Module 6 Unit 2

Module Detail
Programme Name B. A.
Course Name Development of Indian Constitution
Course Code OBAT330
Module Name Centre-State Relations
Module code 006
Learning Outcomes After going through the content, the students
shall be able to:
1. To understand relationship between Centre
(Union) and States
2. To understand the division of power between
Centre and States
3. To understand the centre’s power over states
during emergencies
4. To understand the administrative and
judicial relation

Keywords British, Crown, Company, Acts,

Features,

Role Name Affiliation

Faculty of Arts and
Subject Dr. Davinderpal Social Science, Guru
Matter Singh Kashi University,
Expert Talwandi Sabo
(SME)

1
Table of content

Sr. No. Particulars Page

No.
1 Introduction 3

2 Administrative Relations 7
3 Conclusion 10

4 Suggested Readings 11

5 Self-assessment 11
MCQ
Short term Questions
Long Term Questions

2
1. Introduction

The Constitution of India, being federal in structure, divides all powers

(legislative, executive and financial) between the Centre and the states. However,
there is no division of judicial power as the Constitution has established an
integrated judicial system to enforce both the Central laws as well as state laws.
Though the Centre and the states are supreme in their respective fields, the
maximum harmony and coordination between them is essential for the effective
operation of the federal system. Hence, the Constitution contains elaborate
provisions to regulate the various dimensions of the relations between the Centre
and the states. The Centre-state relations can be studied under three heads:

1. Legislative relations.
2. Administrative relations.
3. Financial relations.
1. Legislative Relations

Articles 245 to 255 in Part XI of the Indian Constitution outline the legislative
relationship between the Centre and the states. They define the distribution of
legislative powers concerning territory and subjects. Additionally, the
Constitution allows Parliament to legislate on matters in the state list under
specific extraordinary circumstances and establishes certain controls by the
Centre over state legislation. Thus, there are four aspects in the Centre-states
legislative relations, viz.,

• Territorial extent of Central and state legislation;

• Distribution of legislative subjects;

• Parliamentary legislation in the state field; and

• Centre’s control over state legislation.

1.1 Territorial Extent of Central and State Legislation

The Constitution outlines the territorial jurisdiction of legislative powers for the
Centre and the states as follows:

Parliament's Jurisdiction:

(i) Parliament can legislate for the entire territory of India, which
includes states, union territories, and any other areas included in
India's territory.
(ii) It has the authority to enact laws applicable to Indian citizens and
their property anywhere in the world (extraterritorial legislation).

3
 However, some restrictions exist, such as areas governed by special
regulations.
1.2 State Legislature's Jurisdiction:
2. State legislatures can make laws for the entire or any part of their state.
3. State laws generally do not apply outside the state unless a connection
exists between the state and the law's objective.

Exceptions and Special Provisions:

1. The President can create regulations for certain union territories (e.g.,
Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli,
Daman and Diu, Ladakh), which hold the same power as a Parliamentary
act. These regulations can amend or repeal Parliamentary acts in these
territories.
2. Governors can direct that Parliamentary laws do not apply, or apply with
modifications, in scheduled areas within a state.
3. Special provisions exist for tribal areas in Assam, Meghalaya, Tripura, and
Mizoram, allowing the President or Governor to similarly modify or restrict
the application of Parliamentary laws.
1. 2. Distribution of Legislative Subjects

The Indian Constitution divides legislative powers between the Parliament and
state legislatures across three lists:

1. Union List (98 subjects): Parliament has exclusive power to

legislate on subjects like defense, banking, foreign affairs, currency,
atomic energy, communication, inter-state trade, and census.
2. State List (59 subjects): State legislatures primarily handle areas
like public order, police, public health, agriculture, local
government, and gambling, except under special circumstances
when Parliament can legislate.
3. Concurrent List (52 subjects): Both Parliament and state
legislatures can legislate on subjects like criminal law, marriage,
electricity, labour welfare, and education.

The 42nd Amendment Act (1976) moved five subjects—education, forests,

weights and measures, protection of wildlife, and administration of justice—from
the State List to the Concurrent List. The provision relates to Union Territories
and any Acquired Territories.

GST Special Provision (101st Amendment, 2016):

4
1. Both Parliament and state legislatures can legislate on Goods and Services
Tax (GST).
2. Parliament exclusively regulates GST on inter-state trade or commerce.

Residuary Powers:

Parliament holds authority over subjects not listed in the Union, State, or
Concurrent Lists, including residuary taxes.

