Inter-State Relations

First, understand the broader idea.
Our Constitution created a federal system, meaning there is a division of powers between the Centre and the States. But remember: for a federation to succeed, cooperation is required not only between Centre and States, but also among States themselves.

So, the Constitution has laid down some provisions to maintain what is called “inter-state comity” — i.e., goodwill and harmony between states. These provisions are:

1. Adjudication of inter-state water disputes.
2. Coordination through inter-state councils.
3. Mutual recognition of public acts, records, and judicial proceedings.
4. Freedom of inter-state trade, commerce, and intercourse.

Additionally, Zonal Councils (set up by Parliament) play a supporting role in fostering inter-state cooperation.

Inter-State Water Disputes

Now, let’s focus on the first point, because in Indian polity, this is not just theory—it is a real and recurring political issue.

The framers of the Constitution knew that water is life and rivers in India do not follow state boundaries. So naturally, disputes were bound to happen when two or more states claimed rights over the same river water.

👉 To handle this, the Constitution added Article 262, which makes two important provisions:

1. Parliament can pass a law to adjudicate disputes relating to the use, distribution, or control of inter-state rivers and river valleys.
2. Parliament can also decide that neither the Supreme Court nor any other court will have jurisdiction over such disputes.

Parliamentary Laws under Article 262

Based on this power, Parliament enacted two laws in 1956:

1. River Boards Act, 1956
   • Provides for the establishment of River Boards.
   • These boards are set up by the Central Government, but only on request of the states concerned.
   • Their role is purely advisory → they regulate and develop inter-state rivers and valleys.
   • (In reality, this Act has remained almost a “dead letter,” as no river boards have ever been constituted under it.)
2. Inter-State Water Disputes Act, 1956
   • This is more practical and widely used.
   • It empowers the Central Government to set up an ad hoc Tribunal to settle disputes between states.
   • The decision of the tribunal is final and binding.
   • Most importantly → once a tribunal is set up, courts including the Supreme Court have no jurisdiction over that dispute.

Why Not Supreme Court Directly?

You may ask, “Why keep the judiciary out?”

The reason is practical. Courts usually decide disputes based on private legal rights (like property law, contracts, etc.). But in water disputes, the question is not about private rights, rather about equitable sharing of a natural resource for the larger public good.

Hence, a specialized extra-judicial body (Tribunal) was considered better suited.

Water Dispute Tribunals So Far

Till 2019, nine tribunals have been set up. Let’s quickly see them (important for prelims, as UPSC loves factual information like this):

1. Krishna Water Disputes Tribunal-I (1969) → Maharashtra, Karnataka, Andhra Pradesh
2. Godavari Water Disputes Tribunal (1969) → Maharashtra, Karnataka, Andhra Pradesh, Madhya Pradesh, Odisha
3. Narmada Water Disputes Tribunal (1969) → Rajasthan, Gujarat, Madhya Pradesh, Maharashtra
4. Ravi & Beas Water Disputes Tribunal (1986) → Punjab, Haryana, Rajasthan
5. Cauvery Water Disputes Tribunal (1990) → Karnataka, Kerala, Tamil Nadu, Puducherry
6. Krishna Water Disputes Tribunal-II (2004) → Maharashtra, Karnataka, Andhra Pradesh
7. Vansadhara Water Disputes Tribunal (2010) → Odisha, Andhra Pradesh
8. Mahadayi Water Disputes Tribunal (2010) → Goa, Karnataka, Maharashtra
9. Mahanadi Water Disputes Tribunal (2018) → Odisha, Chhattisgarh

Summary in One Line

So, inter-state water disputes are a federal tension point, and the Constitution provided Article 262 + tribunals as a mechanism to handle them outside the regular judicial process.

Inter-State Councils

Background Logic

See, in a federal system, disputes and coordination issues are natural. While Article 262 gave us tribunals for water disputes, the framers also realised that many issues are not purely legal disputes. Sometimes, what is required is discussion, consultation, and coordination.

👉 For this, our Constitution provides Article 263, which talks about the Inter-State Council.

Article 263 – Key Points

• The President can set up such a council if he feels it is in the public interest.
• The President also defines its organisation, procedure, and duties.
• However, Article 263 already lists three broad duties that such a council may perform:
  1. Enquire into and advise on disputes between states.
  2. Investigate and discuss subjects in which states or Centre + states have a common interest.
  3. Make recommendations for better coordination of policies and actions.

Important Distinction

• The Council’s role is advisory.
• Compare this with Article 131, where the Supreme Court decides legal disputes between governments.
• So, if the matter is legal → Supreme Court.
• If the matter is policy-related or requires cooperation (not just legal adjudication) → Inter-State Council.

Examples of Councils under Article 263

Before the permanent Inter-State Council was created, the President had set up various councils like:

• Central Council of Health and Family Welfare
• Central Council of Local Government
• Regional Councils for Sales Tax

But the real turning point came with the Sarkaria Commission (1983–88).

Sarkaria Commission Recommendation

• Strongly recommended a permanent Inter-State Council.
• Suggested calling it Inter-Governmental Council to differentiate it from other temporary councils.
• Said its primary role should be:
  • investigating common interest subjects (clause b)
  • making recommendations for better coordination (clause c)

Establishment of Inter-State Council (1990)

Based on Sarkaria’s recommendation, V. P. Singh’s Janata Dal Government established the Inter-State Council in 1990.

