce, and intercourse.

All India Services

• Indian Administrative Service (IAS) and Indian Police Service (IPS) succeeded the colonial Indian Civil Service (ICS) and Indian Police (IP) in 1947.
• The Indian Forest Service (IFS) was established in 1966 as the country’s third all-India service.
• Article 312 of the Indian constitution empowers Parliament to establish an all-India service if the Rajya Sabha passes a resolution to that effect.
• These three services combine to form a unified service with common rights and status, as well as pay schedules that are consistent across the country.
• Importance of All India Services
  • Assist in maintaining a high level of administration in both the federal government and the states.
  • Assist in ensuring that the administrative system is uniform across the country.
  • They improve interaction, cooperation, coordination, and joint action between the centre and the states on problems of mutual interest.

Public Service Commission

The following are the centre-state relations in this field:

• The governor appoints the chairman and members of the state public service commission, but they can only be fired by the President.
• If two or more states request it, Parliament might create a combined public service commission; in such circumstances, the President picks the chairman and members of the state public service commission.
• On the request of the governor and with the President’s consent, UPSC can assist the state public service commission.
• The UPSC aids states in developing and implementing joint recruitment strategies for any services that need candidates with particular qualifications.

Integrated Judicial System

• Despite India’s dual polity, an integrated judicial system has been established.
• This single judicial system is responsible for enforcing both federal and state laws.
• The President of India, in collaboration with the Chief Justice of India and the governor of the state, appoints the justices of a high court. The President has the authority to remove or transfer them.
• The establishment of common high courts for two or more states has been allowed by Parliament.

Relations During Emergency

• During a national emergency, the centre can give state instructions on any subject.
• The president can assume the functions of the state government and the powers conferred by the governor or any other executive authority in the state during his presidency.
• During a financial emergency, the centre can order states to follow financial propriety canons, and the President can issue other essential directives, such as reducing the wages of state employees and high court judges.

Financial Relations

Allocation Of Taxing Powers

• Parliament has sole authority to collect taxes on the subjects listed in the Union list.
• The state legislature has sole authority to levy taxes on the subjects listed in the state list.
• Both the union and the state have the authority to charge taxes on the items included on the concurrent list.
• The Parliament has the residuary power of taxing.

The restriction placed by the constitution on taxation power of the state

• A state legislature has the authority to tax professions, trades, callings, and occupations. However, no single person’s total annual payment should exceed Rs 2500.
• Taxes on the sale or purchase of products can be imposed by a state (other than a newspaper). However, the state’s ability to levy a sales tax is limited by four factors:
  • There can be no tax on sales or purchases made outside of the states.
  • No tax can be levied on sales or purchases made during the import or export process.
  • In the course of interstate trade and commerce, no tax can be imposed on the sale or purchase.
  • A tax levied on the sale or purchase of commodities recognized by the Parliament to be of special importance in interstate trade and commerce is subject to the Parliament’s limits and requirements.
  • The state cannot levy a tax on the sale of electricity if it is consumed by or sold to the centre, or if it is consumed in the construction, maintenance, or operation of any railway by or sold to the railway company for the same purpose.
  • A state can levy a fee on water or power sold to an interstate river authority constituted by Parliament to governor develop the river. Such imposition, on the other hand, can be carried out by a statute that has acquired the President’s consent.

Distribution Of Tax Revenues

• The centre imposes taxes, but the state collects and appropriates them (Article 268). The proceeds from this are deposited in the state’s consolidated fund. Stamp duty, for example, and excise duty
• The federal government levies and collects taxes, while the states are responsible for collecting them (article 269). Taxes on the sale or purchase of items (other than newspapers) in interstate commerce are an example. The proceeds from this are deposited in the state’s consolidated fund.
• Taxes are levied and collected by the federal government, but they are split between the federal government and the states (Article 270). All taxes, excluding those stated above, surcharges, and cess, fall into this group. The President decides on how these taxes are distributed based on the Finance Commission’s recommendation.
• The surcharges on taxes and levies alluded to in Articles 269 and 270 can be imposed by Parliament at any time. Surcharge proceeds are directed solely to the centre.
• State-imposed, collected, and retained taxes include: These are the taxes that are solely the responsibility of the states. In the state list, they are listed. Taxes on agricultural income, alcohol excise duty, taxes on professions, ceilings, and so on.

Distribution Of Non-tax Revenues

• The centre: The following are the main non-tax revenue streams for the centre:
  • Postal and telegraph services;
  • Railroads
  • Banking
  • Broadcasting
  • Coinage and currency
  • Central public sector enterprise
  • Escheat and lapse.
• The following are the states: The following are the principal non-tax revenue streams for states:
  • Irrigation
  • Forests
  • Fisheries
  • State public sector enterprise
  • Escheat and lapse.
• Grants- in- Aid to the states:
  • The Constitution allows the state to receive grants-in-aid from the federal government. Statutory grants and discretionary grants are the two forms of grants-in-aid.

Statutory grants:

• • Article 275 of the Constitution authorizes the parliament to offer grants to states in need of financial help, rather than to all states.
  • For different states, these sums may differ. Every year, these funds are charged to India’s Consolidated Fund.
  • These are distributed to the states depending on the Finance Commission’s recommendations.

Discretionary grants:

• Both the centre and the states are empowered under Article 282 to issue any grants for any public purpose, even if it falls outside of their legislative jurisdiction.
• The centre is under no duty to provide these grants, and the decision is entirely up to it.

Other grants

• • The Constitution allowed for a one-time donation for a specific purpose. For example, grants instead of export duties on jute and jute products for the states of Assam, Bihar, Odisha, and West Bengal.
  • Based on the Finance Commission’s suggestion, these grants were to be distributed for ten years from the start of the constitution.

Important Recommendations On Centre – State Relations

Administrative Reforms Commission

• Article 263 of the constitution mandates the formation of an inter-state council.
• Appointment of governors with extensive public service experience and nonpartisan attitudes
• States have been given the most power.
• More financial resources should be transferred to the states to lessen their reliance on the federal government.
• Deployment of central armed forces in states at their request or on their initiative.
• The Rajamannar committee, which was constituted by the Tamil Nadu government, offered several recommendations to remedy the power imbalance between the centre and the state.
• Punjab made similar proposals to resolve these disparities in the Anandpur Sahib Resolution, while West Bengal made similar recommendations in a memorandum.
• In 1983, the government established the Sarkaria Commission and in 2007, the Punchhi Commission to assess the situation of center-state relations.

Sarkaria Commission Recommendation

• Setting up a permanent inter-State Council
  • Article 356 should only be utilized when necessary.
  • It is necessary to strengthen the institution of all-India service.
  • The parliament should retain residuary power.
  • When the President vetoes state bills, the reasons should be revealed to the states.
  • The Centre should have the right to deploy its armed forces without the approval of the states. It is desirable, however, that the states be consulted.
  • The procedure for consulting the chief minister when appointing the state government should be spelled out in the constitution.
  • Governors should be allowed to finish their five-year terms.
  • The position of Commissioner for Linguistic Minorities should be filled.

