Dey / Cooperative Federalism: A Cherished Value of Constitution for 21st Century Governance in

India

COOPERATIVE FEDERALISM: A CHERISHED

VALUE OF CONSTITUTION FOR 21ST CENTURY
GOVERNANCE IN INDIA
Pritam Dey1

ABSTRACT

Federalism excludes absolute power of majority. It demarcates strict

division of powers, functions and area of competence of different units
of federation. Traditionally, this Constitutional process has facilitated
in furtherance of decentralization of decision making and promotion of
multi-level governance. But for a country like India, a synergised,
unison and mutually inclusive relation between state and centre is
required rather the exclusivity of power as propounded by classical
theorist of federalism. Hence, the need of “Cooperative federalism”,
which can be defined as “a relationship where the National
Government and the States are mutually complementary parts of a
single government mechanism all of whose powers are intended to
realize the current purposes of government according to their
applicability to the problem in hand”. This paper critically assesses
and analyses the evolvement of the idea of Cooperative federalism in
India by traversing different era’s. It studies four overreaching themes
i.e. legislative, administrative, financial and institutional relation to
comprehend the nature of cooperation between centre-states and also
to find out the grey areas where harmony is required. The paper
ascertains the impediments that plagues the furtherance of
decentralization and multi-level governance in India and provides for
measures to strengthen the harmony between centre and state in light
of the notion of “cooperative federalism”. The study has been
conducted by appraising recent developments like 14th Finance
Commission recommendations, Niti-Aayog, functioning of intelligence
agencies, district mineral foundation, formation of new states etc. The
paper aims to suggest an ‘idea of India’ where units of federation work
together to realize the cherished values and goals of the nation.

KEYWORDS: Cooperative Federalism, Harmony between Centre and State,

Institutional Relation

1
Pritam Dey, LLM (II Year), Rajiv Gandhi School of Intellectual Property Law, IIT
Kharagpur, Phone: 8296116302, Email: [email protected]

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INTRODUCTION

“Federalism is the best curb on democracy. It assigns limited powers to the

central government. Thereby all powers are limited. It excludes absolute
power of the majority”2.

Federalism in classical sense encapsulate strict division of function between

the Centre and the units in a federation, it also demarcates the respective
areas of competence of each constituent. In the three older Federations i.e.
U.S.A, Canada and Australia, in the formative years of their development,
the dominant operative concept was ‘Dual Federalism’, where state and
centre enjoys equal power and status. It ultimately gave rise to another
strong feature i.e. ‘competitive federalism’ which denoted the spirit of
competition and rivalry between centre and state. But an academic question
raised time and again is whether various governments can work in water
tight compartments or can there be absolute federation.

It would be incorrect to assume that the state and central governments can
work in isolation, as the governments works side by side many
instrumentalities to promote inter-governmental cooperation come into
existence. With the growing exigencies for war where national effort takes
precedence and the changing role of state from police state to welfare state,
the nature of relation between various constituents of a federation also got
altered. With the passage of time the concept of ‘competitive federalism’
slowly pave way to ‘cooperative federalism’. “The concept of ‘cooperative
federalism’, helps the federal system, to act in unison, it minimises friction
and promotes cooperation among the various constituents of the government
so that they can pool their resources for achieving desired national goals”3.

The term ‘cooperative federalism’ can be defined as “a relationship where

the National Government and the States are mutually complementary parts
of a single government mechanism all of whose powers are intended to
realize the current purposes of government according to their applicability
to the problem in hand.”4. “In a strict sense, it would appear that the word
`cooperative’ is redundant as it is the basic postulate in political theory of
federalism that two or more sovereigns surrender part of their sovereignty to
work together for common good. Cooperative federalism envisages that
national and state agencies undertake government functions jointly rather
than exclusively. The nation and states would share power without power

2
Lord Acton, Acton Institute for the Study of Religion and Liberty, available at
http://www.acton.org/research/lord-actonquote-archive (Last visited on May 25, 2016).
3
M.P. Jain, Indian Constitutional Law 772, LexisNexis Butterworths Wadhwa (6th ed.
2010)
4
Corwin, The Constitution of the U.S.A, SENATE DOC, 14 (1953)

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 Dey / Cooperative Federalism: A Cherished Value of Constitution for 21st Century Governance in
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being concentrated at any government level or in any agency”5. The concept

of cooperative federalism was not important in India at the dawn of Indian
Independence but with the changed political, social and economic scenario
of the country, unison between centre and states has become paramount. It
is now being realised that the various governments in a federation are
interdependent to each other and they should act together in cohesion and
not be at cross-roads to each other.

The cooperation among state and centre has become much more significant
due to the presence of diverse and sometimes diametrically opposite
ideological based governments in different states and centre. It has given
rise to fractured polity which robes the country of much needed consensus
in national interest matters leading to avoidable expenditure of energy,
finance and time. In the contemporary world, where the classical definition
of communication, tax, business, security, finance, foreign policy etc. are
changing a synergised, unison and mutually inclusive relation between state
and centre is required to give effect to them and to fulfil the desired goals
and objectives of the nation.

The advantage of this system is that distribution of responsibilities gives

people and groups access to many avenues of influence which may
otherwise be inaccessible, the cooperation among states and centre creates
an ambience for the citizen to have a dignified life, so that they don’t
become subjects of tug of war between states and centre. So, it has been
rightly said that the “Federalism isn’t about state rights only, it’s about
dividing power to better protect individual liberty” 6 . J. Beg in State of
Rajasthan v. Union of India 7 called Constitution as an amphibian, in the
sense that it can move in either direction i.e. unitary or federal depending
upon the circumstances which seminally means cooperation among the state
and centre. The time has come for the titans to shake hands and work for the
national interest.