Comparative Perspective:

1. USA: Federal Government powers are enumerated; states hold

residuary powers.
2. Australia: Similar to the USA with single enumeration of powers.
3. Canada: Features dual enumeration (Federal and Provincial) with
residuary powers allocated to the Centre.
1. 3. Parliamentary Legislation in the State Field

The distribution of legislative powers between the Centre and the states is
typically upheld during normal circumstances. However, during extraordinary
situations, this distribution can be altered or temporarily suspended. In such
cases, the Constitution allows Parliament to legislate on matters in the State List
under five specific exceptional conditions.

When Rajya Sabha Passes a Resolution

If the Rajya Sabha passes a resolution (with a two-thirds majority of

members present and voting) declaring it necessary for Parliament to
legislate on matters related to the Goods and Services Tax (GST) or
subjects in the State List, Parliament gains the authority to make laws on
that matter. This resolution is valid for one year and can be renewed
annually. Six months following the resolution's expiration, laws created
under it come to an end. State Legislature's also retain the power to
legislate on the same matter, but if state and parliamentary laws conflict,
parliamentary laws take precedence.

During a National Emergency

During a national emergency, Parliament can legislate on Goods and

Services Tax (GST) or matters in the State List. These laws remain valid
for six months after the emergency ends. However, state legislatures can
still make laws on the same topics. If there is a conflict between state and
parliamentary laws, the parliamentary law takes precedence.

When States Make a Request

5
 When two or more state legislatures pass resolutions requesting
Parliament to legislate on a matter in the State List, Parliament gains the
authority to make laws on that subject. Such laws initially apply only to
the states that passed the resolutions, but other states can adopt them
later by passing their own resolutions.

Once enacted, these laws can only be amended or repealed by Parliament,

not by the states. By passing such resolutions, state legislatures effectively
transfer their power to legislate on the matter to Parliament. This process
is an example of the states surrendering their legislative authority to the
central government.

Notable laws enacted under this provision include the Prize Competition
Act (1955), Wild Life (Protection) Act (1972), Water (Prevention and Control
of Pollution) Act (1974), Urban Land (Ceiling and Regulation) Act (1976),
and Transplantation of Human Organs Act (1994).

To Implement International Agreements

The Parliament has the authority to legislate on matters in the State List
if it is necessary to implement international treaties, agreements, or
conventions. This empowers the Central Government to meet its global
commitments. Examples of such laws include the United Nations
(Privileges and Immunities) Act, 1947, the Geneva Convention Act, 1960,
the Anti-Hijacking Act, 1982, and laws concerning the environment and
intellectual property rights under TRIPS.

During President’s Rule

When President's Rule is imposed in a state, Parliament gains the

authority to legislate on matters from the State List for that state. Laws
enacted by Parliament during this time remain valid even after President's
Rule ends. However, the state legislature can later repeal, amend, or re-
enact these laws.

1.4 Centre’s Control Over State Legislation

The Centre has control over state legislation in the following ways, besides its
direct power to legislate on state subjects in exceptional situations:

Governor’s Veto: The governor can reserve certain bills passed by the
state legislature for the President’s approval, who holds the power to veto
them.

6
 Prior Approval for Certain Bills: Bills on specific subjects in the State
List (e.g., trade and commerce restrictions) can only be introduced in the
state legislature with the President’s prior consent.

Financial Emergency: During a financial emergency, the Centre can

direct the states to send money bills and other financial bills to the
President for approval.

The Constitution grants the Centre a superior position in the legislative domain.
The Sarkaria Commission on Centre-State Relations (1983-88) emphasized that
the principle of federal supremacy is crucial for maintaining harmony and
resolving conflicts between Union and state laws. Without this supremacy, the
political system could face confusion, legal chaos, and conflicts from
contradictory laws. This would hinder the formulation of unified policies on
important issues and threaten the federal principle of unity in diversity.
Therefore, federal supremacy is essential for the effective functioning of the
federal system.

2. Administrative Relations

Articles 256 to 263 in Part XI of the Constitution deal with the administrative
relations between the Centre and the states. In addition, there are various other
articles pertaining to the same matter.

2.1 Distribution of Executive Powers

The executive power in India is divided between the Centre and the states,
following the division of legislative powers, with a few exceptions. The executive
power of the Centre covers the entire country and extends to:

(i) Matters on which Parliament has exclusive legislative power

(Union List subjects).
(ii) The rights, authority, and jurisdiction granted to it by any
treaty or agreement.

Similarly, the executive power of a state applies within its territory and covers
matters on which the state legislature has exclusive legislative power (State List
subjects).

2.3 Obligation of States and the Centre

The Constitution imposes two key restrictions on the executive power of states
to ensure the Centre can exercise its executive authority effectively. First, the
states must comply with laws made by Parliament and other applicable laws.
Second, they must not obstruct or interfere with the Centre's executive power in

7
the state. The Centre can issue directions to ensure these obligations are met,
and failure to comply with such directions can lead to coercive actions. Under
Article 365, if a state fails to follow the Centre’s directions, the President can
declare that the state's government cannot function as per the Constitution,
allowing for the imposition of President's rule under Article 356.