Punchhi Commission

• Governors are given a five-year tenure and are removed through the impeachment procedure.
• In subjects entrusted to the states, the Union should use the utmost caution in establishing Parliamentary primacy.
• It stipulated several requirements to be considered when appointing governors:
  • He should be well-known in some fields.
  • He should be a non-resident of the state.
  • He should be a non-political figure who is not involved in local politics.
  • He should not have been involved in politics in the recent past.
• The government should be given a five-year term limit.
• The procedure for impeachment of the president could be extended to governors as well.
• The Governor should insist on the Chief Minister demonstrating his majority on the floor of the House, and he should set a time restriction for this.
• When deciding situations involving the President’s rule, keep the Bommai case rules in mind.
• The Inter-State Council should be used more frequently to promote center-state cooperation.

Financial Relation Between Centre And States – Constitutional Provisions

Article 268

• Article 268 deals with stamp duty levied by the Union but collected and distributed by the States.
• These taxes are not included in the Consolidation Fund of India and are allocated by the same state in which they are levied, so they do not contribute to the Indian Consolidation Fund.
• With the 88th amendment to the Constitution, a new provision 268 A was included in this article, which included the tax on services in its ambit, but it was again excluded by the 101st Amendment to the Constitution and the introduction of GST.

Article 269

• It is a tax levied on all interstate purchases, sales and transportation of goods, except those mentioned in section 269 A and in newspapers.
• Taxes are collected and collected by the central government but are distributed by the state governments. The tax levied under this clause is not included in the consolidated fund of India.

Article 269 A

The 101st Constitutional Amendment introduced a new provision 269A, which introduced a number of significant changes.

Article 269A (1) mainly deals with the following aspects:

Taxation and collection of tax on goods and services (GST).

• This is applicable in the case of Inter-state trade or commerce.
• The collected taxes will be distributed between the states and the Union.
• Parliament has the power to pass legislation on the distribution of taxes levied in accordance with this article, in accordance with the recommendations of the GST Council.
• Goods and Services Tax (GST) on supplies in interstate trade or commerce levied and collected by the Center; however, this fee is divided between the Center and the states, as in manner provided by parliament in accordance with the recommendations of the GST Council.
• Parliament is also empowered to develop guidelines for where and when the supply of goods or services, or both, takes place in the course of interstate trade or commerce.

Article 270

• Taxes are collected and levied by the Center, but are allocated between the Center and the states (Article 270).

This category includes all taxes and levies mentioned in the List of the Union, with the exception of the following:

• Duties and taxes are referred to in Article 268, 269 and 269 A.
• Surcharges on taxes and duties referred to in Article 271.
• Any levies received for specific purposes.
• The 101st Amendment added two new sub-clauses, Section 270 (1A) and 270 (1B) under this Article. The tax allocated between the Center and the state was revised after the introduction of the GST.

Article 271

• Parliament has the right to increase taxes or duties at any time by introducing additional charges, except in the case of the goods and services tax referred to in section 246A.
• All income generated from surcharges will be part of India’s consolidated fund. Taxes will be withheld by Parliament and will not be shared between states.

Distribution Of Non-tax Revenues

1. The Centre – receipts from Posts & telegraphs, Banking Railways, Broadcasting, Coinage & currency, Escheat & lapse.
2. The States – receipts from Irrigation, Forests, Fisheries, State PSE, Escheat & lapse

How States Get Grant-in-aids From The Centre?

• In addition to the distribution of taxes between the Center and the states, there are several provisions in the Constitution that regulate the scope for Grants-in-aid.
• In accordance with Article 275 and 282, Parliament may provide grants-in-aid from the Consolidation Fund of India to such states as they needed assistance, especially to improve the welfare of the tribal areas, including a special grant to Assam.

Statutory Grants

• Statutory grant is provided in Article 275 of the Indian Constitution.
• Parliament provides these grants to specific states that need assistance.
• This article sets different grants for different states.
• Amount transferred from India Consolidated Fund.
• There are two conditions for granting aid to the states for any development plan approved by the Indian government for the benefit of the Scheduled areas and Scheduled tribes, with a particular focus on Assam.
• Any parliamentary regulation relating to Grants-in-aid as specified is subject to prior recommendation by the Finance Committee.

Discretionary Grants

• In accordance with Article 282, the Center may, at its discretion, provide assistance to certain states for public purposes.
• These Grants are optional, not compulsory in nature.
• The Center previously issued these grants on the recommendation of a planning commission.
• Moreover, during the period of the planning commission, the general discretionary grants were even higher than the statutory grants.

Other Grants

• Grants for a temporary period
• Grants provided in lieu of export duties on jute & jute products to the states of Assam, Bihar, W. Bengal & Orissa.
• Charged on Consolidated Fund
• Recommended by FC

Finance Commission – Article 280

• The Finance Committee, established in 1951 in accordance with article 280 of the Constitution.
• It mainly determines how income is distributed between the Center and the States.
• In addition, the Commission also determines the principles for grants-in-aids to states.
• Article 280 regulates the Finance Commission, a quasi-judicial body established by the President.

FC Recommends To The President:

• Allocation, Respective shares and Distribution of taxes among Centre and State.
• Principles that will guide Grants in Aid by the Center to the states.
• Measures necessary to increase the Consolidation Fund
• Any other issues proposed by the President

GST Regime – 101st Amendment to the Constitution

• Goods and Services Tax (GST) is an indirect tax introduced in India on July 1, 2017, and applied throughout India, replacing the tiered taxes levied by the central government and the state.
• It was passed as the Constitution (One Hundred and First Amendment) Act, 2016, following the passage of the 122nd Constitutional Amendment Bill.
• According to the GST, goods and services are taxed at the following rates: 0%, 5%, 12%, 18% and 28%.
• GST is classified as CGST, SGST, or IGST depending on whether the transaction is for intrastate or interstate delivery.

Protection Of Interest Of The States

To protect the interests of states in financial matters, the Constitution provides that the following bills may be submitted to parliament only on the recommendation of the president:

• A bill to introduce or replace any tax or duty in which the states are interested;
• A Bill to amend the meaning of the term “farm income” as defined for the purposes of the enactment relating to Indian Income Tax;
• A bill affecting the principle by which money is distributed or can be distributed among states; and
• A bill for the surcharge of any taxes or duty specified for the purposes of the Center.

Effects Of Emergencies

During National Emergency

• The President in National Emergency can order the suspension of all grants received by states from the Union.
• This suspension is, however, temporary and cannot exceed the period of the fiscal year in which the emergency declaration expires.

During Financial Emergency

• The financial relations of the centre-state change significantly in the event of a financial emergency under Article 360.
• In such cases, the Center becomes very powerful and exercises great control over countries, forcing them to comply with certain rules regarding financial property and providing other important guarantees.

The Central government can issue the following directives to the state:

• Comply with special provisions on financial assets;
• Reduce salaries and allowances for all categories of people working in the state, including high court judges.
• To reserve all money bills and other financial bills for consideration by the President.

