Inter-State Relations – UPSC Notes – Indian Polity
The effective operation of India’s federal system hinges not just on the harmonious collaboration between the Central government and the states, but also on fostering amicable relations among the states themselves. To this end, the Constitution lays out specific provisions concerning inter-state comity, including:
- Resolution of inter-state water disputes.
- Facilitation of coordination through inter-state councils.
- Mutual acknowledgment of public acts, records, and judicial proceedings.
- Ensuring freedom of inter-state trade, commerce, and communication.
Parliament has established zonal councils to facilitate and promote inter-state cooperation and coordination.
Inter-State Water Disputes
Article 262 of the Constitution delineates the process for resolving inter-state water disputes, comprising two key provisions:
(i) Empowerment of Parliament to legislate on the adjudication of disputes or grievances regarding the utilization, distribution, and management of waters from inter-state rivers and river valleys.
(ii) Authorization for Parliament to stipulate that neither the Supreme Court nor any other judicial body holds jurisdiction over such disputes or grievances.
In accordance with this constitutional mandate, Parliament has enacted two laws—the River Boards Act (1956) and the Inter-State Water Disputes Act (1956). The River Boards Act facilitates the establishment of river boards tasked with overseeing the regulation and advancement of inter-state rivers and river valleys. These boards are formed by the Central government upon the request of concerned state governments to provide advisory services.
The Inter-State Water Disputes Act grants authority to the Central government to establish an ad hoc tribunal for the resolution of conflicts arising between two or more states regarding the water resources of inter-state rivers or river valleys. Decisions rendered by this tribunal hold ultimate authority and are binding upon all parties involved in the dispute. Under this Act, neither the Supreme Court nor any other judicial body possesses jurisdiction over water disputes that are referred to such a tribunal.
The necessity for an additional judicial mechanism to address inter-state water disputes arises from the following rationale: “While the Supreme Court maintains jurisdiction over disputes between states concerning water supplies when legal rights or interests are at stake, the practical experience of many nations indicates that legal frameworks founded on private property analogies regarding water often fail to provide a satisfactory resolution for disputes between states, particularly when the broader public interest in the appropriate utilization of water resources is implicated.”
As of 2016, the Central government has established eight tribunals to address inter-state water disputes. The names of these tribunals, the years of their establishment, and the states involved in each dispute are provided in the following table
Inter-State Water Dispute Tribunals Established
| SI. No. | Name | Establishment Year | States Involved |
|---|---|---|---|
| 1. | Krishna Water Disputes Tribunal | 1969 | Maharashtra, Karnataka, and Andhra Pradesh |
| 2. | Godavari Water Disputes Tribunal | 1969 | Maharashtra, Karnataka, Andhra Pradesh, Madhya Pradesh, and Odisha |
| 3. | Narmada Water Disputes Tribunal | 1969 | Rajasthan, Gujarat, Madhya Pradesh, and Maharashtra |
| 4. | Ravi and Beas Water Disputes Tribunal | 1986 | Punjab, Haryana, and Rajasthan |
| 5. | Cauvery Water Disputes Tribunal | 1990 | Karnataka, Kerala, Tamil Nadu, and Puducherry |
| 6. | Second Krishna Water Disputes Tribunal | 2004 | Maharashtra, Karnataka, and Andhra Pradesh |
| 7. | Vansadhara Water Disputes Tribunal | 2010 | Odisha and Andhra Pradesh |
| 8. | Mahadayi Water Disputes Tribunal | 2010 | Goa, Karnataka, and Maharashtra |
Inter-State Councils
Article 263 outlines the potential establishment of an Inter-State Council to facilitate coordination among states and between the Centre and states. Accordingly, the President holds the authority to establish such a council whenever it is deemed beneficial for the public interest. The President also has the prerogative to define the council’s duties, organization, and procedural framework.
While the President possesses the power to delineate the duties of an inter-state council, Article 263 delineates specific duties that may be assigned to it as follows:
(a) Investigating and providing advice on disputes that may arise between states.
(b) Examining and discussing topics of common interest to the states or to both the Centre and the states.
(c) Issuing recommendations on such matters, particularly aimed at enhancing policy coordination and collaborative action.
The council’s role in investigating and advising on inter-state disputes complements the Supreme Court’s jurisdiction under Article 131 to adjudicate legal disputes between governments. While the Council can address both legal and non-legal controversies, its function remains advisory, contrasting with the Court’s authoritative decision-making.”
Under the provisions of Article 263, the president has established the following councils to offer recommendations for enhancing policy coordination and action in related areas:
- Central Council of Health.
- Central Council of Local Government and Urban Development.
- Four Regional Councils for Sales Tax covering the Northern, Eastern, Western, and Southern Zones.
Additionally, the Central Council of Indian Medicine and the Central Council of Homoeopathy were established under Acts of Parliament.
Establishment of Inter-State Council
The Sarkaria Commission on Centre-State Relations (1983–87) strongly advocated for the creation of a permanent Inter-State Council under Article 263 of the Constitution. It proposed that to distinguish the Inter-State Council from other bodies established under the same Article 263, it should be referred to as the Inter-Governmental Council. The Commission suggested that the Council should be entrusted with the responsibilities outlined in clauses (b) and (c) of Article 263.