In India the term cooperative federalism is not a myth but a reality, the term
may not be a Constitutional doctrine but it is sine qua non for the
governance of the country. In a diverse country like India where each state
has its own topography, culture, economic and social condition cooperation
among the centre and state is necessary in all spheres of government in
order to achieve desired national goals. The centre and state through

5
Arghya Sengupta & Others, Cooperative Federalism from Rhetoric to Reality, Vidhi
Centre for Legal Policy (2015)
6
Elizabeth Price Foley and David Rivkin, The Originalism Blog, October 10, 2012, http://
originalismblog.typepad.com/theoriginalism-blog/2012/10/elizabeth-price-foley-and-david-
rivkin-on-federalismmichael-ramsey.html (last visited on June 1 2016)
7
AIR 1977 SC 1361

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legislative mechanism and administrative decision has started to cooperate

in various spheres of governance.
The most concrete mechanism developed till now by which centre and state
coordinate is the greater devolution of financial resources through
Constitutional mechanism like Finance Commission and Non-Constitutional
bodies like Planning Commission. But finance is not the only issue which
need cooperation among the various constituents of the federation, it also
encapsulates cooperation among various tiers of government, institutional
cooperation, administrative and legislative cooperation, security and public
policy cooperation, ownership of natural resources and their consequent
benefits along with it host of other issues.
Although some formative steps have taken to iron out the differences among
the various constituent of federation on various, there are some grey areas
where the cooperation between the centre and state need to be strengthened.
The article analyses the historical development of the concept of
cooperative federalism in some select countries. It also analyses some of the
existing mechanism of cooperation between centre and state in India and
also provides measures to strengthen harmony between centre and state in
light of recent developments like Fourteenth Finance Commission
recommendations, abolition of Planning Commission, role of Niti-Aayog
etc. The article focused on specific practices of the Indian federation to try
and arrive at a position to determine the cooperation between various
constituents of a nation. It looks at issues of contemporary relevance across
four themes derived from constitutional values.
HISTORICAL DEVELOPMENT OF COOPERATIVE FEDERATION IN
SELECT COUNTRIES

The Constitution of Canada, U.S.A and Australia are the classic examples
of federation, where the powers of the constituent unit is earmarked. But
with the passage of time all these federal Constitution moved from Dual
Federalism to Cooperative Federalism. In the U.S.A., the intergovernmental
co-operation has been built mostly around the system of conditional central
grants to the states for centrally-sponsored schemes.8
Canada has also developed some form of cooperative federalism which
includes distribution of grants to provinces, delegation of power by the
centre to the state and to some other subordinate agencies9. In Australia, the
concept of cooperative federalism has been given impetus through

8
People of the State of New York v. O’Neill, 11 N.Y.2d 148 (N.Y. 1962)
9
M.P. Jain, Indian Constitutional Law 713-716, LexisNexis Butterworths Wadhwa (6th ed.
2010)

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Government established bodies like Commonwealth Grants Commission

and Australian Loan Council10 to coordinate the borrowing programme of
the Centre and States. The arrangement reduced the competition between
the Centre and State governments for funds and has increased inter-
government cooperation.
All these Constitutions were drafted in the era of laissez faire where the
role of the state was minimal and commanding heights of the economy was
dominated by the private enterprises. But the shift in the political and
economic philosophy of the state necessitated change in the corresponding
adjustment of the Constitution norms, which gave rise to the concept of
strong centre and maximalist state intervention11. The latter half of twentieth
century is marked by changing dynamics of society which has necessitated a
constitutional framework which can provide necessary flexibility and
resilience in the governance structure. It was identified that in order to
support and promote pluralism and multiculturalism in a society, cohesion
between states and centre is sine qua non.
U.S.A
The concept of cooperative federalism first gained attention in America. The
U.S Constitution has been regarded as the epitome of federalism where the
division between centre and state power is clearly demarcated. It started
with a weak centre and strong states as the Constitution is the result of
voluntary compact between the states. But through ingenious legislative
devices and judicial activism, the power of centre have expanded
phenomenally particularly in nineteenth century.
The centre vast financial resources have led to the emergence of the system
of grant-in aid, this have been accentuated through war, economic
depression, emergence of social welfare policy. The judiciary has also
interpreted the Constitution in favour of strong centre, in Steward Machine
Co. v. Davis10, the court upheld the Social Security Act, 1935, the act had
put enormous pressure on the state to follow an economic scheme, under
U.S Constitution Congress is not authorised to legislate on social security
issues, but the court upheld the law.
All these developments altered the balance of power in favour of central
government. But after Second world war the role of state in national
development was again given a special attention, the idea of organic
federalism and cooperative federalism altered the governance structure. The
federalising of corporate law for the growth of industry 12 , the separate

10
M.P. Jain, Indian Constitutional LAW, 707 (6th ed. 2010)
11
U.S. 548 (1937)
12
Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code)

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minimum wages policy of each state 13 and fiscal independence given to

states have increased inter-government cooperation among the states.
The judiciary also started giving parity to centre and state vis-à-vis various
programmes and legislation. In Printz v. United States13, the court held that
national government cannot force the state law enforcement agencies to
conduct background check under Brady Fire Arms Regulation14. In cases
like King v. Smith15 and Schaffer v. Weist 16 , the court has supported the
federal programs built on cooperative model. The U.S.A has come a long
way from a dual federal state to a competitive federal state and finally to a
cooperative federation state which also supports cooperative legislation17.
Canada
The Canadian Constitution basically promotes strong centre, it derives its
power through British North America Act, 1867. The BNA Act was
intended to establish strong centre but through judicial pronouncements and
interpretation of the act by Privy Council and Canadian Supreme Court, the
powers of the centre were usurped. Only in situation of national emergency
he centre has relatively greater autonomy and power than the provinces18.
In Attorney General of Canada v. Attorney General of Ontario19 also known
as ‘weekly rest case’, the Privy Council took away the power of the centre
to make laws on labour issues. In another seminal case Attorney General for
British Colombia v. Attorney General of Canada 20 , the Privy Council
denied the centre the power to regulate the supply and marketing of
essential commodities.
However, after a Constitutional Amendment in 1940, a strong cooperative
tendency among constituents of the federation can be envisaged, with
increasing financial resources with the centre, the system of grant for
centrally-sponsored scheme was developed, the centre was given power to
provide unemployment insurance, old age pension was made part of
concurrent jurisdiction, many powers of the centre was delegated to various

13
United States v. Darby Lumber Co., 312 U.S. 100 (1941) had upheld the Fair Labour
Standards Act, 1938, many states passed its own minimum wage laws like Fair Minimum
Wage Act, 2007 etc.
14
Brady Handgun Violence Prevention Act, 18 U.S.C Pub.L. 103–159, 107 Stat. 1536,
(1993)
15
U.S. 309 (1968)
16
U.S. 49 (2005)
17
United States v Bekins, 58 S.Ci 811 (1938)
18
Russel v. The Queen (1882) 7 AC 829
19
AC 326
20
AC 377

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instrumentalities of the state. Canadian federation moved from strong centre

to strong provinces and finally to cooperative federations.
Australia

The Australian Constitution although judicially characterised as truly

federal as in the beginning centre’s power were limited and accent was of
state power. But with time there has been significant mobility towards
centralization 21 . The centre has become powerful as a result of judicial
pronouncement, conditional grant in aid and emergence of financial
agreement between state and centre. The enormous power wielded by centre
was manifested in 1942 where state unilaterally excluded states from the
field of income-tax. In Victoria and New South Wales v. The
Commonwealth22, judiciary gave sanction to the centre scheme.

