Important Reports on Indian Federalism: Rajamannar, Sarkaria and Punchhi

Indian federalism is one of the most dynamic and debated features of the Constitution. Though India is described as a “Union of States” under Article 1, the balance of power between the Centre and the States has evolved through constitutional practice, judicial interpretation, and several landmark committees and commissions.

From the Rajamannar Committee (1971) to the Punchhi Commission (2010), these reports have shaped the discourse on state autonomy, fiscal federalism, emergency provisions, and the role of the Governor.

This merged, comprehensive article explains the most important reports on Indian federalism, their recommendations, constitutional relevance, and importance for UPSC and State PCS exams.

Understanding Indian Federalism

Indian federalism is unique because:

• It combines federal structure with unitary features

• Residuary powers lie with the Centre

• Emergency provisions allow central intervention

• Financial resources are centrally concentrated

Over time, States have demanded greater autonomy, leading to the formation of multiple committees to review Centre–State relations.

1. Rajamannar Committee (1969–1971)

Background

The Rajamannar Committee, officially known as the Centre–State Relations Inquiry Committee, was constituted by the Tamil Nadu Government in 1969.

Chairman:

Dr. P. V. Rajamannar (Former Chief Justice of Madras High Court)

It was the first state-appointed body to systematically examine Indian federalism.

Why Was It Formed?

By the late 1960s:

• Regional parties were coming to power.

• States felt financially dependent.

• Article 356 was allegedly misused.

• The Planning Commission had become dominant.

• States complained of excessive centralization.

The Committee aimed to review constitutional provisions and suggest reforms to ensure maximum State autonomy without harming national unity.

Major Recommendations of Rajamannar Committee

1. Transfer of Residuary Powers to States

• Article 248 should be amended.

• States should get residuary legislative powers.

2. Abolition or Restriction of Article 356

• President’s Rule should be deleted or strictly limited.

• Prevent arbitrary dismissal of State governments.

3. Reform of Planning Commission

• Planning Commission should not dominate fiscal relations.

• States must have autonomy in Plan fund usage.

4. Financial Autonomy

• Larger tax devolution to States.

• Reduction in discretionary grants.

• Stronger Finance Commission role.

5. Governor’s Role

• Appointment in consultation with State government.

• Limit discretionary powers.

• Governor should not act as agent of the Centre.

Significance

Although not implemented directly, the Rajamannar Committee:

• Initiated serious federal debate.

• Influenced later commissions.

• Strengthened intellectual foundation of cooperative federalism.

2. Sarkaria Commission (1983–1988)

Sarkaria Commission

Chairman:

Justice R.S. Sarkaria

This was the first Union-appointed commission to comprehensively review Centre–State relations.

Key Recommendations

Article 356

• To be used only as a last resort.

• Floor test must determine majority.

Governor’s Role

• Should be an eminent person.

• Not active politician.

• Must act impartially.

Inter-State Council

• Activate under Article 263.

• Promote cooperative federalism.

Residuary Powers

• Should remain with Centre.

Impact

The Commission significantly influenced the Supreme Court judgment in the S.R. Bommai case (1994), which restricted misuse of President’s Rule.

3. Punchhi Commission (2007–2010)

Punchhi Commission

Chairman:

Former CJI M.M. Punchhi

It reviewed federal relations in light of coalition politics, globalization, and internal security concerns.

Key Recommendations

• Fixed tenure for Governors.

• Localized emergency instead of whole-state emergency.

• Clear guidelines for Article 356.

• Greater clarity in Centre-State internal security coordination.

• Strengthening Inter-State mechanisms.

Significance

Updated federalism framework for modern governance challenges.

4. Administrative Reforms Commissions

Administrative Reforms Commission (First ARC)

• Suggested Inter-State Council.

• Recommended decentralization.

• Improved Centre-State coordination.

Second Administrative Reforms Commission

• Focused on crisis management.

• Governance reforms.

• Local government strengthening.

5. Finance Commission – Fiscal Federalism

Finance Commission of India

Constitutional Basis:

Article 280

Role:

• Recommends tax devolution.

• Balances vertical and horizontal fiscal imbalances.

Landmark Moment:

• 14th Finance Commission increased States’ share to 42%.

This strengthened fiscal federalism significantly.

6. GST Council – Cooperative Fiscal Federalism

GST Council

Established under the 101st Constitutional Amendment.

Features:

• Equal voting mechanism.

• Consensus-based decisions.

• Model of cooperative federalism.

Comparative Overview

Major Themes Across Reports

1. Centralization vs Autonomy

Early debate focused on excessive central control.

2. Misuse of Article 356

Repeated emphasis on limiting President’s Rule.

3. Governor Controversy

Political appointments criticized across reports.

4. Fiscal Federalism

Need for:

• Greater tax devolution

• Reduced discretionary grants

• Strengthened Finance Commission

5. Cooperative Federalism

Shift from confrontation to consultation.

Constitutional Articles Related to Federalism

• Article 1 – Union of States

• Article 246 – Legislative Distribution

• Seventh Schedule – Lists I, II, III

• Article 356 – President’s Rule

• Article 280 – Finance Commission

• Article 263 – Inter-State Council

Evolution of Indian Federalism

Contemporary Relevance (2026 Context)

Federal debates continue regarding:

• Governor vs State Government conflicts

• GST compensation issues

• Role of central investigative agencies

• Fiscal devolution

• Internal security coordination

The foundational ideas of Rajamannar, Sarkaria, and Punchhi remain deeply relevant.

UPSC & State PCS Importance

Prelims

• Articles 356, 280, 263

• Commission years

• Fiscal devolution trends

Mains (GS Paper II)

• Cooperative vs Competitive Federalism

• Centre-State conflicts

• Governor’s role

• Fiscal autonomy

Sample Question:

“Examine the evolution of Indian federalism through major commissions on Centre–State relations.”

Conclusion

Indian federalism has evolved from a centralized constitutional model to a more consultative and cooperative framework. The Rajamannar Committee laid the foundation for federal debate. The Sarkaria Commission institutionalized balance. The Punchhi Commission modernized the discourse.

Together, these reports shaped India’s journey toward a more stable, balanced, and mature federal democracy.

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