2.4 Centre’s Directions to the States

In addition to the two cases mentioned earlier, the Centre has the authority to
issue directions to states regarding the exercise of their executive powers in the
following areas: (i) construction and maintenance of communication
infrastructure (deemed of national or military importance) by the state, (ii)
protection measures for railways within the state, (iii) ensuring adequate
facilities for teaching the mother tongue to children from linguistic minority
groups at the primary education level, and (iv) formulating and implementing
welfare schemes for Scheduled Tribes in the state. The Centre can also enforce
these directions using the coercive power granted under Article 365.

2.5 Mutual Delegation of Functions

The division of legislative powers between the Centre and the states is rigid,
meaning the Centre cannot delegate its legislative powers to states, nor can a
state request Parliament to legislate on a state subject. This rigid structure
extends to executive powers as well, leading to potential conflicts. To address
this, the Constitution allows for the delegation of executive functions between
the Centre and states to prevent deadlock. The President, with the state
government's consent, can delegate Centre's executive functions to the state, and
similarly, the governor, with the Centre's consent, can delegate state executive
functions to the Centre. Such delegation can be conditional or unconditional.
The Constitution also permits Parliament to delegate executive functions of the
Centre to a state without the state’s consent. This allows Parliament to impose
duties or confer powers on states, something state legislatures cannot do. Thus,
mutual delegation of functions between the Centre and states can occur through
agreements or legislation, with the Centre able to use both methods, while states
can only enter agreements.

2.6 Cooperation Between the Centre and States

The Constitution includes provisions to ensure cooperation and coordination

between the Centre and the states:
Parliament can resolve disputes related to the use and control of waters of inter-
state rivers.

8
The President can form an Inter-State Council (under Article 263) to address
matters of mutual interest between the Centre and states. This council was
established in 1990.
Public acts, records, and judicial decisions of both the Centre and states must
be recognized across India.
Parliament can appoint an authority to manage the interstate freedom of trade,
commerce, and movement, although such an authority has not been created yet.

2.7 All-India Services

In any federal system, both the Centre and the states have their own public
services—Central Services and State Services. Additionally, there are All-India
Services, including the Indian Administrative Service (IAS), Indian Police Service
(IPS), and Indian Forest Service (IFS). Members of these services hold key
positions in both the Centre and state governments, serving in both capacities.
While they are recruited and trained by the Centre, the services are jointly
controlled by both the Centre and states, with ultimate control resting with the
Central government and immediate control with the state governments.

After 1947, the Indian Civil Service (ICS) was replaced by the IAS, and the Indian
Police (IP) was replaced by the IPS, both recognized as All-India Services by the
Constitution. In 1966, the IFS was added as the third All-India Service. Article
312 of the Constitution allows Parliament to create new All-India Services
through a Rajya Sabha resolution. Despite being divided among various states,
these services form a single entity with uniform rights, status, and pay scales
across the country.

Though All-India Services limit the autonomy of states, they are justified for
several reasons: they maintain high standards of administration at both the
Centre and states, ensure uniformity in the administrative system, and promote
coordination and cooperation between the Centre and states on common issues.
Dr. B.R. Ambedkar defended these services in the Constituent Assembly,
explaining that a federal system always has dual services—one for the federal
government and one for the states.

2.8 Public Service Commissions

In the context of public service commissions and Centre-state relations:

(i) Although the governor of a state appoints the chairman and members
of the state's public service commission, their removal can only be done
by the President.

9
 (ii) The Parliament can create a Joint State Public Service Commission
(JSPSC) for two or more states if their legislatures request it. The
President appoints the chairman and members of the JSPSC.
(iii) The Union Public Service Commission (UPSC) can provide services to a
state if the state governor requests it and the President approves.
(iv) When requested by two or more states, the UPSC can help in designing
and implementing joint recruitment schemes for services requiring
special qualifications.
2.9 Integrated Judicial System
India follows a unified system of justice rather than a dual system, despite having
a dual polity. The Constitution establishes an integrated judiciary, with the
Supreme Court at the top and state high courts below. This unified system
ensures the enforcement of both Central and state laws, simplifying procedures.
Judges of state high courts are appointed by the President, in consultation with
the Chief Justice of India and the state's Governor, and can be transferred or
removed by the President. Parliament also has the authority to create a common
high court for multiple states, as seen with Maharashtra-Goa and Punjab-
Haryana.