National Integration Council

• National integration is important under the history of India as India is a country where almost 3000 castes are found. National integration is the process where the council always focuses on maintaining equality in the massive caste, religion diversification. The council also addresses and helps to resolve the problems arising from casteism, regionalism, and communalism.The then Prime Minister, Shri Jawaharlal Nehru, convened National Integration Conference in September-October, 1961 to find ways and means to combat the evils of communalism, casteism, regionalism, linguism and narrow-mindedness, and to formulate definite conclusions in order to give a lead to the country. In further discussion, the overview of the “National Integration Council” of India such as the role and responsibilities, and objective of the NIC (“National Integration Council”) is given. It will be helpful to provide a glance at India’s caste system and diversity of religion and different communities.

National integration

• National Integration is a council that is primarily ruled by the central government of India under the prime minister’s governance. The NIC (“National IntegrationCouncil”) of India was formed in the year 1961with the membership of 147. The chairman of the national integration council is the prime minister of India and the central government acts as an advisory body. It was proposed in 1961 after the assembly conducted by Jawaharlal Nehru, then the prime minister of India. The members of the National Integration council include firstly different government bodies such as cabinet ministers, chief ministers, and leaders of opposition parties. Apart from these members the NIC also includes media heads, renowned entrepreneurs of the country, and some celebrities. As mentioned earlier the basic purpose of the NIC (“National Integration Council”) is to identify and resolve the problem regarding the casteism, regionalism, and communalism system of India.

Role of National integration

• The basic role of the national integration council is to make the novice understand the policy and the activity related to the policy. It was aimed to give value to the cultural heritage of India by maintaining unity. The national integration council aims to promote national integration amid the Indian society by performing several activities. These activities generally include quiz competitions, cultural presentations, programs related to state awareness, and debates. Apart from all these programs the council also provides explanations through practical exhibitions on the way the national integration council works.The National Integration Council (NIC) has recently been reconstituted and the meeting of the reconstituted NIC under the Chairmanship of the Prime Minister was held on 23rd September, 2013. The NIC discussed the following issues in detail:-

• Communal Harmony- Measures to promote communal harmony, measures to prevent communal disturbances, role of social networking sites to promote national integration, tackling hate propaganda.

• Confidence building measures to tackle communal disturbances, tackling communal situations, taking help from all sections of society in removing communal tension.

• Safety and security of women.

• Measures to tackle crimes against SCs/STs, positive intervention and proper implementation of development schemes, laws relating to SCs/STs, associating all sections of society in removing inter-caste tension.

The objective of national integration council

The council of national integration declared its goals and objectives in its first meeting held in 1968. The council of national integration primarily sets its objective not to stand with any internal conflict against religious freedom, any injustice in the political, economic, and social things. More specifically the objectives of national integration have mentioned below:

• To prevent the society from any violent approach by discouraging the misleading elements, regional hostility, and communal malice.

• To implement such policies and principles to maintain the harmony for which the country will stand together.

• National integration also helps to unite the constructive forces of the country to intend national unity. It also provides encouragement, solidarity, and articulation of the leadership in the country.

• National integration also helps to formulate appropriate community activities and programs to bring peer-to-peer sentiment. It also emphasizes the privileges of common citizenship.

• It aims to increase the standard of national life.

Importance of national integration

Apart from the terminology, conceptually national integration is also important. Especially for a diverse country like India, providing proper knowledge on national integration is important as it helps to develop a sense of unity. National integration also helps to build common citizenship among the people of the country. Overall national integration is an educational process that helps the government to develop a sense of loyalty to the country. It also helps to unite the countrymen and the feeling of cohesion by the people and solidarity. Proper teaching of national integration also helps to build all these above-mentioned factors psychologically in the society and its people belonging from different cultural backgrounds.

Inter – State Relations

For ensuring harmonious relations and close cooperation between the Centre and the states the Constitution makes the following provisions with regard to inter-state relations –

• Adjudication of inter-state water disputes
• Coordination through inter-state councils
• Mutual recognition of public acts, records and judicial proceedings.
• Freedom of inter-state trade, commerce and intercourse

In addition to above arrangement, the zonal councils have been established by the Parliament to promote inter-state cooperation and coordination.

Inter – State Water Disputes – Article 262

• Water sharing is one of the most contentious issues in Indian federal political setup which has time and again challenged the principle of cooperative federalism.
• Water is in the State List, however Central government has the power to regulate and develop inter-state rivers and river valleys.
• 262 for the adjudication of inter-state water disputes makes two provisions:

1. 1. Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution and control of waters of any inter-state river and river valley.
   2. Parliament may also provide that neither the Supreme Court nor any other court is to exercise jurisdiction in respect of any such dispute or complaint.

The very first inter-state water disputes tribunal was the Krishna Water Disputes Tribunal formed in 1969. The states involved were Karnataka, Andhra Pradesh and Maharashtra.

Constitutional Provisions To Solve Water Disputes

Reasons for Rising River Disputes

• Demographic factor– Increasing population in the river basin
• Changes in agriculture patterns as farmers are now shifting towards water-intensive crops such as paddy and sugarcane.
• Climate and geographical factors – A study in 2011 had predicted that climate change might cause a reduction of up to 50 per cent in the waters of the Cauvery sub-basins by 2080.
• Uneven distribution of water resources along with increasing Rainfall variability and frequent droughts.
• Disputes due to bifurcation of states – Once Telangana came into existence in 2014, the Godavari water and the Polavaram project became the bone of contention.
• Political factors– Regional political forces have grown stronger and assertive with the growing nexus between water and politics have transformed the disputes into turfs of vote bank politics.

Issues in Inter – State Water Disputes 

1. Issues in Resolution of Water dispute

• • Historical – The dispute over sharing Cauvery’s water is over a century old. It first cropped up between the princely state of Mysore (now Karnataka) and the Madras Presidency (now Tamil Nadu).
  • 262, bars the jurisdiction of the Supreme Court or any other court over interstate water disputes. However SC using its power of Special Leave Petition (Art. 136) accepts the petitions hence resulting in pending litigations.
  • In the times of coalition politics and assertive regional political forces, the Central government’s mediation for resolution becomes difficult.
  • Non-compliance of tribunal awards by States is the critical weak link in dispute resolution, which may persist even when a permanent tribunal exists.

2. Issues with the present Inter State River Water Dispute Act, 1956:

• • A separate Tribunal has to be established for each Inter State River Water Dispute.
  • Inordinate delay in securing settlement of such disputes. Tribunals like Cauvery and Ravi-Beas have been in existence for over 26 and 30 years respectively without any award. There is no time limit for adjudication. In fact, delay happens at the stage of constitution of tribunals as well.
  • No provision for an adequate machinery to enforce the award of the Tribunal.
  • Issue of finality – In the event of the Tribunal holding against any Party, that Party is quick to seek redressal in the Supreme Court. Only three out of eight Tribunals have given awards accepted by the States.
  • Control over water is considered a right which has to be jealously guarded. Compromise is considered a weakness which can prove politically fatal.
  • The Act gives no indication of the principles that have to be applied by the tribunal in deciding water disputes.
  • There is no age limit for the chairperson or members of the tribunals.

