INTER-STATE RELATIONS

Article 262

• Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution and control of waters of any inter-state river and river valley.
• Parliament may also provide that neither the Supreme Court nor any other court is to exercise jurisdiction in respect of any such dispute or complaint.

• To bring coordination between states and between states and Centre

• Constitutional body under Art. 263

Setup

• It was set up for first time in 1990 through a Presidential order as per the recommendations of the Sarkaria Commission (on Inter-State Relations) under the Ministry of Home affairs.

• President can establish.
• President can define the duties, organisation and procedure.

• To enquire and advice upon inter-state disputes (Complimentary to SC’s jurisdiction under A.131) + Investigating & discussing subjects in which states or the Centre and the states have a common interest + Recommending on any matter for better coordination of policy & action.

• Decisions are not binding. Purely advisory body

Composition

• PM as Chairman + CMs of all states + CMs of all UTs having legislative assemblies + Administrators of all UTs not having Legislative Assemblies + Governors of states under President’s Rule + Six Central Cabinet Minister including Home Minister (Nominated by PM) + Five ministers of cabinet rank/ Minister of State (Independent Charge) nominated by PM are permanent invitees.

• Council may meet at least thrice in a year. All questions are decided by consensus.

• Trade, commerce, intercourse throughout the country shall be free.
• This freedom is applicable to both inter-state and intra-state trade, commerce, intercourse.

302

• Parliament can impose restrictions on the above freedom in public interest.
• Parliament cannot discriminate between states except in the case of scarcity of goods in any part of India.

• State legislatures can impose restrictions with that state or within that in public interest.
• For such bill previous sanction of the President is required.
• State cannot discriminate between the states.

• States can impose any tax on goods imported from other state or UT if similar goods are manufactured in that state.

• The freedom is subject to nationalisation laws.
• Parliament or state law can provide monopoly in favor of Centre or State. Such laws can exclude citizens or others completely or partially from carrying such trade.