Inter-State Relations - Polity UPSC notes

 

Background: Why Inter-State Relations Were Needed

• India adopted a federal system after Independence.

• Powers are divided between:

  • Union (Centre)

  • States

• Problems arose because:

  • Rivers flow across many states.

  • Trade and movement cross state borders.

  • Policies of one state affect others.

• Mere Centre–State cooperation was not enough.

• Therefore, the Constitution provided mechanisms for:

  • State–State cooperation

  • Peaceful dispute resolution

  • Policy coordination

👉 Hence, the concept of Inter-State Relations was introduced.

Constitutional Provisions for Inter-State Comity (Cooperation)

1. Adjudication of Inter-State Water Disputes

• River waters often cause disputes because:

  • Rivers flow across multiple states.

  • Water is essential for agriculture, drinking, and industry.

• Constitution provides a special mechanism for resolving such disputes.

(Explained later under Article 262)

---

2. Coordination Through Inter-State Councils

• Some issues:

  • Are not legal disputes

  • Need discussion and consensus

• Hence, councils were created to:

  • Discuss common issues

  • Coordinate policies

(Explained later under Article 263)

---

3. Mutual Recognition of Public Acts, Records & Judicial Proceedings

• Acts done in one state must be valid in other states.

• Includes:

  • Laws

  • Official records

  • Court judgments

Example

• A marriage certificate issued in Karnataka:

  • Must be accepted in Maharashtra.

• A court decree passed in Delhi:

  • Is valid in Tamil Nadu.

---

4. Freedom of Inter-State Trade, Commerce & Intercourse

• India is one economic unit.

• States cannot:

  • Unreasonably restrict trade

  • Block movement of goods or people

Example

• Trucks carrying goods from Punjab to West Bengal:

  • Should move freely without barriers.

Zonal Councils (Extra-Constitutional but Important)

• Established by Parliament, not directly by Constitution.

• Created under:

  • States Reorganisation Act, 1956

• Purpose:

  • Promote cooperation among neighboring states

  • Resolve regional issues peacefully

Inter-State Water Disputes: Article 262

Article 262 deals exclusively with water disputes between states.

Why Article 262 Was Needed (Background)

• Water disputes are:

  • Highly emotional

  • Politically sensitive

• Courts alone were not sufficient because:

  • States questioned court authority

  • Implementation of judgments was difficult

• Hence, a special dispute-resolution mechanism was created.

It has two important provisions:

(i) Power of Parliament

• Parliament can make laws for:

  • Adjudicating disputes related to:

    • Use

    • Distribution

    • Control
      of waters of inter-state rivers or river valleys.

(ii) Exclusion of Courts

• Parliament may also provide that:

  • Supreme Court

  • Any other court

• Shall not have jurisdiction over such disputes

Laws Made by Parliament under Article 262

Parliament has enacted two laws in 1956:

---

1. River Boards Act, 1956

Purpose

• To create River Boards for:

  • Regulation

  • Development
    of inter-state rivers and river valleys.

Key Points

• A River Board is:

• Established by the Central Government.

• Only when state governments concerned request it.

• Function:

  • To advise states on:

    • Development

    • Regulation

    • Utilisation of river waters

• Role of River Board:

  • Advisory in nature

  • It does not decide disputes, only gives advice.

2. Inter-State River Water Disputes Act, 1956

Purpose

• To resolve water disputes between two or more states.

Key Features

• Central Government can set up an ad hoc tribunal (temporary body).

• Tribunal decides:

  • Disputes over river water sharing

Nature of Tribunal’s Decision

• Decision is:

  • Final

  • Binding on all states involved

Jurisdiction of Courts

• Once a dispute is referred to the tribunal:

  • Supreme Court and other courts have no jurisdiction.

---

Existing Water Dispute Tribunals

• Central Government has already set up many tribunals.

• Details like:

• Name of tribunal

• Year of formation

• States involved
  are given in Table 16.1 (as mentioned in the textbook).