In line with the recommendations of the Sarkaria Commission, the Janata Dal Government led by V. P. Singh established the Inter-State Council in 1990. The council comprises the following members:
(i) Prime Minister serving as the Chairman
(ii) Chief Ministers of all states
(iii) Chief Ministers of union territories with legislative assemblies
(iv) Administrators of union territories without legislative assemblies
(v) Governors of states under President’s rule
(vi) Six Central Cabinet Ministers, including the Home Minister, nominated by the Prime Minister.
Additionally, five Ministers of Cabinet rank or Minister of State (independent charge) nominated by the Council’s Chairman, i.e., the Prime Minister, serve as permanent invitees to the Council.
Public Acts, Records & Judicial Proceedings
According to the Constitution, each state’s jurisdiction is limited to its own territory. Consequently, there may arise instances where the acts and records of one state are not recognized in another. To address this, the Constitution incorporates the “Full Faith and Credit” clause, which stipulates the following:
(i) Full faith and credit must be accorded throughout India to public acts, records, and judicial proceedings of both the Centre and every state. The term “public acts” encompasses legislative and executive actions of the government, while “public record” includes any official documentation made by a public servant in the course of their official duties.
(ii) The methods and conditions for proving such acts, records, and proceedings, as well as determining their impact, are subject to the laws enacted by Parliament. This implies that the general principle outlined above is subject to Parliament’s authority to establish the manner of proof and the consequences of such acts, records, and proceedings of one state in another.
(iii) Final judgments and orders of civil courts anywhere in India are enforceable throughout the country without the need for initiating a new lawsuit based on the judgment. However, this rule applies solely to civil judgments and does not extend to criminal judgments. Thus, it does not oblige the courts of one state to enforce the criminal laws of another state.
Inter-State and Commerce
Part XIII of the Constitution, encompassing Articles 301 to 307, addresses trade, commerce, and intercourse within the territory of India.
Article 301 proclaims the freedom of trade, commerce, and intercourse throughout India’s territory. Its aim is to dismantle border barriers between states and foster a unified entity to promote the unrestricted flow of trade, commerce, and intercourse nationwide.
This freedom extends not only to inter-state activities but also to intra-state engagements. Thus, any restrictions imposed at state borders or at any preceding or subsequent stage would violate Article 301.
However, the freedom guaranteed by Article 301 is subject to certain exceptions outlined in other provisions of Part XIII:
(i) Parliament can regulate trade, commerce, and intercourse between states or within a state in the interest of public welfare. Nevertheless, it cannot show preference to one state over another or discriminate between states, except in cases of goods scarcity across India.
(ii) State legislatures can impose reasonable restrictions on trade, commerce, and intercourse within or with their respective states in the public interest. However, such legislation requires prior approval from the President, and discriminatory practices between states are prohibited.
(iii) States can levy taxes on imported goods similar to those applied to locally manufactured goods, preventing discriminatory taxation.
(iv) The freedom under Article 301 is subject to nationalization laws, enabling Parliament or state legislatures to establish monopolies in trade, business, industry, or services, regardless of citizen involvement.
Parliament holds the authority to appoint a suitable body to enforce these provisions concerning trade, commerce, and intercourse, along with the power to delegate necessary responsibilities. However, no such authority has been appointed to date.
Zonal Councils
The Zonal Councils are statutory bodies established by an Act of Parliament, specifically the States Reorganisation Act of 1956, rather than being constitutional entities. This Act divided the country into five zones – Northern, Central, Eastern, Western, and Southern – and designated a zonal council for each zone. The formation of these zones took into account various factors such as natural divisions, river systems, means of communication, cultural and linguistic affinities, as well as economic development, security, and law and order requirements.
Each zonal council comprises the following members: the Home Minister of the Central government, Chief Ministers of all states in the zone, two additional ministers from each state in the zone, and the Administrator of each union territory in the zone. Additionally, advisors without voting rights in council meetings may include a nominee from the Planning Commission, the Chief Secretary of each state in the zone, and the Development Commissioner of each state in the zone.
The Home Minister of the Central government serves as the common chairman of the five zonal councils. Each Chief Minister rotates as the vice-chairman of the council, holding office for one year at a time.
The primary aim of the zonal councils is to foster cooperation and coordination among states, union territories, and the Centre. They discuss and make recommendations on various matters including economic and social planning, linguistic minorities, border disputes, and inter-state transport. However, they are purely deliberative and advisory bodies.
The detailed objectives, or functions, of the zonal councils are as follows:
- To achieve emotional integration across the country.
- To curb the growth of acute state-consciousness, regionalism, linguism, and particularistic trends.
- To alleviate the lingering effects of separation in certain cases to synchronize the processes of reorganization, integration, and economic advancement.
- To facilitate cooperation between the Centre and states in social and economic matters, enabling the exchange of ideas and experiences to formulate uniform policies.
- To collaborate on the successful and prompt execution of major development projects.
- To establish a form of political equilibrium among different regions of the country.