In the landmark ‘Pharmaceutical benefits case’ i.e. Attorney General of

Victoria v. The Commonwealth23, the scheme to provide free medicines to
people was invalidated by the court, this led to amendment in the
Constitution empowering parliament to make laws for social security. The
rise of social welfare legislation also increased the power of centre. But with
the formation of government institution like Australian Loan Council24, the
competitive nature between state and centre for fund started to diminish, it
transformed into a relation of inter-state cooperation. The development of
Commonwealth Grant Commission25 Australia today is now a model state
of cooperative federation, with its finances and administrative powers
equally divided among its constituent.

COOPERATIVE FEDERALISM IN INDIA

A pertinent question always arises that whether Indian Constitution can be

characterised as truly federal or not. Some scholars use the epithets for it as
‘quasi-federal’, ‘unitary with strong federation’ or ‘federal with strong
unitary feature’. It is to be noted that the Indian federalism was not a result
of a compact between sovereign units but a conversion of a unitary system
into federal system. In West Bengal v. Union of India26, the Supreme Court

21
South Australia v. The Commonwealth, (1942) 65 CLR 373
22
(1957) 99 CLR 575
23
(1945) 71 CLR 237
24
Supra 9
25
The commission is a statutory body in Australia that advises Australian Government on
financial assistance to the state and territories of Australia.
26
AIR 1963 SC 1241

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took note of this process and rejected the clam of the states that they shared
sovereignty with the centre.
Due to past history of the country, underdevelopment and volatile social and
political condition, the Constitutional makers found it prudent to provide for
a strong centre. But that doesn’t mean states are subservient to the centre,
due to unique socio-economic condition of the country the makers of the
Constitution seek to reconcile the imperatives of strong centre with the need
for state autonomy.
India represents diverse cultural, ethnic, social and economic beliefs which
changes from state to regions, they cannot be accommodated only in federal
structure but need cooperative and constructive federalism. In Indian
Constitutional context the term ‘cooperative federalism’ is extremely vague,
although the centre and state claims to work together but the fracture polity
robs the citizen of consensus based nation building 27 . Although it is
doubtful whether we can consider the term ‘cooperative federalism’ as
constitutional doctrine nevertheless it has gained much attention in recent
decades.
Since the ancient period the concept of cooperation among the centre and
vassal states was followed, there was a stated policy of non-intervention in
the local affairs of the states. The great rulers of Mauryan, Gupta and
Mughal dynasty were able to hold their power because of their respect and
belief in demarcation of power between centre and state. The development
of Cooperative federalism in India can be analysed through understanding
political evolution and Constitutional development.

A. PRE- INDEPENDENCE ERA

In the earlier stage of British rule, the colonial administration kept an arm’s
distance from the Indian Subjects. The British Government through
Regulating Act, 177328, Piit’s India 178429 and various Charter Acts used to
supervise Indian Subjects. The continuous interference of British in affairs
of Indian subject led to the first war of independence. After the war, it
became a stated policy of the British of not interfering in the local affairs.
Through the Montague- Chelmsford Reforms in 191930 and the Government

27
Arghya Sengupta & Others, Cooperative Federalism from Rhetoric to Reality, Vidhi
Centre for Legal Policy (2015)
28
13 Geo. 3 c. 64
29
24 Geo. 3 Sess. 2 c. 25
30
9 & 10 Geo. 5 c. 101

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of India Act, 193531, some form of provincial autonomy was granted. The
scheme of distribution of power between states and centre can be
understood from this backdrop.

B. POST-INDEPENDENCE ERA

Indian Constitution created an effective mechanism of distribution of power

among the centre and states but with a biasness towards unitary power. The
presence of Seventh Schedule of Constitution, authority of the centre to
make legislation for two or more states, decentralisation of power through
municipalities and panchayats is a testament of our Constitution
incorporation of cooperative federalism. But single citizenship, alteration of
boundaries of states, All- India Services, power of parliament to legislate in
states subjects give a biasness towards union.

But the philosophy of the term Cooperative Federalism was not of much
significance for India when there was one party rule in centre and state. In
the first two decades, the scope of conflict between state and centre was
minimal, as both the government were run by same parry, but the conflict
arises when centre and state governments changed and a competing demand
of resources started. Ingenious legislative method and judicial interpretation
were developed to promote cooperation among the governments. The
development of cooperative federation in India in post-independent scenario
can be analysed through following stages-

1950-1970–As stated earlier the formative years of Indian Constitution

didn’t provide much significance to the term cooperative federalism owing
to the presence of one party in centre and state. In spite of this, seeds of
cooperation were embedded in India through institutional development. The
division of states on the basis of language through State Reorganisation
Act,1955 and development of five Zonal Councils32 to cooperate between
the centre and state in conflict situation were first steps in this regard. To
democratise planning and development Planning Commission and National
Development Council was established. The first Administrative Reform
Commission33 also gave recommendation on inter-state cooperation for the

31
26 Geo. 5 & 1 Edw. 8 c. 2
32
The idea of Zonal Councils was mooted by Pt. Jawaharlal Nehru during the course on
debate on State Reorganisation Commission. The idea was to create a ‘Advisory Councils’
for each zone to promote cooperation between the states in the area of governance and
policy making.
33
The first ARC was constituted by the Ministry of Home Affairs under Government of
India by resolution no. 40/3/65-AR(P) dated 5 January 1966, Chaired by K.
Hanumanthaiah.

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effective functioning of government machinery, it called for the effective

functioning of Inter-State Council under Art. 26334of the Constitution.

The era also saw centre effectively coordinating with the states in the
development model. The top down approach of the economy was supported
by nearly all the states. The period of 1960’s was marred by war so a strong
centre was needed, use of state emergency provision of the Constitution was
also minimal due to one party rule in the country. But Indian federal system
was soon besieged with lot of challenges and the subsequent decades
marked the test for Indian federalism.

1970- 1990- The era marked the conflict between state and centre in nearly
all spheres of governance. The increasing number of opposition ruled state.
provided for fractured polity and calls for redefining centre- state relation. In
1971, Rajmannar Committee35 also gave recommendation for the effective
functioning of the Inter-State council under Art.263 36 and to make a
permanent secretariat for the council which will be a permanent body to
look after the centre-state relation. It asked for every bill which shall effect
state power be reviewed by this body. The increasing use of President rule
to overthrow opposition governments 37 , discriminatory financial
arrangements and assault on federal system of the country also led Supreme
Court to pass several landmark judgements on federal issues. The Supreme
Court in it magnum opus judgement of Kesavananda Bharati v. State of
Kerala 38 clearly held that the federal character is the basic structure of
Indian Constitution and hence cannot be changed according to the whims
and fancies of the governments.