Features of Inter – State River Water Disputes (Amendment) Bill ,2017

• Dispute Resolution Committee (DRC) – to be established by the Central Government before referring dispute to the tribunal, to resolve the dispute amicably by negotiations within a period of one year extended by 6 months.
• Single Tribunal instead of existing multiple tribunals.
• It provides for the appointment of Assessors to provide technical support to the tribunal. They shall be appointed from amongst experts serving in the Central Water engineering Service not below the rank of Chief Engineer.
• Timeline – The tribunal should settle a dispute in four-and-a-half years.
• Finality – The decision of the Tribunal shall be final and binding.
• Data Collection and maintenance of a data-bank at national level for each river basin by an agency to be appointed and authorized by central government.

Composition of Tribunal– Tribunal shall have one chairperson, one vice-chairperson and not more than six other members. It limits the tenure of the chairperson to five years or till they attain the age of 70, whichever is earlier. The term of office of Vice Chairperson and other member of tribunal shall be co- terminus with the adjudication of the water dispute.

Issues in the Inter – State River Water Disputes (Amendment) Bill ,2017

• Benches of Permanent Tribunals are proposed to be created as and when need arise. Thus it is not clear how these temporary benches will be different from present system.
• The Supreme Court had said that it can hear appeals against water tribunals set up under ISWDA, thus delaying the judicial proceedings.
• Institutional mechanism to implement tribunal’s award is still mired in ambiguities and uncertainties.

Suggestions and Way Forward 

• Inter-State Council (ISC) can play a useful role in facilitating dialogue and discussion towards resolving conflicts.
• River Basin Organization (RBOs) – can be set up under River Boards Act 1956 to regulate and develop inter-state rivers and their basins.
• Moving towards mediation – Mediation is a flexible and informal process and draws upon the multidisciplinary perspectives of the mediators.
• Supply Side Management – Many scholars have argued that augmenting the water supply might be one way of dealing with such issues.
• Declaration of Rivers as National Property – which may reduce the tendency of states which consider controlling of river waters as their right.
• Bringing water into concurrent list – as recommended by Mihir shah report where central water authority can be constituted to manage rivers. It was also supported by a Parliamentary Standing Committee on Water Resources.
• Institutional Model for inter-state water issues – The challenges of water-sharing in distress years remain because the country lacks institutional models for implementing inter-state river water awards. Thus, there is a need for a permanent mechanism to solve water disputes between states without seeking recourse to the judiciary.
• Interlinking of rivers – can help in adequate distribution of river water in the basin areas.
• Following 4Rs – There is a need to practice the concept of the 4Rs (Reduce, Reuse, Recycle, Recover) for water management in line to achieve goal 6 (Ensure access to water and sanitation for all) of the SDGs.
• Complying with National Water Policy – for rational use of water and conservation of water sources must be followed.

Cauvery Water Management Scheme (2018)

• Under the scheme, the Centre established Cauvery Water Management Authority (CWMA) and the Cauvery Water Regulation Committee (CWRC).

Functions of Cauvery Water Management Scheme

• To monitor the storage, apportion shares, supervise operation of reservoirs and regulate and control Cauvery water releases with the assistance of the CWRC.
• To regulate release of water by Karnataka, at the inter-state contact point at Billigundulu gauge.
• To determine the total residual storage in the specified reservoirs at the beginning of the water year (June 1 each year).
• Advise the states to take suitable measures to improve water use efficiency, by promoting micro-irrigation (drip and sprinkler), change in cropping pattern, improved agronomic practices, system deficiency correction and command area development.
• To take appropriate actions in case any party state defaults, it can also seek the help of the central government for implementation of the award.

Significance of Cauvery Water Management Scheme

• It is a permanent body under the Union Ministry of Water Resources and its decisions are final and binding on all the party States.
• The share of each state will be determined on the basis of the flows so assumed together with the available carry-over storage in the reservoirs.

An inter-State river like Cauvery is a ‘national asset’, and no State can claim exclusive ownership of its waters or deprive other States of their equitable share. – Supreme Court in Cauvery water dispute judgement

 Inter State Council – Article 263

• Inter-state council is constitutional body as 263 implies the establishment of an Inter-State Council to effect coordination between the states and between Centre and states.
• The PRESIDENT OF INDIA can establish such a council if at any time it appears to him that the public interest would be served by its establishment. President also can define the nature of duties to be performed by such a council and its organisation and procedure.
• It was set up for first time in 1990 through a Presidential order as per the recommendations of the Sarkaria Commission under the Ministry of Home affairs.
• The council is a recommendatory body on issues relating to inter- state, Centre-State and Centre–Union Territories
• The Council may meet at least thrice in a year. All questions are decided by consensus.
• Council is the most dynamic platform to discuss policies, strengthen the Centre-State relations and act as a bridge to the trust deficit between the Centre and the States.
• The functions of the council to enquire and advice upon inter-state disputes is complementary to the Supreme Court’s jurisdiction (Art. 131) to decide a legal controversy between the governments.
• Art. 131 – vests the SC with original jurisdiction over any dispute arising between the states or between the centre and state.

Significance of the  Inter State Council 

• Constitutional Backing – Unlike other platforms for Centre State cooperation, ISC has constitutional backing which puts the states on more solid footing.
• Cooperative federalism – In times of different political parties heading the Centre and  various states, the need for dialogue assumes a greater importance.
• Resolving disputes linked to state-state & centre-state
• Decentralized decision making – If the goal of a more decentralised polity, which needs interaction between various levels of government, is to be achieved, Interstate Council is a crucial first step.
• Makes governments more accountable – Given its status as a platform for dialogue and discussion, it makes the governments, both at centre and state level, more accountable for their actions.
• A safety valve – The council helps to bridge the trust deficit between the centre and the states. If not always a problem solver, it at least acted as a safety valve.
• Lack of other avenues – Other constitutional avenue

Sarkaria Commission and  Inter State Council 

• The Sarkaria Commission on Centre-State Relations (1983–88) made a pitch for the establishment of a permanent Inter-State Council (under Art. 263) of the Constitution.
• Commission recommended Inter-State Council must be called as the Inter-Governmental Council in order to differentiate from other bodies established under the same Art. 263.
• It recommended that the Council should be charged with the duties laid down in 263 (b) and (c).

Members of Inter State Council

The Janata Dal Government headed by V. P. Singh established the Inter-State Council in 1990.

1. Prime minister à Chairperson
2. Chief ministers of all the states
3. Chief ministers of UTs having legislative assemblies à Delhi + Puducherry + J&K
4. Administrators of UTs not having legislative assemblies
5. Governors of States under President’s rule (Art. 356)
6. Six Central cabinet ministers, (to be nominated by the Prime Minister).

Five Ministers of Cabinet rank / Minister of State (independent charge) nominated by the Chairman are permanent invitees to the Council.

Standing Committee of Inter State Council

• Standing Committee of the Council was set up in 1996 for continuous consultation and processing of matters for the consideration of the Council.
• Members of standing committee:

1. Chairmanship – Union Home minister
2. Five Union Cabinet Ministers
3. Nine Chief Ministers

• Functions of standing committee:

1. To monitor the implementation of decisions taken on the recommendations of the Inter-state Council
2. To process all matters relating to Centre-State Relations before they are taken up for consideration in the Inter-State Council.
3. To consider any other matter referred to it by the Chairman/Inter-state Council.