3. Conclusion
The Centre-State relations in India, as defined by the Constitution, reflect the
federal structure of governance, with a clear division of powers and
responsibilities between the Centre and the states. The Constitution provides a
comprehensive framework for legislative, administrative, and financial relations,
ensuring that both levels of government function effectively while maintaining
the unity and integrity of the nation. The legislative relations are defined through
detailed provisions in Articles 245 to 255, establishing the territorial jurisdiction
and distribution of subjects between the Union and the states. It also allows the
Centre to intervene in exceptional circumstances, ensuring flexibility in
governance.

The administrative relations, governed by Articles 256 to 263, emphasize

cooperation and coordination between the Centre and the states. The mutual
delegation of executive functions and the Centre's powers to issue directions to
the states are key to maintaining smooth functioning. Furthermore, the
establishment of All-India Services and the integrated judicial system facilitates
uniformity and effective governance at both the Centre and the states. Overall,
the Constitution fosters a delicate balance between federal autonomy and the
need for a unified approach to governance. The relationship between the Centre
and the states, though complex, is designed to ensure harmony and address

10
challenges through cooperation, coordination, and mutual respect for the rule of
law. The effective functioning of this federal system is crucial to the nation's
political stability and progress.

4. Suggested Readings
Milloy, J. S. (1983). The early Indian Acts: Developmental strategy and
8
constitutional change. As long as the sun shines and the water flows:
A reader
in Canadian Native studies, 56-64.
Laxmikant, M. (2019). Indian Polity-For Civil Services and Other State
Examinations|: by M. Laxmikant. McGraw-Hill; Sixth edition (27
December
2019); McGraw Hill.
Bhagwan, V., & Bhatia, R. L. (1974). Constitutional history of India and
national movement. (No Title).

5. Self-assessment
MCQ
Which of the following powers is not exclusively given to the Parliament under
the Indian Constitution?
Defense
Agriculture
Banking
Atomic Energy
Which list contains subjects on which both the Centre and the states can
legislate?
Union List
State List
Concurrent List
Residuary List
Under which article can the President impose President’s Rule in a state?
Article 256
Article 356
Article 365
Article 370
What is the maximum number of subjects listed under the Union List according
to the Indian Constitution?
59
52

11
 98
100
Which of the following subjects is part of the Concurrent List?
Police
Public Order
Marriage and Divorce
Foreign Affairs
Which list includes subjects over which the states have exclusive legislative
power?
Union List
State List
Concurrent List
Residuary List
What is the purpose of the Integrated Judicial System in India?
To ensure judicial independence
To simplify the enforcement of both Central and state laws
To maintain separate courts for Centre and states
To control the powers of Parliament
Which of the following services is considered an All-India Service?
Indian Administrative Service (IAS)
Indian Revenue Service (IRS)
Indian Foreign Service (IFS)
Indian Police Service (IPS)
In which situation can the Centre legislate on matters in the State List under the
Indian Constitution?
When the state requests it
When a national emergency is declared
During normal circumstances
When a state’s legislative body is not functioning
Who has the power to create an All-India Service under the Indian Constitution?
The President
The Parliament
The State Legislature
The Governor
Which Article of the Indian Constitution deals with the creation of a Joint State
Public Service Commission?
Article 320
Article 312
Article 263
Article 234

12
Which of the following is a responsibility of the Centre in administrative
relations?
Control over the state’s executive powers
Appointment of judges in state high courts
Formulation of state welfare schemes
Execution of state laws
What does the term ‘federal supremacy’ refer to in Centre-State relations?
Equal authority of the Centre and states
The supremacy of state governments over the Centre
The supremacy of Parliament over state legislation
The joint authority of the Centre and states
Which of the following is true about the executive power of a state under the
Indian Constitution?
It is restricted to state matters only
It extends to all subjects in the State List
It includes the authority to legislate on Union List matters
It must comply with the Centre's laws and directions
What is the primary function of the Inter-State Council?
To settle interstate trade disputes
To address matters of mutual interest between the Centre and states
To regulate the relations between different state legislatures
To resolve conflicts between the Centre and state governments

Short-Term Questions

1. Explain the significance of the Preamble in the Indian Constitution.

2. How does the Indian Constitution divide legislative powers between the
Centre and states?
3. What are the key differences between the Union List, State List, and
Concurrent List?
4. What are the powers and functions of the All-India Services?

5. Describe the conditions under which the Parliament can legislate on

matters in the State List.

Long-Term Questions

1. Discuss the evolution and importance of the federal system in India,

especially in the context of Centre-State relations.

13
2. Analyze the role of the President in ensuring the Centre’s control over state
legislation, with specific examples.
3. How does the Indian Constitution balance the autonomy of states with the
need for a unified administration? Discuss in the context of the All-India
Services and Centre-state relations.

14