34
Art. 263- If at any time it appears to the President that the public interests would be
served by the establishment of a Council charged with the duty of—
inquiring into and advising upon disputes which may have arisen between States;
investigating and discussing subjects in which some or all of the States, or the Union and
one or more of the States, have a common interest; or
making recommendations upon any such subject and, in particular, recommendations for
the better coordination of policy and action with respect to that subject, it shall be lawful for
the President by order to establish such a Council, and to define the nature of the duties to
be performed by it and its organisation and procedure.
35
The Centre-State Relations Inquiry Committee was set up by the Government of Tamil
Nadu on 2 September, 1969 under the Chairmanship of Dr. P.V. Rajamanar to consider the
entire question regarding relationship that should subsist between the Centre and the States
in a federal set up. The other two members of the committee were Dr. A. Lakshmanaswami
Mudaliar and Mr. P. Chandra Reddy.
36
Supra 36
37
Smt. Indira Gandhi used the power of President rule over 39 times between 1966-1977.
Similarly, Janata Party Government after coming to power in 1977, dismissed 9 Congress
ruled states.
38
(1973) 4 SCC 225

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The court in State of Rajasthan v. Union of India 39 quoted that Indian

Constitution was perhaps the first constituent body to embrace from the start
the value of cooperative federalism. The court in S.R. Bommai v. Union of
India40, used the term ‘pragmatic federalism’, to define legislative relation
between state and centre. Due to increasing conflict between state and
centre the era marked the establishment of Justice R.S Sarkaria
Commission41 in 1983 for the study of centre and state relation. It gave
more than 247 recommendations among which the appointment of governor
was significant. It asked the centre to deliberately use Art.248 42 for the
effective running of the nation. It maintained that it is necessary to keep Art.
36543 but it should be used with great caution. It rejected the demand for
repeal of Art.356 44 and the merger of finance commission. Many of its
recommendation were accepted and implemented by the governments. In
this period the courts also interpreted Constitution in light of cooperative
federalism. In Dabur India Ltd v. State of Uttar Pradesh 45 , the court
recommended that the centre should consider the feasibility of establishing
inter-state council under Art.263, which shall be a permanent body to
resolve disputes between centre and state. In D.C Wadhwa v. State of
Bihar 46 , although constitutional validity of repeated promulgation of
ordinance was upheld, the court emphasized that it cannot be a tool to serve
political interest.

1990-till present- Post 1990’s era was a coalition era led by regional parties,
the accent of state leaders in national scenario and the central government

39
AIR 1977 SC 1361
40
AIR 1994 SC 1918
41
To review the working of the existing arrangements between the Union and the States in
the changed socioeconomic scenario, the Government constituted a Commission vide
Ministry of Home Affairs Notification No.IV/11017/1/83-CSR dated June 9, 1983 under
the Chairmanship of Justice R.S. Sarkaria with Shri B. Sivaraman and Dr. S.R. Sen as its
members.
42
248. (1) Parliament has exclusive power to make any law with respect to any matter not
enumerated in the Concurrent List or State List.
(2) Such power shall include the power of making any law imposing a tax not mentioned in
either of those Lists.
43
Art. 365- Where any State has failed to comply with, or to give effect to, any directions
given in the exercise of the executive power of the Union under any of the provisions of
this Constitution, it shall be lawful for the President to hold that a situation has arisen in
which the Government of the State cannot be carried on in accordance with the provisions
of this Constitution.
44
Art.355-It shall be the duty of the Union to protect every State against external
aggression and internal disturbance and to ensure that the Government of every State is
carried on in accordance with the provisions of this Constitution
45
AIR 1990 SC 1814
46
AIR 1987 SC 579

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dependence on state parties led to a situation where the rules of convergence

between centre and state needed to be redefined. The increasing clout of
state satraps have increased the conflict between broader national issues and
regional issues which needed a change in centre-state relations.

In 1999, the Government of India appointed the National Commission to

Review the Working of the Constitution (NCRWC), which recommended
that there was need for the institutionalization of consultative process
between centre and state. It considered Art.263 to be in tune with the spirit
of cooperative federalism and suggested that the Inter-State Council order,
1990 should clearly specify under sec.4(b) of the order of subjects that can
be consulted between state and centre in the council. It also recommended
that Art. 139A47 of the Constitution of India be amended so that the council
can withdraw cases to itself from any court and start a consultative process
on that, further it also recommended for the formation of Inter-State Trade
Commission.

The Second Administrative Reforms Commission48 with a term of reference

that included to review the working of centre and state. In the contemporary
world the rules of engagement between state and centre has undergone lot
of changes, the big-brother attitude of centre has transformed into a
cooperative attitude. In every sphere of governance be it public policy,
security, foreign policy, economy no government can work in isolation, the
time of cooperative federalism has come.

The Supreme Court has also reiterated its stand on federalism vis-à-vis
cooperative federalism, in Kuldip Nayar v. Union of India51, the court while
interpreting the word domicile under Representation of People Act, 1951

47
(1) Where cases involving the same or substantially the same questions of law are
pending before the Supreme Court and one or more High Courts or before two or more
High Courts and the Supreme Court is satisfied on its own motion or on an application
made by the Attorney-General of India or by a party to any such case that such questions
are substantial questions of general importance, the Supreme Court may withdraw the case
or cases pending before the High Court or the High Courts and dispose of all the cases
itself:
Provided that the Supreme Court may after determining the said questions of law return any
case so withdrawn together with a copy of its judgment on such questions to the High Court
from which the case has been withdrawn, and the High Court shall on receipt thereof,
proceed to dispose of the case in conformity with such judgment.
(2) The Supreme Court may, if it deems it expedient so to do for the ends of justice, transfer
any case, appeal or other proceedings pending before any High Court to any other High
Court.]
48
The Second ARC was set up with a resolution no. K-11022/9/2004-RC of the
Government of India as a committee of inquiry to prepare a detailed blueprint for
revamping the public administration system. It was headed by Shri Veerappa Moily and
four other members. 51 AIR 2006 SC 3127

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upheld the election of non-resident of place in Rajya Sabha. The court in

order to promote cooperation among the states gave this provision a widest
possible interpretation. The election of a new government in 2014 has
given a new meaning to the term ‘cooperative federalism’, the formation of
NITI-Aayog, the devolution of more funds to the state under the
recommendation of fourteenth finance commission and the acceptance of an
economic model that is bottom up approach rather than a top down
approach. All these developments have given a new approach to India’s
federalism.

