The Indian Constitution establishes a unique federal structure in which powers are distributed between the Centre and the States. Though India is referred to as a “Union of States,” its federalism differs significantly from classic models like that of the United States. It leans towards a “quasi-federal” or “cooperative federal” model with a strong Centre.

This article provides a concise overview of how the Constitution of India defines and governs the relationship between the Union and the States, the functional mechanisms involved, and the relevant constitutional provisions.

1. Legislative Relations

Articles 245 to 255 deal with the distribution of legislative powers. The Seventh Schedule of the Constitution divides the subjects of legislation into three lists:

Union List: Only Parliament can legislate on these matters, which include defence, foreign affairs, banking, etc.

State List: State legislatures have exclusive powers over subjects such as police, public health, agriculture, and land.

Concurrent List: Both Centre and States can legislate on these subjects. However, under Article 254, in case of conflict, the central law prevails over the state law.

This structure ensures a clear division of powers, yet retains primacy for the Centre in case of inconsistency.

2. Executive Relations

Articles 256 to 263 outline the executive relationship between the Union and the States.

Article 256 mandates that state governments must ensure compliance with laws made by Parliament.

Article 257 allows the Union to guide the states in matters that might affect the interests of the country.

Article 263 provides for the creation of an Inter-State Council to facilitate coordination and resolution of inter-state disputes.

The Centre can thus exercise oversight, ensuring national coherence in administrative actions.

3. Financial Relations

Articles 268 to 293 define the financial relationship between the Centre and the States.

The Constitution provides for a division of taxation powers and revenue-sharing arrangements.

Article 280 provides for the formation of a Finance Commission every five years, which recommends how taxes are to be distributed between the Union and the States.

Some taxes are levied by the Centre but collected and appropriated by the States (e.g., stamp duties), while others are shared (e.g., income tax).

This fiscal framework aims to ensure equitable development across states.

4. Relations During Emergencies

The Indian Constitution allows for a shift in the federal structure during emergencies, making it more unitary in nature.

National Emergency (Article 352): The Union can legislate on state subjects.

President’s Rule (Article 356): The President can assume control of a state government if constitutional machinery fails.

Financial Emergency (Article 360): The Union can direct states on financial matters, curbing their autonomy.

These provisions, while controversial, are meant to safeguard national unity in times of crisis.

Important Supreme Court judgments:

1. State of West Bengal v. Union of India (1963) AIR 1241
Key Point: The Centre is not a mere creation of the States; India is an indestructible Union of destructible States.

Issue: Whether Parliament has the power to acquire land belonging to a State.

Held: The Supreme Court emphasized the supremacy of the Union and ruled that Parliament could acquire state land even without the consent of the State.

Significance: Asserted that India is not a federation formed by an agreement between states, unlike the U.S.A.

2. S.R. Bommai v. Union of India (1994) 3 SCC 1
Key Point: Judicial review of President’s Rule (Article 356) is permissible.

Issue: Misuse of Article 356 to dismiss State governments.

Held: The imposition of President’s Rule is not immune from judicial review. The Court can strike it down if mala fide.

Significance: Strengthened federalism and imposed checks on Centre’s power over States.

3. R. v. Union of India (1981) 1 SCC 568 (also known as Re: Presidential Reference)
Key Point: Reiterated the quasi-federal nature of the Indian Constitution.

Held: India is not truly federal like the U.S., nor completely unitary. It has federal features with a strong Centre.

Significance: Helped shape the understanding of the unique nature of Indian federalism.

4. UCO Bank v. Dipak Debbarma (2017) 2 SCC 585
Key Point: In case of conflict between Union and State laws, the Union law prevails (Article 254).

Issue: Whether a State law can override a Central banking law.

Held: Banking is a subject in the Union List; hence the Centre's law prevails.

Significance: Clarified legislative supremacy of the Centre in the Concurrent List.

5. State of Rajasthan v. Union of India (1977) 3 SCC 592
Key Point: Limited the power of the judiciary to interfere in political decisions of the Centre.

Issue: Centre’s directive to States to dissolve Legislative Assemblies.

Held: Political questions are not subject to judicial review unless there is a clear constitutional violation.

Significance: Important for understanding executive relations and federal boundaries.

6. Government of NCT of Delhi v. Union of India (2018 & 2023)

These cases clarified the division of powers between the Delhi Government and the Lt. Governor.

Held: The elected government of Delhi has control over all subjects in the State List except police, land, and public order.

Conclusion

The Indian Constitution carefully balances central authority and state autonomy. While the Union is stronger in terms of overriding powers, particularly during emergencies, the overall approach is that of cooperative federalism. The Constitution encourages coordination and consultation between both levels of government.

In modern times, as Centre-State conflicts over jurisdiction and political interests continue to arise, it becomes even more important to understand this foundational structure. India's federalism, although asymmetrical, reflects the country’s diversity and commitment to unity.

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