Paper I · Indian Government and Politics

Inter-state disputes

Syllabus · Paper I-B · 7 — Federalism : Constitutional provisions; changing nature of centre-state relations; integrationist tendencies and regional aspirations; inter-state disputes.

Mechanism for Settling Inter-State Disputes

Route Scope
Art 131 Supreme Court exclusive original jurisdiction in legal disputes — Union v. State(s), State v. State; questions of law/fact on existence/extent of a legal right. Not purely political disputes.
Art 262 Parliament may provide for adjudication of inter-State river-water disputes (use, distribution, control) & may exclude SC/other courts. Laws: River Boards Act, 1956; Inter-State Water Disputes Act, 1956 (tribunal, judge nominated by CJI, award binding on publication).
Art 263 Inter-State Council — inquire, advise, discuss, recommend (advisory, unlike tribunal/court).
Extra-judicial Zonal Councils · CMs’ / Home Ministers’ meetings · NITI Aayog · direct negotiation · Union mediation · GST Council (tax disputes). Many federal disputes are political, not merely legal.

Tribunals & water disputes

Key disputes: Cauvery · Ravi-Beas · Sutlej-Yamuna Link · Krishna · Godavari · Narmada · Makedatu.

“Water is a national asset and no State can have a monopoly over it.”

Supreme Court, Cauvery case

Problems: delay in constitution & award · poor technical data · weak multidisciplinary expertise · weak enforcement · political mobilisation · Art 136 appeals despite Art 262 exclusion · distress-sharing difficulty · climate variability · Centre’s delay in notification. Ramaswamy R. Iyer — “the existing system… is unsatisfactory and needs an overhaul.” Fali Sam Nariman — an innovative experiment that has failed in performance.

Reform & way forward

2002 amendment (ISWD Act) Inter-State River Water Disputes (Amendment) Bill, 2019
tribunal within one year · award within three years (extension up to two) · award to have force of a Supreme Court decree Disputes Resolution Committee + experts · amicable settlement · permanent tribunal with multiple benches · dissolve ad hoc tribunals · data bank. Concerns: DRC neutrality, DRC–tribunal relationship, politicisation, unresolved SC jurisdiction, weak enforcement.

Way forward: basin-wide authority · bring water into ISC · water-efficiency incentives · central water data repository · unified water agency · ecological-scientific approach · distress-sharing formulas · community participation. Scholars on reform: Ramaswamy Iyer, S. Rajagopal, E. Somanathan, Ramaseshan Ramachandran, Subash P. Kunji Kutty, K.J. Joy & Suhas Paranjape, Nilanjan Ghosh, Philippe Cullet, Srinivas Chokkakula, Mihir Shah.

UPSC 2020 · 10mComment on the mechanism for settling inter-state disputes (150 words).Answer

Answer map (2020). Federalism needs dispute settlement while preserving autonomy & Union strength → Art 131 (legal) → Art 262 + ISWD Act 1956 & River Boards Act 1956 → Art 263 ISC & Zonal Councils → GST Council for tax bargaining → mixed results (Cauvery, Ravi-Beas, Sutlej-Yamuna prolonged); political mobilisation & weak implementation → strengthen ISC, scientific data, mediation, tribunal reform.

Inter-State Council & Zonal Councils

Basis. Art 263 — President may establish an Inter-State Council in the public interest to (i) inquire into & advise on disputes between States, (ii) investigate & discuss subjects of common interest, (iii) recommend better coordination. Established 1990 on Sarkaria Commission recommendation.

Composition

PM (Chairperson) · CMs of all States · CMs of UTs with Assembly · Administrators of UTs without Assembly · Governors of States under President’s Rule · six Union Cabinet Ministers nominated by PM · other Union Ministers invited when relevant. One of the few bodies where Union, States & UTs sit together.

Working & limitations

  • Non-permanent — exists via Presidential Order; structure alterable by Union executive.
  • Advisory — recommendations non-binding; no positive duty to act.
  • Infrequent — far below mandated frequency; long gap 2006–2016.
  • Narrow agenda — excludes matters of FC, Planning Commission, NDC.
  • Weak secretariat — under Union Home Ministry; little technical/research capacity.
  • In-camera proceedings · weak follow-up. Political bypassing — party forums & coalition bargaining; GST Council & NITI took over key areas.

“The performance of the ISC has been abysmal; there has hardly been any constitutional amendment or enactment flowing from its recommendations.”

Rekha Saxena

Reform proposals & Zonal Councils

Body Recommendation
Sarkaria regular meetings; stronger coordination role; sub-committees; consultation on common matters.
Punchhi constitutional/statutory status; meet thrice a year; permanent secretariat; expert bodies; quasi-judicial advisory capacity; secretariat shifted from Home Ministry to Rajya Sabha Secretariat under neutral functionaries.
11th Finance Commission ISC not effectively used for national economic consensus.
Venkatachaliah (NCRWC) use the ISC “in tune with the spirit of cooperative federalism.”

Zonal CouncilsStates Reorganisation Act, 1956; five (Northern, Southern, Eastern, Western, Central); advisory bodies for regional tensions, border disputes, transport, linguistic minorities, balanced development.

UPSC 2022 · 15mComposition, functions & success of the Inter-State Council.
UPSC 2019 · 10mDespite constitutional mandate, the ISC has not come of age.Answer

Answer map (ISC). Constitutional body, Art 263, est. 1990 (Sarkaria) → composition (PM + CMs + UT CMs + Administrators + Governors under PR + six Cabinet Ministers) → functions (inquire, discuss, recommend) → success limited: infrequent (2006–2016 gap), advisory, weak secretariat, bypassed by party channels & sectoral bodies (Saxena) → Punchhi reforms; NITI itself flags reactivation → institutionally important, operationally underused.