Indian Constitution has provided a federal structure with a strong

centralizing tendency. The powers vested upon the centre tramples states’
rights especially in financial matters and during the time of emergency.
Although Indian Constitution have definite features of federalism it is still
called a quasi-federal Constitution. Perusing the Constitutional debates one
can understand the importance given to centre by the Constitutional makers.
Although federalism was a dominant discourse in Constitution making
process, there was unanimous consent of all the members of the Constituent
Assembly of having a strong Centre, the brutality of British rule and the
consequent horrors of partition had convinced the framers of the
Constitution that a strong centre can only keep ‘Unity and Integrity of the
Nation’. But the framers of the Constitution had given full autonomy to
states in their respective areas, although we have strong centre the state is
not subservient to the centre. One of the fundamental aspects of federalism
is the independence of federal/provincial government in their own area of
influence. But there can be situation where the strict rigidity of the
separation of power need to be diluted for the public interest. In order to
understand the India’s cooperative model of governance system, we have to
analyse some of the distinct features of Indian Constitution and Laws. It will
also give us the grey area in which we need to work to develop an effective
system of governance between states and centre.
A. LEGISLATIVE RELATIONS
One of the most fundamental features of a federal constitution is the division
powers and functions between the centre and the states. The Constitution
under Seventh Schedule have demarcated the areas of law making between
centre and state. Art. 245- Art. 255 provides for the legislative relation
between the union and the states. Indian Constitution gives an elaborate
scheme of distribution of legislative powers between centre and the state
through Union List, State List and Concurrent List. Only the parliament is
empowered to legislate under the entries given under the Union List, the
state legislatures are empowered to legislate under State list and the both the

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governments can make laws under Concurrent List. The power of legislation
and taxation has been clearly demarcated in the Constitution. In Union List
Entry 1 to 81 deals with topics of legislation, 82 to 93B deals with power of
taxation. In State List Entry 1 to 44 deals with reference to legislation and
Entries 45 to 63 deals with taxation. The power of residuary power is also
vested on the Centre under Entry 97 of the Union list. This section analyses
some specific provisions under Constitution of India that signifies
Cooperative Federalism and the grey areas which need further reforms.
Concurrent List
One of the most important and enduring features of the Indian Constitution
is the presence of Concurrent List. The list contains 47 subjects in which
both state and the centre can legislate. Entries like Criminal Law, Marriage,
Divorce, preventive detention, environment, civil procedure etc. The true
basis for the presence of such a list is the increasing complexity in socio-
economic matters, intertwined issues of trade and commerce and growing
dependence between various federation of the states49. The Entries in the list
are not “powers of legislature” but “fields of legislature”.
The underlying features of this list is that nation building cannot be done in
isolation, there can be various subjects where coordination between the
centre and the state becomes necessary. The Concurrent List in the true
spirit of cooperative federalism provides a harmonious legislative route on
issues in which both centre and the state are equal stakeholders. But
sometimes the issues get so intermingled that the centre and the state make
separate laws for the same subject area.
To reduce the conflict in the area of Concurrent List recommendation of the
Sarkaria Commission is useful wherein a need of holding of consultation
and convention has been envisaged to reduce the conflict between
constituent of a state 50 . Moreover, for developing the spirit of the
cooperation between states only the residuary power of taxation should
remain with Union List and rest should be transferred to Concurrent List51.
The Constitution should be suitably amended for giving the effect.
Cooperative Legislation
Cooperation in the legislative sphere is necessary for achieving the goals of
nation. Art 252 of the Constitution of India provides for ‘cooperative
legislation’ where the states through resolution empowers the central

49
M.C. Setalvad, Union and State Relations in the Constitution 57, Eastern Law House
(1974)
50
Sarkaria Commission Report, Part 1, pp.49 to 51.
51
Id. 54

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government to make laws on state subject The provision has few parallels
among the federal Constitutions. The need for cooperative legislation arises
for better governance of a state. There can be various situation where the
state is unable to deal with problem on its own or it is not possible to make
laws on the subject without having uniform laws throughout the country.
The Bombay High Court judgement in RMD Chamarbaugwala v. State of
Bombay 52 , which struck down the regulation on lotteries and prize
competition, obviate the need to make a central to regulate lotteries and
other speculative games. Unable to regulate the activity, several state
legislatures passed the resolution authorizing centre to make law on the
subject which ultimately led to passing of Prize Competition Act, 1955.
The states also realised that there should be uniformity of laws on certain
subjects which are in state list Urban Land (Ceiling and Regulation) Act,
1976 where uniformity of laws was necessary for proper implementation.
After independence centre has passed plethora of laws on state subject
owing to difficulties faced by state due to lack of resources like Estate Duty
Act,1954, National Capital Region Planning Board Act, 1985, Human
Organ Transplant Act, 1994, Seeds Act, 1966 etc. In a diverse country like
India, legislation cannot be made through water tight compartments, there
has to be certain flexibility to meet unforeseen circumstances. Provision like
Art. 252 promotes inter-state and centre union relations.
Intelligence Gathering and Terror Investigation
One of the biggest obstacles in centre-state relation is the intelligence
gathering, terror investigation and the role of police. Unlike in many federal
countries Indian Constitution doesn’t provide for any federal offences.
Under our Constitutional scheme ‘criminal law’ is under ‘concurrent list’53,
‘public order and police’ is under ‘state list’ 54 , this unique features
sometimes create fissures among centre and state.
The most glaring situation when such fissures arises is the investigation of
terror offences which involves inter-country investigation and sometimes
may also require foreign agencies help. In such situation, only federal
agencies like National Investigation Agency (NIA), Central Bureau of
Investigation, Narcotics Bureau etc. are called for investigation. The NIA
mandate to investigate all terror incidents in the country sometimes