The Council is assisted by a secretariat (set-up in 1991) called the Inter-State Council Secretariat. It is headed by a secretary to the GoI. Since 2011, it is also functioning as the secretariat of the Zonal Councils.

Issues with Inter State Council

• Non-binding nature of advice of the council
• Lack of regular meetings among members states – recently Inter-State Council met after a gap of 10 years.
• Council lacks deliberation on socio-economically important topics such as poverty alleviation, health, education, SDG implementation at states level.
• No representation to the civil society, NGOs and experts from corporate and academic streams in the Council.
• Secretariat at Union Home Ministry and chairmanship of Union Home Minister gives perception of biasness.
• It is seen as a mere arm-chair discussions without any substantial outcome.
• Despite the constitutional backing to ISC (unlike the NITI Aayog) its potential is unutilized ad importance is underrated.

Ways to Strengthen Inter State Council

• It should be strengthened as a forum for not just administrative but also political and legislative give and take between centre and states.
• ISC should provide wider representation to civil society institutions, NGOs, corporate sector and domain experts to make their representations.
• Council should have experts in its organizational set up drawn from the disciplines of Laws, Management, finance and economics, political Science besides the All India Services cadre.
• Exploring possibility of shifting its secretariat from the Union Home Ministry to the Rajya Sabha secretariat to impart neutral federal character to the ISC.
• The Vice-President of India should be made chairperson of council rather than the Union home minister.
• The ISC must meet at least thrice in a year on an agenda evolved after proper consultation with States – Punchhi commission

Suitable amendments to Article 263 are required to make the Inter-State Council a credible, powerful and fair mechanism for management of interstate and Centre-state differences – Punchhi commission on Centre-State relation (2007)

There should be a continuing auditing role for the Inter-state Council in the management of matters in concurrent or overlapping jurisdiction. — Punchhi commission on Centre-State relation (2007)

Public Acts , Records and Judicial Proceedings 

• Under the Indian Constitution, the jurisdiction of each state is confined to its own territory.
• It is possible that the acts and records of one state may not be recognised in another state.
• To remove any such difficulty, the Constitution contains the “Full Faith and Credit” clause which lays down the following:

Inter – State Trade and Commerce (Article 301)

• spanning from 301 to 307 (Part XIII) of the Constitution deal with the trade, commerce and intercourse within the territory of India.
• 301 à declares that trade, commerce and intercourse throughout the territory of India shall be free.
• 301 aimed at breaking down the border barriers between the states and to create one unit with a view to encourage the free flow of trade, commerce and intercourse in the country.
• The freedom under Art. 301 also extends to intra-state trade, commerce and intercourse.

Imposing restrictions at the frontier of any state or at any prior or subsequent stage will amount to violation of Art. 301

Limitations to the freedom guaranteed under Article 301

• Parliament can impose restrictions on the freedom of trade, commerce and intercourse between the states or within a state in public interest.
• Parliament cannot give preference to one state over another or discriminate between the states except in the case of scarcity of goods in any part of India.

For example, the Parliament has made the Essential Commodities Act (1955) which enables the Central government to control the production, supply and distribution of certain essential commodities like petroleum, coal, iron and steel and so on.

• The legislature of a state can impose reasonable restrictions on the freedom of trade, commerce and intercourse with that state or within that state in public interest. Such a bill can be introduced in the legislature only with the previous sanction of the President.
• Further, the state legislature can give preference to one state over another or discriminate between the states.
• The state legislature can impose any tax on goods imported from other states or the UTs to which similar goods manufactured in that state are subject. This provision prohibits the imposition of discriminatory taxes by the state.
• The freedom (under Art.301) is subject to the nationalisation laws (Laws providing for monopolies in favour of the Centre or the states).
• The Parliament or the state legislature can make laws for the carrying on by the respective government any trade, business, industry or service, whether to the exclusion, complete or partial, of citizens or otherwise.
• The Parliament can appoint an appropriate authority for carrying out the purposes of the above provisions relating to the freedom of trade, commerce and intercourse and restrictions on it.
• The Parliament can also confer on that authority the necessary powers and duties. However, no such authority has been appointed so far.
• In USA such authority is known as the Inter-State Commerce Commission.
• Steps should be taken for the setting up of an Inter-State Trade and Commerce Commission (under Art. 307) (Entry 42 of List-I). This Commission should be vested with both advisory and executive roles with decision making powers. As a Constitutional body, the decisions of the Commission should be final and binding on all states as well as the Union of India. Any party aggrieved with the decision of the Commission may prefer an appeal to the Supreme Court — Punchhi commission on Centre-State relation (2007)

Zonal Councils 

• The Zonal Councils are the statutory (Extra-constitutional) bodies and are established under States Reorganisation Act (1956) à Seventh Constitutional Amendment Act (1956)
• The act divided the country into five zones à Northern, Central, Eastern, Western and Southern and provided a zonal council for each zone.
• The zonal councils aim at promoting cooperation and coordination between states, UTs and the Centre.
• They are only deliberative and advisory bodies, recommendations are not binding.

The Seventh Amendment was needed to implement the recommendations of the States Reorganisation Commission (Constituted in 1953 and headed by Fazal Ali) regarding the reorganization of the states on a linguistic basis. It paved way for doing away with classification of states in A, B, C and D categories and introduced Union Territories. Andhra Pradesh (1 Oct. 1953) was the first state of Independent India formed on linguistic basis

Factors considered During Formation of Zonal Councils 

• Natural divisions of the country
• River systems
• Means of communication
• Cultural and linguistic affinity
• Requirements of economic development
• Security
• Law and order.

Composition of Zonal Councils 

1. Home minister of Union government – common chairperson of the five zonal councils
2. Chief ministers of all the States in the zone – each chief minister acts as a vice-chairman of the council by rotation, holding office for a period of one year at a time.
3. Two other ministers from each state in the zone.
4. Administrator of each UT in the zone.

Following persons can be associated with the Zonal Council as Advisors (without the Right to Vote)

1. A person nominated by the Planning Commission (Now NITI Aayog)
2. Chief secretary of the government of each state in the zone
3. Development commissioner of each state in the zone.

The Objectives of the Zonal Councils 

• To achieve an emotional integration of the country.
• To help in arresting the growth of acute state-consciousness, regionalism, linguism and particularistic trends.
• To help in removing the after-effects of separation in some cases so that the process of reorganisation, integration and economic advancement may synchronise.
• To enable the Centre and states to cooperate with each other in social and economic matters and exchange ideas and experience in order to evolve uniform policies.
• To cooperate with each other in the successful and speedy execution of major development projects.
• To secure some kind of political equilibrium between different regions of the country.
• To discuss and make recommendations regarding matters like economic and social planning, linguistic minorities, border disputes, interstate transport, and so on.

