Chapter 14 of 20

Centre-State and Inter-State Relations

Legislative, administrative and financial relations between Union and States, plus the Inter-State Council, Zonal Councils, and river water disputes.

📖 ~14 min read ⚖️ Polity & Constitution

Introduction

Part XI (Articles 245-263) and Part XII of the Constitution govern the relationship between the Union and the States across three dimensions — legislative, administrative, and financial — while also providing institutional platforms for cooperation, such as the Inter-State Council and Zonal Councils.

Legislative Relations

ArticleProvision
245Parliament can legislate for the whole/part of India; State Legislature for the whole/part of the state
249Parliament can legislate on a State List subject "in the national interest" if the Rajya Sabha passes a resolution by 2/3rd majority
250Parliament can legislate on any State List subject while a National Emergency is in operation
252Parliament can legislate on a State List subject if 2 or more states pass resolutions requesting it (the law then applies only to consenting states, and other states can later adopt it)
253Parliament can legislate on any subject to implement international treaties/agreements, even if it falls in the State List
254In case of repugnancy between a Central and State law on a Concurrent List subject, the Central law prevails, unless the State law received Presidential assent

Administrative Relations

  • Executive power of a state must be exercised in compliance with Central laws (Art. 256) and must not impede the executive power of the Union (Art. 257).
  • Centre can give directions to states on construction/maintenance of means of communication of national/military importance.
  • All India Services (IAS, IPS, IFoS) are common to Union and States — a key integrating administrative feature.

Inter-State Council (Article 263)

A recommendatory body (not a permanent constitutional body by itself — established by a Presidential Order in 1990 following the Sarkaria Commission's recommendation) to inquire into and advise on disputes, and to discuss subjects of common interest to the Union and States.

Zonal Councils

Statutory (not constitutional) bodies set up under the States Reorganisation Act, 1956, to foster cooperative federalism — 5 Zonal Councils (Northern, Southern, Eastern, Western, Central), each chaired by the Union Home Minister, plus the North Eastern Council (a separate statutory body under a 1971 Act).

Financial Relations

  • Taxes are levied and collected by Centre or States as per the Seventh Schedule; some Union-levied taxes are shared with states on Finance Commission recommendations (Art. 270).
  • Grants-in-aid to states (Art. 275) and discretionary grants for specific projects (Art. 282).
  • GST Council (Art. 279A) — jointly decides GST rates; a landmark cooperative-federalism institution.

Inter-State Water Disputes and River Boards

  • Article 262 empowers Parliament to adjudicate disputes over inter-state river waters and bar the jurisdiction of the Supreme Court over such disputes if it so provides.
  • Inter-State River Water Disputes Act, 1956 — provides for setting up ad-hoc tribunals (e.g., Cauvery, Krishna, Godavari tribunals).
  • River Boards Act, 1956 — allows the Centre to set up River Boards for regulation and development of inter-state rivers, on the request of state governments.

Key Commissions on Centre-State Relations

CommissionYearKey Recommendation
Sarkaria Commission1983-88Recommended restraint in use of Article 356; institutionalisation of the Inter-State Council
Punchhi Commission2007-10Recommended localised emergency provisions in a state rather than dismissing the entire government; guidelines on Governor's discretion
UPSC Focus: Article 249 vs 250 vs 252 vs 253 (which needs Rajya Sabha resolution vs state resolutions vs treaty implementation) · Article 263 Inter-State Council · Zonal Councils are statutory, not constitutional · Sarkaria vs Punchhi Commission recommendations.

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