52
AIR 1957 BOM. 669
53
Entry 59 of List III of Seventh Schedule
54
Entry 2A of List II of Seventh Schedule

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encroaches on state rights, the provision of NIA ACT, 2008 like Sec. 6(3)55
and 6(5)56 completely obviates the need for state consent.
The states are reluctant to order NIA investigation due to fear of violation of
state rights and encroaching on states power. The NIA Act should be
modelled around the Delhi Special Police Establishment Act, 1946 which
have established the Central Bureau of Investigation. The states attempt to
legislate involving terror offences like Maharashtra Control of Organised
Crime Act, 1999 and Gujarat Control of Terrorism and Organised Crime
Act, 2015 can be characterised as encroachment on centre power.
One of the reason for the President to repeatedly shying away from giving
consent to Gujrat Anti-terror law is that it is not in consonance with the
central law. The domestic intelligence agency of the country is ‘Intelligence
Bureau’, which has the responsibility to collect and disseminate information
among police. The working of IB is again one of the examples of centre’s
regulation over state. The IB as an organisation doesn’t have any legislative
sanction, it’s legality is based on an executive decision taken by British
government in 1885 57 . IB maintains large number of field units and
subsidiary intelligence office in various parts of the country.
It takes help of state police in its day to day functioning but the problem is
regarding its accountability and its mandate to work throughout the country
even without state consent. IB has all the powers of police like search,
arrest, seizure, it can work in part of the country, even keeping state police
in dark. The terms of reference of IB is quite vague and loosely worded and
there is substantial allegation of political espionage against personnel of
Intelligence. That is the reason all states governments are averse to the
working of Intelligence Bureau.
The fear of states against the central agencies like IB, NIA is also effecting
India’s fight against terror, the non- cooperation of states is also holding up
important reforms like NCTC (National Counter Terror Centre) and

55
Sec.6(3) On receipt of report from the State Government, the Central Government shall
determine on the basis of information made available by the State Government or received
from other sources, within fifteen days from the date of receipt of the report, whether the
offence is a Scheduled Offence or not and also whether, having regard to the gravity of the
offence and other relevant factors, it is a fit case to be investigated by the Agency.
56
Sec. 6(5) Notwithstanding anything contained in this section, if the Central Government
is of the opinion that a Scheduled Offence has been committed which is required to be
investigated under this Act, it may, suo moto, direct the Agency to investigate the said
offence
57
In 1885, Major General Sir Charles MacGregor was appointed Quartermaster General
and head of the Intelligence Department for the British Indian Army at Shimla. The
objective then was to monitor Russian troop deployments in Afghanistan, fearing a Russian
invasion of British India through the North-West during the late 19th century.

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NATGRID (National Intelligence Grid). It doesn’t bode well for effective

coordination and intelligence sharing among the various agencies of the
country which is repeatedly coming into limelight during various terrorist
attacks.
So the question arises is cooperative federalism a way forward? In the
contemporary era the need for effective coordination between centre and
state for terror investigation and intelligence gathering is sine-qua no for
India’s unity and integrity. An amendment under Concurrent List providing
for an Entry ‘terror offences’ or ‘offences effecting security and stability of
the state’ can go long way in harmonizing centre-state relation58. Change in
the functioning of NIA and IB by making state part of decision- making
process will remove the scepticism involving central agencies.
International Treaties
Entry 14 of the Union List confers Union Parliament exclusive power to
make laws with respect to “entering into treaties and agreements with
foreign countries and implementing of treaties, agreements and conventions
with foreign countries” Art. 25359 of the Constitution of India provides that
all the international treaties have to be ratified by the parliament before it
becomes the law.
But it is not only the centre but also the state that has to follow the law. The
question arises where is the consent of state? The state being equal
participant in nation building process have the right to give its opinion on
any law that may affect its right. For e.g. India has given an ‘Intended
Nationally Determined Contribution’ under its climate change obligation for
its being signatory of UNFCCC. Before taking this decision does the
consent of state was taken because for fulfilling the commitment states will
have equal responsibility.
In Agreements Related on Trade-Related Aspects of Intellectual Property
Rights60, the India has committed to comply it Intellectual Property regime
with the world, this has seriously affected the pharmaceutical industry of the
country by escalating the cost of medicines. This has serious repercussion
on access to health and right of health of the citizens of the country. The

58
Arghya Sengupta & Others, Cooperative Federalism from Rhetoric to Reality, Vidhi
Centre for Legal Policy (2015)
59
Art. 258: Notwithstanding anything in the foregoing provisions of this Chapter,
Parliament has power to make any law for the whole or any part of the territory of India for
implementing any treaty, agreement or convention with any other country or countries or
any decision made at any international conference, association or other body
60
The detail agreement can be accessed at https://www.wto.org/english/tratop_e
/trips_e/trips_ e.htm (last visited on 15 February, 2016)

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Public health61 is under the state list of the Constitution but international
obligation of India has trampled this states’ rights and obviated the states
consent in such matters. This doesn’t bode well for the effective cooperation
among the centre and state.
Although foreign policy is the central subject and India’s commitment on
treaties is a sovereign commitment by Government of India, still policy
should not be made in isolation. An amendment should be made under
Art.253, where consultation with states should be made mandatory while
implementing treaties when such treaty have a bearing on states subject
area. This will incentivize centre and state to cooperate on vital issues of
national interest.
Federalizing Land Acquisition Legislation
Land is one of the most important constituent for the economic development
of the country. It is one of the most productive assets of the nation but in
India the land acquisition law is in complete conundrum. The lengthy time
required to complete the process of acquisition along with it the complicated
nature of law have completely vitiated the economic development of the
country. The Centre’s latest move in the political logjam around the Right to
Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013 (the Central Act), has been to look to the States
to amend the law. Land Acquisition62 is in Concurrent List under Indian
Constitution so legally state have the right to amend it after getting
president’s consent63. Making state specific laws for land acquisition is the
best way to promote cooperation and harmony for the economic
development of the country. It will cater to the need of specific states vis-à-
vis land acquisition64.
B. ADMINISTRATIVE RELATION
Indian Constitution provides state its area of influence and power, where it
is independent of the union. To ensure that a state government by its actions
or inactions doesn’t interfere with the legislative and administrative policies
of the union, certain powers of administrative control over the states have
been given to the central government. The administrative relations between
union and the state are governed under Art. 256-263 of the Constitution. It
is an obligation on the state to ensure the legislation made by the parliament

61
Entry VI of State List under Seventh Schedule.
62
Entry 42
63
Art. 254
64
Arghya Sengupta & Others, Cooperative Federalism from Rhetoric to Reality, Vidhi
Centre for Legal Policy (2015)

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are enforced in the state, along with it the executive power of the state shall
be exercised so as not to impede with the executive power of the union.
The term ‘State’ cannot be held to apply merely to a geographical entity or
territory. A direction can only be given to a legal entity and not a
geographical or territorial entity. Hence directions to the State must
necessarily means direction to states as legal entities which must have legal
representatives. 65 The administrative relation provides for cooperation
between centre and state for national interest. Protection of railways and
communication critical for military or national interest under state
jurisdiction have to be protected by the state. The adjudication of river-
disputes66 and the formation of interstate council are the best examples of
cooperative federalism under Indian Constitution.
Inter-State Council and Other Central Bodies
Art. 26367 of the Constitution refers to the establishment of an Inter-State
Council. It aims at providing an inter-governmental machinery which shall
deliberate on the problems of inter-state relation and Union-State Relation.
The Administrative Reforms Commission 68 and Supreme Court had also
recommended the formation of an organisation that shall cooperate and
coordinate between the states and the union. provides for the creation of a
body for solving problems arising out of the inter-state rivers. The
development of National Development Commission and Planning
Commission is also in consonance to the cooperative spirit of the nation.
Failure to comply with direction of centre
Art. 35569 of the Constitution provides a duty on the Union to protect every
state against external aggression and internal disturbance and to ensure that
the government of every state is carried on in accordance with the provision
of this Constitution. Art. 36570 of the Constitution provides for the effect in
case of failure of the state to comply with directions of the government.

