SARKARIA AND PUNCHHI COMMISSION NOTES

Polity

SARKARIA COMMISSION

Background
- Established in 1983 by the Central Government.
- Chairperson: Justice R.S. Sarkaria (Retd. Supreme Court Judge).
- Mandate: Review Centre–State relations and recommend improvements.
- Approach: Did not recommend structural changes; upheld existing constitutional framework.

Key Recommendations
1. Inter-Governmental Council
- Permanent Inter-State Council under Article 263.
- Should function as a platform for consultation and coordination.

2. President’s Rule (Article 356)
- Use only as a last resort.
- Apply sparingly and only when all alternatives fail.

3. All India Services
- Further strengthen AIS (IAS, IPS, IFS).
- Create more such services for national integration.

4. Emergency and Legislative Powers
- Residuary taxation powers to remain with Parliament.
- Non-tax residuary powers should shift to Concurrent List.

5. State Bills and Governor
- If President withholds assent to state bills, reasons must be communicated.
- Consultation with CM should be constitutionally mandated for governor appointment.

6. National Development Council
- Should be restructured as National Economic and Development Council (NEDC).

7. Zonal Councils
- Should be revived and strengthened to promote federal spirit.

8. Deployment of Central Forces
- Centre may deploy armed forces even without state consent.
- However, consultation with the state is desirable.

9. Concurrent List Legislation
- Centre should consult states before legislating on Concurrent List subjects.

10. Financial Relations
- Net proceeds of corporation tax can be shareable with states.
- Surcharge on income tax only for specific purposes and limited time.

11. Governor’s Powers
- Governor cannot dismiss a government enjoying majority.
- Governor’s 5-year tenure should be protected unless exceptional circumstances.

12. Enquiry Commissions
- Centre should not set up commissions against state ministers unless demanded by Parliament.

13. Languages and Media
- Three-language formula must be uniformly implemented.
- Radio and TV: Decentralisation without granting autonomy.

14. No Change Suggested
- Role of Rajya Sabha.
- Power of Centre to reorganize states.

Implementation Status
- 180 out of 247 recommendations implemented.
- Major achievement: Inter-State Council set up in 1990.

PUNCHHI COMMISSION

Background
- Second Commission on Centre–State Relations.
- Set up in April 2007.
- Chairperson: Justice Madan Mohan Punchhi (Former CJI).
- Referred: Sarkaria Report, NCRWC Report, 2nd ARC Reports.
- Made over 310 recommendations.

Key Recommendations
1. Concurrent List – Better Coordination
- Broad agreements between Centre and states before legislating.
- Union should use its supremacy sparingly.
- States should get more flexibility on State List and Concurrent List (transferred subjects).

2. Inter-State Council
- Should act as a permanent, credible dispute-resolution body.
- Regular auditing of overlapping jurisdictions.

3. President’s Assent to State Bills
- President must decide within 6 months.
- Parliament must regulate treaty implementation under Entry 14 of List I.

4. Financial Recommendations
- Finance Commissions must examine impact of international treaties on state finances.
- Mandatory cost-sharing clauses in all Central laws involving state obligations (e.g., RTE Act).
- Review all cesses and surcharges to reduce Centre’s dominance.
- Convert Finance Commission Division into permanent secretariat.

5. Governor – Strong Reforms
Eligibility Conditions:
- Eminent personality.
- Outsider to the state.
- Politically neutral and detached.
- Not active in politics, especially recently.

Other Suggestions:
- Governor should have fixed tenure of 5 years.
- Removal should follow impeachment-like procedure.
- Article 163 does not grant general discretionary powers.
- Governor must decide on state bills within 6 months.
- Clear guidelines for government formation in hung assembly:
  a. Pre-poll alliance majority first.
  b. Largest party with support.
  c. Post-poll coalition where all join government.
  d. Post-poll alliance with outside support.
- Governor may sanction prosecution of ministers if council advice is biased.
- Governor should not serve as Chancellor of universities.

6. Article 356 and Article 355 Framework
- Article 355 obligations must be exhausted before invoking Article 356.
- Emergency to remain a last resort.
- Need for intermediate-level mechanisms between normal governance and emergencies.

7. Federal Structures Strengthening
- Amend Article 263 to empower Inter-State Council.
- Zonal councils must meet at least twice a year.
- Empowered Committee of State Finance Ministers (like in GST negotiation) to be institutionalised.

8. All India Services Expansion
- New AIS in health, education, engineering and judiciary to improve national standards.

9. Rajya Sabha Reforms
- Equal representation of states may be considered to strengthen federal character.
- Remove constraints preventing Rajya Sabha from functioning as true federal chamber.

10. Local Governance Strengthening
- Clear constitutional definition of powers devolved to Panchayats and Municipalities.
- Better alignment of Finance Commission and Planning Commission cycles.

11. Economic and Trade Relations
- Set up Inter-State Trade and Commerce Commission under Article 307.

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