Question

With reference to the Centre’s control over state legislation, consider the following statements:

1. The Governor can reserve any state bill for the President’s consideration, who holds an absolute veto over it.

2. A state bill restricting freedom of trade and commerce requires prior presidential permission under Article 304.

3. During a financial emergency, all state bills must be reserved for the President’s consideration.

4. The Centre can issue directions to states to ensure compliance with parliamentary laws under Article 365.

Which of the statements given above are correct?

• A. 1, 2, and 4 only
• B. 1 and 2 only
• C. 2, 3, and 4 only
• D. 1, 3, and 4 only

Answer 1

Answer:

A. 1, 2, and 4 only

Understanding Centre's Control Over State Legislation

• The Indian Constitution establishes a federal system with a strong unitary bias, granting the Centre significant control over state legislation to maintain national unity and administrative uniformity.
• This control is exercised through various mechanisms, including the role of the Governor, the President's power, and emergency provisions.

Key Aspects of Centre's Control:

• Governor's Role and Presidential Veto (Article 200 & 201):
  • The Governor of a state can reserve any Bill passed by the state legislature for the President's consideration. This power is discretionary.
  • When a bill is reserved, the President has three options:
    • Give assent to the bill.
    • Withhold assent to the bill (absolute veto).
    • Direct the Governor to return the bill to the state legislature for reconsideration. However, if the state legislature passes it again, the President is not bound to give assent, unlike in the case of Union Bills (Article 111). This effectively gives the President an absolute veto over reserved state bills.
  • This mechanism ensures that state legislation does not conflict with national interests or central laws.
• Freedom of Trade and Commerce (Article 304):
  • Article 304 allows a state legislature to impose reasonable restrictions on the freedom of trade, commerce, and intercourse within or with other states in the public interest.
  • However, any bill or amendment for this purpose requires the previous sanction of the President before it can be introduced or moved in the state legislature.
  • This provision prevents states from enacting protectionist policies that could fragment the national common market.
• Financial Emergency and State Bills (Article 360):
  • During a Financial Emergency, the President can issue directions to states for observing canons of financial propriety.
  • This power includes a direction that all Money Bills or other Bills to which the provisions of Article 207 apply (i.e., financial bills) passed by the state legislature shall be reserved for the consideration of the President after they have been passed by the state legislature.
  • It is important to note that this applies specifically to financial bills, not 'all state bills' as a blanket rule.
• Directions to States (Article 365):
  • Article 365 stipulates that if any state fails to comply with, or give effect to, any directions given by the Union in the exercise of its executive power, 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 the Constitution.
  • This effectively means that non-compliance with central directions, including those aimed at ensuring compliance with parliamentary laws, can lead to the imposition of President's Rule (Article 356) in that state.
  • This provision acts as a strong enforcement mechanism for central authority and parliamentary supremacy.