65
State of Karnataka v. Union of India, (1977) 4 SCC 608,657
66
Cauvery Water Disputes Tribunal, Re, 1993 Supp (1) SCC 96
67
Supra 36
68
A.R.C Report on Centre-State Relationship, pp- 32-35, 1969.
69
Art. 355- It shall be the duty of the Union to protect every State against external
aggression and internal disturbance and to ensure that the Government of every State is
carried on in accordance with the provisions of this Constitution.
70
Art.365-Where any State has failed to comply with, or to give effect to, any directions
given in the exercise of the executive power of the Union under any of the provisions of
this Constitution, it shall be lawful for the President to hold that a situation has arisen in
which the Government of the State cannot be carried on in accordance with the provisions
of this Constitution

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However, contrary to popular belief the provision like Art.355 promote

cooperation among the states and centre, by making states accountable to
the Constitutional principles. The Centre can dissolve a state government
only if the government is being run contrary to constitutional principles.
The provisions create an indirect responsibility on both centre and state to
work closely keeping themselves within the Constitutional boundaries.
All India Service
One of the most interesting features of Indian bureaucracy is All India
Services which are the continuation of Indian Civil Services, it is one of the
best examples of cooperative federalism, where the bureaucracy serves for
both centre and state. Art. 312 deals with the appointment of All India
Services for both centre and states. The appointment of All India Service
members in the government creates a link between centre and state. The
term of their employment condition put them under the complete control of
centre but states have also some rights over the officers. The presence of
these officers in the government reduces interstate-centre fissures and help
in effective governance of the nation.
C. FINANCIAL RELATION
One of the most concrete proposal of cooperative federalism ever given was
the devolution of financial power to the various tiers of the government. The
financial tussle between centre and state is the biggest obstacle for effective
cooperation between centre and state. The history of financial relations can
be traced back to the period of Lord Mayo and Lord Ripon who advocated
for the proceeds to the centre. The Government of India Act, 1919 and the
subsequent acceptance of Lord Meston Award for division of resources was
one of the first legislative framework for the devolution of finances to
states.
The Government of India Act, 1935 also considered a flexible mechanism
of distribution of resources. The Constitutional Assembly appointed Sub-
Committee on finances recommended the distribution of resources on the
basis of Central Control for Consolidating and strengthening the unity of
India. States are required to depend upon the Union for funds. This is a
biggest obstacle in the development of cooperative spirit in the country. The
proper devolution of resources among the states provides them with
necessary flexibility to undertake their development activities. Cooperative
federalism creates a long term solution for the problem.
Devolution of financial power and role of Constitutional bodies
Art. 265-282 deals financial relations between state and centre. Under
Indian Constitutional scheme, the Union have huge financial resources

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which need to be equally distributed among the states for their development.
In a federation state should be empowered to become financially
independent. The centre must create a financial equilibrium where states get
equal share of its revenue. The setting up of Finance Commission under Art.
280 has created a constitutional mechanism to distribute financial resources
among the federation.
The finance commission decides on distribution of revenue between centre
and state and also panchayats. The fourteenth finance commission
recommendation of providing state with 42% in untied funds have given
states much leeway in terms of using their funds for their own development
need. The working of the commission is one of the most enduring features
of cooperative federalism in our country. The working of finance
commission for effective distribution of resources among state and
panchayat not only increases institutional capacity but promotes effective
cooperation between states and centre.
Grant-in Aid
Another glaring examples of effective distribution of revenue by between
centre and state is Grants-In-Aid. As the name suggest it is aid given to the
state by the Parliament. Art. 275 provides for two types of grants fiscal aid
grant and specific purpose grant. These grants are fixed by the Parliament
every five years on the basis recommendation of the Finance Commission.
They are given to state in their need and assistance. Some specific purpose
grants can also be given to state to undertake any scheme of Central
government for promoting the welfare of the scheduled tribes. There cannot
be a better form of cooperative federalism other than grant-in-aid.
Goods and Service Tax
One of the biggest tax reforms being undertaken by the government in the
post-independence area is the implementation of GST in India, to truly
make India a uniform market. One of the biggest flaws of tax structure in
our country is the presence of plethora of taxes which sometimes have
cascading effect on country’s economy. GST aims to bring uniformity in
indirect taxation structure in the country, it will subsume all other indirect
tax like central sale tax, octroi tax, sales tax etc.
GST is the most glaring example of cooperative federalism, where states
and centre are cooperating to develop a common and uniform taxation
system in the country. The GST Council comprising of Union finance
minister and State finance matter makes an effective team for the
implementation of the act. The GST Act is the true example of Team India
where all its constituent meet for the development of the country.

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D. INSTITUTIONAL FRAMEWORK
Cooperative Federalism in India cannot be achieved unless institutions play
an important role in it. They play an important role in incentivizing centre
and state relation.
Inter-State Council and Other Central Bodies

Art. 263 provides that the president may by order appoint Inter-State
Council if it appears to him that public interest would be served by its
establishment. The main purpose of the council includes advising upon
disputes which may arise between states and making recommendation upon
subject of disputes between the state and for better co-ordination of policy
and action with respect to that subject. The role of the council is
complimentary to the Supreme Court jurisdiction under Art. 131 to decide a
legal controversy between the governments. The council plays both
horizontal and vertical intergovernmental coordination and cooperation.
Under Art. 263 four regional council have been set up, in four zones of the
country headed by an under-secretary to the government of India. The
recommendation of the council is not binding in nature. But the provision
under Art. 263 is the least used provision of our Constitution. The central
government generally undermine its value by keeping it as an ad-hoc body.
One of the recommendation of the Administrative Reforms Commission is
to make Inter-State Council a permanent body. The provision under Art.
263 is the best way to promote centre-state harmony and to incentivize
cooperation among the governments. The recommendation of various
committees for Inter-State Council should be given due thought. The
Constitution provides for other central bodies like Art. 30771 provides for
the creation of an inter-state commerce body. An Inter-State Transport
Commission has been established under Motor Vehicles Act.
Zonal Council
In between Centre and States, Zonal Councils have been introduced in India
by the State Reorganisation Act,1956. Great heat and passion was generated
when the country was organised on the linguistic basis which effected the
unity of the country. Therefore, Zonal Council were created as instruments
of inter-governmental coordination and co-operation mainly in socio-
economic fields. There exist five zonal councils consisting of Union
ministers to be nominated by the central government and the Chief Minister
and two other minister from each state to be nominated by the state