---

Inter-State Councils: Article 263 of the Constitution

Why Article 263 Was Needed (Background)

• Not all disputes are legal.

• Many issues require:

  • Discussion

  • Coordination

  • Policy alignment

• Example:

  • Health

  • Transport

  • Taxation

• Hence, Article 263 provides for Inter-State Councils.

Example

• Two states disagree on:

  • The route of a national highway passing through both states

• This is not a legal dispute.

• A court judgment is not required.

• What is needed:

  • Discussion

  • Mutual adjustment

👉 Inter-State Council provides a discussion platform.

Power of the President

• The President may establish an Inter-State Council if:

  • He/she feels it is required in public interest.

• President decides:

  • Nature of duties

  • Organisation

  • Procedure of the Council

---

Functions Mentioned in Article 263

Article 263 itself lists three types of duties:

(a) Dispute Advisory Role

• The Council can:

  • Enquire into

  • Advise upon
    disputes between states.

(b) Discussion of Common Interests

• It can discuss subjects in which:

  • States have common interest, or

  • Centre and states have common interest.

(c) Policy Coordination

• It can Make recommendations

  • For better coordination of:

    • Policy

    • Action

---

Relation with Supreme Court (Important Concept)

• The Council’s role in disputes is:

  • Advisory

  • Not legally binding

• Supreme Court (Article 131):

  • Decides legal disputes

  • Gives binding judgments

• Hence:

• Council complements the Supreme Court, but does not replace it.

Councils Established under Article 263

The President has set up the following councils:

1. Central Council of Health and Family Welfare

2. Central Council of Local Government

• Earlier called:

  • Central Council of Local Self-Government (1954)

3. Four Regional Sales Tax Councils

• For:

  • Northern Zone

  • Eastern Zone

  • Western Zone

  • Southern Zone

---

Permanent Inter-State Council (Sarkaria Commission)

Sarkaria Commission (1983–88)

Background

• Examined Centre–State relations

• Found lack of:

• Institutional coordination

• Regular dialogue

Key Recommendations

• Establish a permanent Inter-State Council

• Rename it to avoid confusion as:

  • Inter-Governmental Council

• Assign duties mainly under:

  • Article 263(b)

  • Article 263(c).

Establishment in 1990

• Based on Sarkaria Commission’s recommendations:

  • Janata Dal Government

  • Prime Minister:

    • V. P. Singh

  • Inter-State Council established in 1990

---

Composition of Inter-State Council

Members

1. Prime Minister – Chairman

2. Chief Ministers of all States

3. Chief Ministers of Union Territories with legislatures

4. Administrators of Union Territories without legislatures

5. Governors of States under President’s Rule

6. Six Central Cabinet Ministers (including Home Minister), nominated by PM

---

Permanent Invitees

• Five Cabinet-rank / Minister of State (Independent Charge)

• Nominated by the Prime Minister

---

Nature and Functions of the Council

Nature

• It is a recommendatory body.

• Deals with:

  • Inter-state relations

  • Centre-state relations

  • Centre-UT relations

---

Detailed Functions

• Discuss subjects of common interest between Centre and States

• Recommend better coordination of policies and actions

• Deliberate on general matters referred by the Chairman (PM)

---

Meetings

• Meets at least three times a year

• Meetings are:

  • Held in camera (not public)

  • Decisions taken by consensus, not voting

Standing Committee of the Inter-State Council

Background

• Full Council does not meet frequently.

• Continuous consultation was needed.

Established in 1996

• Processing issues before full Council meetings

Members

1. Union Home Minister – Chairman

2. Five Union Cabinet Ministers

3. Nine Chief Ministers

---

Inter-State Council Secretariat

Details

• Established in 1991

• Headed by:

  • A Secretary to the Government of India

• Since 2011:

• Also works as the Secretariat of Zonal Councils

PUBLIC ACTS, RECORDS AND JUDICIAL PROCEEDINGS

(Full Faith and Credit Clause)

Background: Why This Provision Was Needed

• India is a Union of States.