North-Eastern Council
Apart from the aforementioned Zonal Councils, the North-Eastern Council was established by a separate Act of Parliament—the North-Eastern Council Act of 1971.
Its members include Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya, Tripura, and Sikkim. The council’s functions are akin to those of the zonal councils but with a few additions. It is tasked with formulating a unified and coordinated regional plan covering matters of common importance. Additionally, it is responsible for periodically reviewing the measures taken by the member states to maintain security and public order in the region.
Here’s a summary of the Zonal Councils:
| Name | Members | Headquarters |
|---|---|---|
| Northern Zonal Council | Jammu and Kashmir, Himachal Pradesh, Haryana, Punjab, Rajasthan, Delhi, and Chandigarh | New Delhi |
| Central Zonal Council | Uttar Pradesh, Uttarakhand, Chhattisgarh, and Madhya Pradesh | Allahabad |
| Eastern Zonal Council | Bihar, Jharkhand, West Bengal, and Odisha | Kolkata |
| Western Zonal Council | Gujarat, Maharashtra, Goa, Dadra and Nagar Haveli, and Daman and Diu | Mumbai |
| Southern Zonal Council | Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, and Puducherry | Chennai |
Articles Related to Inter-State Relations
| Article No. | Subject Matter |
|---|---|
| 261 | Mutual Recognition of Public Acts, etc. |
| 262 | Adjudication of disputes relating to waters of inter-state rivers or river valleys |
| 263 | Provisions with respect to an inter-state council |
| 301 | Freedom of trade, commerce and intercourse |
| 302 | Power of Parliament to impose restrictions on trade, commerce and intercourse |
| 303 | Restrictions on the legislative powers of the Union and of the states with regard to trade and commerce |
| 304 | Restrictions on trade, commerce and intercourse among states |
| 305 | Saving of existing laws and laws providing for state monopolies |
| 306 | Power of certain states in Part B of the First Schedule to impose restrictions on trade and commerce (Repealed) |
| 307 | Appointment of authority for carrying out the purposes of Articles 301 to 304 |
FAQs about India’s Federal System and Inter-State Relations
1. What are the key provisions in the Constitution regarding inter-state relations in India?
The Constitution of India outlines specific provisions concerning inter-state relations, including the resolution of water disputes, the establishment of inter-state councils, mutual acknowledgment of public acts, and ensuring freedom of trade, commerce, and communication among states.
2. How are inter-state water disputes resolved in India?
Inter-state water disputes in India are resolved through the establishment of ad hoc tribunals by the Central government under the Inter-State Water Disputes Act (1956). These tribunals have the authority to adjudicate conflicts arising from the utilization, distribution, and management of waters from inter-state rivers and river valleys, with decisions being binding on all parties involved.
3. What role do Inter-State Councils play in India’s federal system?
Inter-State Councils, established under Article 263 of the Constitution, facilitate coordination among states and between the Centre and states. They investigate disputes between states, discuss common interests, and issue recommendations aimed at enhancing policy coordination and collaborative action.
4. How are public acts, records, and judicial proceedings recognized across Indian states?
The “Full Faith and Credit” clause in the Constitution mandates that full faith and credit must be accorded to public acts, records, and judicial proceedings of both the Centre and every state throughout India. However, the methods and conditions for proving such acts are subject to laws enacted by Parliament.
5. What does Article 301 of the Constitution guarantee regarding trade and commerce?
Article 301 guarantees the freedom of trade, commerce, and intercourse throughout India’s territory, aiming to promote the unrestricted flow of trade and commerce nationwide. However, this freedom is subject to certain exceptions outlined in other provisions of Part XIII of the Constitution.
6. How are Zonal Councils structured, and what is their purpose?
Zonal Councils, established by an Act of Parliament, aim to foster cooperation and coordination among states, union territories, and the Centre. Each council represents a specific zone and comprises members such as the Home Minister of the Central government, Chief Ministers of states, and administrators of union territories within the zone.
7. What is the role of the North-Eastern Council in India’s federal structure?
The North-Eastern Council, established by a separate Act of Parliament, focuses on coordinating regional planning and reviewing security measures in the northeastern states of India. Its functions are similar to those of the Zonal Councils but with additional responsibilities specific to the northeastern region.
8. How did the Sarkaria Commission influence the establishment of Inter-State Councils?
The Sarkaria Commission advocated for the creation of a permanent Inter-State Council, leading to its establishment in 1990. The Council, as recommended by the Commission, comprises the Prime Minister, Chief Ministers, and other officials, with responsibilities outlined in Article 263 of the Constitution.
9. What powers does Parliament have regarding inter-state trade and commerce?
Parliament holds the authority to regulate trade, commerce, and intercourse between states or within a state in the interest of public welfare. However, it cannot show preference to one state over another, except in cases of goods scarcity across India, and must ensure non-discriminatory practices.
10. How do Zonal Councils contribute to national integration in India?
Zonal Councils aim to achieve emotional integration across the country by curbing regionalism and fostering cooperation among different regions. They facilitate collaboration on major development projects, uniform policies, and the establishment of political equilibrium among different regions.
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