71
Parliament may by law appoint such authority as it considers appropriate for carrying out
the purposes of articles 301, 302, 303 and 304, and confer on the authority so appointed
such powers and such duties as it thinks necessary.

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government. It generally gives recommendation to the government for

promoting inter-states coordination. Although the zonal councils have not
been quite successful and do not have spectacular achievement, they are still
being important part of Indian Constitutional scheme for promoting inter-
state harmony.
River Water Disputes
India has number of inter-state rivers and river valleys. Indian
Constitutional makers anticipated the disputes that may arise regarding
sharing of rivers. The Constitution makes special provisions for creating a
suitable machinery for resolving such dispute. Art. 262 72 empowers the
parliament to provide by law for adjudication of any dispute or complaint
with respect to the use, distributions or control of waters of any inter-state
rivers or river valley. The River Boards Act, 1956 enacted by Parliament
under Entry 56, List I provides for the establishment of river boards for the
purpose of regulation and development of inter-state rivers and rivers
valley.
Water is a State Subject 73 , therefore primary responsibility for the
development of water resources is on state, but due to conflict of interest
among the states regarding the use of water the act was necessary. To
facilitate adjudication in water disputes cases Inter-State Water Disputes
Act, 1956 have been established, which facilitated the establishment of
tribunal under the act. In the matter of Cauvery Water Disputes Tribunal74
constitutes an important judicial pronouncement in the area of Indian
Federalism where court examined the Constitutional validity of tribunal and
held that Parliament have the exclusive right to make law on the subject.
Inter-State water boards is one of the most ingenious methods of promoting
inter-state coordination and cooperation.
National Development Council
It is the apex body for deliberations and discussions on the development
matters in India. It is presided by Prime Minister of India, where all the
Chief Minister are equal stakeholders. It was established on 6th August
1952, to coordinate planning among the states, rapid development of the
country and increase the spirit of cooperation among the states. The
72
(1) Parliament may by law provide for the adjudication of any dispute or complaint with
respect to the use, distribution or control of the waters of, or in, any inter-State river or river
valley.
(2) Notwithstanding anything in this Constitution, Parliament may by law provide that
neither the Supreme Court nor any other court shall exercise jurisdiction in respect of any
such dispute or complaint as is referred to in clause (1).
73
Entry 17, List II
74
AIR 1992 SC 522

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institution is unique among the federal countries of the world. The council
not only promotes cooperation among centre and state, but also inculcate
the spirit of collective nation building.
NITI-Aayog

National Institution for Transforming India Aayog (Policy Commission) is

an independent policy think tank of Government of India. It is the successor
to erstwhile planning commission. The main goal of the Aayog is to foster a
bottom down approach for policy issues and planning by involving states in
decision making process. It is in complete contrast to the policy that was
followed by Planning Commission in its functioning. The Aayog has given
a new dimension to cooperative federalism in Indian polity, by advocating
state equal status vis-à-vis centre, there has been absolute rejection of ‘one
size fit for all’ concept. The subcommittees on various issues in NITI-
Aayog is chaired by Chief Minister’s, the role of state in using untied funds
have been further given impetus through Aayog. The institution can be
considered a model framework to promote cooperation and foster harmony
between centre and state.

E. MISCELLANEOUS ISSUES

Formation of New States

Constitution of India has empowered Parliament to alter, add, make or

divide any existing or new state75. The state can be formed through a simple
amendment to the Constitution, although consent is taken from the state
legislatures it doesn’t have any binding effect on the Parliament. The
Constitution makers have given union all the rights over state boundaries
because of the fractured polity and unique socio-political condition of the
country at the time of independence. Even the Supreme Court has given
very literal interpretation to the provision of Art.3.

Although the First State Reorganising Commission76 has recommended that

new state should be made only if there is any ‘balance of advantage’, but
this term is very vague there is no fixed principle of advantage. It
completely depends upon the whims and fancies of the Central government.
The most evident example is the fracas that was associated with Andhra
Pradesh Reorganisation Bill, 2013, when the bill was rejected of state
assembly without even taking the people of the state into confidence the
union government bulldozed the bill through the parliament.
75
Art. 4
76
First State Reorganization Commission was established in 1953. States Reorganisation
Commission consisted of Fazal Ali, K. M. Panikkar and H. N. Kunzru

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This provision doesn’t bode well for harmonious cooperation among the
states and centre. It is high time that a Constitutional Amendment be made
in Art.3 of the Constitution to include ‘consent by state assembly’ a pre-
requisite for division of state, except in case of land involving foreign
countries. Along with it a second State Reorganisation Commission be
made to review the demands of new states.

CONCLUSION

In the 21st century the cooperation between state and centre has come severe
strain due to various factors. The increasing voices of separatism, division
on the basis of language or creed tears the very fabric of national unity. The
acrimonious separation of Telangana and Andhra Pradesh was a blot on our
cooperative spirit. Terrorism, organised crime all attacks our diversity which
forms the very basis of ‘idea of India’. So an effective mechanism that will
take care of the of the problems of the constituents is the need of the hour.
India is a beautiful melting of diversity which can only be preserved by way
of effective cooperation between states and centre.
The ‘idea of India’ needs to be valued and cherished and there is no better
way to sustain it other than cooperative federalism. Equity in growth,
balanced development and solidarity can only be achieved through
Cooperative Federalism. In the words of Nani Palkhivala- WHO DIES IF
INDIA LIVES AND WHO LIVES IF INDIA DIES…. people of several
state sink or swam together and that in the long run, prosperity and
innovation are in salvation not in division; mutuality not conflict;
cooperation not competition77.

77
Anusha Singh, Development of Cooperative Federalism in India, available at http://
www.legalserviceindia.com/article/l441-Cooperative-Federalsim-In-India.html (Last visited
on June 23, 2016)

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