The Zonal Councils should meet at least twice a year with an agenda proposed by states concerned to maximise co-ordination and promote harmonisation of policies and action having inter- state ramification. The Secretariat of a strengthened Inter-State Council can function as the Secretariat of the Zonal Councils as well. — Punchhi commission on Centre-State relation (2007)

The zonal councils should be constituted afresh and reactivated to promote the spirit of federalism. —Sarkaria commission on Centre-state relations (1983)

Zonal Councils in India

North Eastern Council

• North-Eastern Council is a non-constitutional institution created by a separate statute of Parliament – North-Eastern Council Act of 1971.

Functions of North Eastern Council

• To formulate a unified and coordinated regional plan covering matters of common importance.
• To review from time to time the measures taken by the member states for the maintenance of security and public order in the region.
• It is the nodal agency for economic and social development of 8 North Eastern Region States.
• It is mandated to function as a Regional Planning Body for the North Eastern Region.
• While formulating the regional plans, it needs to give priority to schemes and projects, benefitting two or more States, provided that in case of Sikkim, the Council shall formulate specific projects and schemes for that State.

Recently in 2019, government decided to allocated 30% of the North-Eastern Council’s (NEC’s) budget for developing deprived areas.

Sikkim was added in 2002 as the eighth member of the North-Eastern Council.

Composition of North Eastern Council

• Ex-officio Chairperson – Union Home Minister
• Vice-Chairperson – Minister of State (Independent Charge), Ministry of DoNER
• Members – Governors and Chief Ministers of all the eight States and 3 members nominated by President.

Achievements of North Eastern Council

• NEPA – North East Police Academy set up at Shillong in 1978
• NEEPCO – North Eastern Electrical Power Corporation Ltd. set up at Shillong in 1976
• NERAMAC – North Eastern Region Agriculture Marketing Corporation in Guwahati established in 1982
• NERIST – North Eastern Regional Institute of Science & Technology, Itanagar, started in 1986
• RIPAN – Regional Institute of Paramedical & Nursing Sciences, Aizawl set up in 1995
• NERIWALM – North Eastern Regional Institute of Water and Land Management in Tezpur, Assam established in 1989
• RIMS – Regional Institute of Medical Sciences (RIMS), Imphal established in 1972
• NESAC – North Eastern Space Application Centre, Shillong established in in 1983
• BBCI – Bhubaneswar Boruah Cancer Institute established in 1974
• RIPSAT – Regional Institute of Pharmaceutical Science & Technology, Agartala, Tripura, established in 1979.
• CBTC – Cane & Bamboo Technology Centre in Guwahati established in 2004 for promoting cane & bamboo technology in the region.
• NETDC – North East Tourism Development Council in Shillong established in 2016 for promoting tourism in the region

 Provisions for Nagaland  ( Article 371 -A)

• The Acts of Parliament relating to the following matters would not apply to Nagaland unless the State Legislative Assembly so decides:

1. 1. Religious or social practices of the Nagas;
   2. Naga customary law and procedure;
   3. Administration of civil and criminal justice involving decisions according to Naga customary law; and
   4. Ownership and transfer of land and its resources.

• The Governor of Nagaland shall have special responsibility for law and order in the state so long as internal disturbances caused by the hostile Nagas continue.

1. 1. In the discharge of this responsibility, the GOVERNOR after consulting the Council of Ministers, exercises his individual judgment and his decision is final.
   2. This special responsibility of the Governor shall cease when the President so directs.

• The Governor has to ensure that the money provided by the Central Government for any specific purpose is included in the demand for a grant relating to that purpose and not in any other demand moved in the State Legislative Assembly.
• A regional council consisting of 35 members should be established for the Tuensang district of the state.

1. 1. The Governor should make rules for the composition of the council, manner of choosing its members, their qualifications, term, salaries and allowances;
   2. The procedure and conduct of business of the council;
   3. The appointment of officers and staff of the council and their service conditions; and
   4. Any other matter relating to the constitution and proper functioning of the council.

• For a period of ten years from the formation of Nagaland or for such further period as the Governor may specify on the recommendation of the regional council, the following provisions would be operative for the Tuensang district:

1. 1. The administration of the Tuensang District shall be carried on by the Governor.
   2. The Governor shall in his discretion arrange for equitable distribution of money provided by the Centre between Tuensang District and the rest of Nagaland.
   3. Any Act of Nagaland Legislature shall not apply to Tuensang district unless the Governor so directs on the recommendation of the regional council.
   4. The Governor can make Regulations for the peace, progress and good government of the Tuensang district. Any such Regulation may repeal or amend an Act of Parliament or any other law applicable to that district.
   5. There shall be a Minister for Tuensang Affairs in the State Council of Ministers. He is to be appointed from amongst the members representing Tuensang district in the Nagaland Legislative Assembly.
   6. The final decision on all matters relating to Tuensang district shall be made by the Governor in his discretion.
   7. Members in the Nagaland Legislative Assembly from the Tuensang district are not elected directly by the people but by the regional council.

Nagaland Women Reservation Issue

• This issue is related to patriarchy and men’s hegemony
• Because of this special provisions article, some central laws do not apply to the states.
• But Article 243T confers 33% reservations to women in the local body elections. (it was enacted through 73rd and 74th amendment act and it was supplemented by PESA act (local body extended to schedule area too).
• This reservation system is not any way relatable to customary rights of Nagas.
• So GOVT OF NAGALAND in 2006 enacted a law for 33% women’s reservation.
• BUT MEN OF NAGALAND said “Article 243T is ultra vires to Article 371A.

THE SC IN “NAGALAND MOTHERS ASSOCIATION CASE” HELD” 33% WILL BE GIVEN TO WOMEN AS ELECTION IS A MODERN CONCEPTS”.

 Provisions for Assam  ( Article 371 -B)

Under Article 371-B, the President is empowered to provide for the creation of a committee of the Assam Legislative Assembly consisting of the members elected from the Tribal Areas of the state and such other members as he may specify.

 Provisions for Manipur  ( Article 371 -C)

1. The President is authorized to provide for the creation of a committee of the Manipur Legislative Assembly consisting of the members elected from the Hill Areas of the state.
2. The President can also direct that the Governor shall have special responsibility to secure the proper functioning of that committee.
3. The Governor should submit an annual report to the President regarding the administration of the Hill Areas.
4. The Central Government can give directions to the State Government as to the administration of the Hill Areas.

 Provisions for Andhra Pradesh  ( Article 371 -D & 371 – E)

Articles 371-D and 371-E contain the special provisions for Andhra Pradesh. Under Article 371-D, the following are mentioned:

1. The President is empowered to provide for equitable opportunities and facilities for the people belonging to different parts of the state in the matter of public employment and education and different provisions can be made for various parts of the state.
2. For the above purpose, the President may require the State Government to organize civil posts in local cadres for different parts of the state and provide for direct recruitment to posts in any local cadre.
   He may specify parts of the state which shall be regarded as the local area for admission to any educational institution.
3. The President may provide for the establishment of an Administrative Tribunal in the state to deal with certain disputes and grievances relating to appointment, allotment or promotion to civil posts in the state.
4. The Tribunal is to function outside the purview of the State High Court. No court (other than the Supreme Court) is to exercise any jurisdiction in respect of any matter subject to the jurisdiction of the tribunal.
5. The President may abolish the tribunal when he is satisfied that its continued existence is not necessary.
6. Article 371-E empowers the Parliament to provide for the establishment of a Central University in the state.