• Each State has:

  • Its own territory

  • Its own jurisdiction

• Problem:

  • Acts or records of one state may not be automatically accepted in another state.

• This could create:

  • Legal confusion

  • Administrative difficulties

  • Lack of national unity

👉 To remove this problem, the Constitution introduced the “Full Faith and Credit” clause.

---

Meaning of “Full Faith and Credit”

• Every State and the Centre must:

  • Respect

  • Recognise

  • Give legal validity
    to official acts and court decisions of other States.

---

Provisions of the Full Faith and Credit Clause

---

(i) Recognition of Public Acts, Records & Judicial Proceedings

• Full faith and credit must be given throughout India to:

  • Public acts

  • Public records

  • Judicial proceedings
    of:

  • The Centre

  • Every State

---

Meaning of Key Terms

Public Acts

• Include:

  • Legislative acts (laws passed by legislature)

  • Executive acts (government orders, notifications)

Example

• A transport rule issued by Karnataka government:

  • Must be recognised by other states when applicable.

---

Public Records

• Include:

  • Official books

  • Registers

  • Records prepared by a public servant while performing official duties

Example

• Birth certificate issued in Kerala:

  • Must be accepted in Maharashtra.

---

Judicial Proceedings

• Include:

  • Judgments

  • Decrees

  • Orders of courts

Example

• A civil court decree passed in Delhi:

  • Must be recognised in Tamil Nadu.

---

(ii) Power of Parliament Over Proof & Effect

• Parliament can decide:

  • How these acts, records, and judgments are proved

  • What legal effect they will have in another state

👉 Meaning:

• Recognition is not automatic in form.

• Parliament can regulate:

  • Procedure

  • Conditions

  • Mode of proof

Example

• Parliament may prescribe:

  • Certified copies

  • Digital records

  • Seals and signatures
    for accepting documents across states.

---

(iii) Execution of Civil Judgments Anywhere in India

• Final judgments and orders of civil courts:

  • Can be executed anywhere in India

  • Without filing a fresh suit

---

Important Limitation

• This rule applies:

  • Only to civil judgments

• It does not apply to criminal judgments

---

Why Criminal Judgments Are Excluded

• Criminal law is linked to:

  • State police

  • State penal jurisdiction

• One state is not required to enforce penal laws of another state

Example

• A money recovery decree passed in Gujarat:

  • Can be executed in Rajasthan

• But:

• A criminal punishment imposed in Punjab:

• Cannot be directly enforced by courts of Haryana

INTER-STATE TRADE, COMMERCE AND INTERCOURSE

---

Background: Why Free Trade Was Needed

• India wanted to be:

  • One economic unit

  • Not fragmented by state borders

• Before Constitution:

  • Provinces imposed barriers

  • Trade suffered

• Hence, Part XIII was introduced.

---

Articles 301 to 307 (Part XIII)

• Deal with:

  • Trade

  • Commerce

  • Intercourse
    within India

---

Article 301 – Freedom of Trade

Provision

• Trade, commerce, and intercourse throughout India shall be free.

---

Objectives of Article 301

• Remove:

  • Border barriers

  • Trade restrictions

• Encourage:

  • Free flow of goods

  • Free movement of people

---

Wide Scope of Freedom

• Applies to:

  • Inter-state trade

  • Intra-state trade

• Restriction at:

  • State border

  • Or inside the state
    both violate Article 301.

Example

• A tax imposed inside a state that indirectly blocks inter-state trade:

  • Violates Article 301.

---

Reasonable Restrictions on Article 301

Article 301 is not absolute. Restrictions allowed under Articles 302–305.