Composition:

1. Prime Minister → Chairman
2. Chief Ministers of all states
3. Chief Ministers of Union Territories with legislatures
4. Administrators of UTs without legislatures
5. Governors of states under President’s Rule
6. Six Central Cabinet Ministers (including Home Minister) nominated by PM
7. Five Cabinet-rank Ministers are permanent invitees

Nature and Role

• It is a recommendatory body (not binding).
• Aims at discussion, consultation, and coordination between Centre and States.
• Its duties:
  • Discuss subjects of common interest.
  • Recommend better coordination of policy and action.
  • Deliberate on matters of general interest to states referred by the PM.

Functioning:

• Meets at least thrice a year.
• Meetings are held in camera (closed-door).
• All decisions by consensus, not voting.

Standing Committee (1996)

• Created for continuous consultation.
• Composition:
  • Union Home Minister (Chairman)
  • 5 Union Cabinet Ministers
  • 9 Chief Ministers

Secretariat:

• Set up in 1991.
• Works under Secretary, GoI.
• Since 2011, also serves as Secretariat of Zonal Councils.

Public Acts, Records and Judicial Proceedings

The Problem

In India, each state’s authority is limited to its own territory. Without a mechanism, it could happen that:

• A law or executive order valid in one state might not be recognised in another.
• A public record in one state may be meaningless elsewhere.
• A civil judgement might not be enforceable outside the state where it was passed.

This would create chaos in a federal setup.

The Solution – Full Faith and Credit Clause

The Constitution provides that “Full Faith and Credit” must be given throughout India to:

1. Public Acts (legislative + executive acts of govt.)
2. Public Records (official registers, books, documents maintained by public servants)
3. Judicial Proceedings (court decisions)

Parliament’s Role

Parliament can decide:

• How these acts, records, and proceedings are to be proved.
• What effect they will have when used in another state.

This ensures uniformity across India.

Execution of Judgements

• Civil court judgements → once final, can be enforced anywhere in India, without filing a fresh suit.
• Criminal court judgements → not covered. One state’s courts are not bound to enforce another state’s penal laws.

✅ So, in short: The “Full Faith and Credit Clause” ensures that India does not function like 28 separate countries, but as one integrated nation where official acts and civil judgements are valid across boundaries.

Inter-State Trade and Commerce

Constitutional Basis

• Found in Part XIII (Articles 301–307).
• The central principle is given in Article 301, which declares:
  “Trade, commerce and intercourse throughout the territory of India shall be free.”

👉 Meaning: India should function as one single economic unit, without internal barriers like customs check-posts, octroi, or state-to-state restrictions.

Key Features

1. Covers both inter-state and intra-state trade.
   • Example: Even if a state restricts trade within its own territory, it can violate Article 301.
2. General Freedom, but not Absolute.
   • Freedom under Article 301 is subject to reasonable restrictions in Articles 302–305.

Restrictions Permitted

1. Parliament’s Power (Article 302):
   • Parliament can impose restrictions on trade in public interest.
   • But Parliament cannot discriminate between states or give preference to one state over another (except in case of scarcity of goods).
2. State Legislature’s Power (Article 304):
   • Can impose reasonable restrictions in public interest, but only with prior sanction of the President.
   • Cannot discriminate between states or give preference to its own state.
3. Taxation Provision (Article 304(a)):
   • States can impose taxes on goods imported from other states only if similar goods manufactured locally are taxed at the same rate.
   • This prevents discriminatory taxation.
4. Nationalisation Laws (Article 305):
   • Parliament or a state legislature can make laws creating monopolies (e.g., railways, power distribution, etc.), even if they restrict free trade.

Authority under Article 307

• Parliament may establish an authority to ensure freedom of trade and commerce.
• But till now, no such authority has been set up.

📌 In short: Articles 301–307 strike a balance → ensuring free flow of trade across India while permitting restrictions in public interest.

Zonal Councils

Nature

• Zonal Councils are statutory bodies, not constitutional.
• Established by States Reorganisation Act, 1956.
• Purpose: To promote inter-state cooperation and coordination.

Division into Zones

India was divided into five zones, each with its own Zonal Council:

1. Northern
2. Central
3. Eastern
4. Western
5. Southern

(📌 UPSC may ask: North-Eastern Council is separate, not part of these five.)

Membership

Each Zonal Council consists of:

1. Union Home Minister → Chairman (common for all five).
2. Chief Ministers of all states in that zone.
3. Two other Ministers from each state.
4. Administrators of Union Territories in that zone.

Advisors (without voting right):

• Representative of Planning Commission (now NITI Aayog’s role).
• Chief Secretaries of state governments.
• Development Commissioners of states.

Each Chief Minister acts as Vice-Chairman by rotation for one year.

Objectives / Functions

• Promote emotional integration of the country.
• Prevent regionalism, parochialism, and linguistic divisions.
• Help in coordination of economic and social planning.
• Resolve border disputes and discuss inter-state transport.
• Ensure cooperation in major development projects.
• Bring Centre and States on one platform for policy uniformity.

👉 Very important: Zonal Councils are deliberative and advisory only (their recommendations are not binding).

North-Eastern Council (NEC)

• Created separately by North-Eastern Council Act, 1971.
• Members: Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya, Tripura, Sikkim.
• Functions are similar to Zonal Councils, with extra responsibilities:
  • Formulate a unified regional plan.
  • Review security and law & order measures.