 Provisions for Sikkim  ( Article 371 -F)

• The 36th Constitutional Amendment Act of 1975 made Sikkim a full-fledged state of the Indian Union.
• It included a new Article 371-F containing special provisions with respect to Sikkim. These are as follows:

1. 1. The Sikkim Legislative Assembly is to consist of not less than 30 members.
   2. One seat is allotted to Sikkim in the Lok Sabha and Sikkim forms one Parliamentary constituency.
   3. For the purpose of protecting the rights and interests of the different sections of the Sikkim population, the Parliament is empowered to provide for the:

• • • Number of Seats in the Sikkim Legislative Assembly which may be filled by candidates belonging to such sections; and
    • Delimitation of the Assembly constituencies from which candidates belonging to such sections alone may stand for elections to the assembly.

1. 4. The Governor shall have special responsibility for peace and for an equitable arrangement for ensuring the social and economic advancement of the different sections of the Sikkim population. In the discharge of this responsibility, the Governor shall act in his discretion, subject to the directions issued by the President.
   5. The President can extend (with restrictions or modifications) to Sikkim any law which is in force in a state of the Indian Union.

Why Article 371 – F is important for Sikkim

• Sikkim had its own laws and administrative units until 1975. Some strong SC JUDGEMENTS which makes 371F important for them-

1. C. Poudyal vs Union Of India on 10 February 1993

• • Sikkim has a reservation in State Legislative assembly for the religious institution (1 sangha seat) and for a particular tribe (12 Bhutia-Lepcha Seats).
  • RC Poudyal challenged this subsection (f) in supreme court stating that it violates the constitution of India, especially The Representation of the people act 1951.
  • Supreme court ruled that even if 371F conflicts with other features of the constitution, it will still be valid.

2. The State Of Sikkim vs Surendra Prasad Sharma on 19 April 1994

• • Surendra Sharma challenged Rule 4(4) of the Sikkim Government Establishment Rules, 1974, which deals with the appointment to service under the Government.
  • There is a provision that non- Sikkimese nationals may be appointed to govt jobs only when suitably qualified and experienced Sikkimese are not available.
  • He challenged that this is a violation of basic structure of constitution and fundamental rights. The court ruled that any existing law those were there before Sikkim became part of Union of India will remain valid.

 Provisions for Mizoram  ( Article 371 -G)

• The Acts of Parliament relating to the following matters would not apply to Mizoram unless the State Legislative Assembly so decides :

1. 1. Religious or social practices of the Mizos;
   2. Mizo customary law and procedure;
   3. Administration of civil and criminal justice involving decisions according to Mizo customary law; and
   4. Ownership and Transfer of land.

• The Mizoram Legislative Assembly is to consist of not less than 40 members.

 Provisions for Arunachal Pradesh & Goa   ( Article 371 -H)

Arunachal Pradesh

• The Governor of Arunachal Pradesh shall have special responsibility for law and order in the state. In the discharge of this responsibility, the Governor, after consulting the Council of Ministers, exercises his individual judgement and his decision is final.
• This special responsibility of the Governor shall cease when the President so directs.
• The Arunachal Pradesh Legislative Assembly is to consist of not less than 30 members.

Goa

• Article 371-I provides that the Goa Legislative Assembly is to consist of not less than 30 members.

 Provisions for Karnataka    ( Article 371 -J)

• Under Article 371-J, the President is empowered to provide that the Governor of Karnataka would have special responsibility for –

1. The establishment of a separate development board for Hyderabad-Karnataka Region.
2. Making a provision that a report on the working of the board would be placed every year before the State Legislative Assembly.
3. The equitable allocation of funds for developmental expenditure over the region.
4. The reservation of seats in educational and vocational training institutions in the region for students who belong to the region.
5. The reservation in State Government posts in the region for persons who belong to the region.

 History of  ( Article 371 -J) Karnataka

• The old Mysore state comprised most of the southern part of current Karnataka. This region has been since times have been ruled by the a very developed oriented rulers
• The Mysore state was reorganized in 1956 as Karnataka.
• Nizam of hydrabad had ruled the Kannad speaking regions of north Karnataka.
• So no one saw the grievances of north Karnataka and it remained backward.
• Since 1956 there was a divide between north and south and even north Karnataka has demanded a separate state.
• The present day North karnataka was part of Hyderabad.
• So to meet the development need of the people of hydrabad – karnataka region, the 98th constitutional amendment was made to add article 371 J.

The Hyderabad Karnataka Region Development Board

• The Hyderabad Karnataka Region Development Board was established on 06.11.2013.
• The jurisdiction of the Board is spread over 40 assembly constituencies (after the recent delimitation of constituencies) of Bidar, Bellary, Kalaburagi, Koppal, Raichur and Yadgir districts.
• The mission of the HKRDB is to achieve rapid inclusive growth and balanced regional development with social justice for the six districts coming under Hyderabad Karnataka Region.
• The vision is to achieve this through Macro and Micro level planning by filling the historical developmental gaps in such a way that the centres of growth and the peripheries develop in tandems and in an interdependent manner.
• The HKRDB has adopted the Taluka as a unit, taking guidance from the Dr. Nanjundappa Report on Redressal of regional Imbalance.

Emergency Provisions

A state of emergency in India refers to a period of governance that can be proclaimed by the President of India during certain crisis situations. Under the advice of the cabinet of ministers, the President can overrule many provisions of the Constitution, which guarantees Fundamental Rights to the citizens of India.

• The emergency provisions are contained in Part XVIII of the Constitution of India, from Article 352 to 360. These provisions enable the Central government to meet any abnormal situation effectively.
• The rationality behind the incorporation is to safeguard the sovereignty, unity, integrity and security of the country, the democratic political system and the Constitution.

The Constitution stipulates three types of emergencies-

1. National Emergency
2. Constitutional /  State Emergency / President Rule
3. Financial Emergency 

National Emergency

• National emergency can be declared on the basis of war, external aggression or armed rebellion. The Constitution employs the expression ‘proclamation of emergency’ to denote an emergency of this type.
• Grounds of declaration:
  • Under Article 352, the president can declare a national emergency when the security of India or a part of it is threatened by war or external aggression or armed rebellion.
  • The President can declare a national emergency even before the actual occurrence of war or armed rebellion or external aggression
  • When a national emergency is declared on the grounds of ‘war’ or ‘external aggression’, it is known as ‘External Emergency’. On the other hand, when it is declared on the grounds of ‘armed rebellion’, it is known as ‘Internal Emergency’.
    • This term ‘armed rebellion’ is inserted from the 44^th amendment. Before this term it was known as internal disturbance.
• Example:
  • If India and Pakistan openly accept that they will use armed forces against each other is simply war.
  • If there is no formal declaration that there will be armed forces used against a country is External aggression.
  • And if because of these two grounds an emergency is proclaimed as an external emergency.