---

(i) Parliament’s Power (Article 302)

• Parliament can impose restrictions:

  • On inter-state trade

  • On intra-state trade

• Only:

  • In public interest

---

Limitation on Parliament

• Cannot:

  • Give preference to one state

  • Discriminate between states

• Exception:

  • Scarcity of goods

Example

• During food shortage:

  • Parliament may restrict movement of food grains.

---

Example: Essential Commodities Act, 1955

• Allows Central Government to:

  • Control production

  • Control supply

  • Control distribution
    of essential goods like:

  • Petroleum

  • Coal

  • Iron and steel

---

(ii) State Legislature’s Power

• States can impose:

  • Reasonable restrictions

• Conditions:

  • Public interest

  • Prior sanction of the President

---

Restrictions on States

• State legislature cannot:

  • Prefer one state over another

  • Discriminate between states

Example

• A state cannot:

  • Allow cheaper entry of goods from one state

  • While taxing goods from another state heavily

---

(iii) Taxation on Imported Goods

• State can tax goods imported from other states:

  • Only if similar goods produced locally are also taxed

👉 Prevents discriminatory taxation.

Example

• If a state taxes:

  • Local cement

• Then:

  • Cement from another state can also be taxed at same rate

---

(iv) Nationalisation Laws

• Freedom under Article 301 is subject to:

  • Laws creating monopolies

• Centre or State can:

  • Carry on any trade or business

  • Even excluding private citizens

Example

• Government monopoly in:

  • Railways

  • Defence production

---

Authority to Enforce These Provisions

• Parliament can:

  • Appoint an authority

  • Give it powers and duties

• But:

  • No such authority has been appointed so far

---

ZONAL COUNCILS

---

Background: Why Zonal Councils Were Created

• After state reorganisation:

  • New states were formed

  • Linguistic and regional tensions arose

• Need:

  • Regional cooperation

  • Emotional integration

• Hence:

  • Zonal Councils were created.

---

Nature of Zonal Councils

• Statutory bodies

• Established by:

  • States Reorganisation Act, 1956

• Not constitutional bodies

---

Zones Created

• Five zones:

  • Northern

  • Central

  • Eastern

  • Western

  • Southern

---

Basis of Zonal Division

• Natural divisions

• River systems

• Transport and communication

• Cultural and linguistic similarity

• Economic development

• Security and law & order

---

Composition of Zonal Councils

Members

• Union Home Minister

• Chief Ministers of states in the zone

• Two other ministers from each state

• Administrators of Union Territories

---

Advisors (No Voting Rights)

• NITI Aayog nominee

• Chief Secretaries of states

• Development Commissioners of states

---

Chairmanship

• Union Home Minister:

  • Chairman of all Zonal Councils

• Chief Minister:

  • Vice-Chairman (rotation for one year)

---

Nature of Zonal Councils

• Deliberative

• Advisory

• No binding powers

---

Functions of Zonal Councils

• Discuss:

  • Economic planning

  • Social planning

  • Linguistic minorities

  • Border disputes

  • Inter-state transport

---

Objectives of Zonal Councils

• Achieve emotional integration

• Reduce:

  • Regionalism

  • Linguism

  • State-consciousness

• Remove after-effects of separation

• Enable Centre–State cooperation

• Promote uniform policies

• Support major development projects

• Maintain political balance between regions

---

NORTH-EASTERN COUNCIL

---

Background

• North-East has:

  • Strategic importance

  • Security challenges

  • Developmental needs

• Hence:

  • A separate council was created.

---

North-Eastern Council Act, 1971

• Members:

  • Assam

  • Manipur

  • Mizoram

  • Arunachal Pradesh

  • Nagaland

  • Meghalaya

  • Tripura

  • Sikkim (added in 2002)

---

Functions

• Similar to Zonal Councils

• Plus:

  • Prepare unified regional plan

  • Review security and public order

---

Zonal Councils at a Glance (Locations)

Zonal Council	Headquarters
Northern	New Delhi
Central	Allahabad
Eastern	Kolkata
Western	Mumbai
Southern	Chennai