• Parliamentary approval and duration
  • The proclamation of emergency must be approved by both the houses of parliament within one month from the date of its issue.
  • However, if the proclamation of emergency is issued at a time when the Lok Sabha has been dissolved or the dissolution takes place during the period of one month without approving the proclamation, then the proclamation survives until 30 days from the first sitting of Lok Sabha after its reconstitution, provided the Rajya Sabha has in the meantime approved it.
  • If approved by both the houses, the Emergency continues for 6 months and can be extended to an indefinite period with an approval of the Parliament for every six months.
  • Every resolution approving the proclamation of emergency or its continuance must be passed by either House of Parliament by a special majority.
• Revocation of proclamation
  • A proclamation of Emergency may be revoked by the President at any time by a subsequent proclamation. Such proclamation does not require parliamentary approval.
  • The emergency must be revoked if the Lok Sabha passes a resolution by a simple majority disapproving its continuation.
• Effects of national emergency
  • A proclamation of Emergency has drastic and wide-ranging effects on the political system. These consequences can be grouped into 3 categories:
    • Effects on the centre-state relations: While a proclamation of Emergency is in force, the normal fabric of the Centre-State relations undergoes a basic change. this can be studied under three heads:
      • Executive: Centre becomes entitled to give executive directions to a state on ‘any’ matter
      • Legislative: The parliament becomes empowered to make laws on any subject mentioned in the state list, the president can issue ordinances on State subjects also, if the parliament is not in session. The laws made on state subjects by the parliament become inoperative six months after the emergency has ceased to be in operation.
      • Financial: the president can modify the constitutional distribution of revenues between the centre and the states.
    • Effect on the life of the Lok Sabha and State Assembly:
      • While a proclamation of National Emergency is in operation, the life of the Lok Sabha may be extended beyond the normal term for one year at a time. However, this extension cannot continue beyond a period of six months after the emergency has ceased to operate.
      • Similarly, the Parliament may extend the normal tenure of a state Legislative Assembly by one year each time during a national emergency, subject to a maximum period of six months after the emergency has ceased to operate.
    • Effect on fundamental rights: Articles 358 and 359 describes the effect of a National Emergency on the Fundamental Rights. These two provisions are explained below:
      • Suspension of Fundamental rights under Article 19: According to Article 358, when a proclamation of National Emergency is made, the six fundamental rights under article 19 are automatically suspended. Article 19 is automatically revived after the expiry of the emergency.
        • The 44^th Amendment Act laid out that Article 19 can only be suspended when the National Emergency is laid on the grounds of war or external aggression and not in the case of armed rebellion.
      • Suspension of other Fundamental Rights: Under Article 359, the President is authorised to suspend, by order, the right to move any court for the enforcement of Fundamental Rights during a National Emergency. Thus, remedial measures are suspended and not the Fundamental Rights.
        • The suspension of enforcement relates to only those Fundamental Rights that are specified in the Presidential Order.
        • The suspension could be for the period during the operation of emergency or for a shorter period.
        • The Order should be laid before each House of Parliament for approval.
        • The 44 Amendment Act mandates that the President cannot suspend the right to move the court for the enforcement of Fundamental Rights guaranteed by Article 20 and 21.
• Declarations made so far: This type of emergency has been proclaimed three times so far- in 1962, 1971 and 1975
  • The first proclamation of National Emergency was issued in October 1962 on account of Chinese aggression in the NEFA and was in force till January 1968.
  • The second proclamation of National Emergency was made in December 1971 in the wake of the attack by Pakistan.
  • Even when the emergency was in operation, the third proclamation of National Emergency was made in June 1975. Both the second and the third proclamations were revoked in March 1977

President’s Rule

• Article 355 imposes a duty on the centre to ensure that the government of every state is carried on in accordance with the provisions of the constitution.
• It is this duty in the performance of which the centre takes over the government of a state under Article 356 in case of failure of constitutional machinery in a state.
• This is popularly known as ‘President’s Rule’.
• Grounds of imposition: the president’s ruler can be proclaimed under Article 356 on two grounds:
  • 1. Article 356 empowers the President to issue a proclamation if he is satisfied that a situation has arisen in which the government of a state cannot be carried on in accordance with the provisions of the constitution.
    2. Article 365 says that whenever a state fails to comply with or to give effect to any direction from the centre, it will be lawful for the President to hold that a situation has arisen in which the government of the state cannot be carried on in accordance with the provisions of the constitution.
  • Parliamentary approval and duration: A proclamation imposing president’s rule must be approved by both the houses of parliament within two months from the date of its issue.
    • However, if the proclamation of President’s rule is issued at a time when the Lok Sabha has been dissolved or the dissolution of the Lok Sabha takes place during the period of two months without approving the proclamation, then the proclamation survives until 30 days from the first sitting of the Lok Sabha after its reconstitution, provided that the Rajya Sabha approves it in the meantime
  • Consequences of the President’s rule: The President acquires the following extraordinary powers when the President’s rule is imposed in a state:
    • He can take up the functions of the state government and powers vested in the governor or any other executive authority in the state.
    • He can declare that the powers of the state legislature are to be exercised by the parliament.
    • He can take all other necessary steps including the suspension of the constitutional provisions relating to any body or authority in the state.
  • Scope of judicial review: The 38^th Amendment act of 1975 made the satisfaction of the President in invoking Article 356 final and conclusive which would not be challenged in any court on any ground.
    • But, this provision was subsequently deleted by the 44^th Amendment Act of 1978 implying that the satisfaction of the President is not beyond judicial review.

Financial Emergency

• Grounds of declaration: Article 360 empowers the president to proclaim a Financial Emergency if he is satisfied that a situation has arisen due to which the financial stability or credit of India or any part of its territory is threatened.
• Parliamentary approval and duration: A proclamation declaring financial emergency must be approved by both the Houses of Parliament within two months from the date of its issue.
  • However, if the proclamation of Financial Emergency is issued at a time when the Lok Sabha has been dissolved or the dissolution of the Lok Sabha takes place during the period of two months without approving the proclamation, then the proclamation survives until 30 days from the first sitting of the Lok Sabha after its reconstitution, provided the Rajya Sabha has in the meantime approved it.
    • Once approved by both the houses of Parliament, the Financial Emergency continues indefinitely till it is revoked.

Effects of Financial Emergency

• Extension of the executive authority of the Union over the financial matters of the States.
• Reduction of salaries and allowances of all or any class of persons serving in the State.
• Reservation of all money bills or other financial bills for the consideration of the President after they are passed by the legislature of the State.
• Direction from the President for the reduction of salaries and allowances of all or any class of persons serving the Union; and the judges of the Supreme Court and the High Courts.

Criticism of the Emergency Provision

• • Some members of the Constituent Assembly criticised the incorporation of emergency provisions in the constitution on the following grounds:
    • The federal character of the constitution will be destroyed and the union will become all-powerful
    • The powers of the State- both the Union and the Units- will entirely be concentrated in the hands of the union executive.
    • The president will become a dictator
    • The financial autonomy of the state will be nullified
    • Fundamental rights will become meaningless and, as a result, the democratic foundation of the constitution will be destroyed.’
  • While defending the emergency provisions in the Constituent Assembly, Dr Ambedkar accepted the possibility of their misuse. He observed, ‘I do not altogether deny that there is a possibility of the Articles being abused or employed for political purposes.’