DEPARTMENT OF LAW

TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Subject: Constitutional Law - I

Subject code: LLB 203

ASSIGNMENT TOPIC – Special Status of Certain States in Constitution of India

SUBMITTED TO: SUBMITTED BY:

Ms. Ishani Chhaudha Labhya Sharma

Assistant Professor, TIPS BALLB 2021-2026 (Sem-3)

(Enrollment no. - 01720603821)

INTRODUCTION

The Indian constitution guarantees the right to equality to people, communities, faiths, regions,
and all social and political organizations. The right to equality protects not just non-
discrimination based on religion, caste, region, or any other social or political sub-category, but
also the lack of any special privileges based on it.

However, due to historical disadvantages to some areas and states, the Indian constitution
accords Special Status to specific states.

A special Category Status (SCS) is a classification given by Centre to assist in the development
of those states that face geographical and socio-economic disadvantages like hilly terrains,
strategic international borders, economic and infrastructural backwardness, and non-viable state
finances.1

The concept of a special category status was first introduced in 1969, when the fifth Finance
Commission sought to provide preferential treatment to certain disadvantaged states through
central assistance and tax breaks, the establishment of special development boards, reservation in
local government jobs, educational institutions, and other means.

This formula was named after Dr. Gadgil Mukherjee, the then-Deputy Chairman of the Planning
Commission, and is connected to the transmission of aid to states by the Centre under various
programmes.

The Indian Constitution has no provision for any state in India to be designated as a Special
Category State. However, as many as 12 states have access to a wide variety of protections under
Articles 371, 371-A through 371-H, and 371-J. Article 371-I relates with Goa but has no
provisions that may be considered unique. Maharashtra, Gujarat, Nagaland, Assam, Manipur,
Andhra Pradesh, Telangana, Sikkim, Mizoram, Arunachal Pradesh, Karnataka, and Goa are
among the 12 states.

1
Mohd Aqib Aslam, Special Provisions For Certain States In Indian Constitution, Legal Service India,
https://www.legalserviceindia.com/legal/article-1991-special-provisions-for-certain-states-in-indian-
constitution.html
SPECIAL STATUS TO STATE

The Constitution guarantees Special Status through an Act that must be enacted by a two-thirds
majority in both houses of Parliament. Jammu and Kashmir, for example, has Special Status
under Article 370. Jammu and Kashmir has Special Category Status as well. It is also the sole
state in the country with its own constitution. Many laws that apply in the rest of the country do
not apply in the state. Apart from that, the Indian government can only intervene in areas such as
defence, foreign affairs, finance, and communication. It was built around the Gadgil formula.
Hilly terrain; low population density and/or a sizable tribal populace; strategic location along
borders with neighbouring countries; economic and infrastructure backwardness; and non-
viability of state finances were the prerequisites for Special Category Status. Normal central
support benefits Special Category States (now 11 states), who get 30% of overall assistance, with
the remaining 70% distributed among the rest of the states. The kind of help differs as well for
Special Category Status. Normal Central Assistance (NCA) is divided between 90% grants and
10% loans for these states, whereas it is 30% grants and 70% loans for non-Special Category
states. In 2011-12, the Centre made 57% of transfers of Rs. 2.5 lakh crore, the biggest allocation
from Centre to states. States that are awarded special category status benefit from a variety of
advantages. These include:

a) favourable treatment in receiving central money;

b) excise tax concessions to encourage companies to the state; and

c) a considerable 30% of the Centre's total budget is also allocated to special category states.

d) These states can take advantage of debt-swapping and debt-relief programs.

e) For Centrally Sponsored Schemes as well as foreign help, Special Category States get 90% as
grants and 10% as loans. Other states, on the other hand, receive 30% of their revenues as grants.

f) Tax advantages are also provided to Special Category States in order to encourage investment.

Overview of these special provisions for some states in India

Article 371, Maharashtra and Gujarat: Governor has “special responsibility” to

establish “separate development boards” for “Vidarbha, Marathwada, and the rest of
Maharashtra”, and Saurashtra and Kutch in Gujarat; ensure “equitable allocation of funds
for developmental expenditure over the said areas”, and “equitable arrangement providing
adequate facilities for technical education and vocational training, and adequate
opportunities for employment” under the state government.

Article 371A (13th Amendment Act, 1962), Nagaland:

Inserted after a 16-point agreement between the Centre and the Naga People’s
Convention in 1960, which led to the creation of Nagaland in 1963.

Parliament cannot legislate in matters of Naga religion or social practices, Naga

customary law and procedure, administration of civil and criminal justice involving
decisions according to Naga customary law, and ownership and transfer of land without
concurrence of the state Assembly.

Article 371B (22nd Amendment Act, 1969), Assam: The President may provide for the
constitution and functions of a committee of the Assembly consisting of members elected
from the state’s tribal areas.

Article 371C (27th Amendment Act, 1971), Manipur: The President may provide for
the constitution of a committee of elected members from the Hill areas in the Assembly,
and entrust “special responsibility” to the Governor to ensure its proper functioning.

Article 371D (32nd Amendment Act, 1973: It was substituted by The Andhra Pradesh
Re- organisation Act, 2014), Andhra Pradesh and Telangana President must ensure
“equitable opportunities and facilities” in “public employment and education to people
from different parts of the state”. He may require the state government to organize “any
class or classes of posts in a civil service of, or any class or classes of civil posts under,
the State into different local cadres for different parts of the State”. He has similar
powers vis-à-vis admissions in educational institutions.

Article 371E: Allows for the establishment of a university in Andhra Pradesh by a law of
Parliament. But this is not a “special provision” in the sense of the others in this part.

Article 371F (36th Amendment Act, 1975), Sikkim: The members of the Legislative
Assembly of Sikkim shall elect the representative of Sikkim in the House of the People.
To protect the rights and interests of various sections of the population of Sikkim,
Parliament may provide for the number of seats in the Assembly, which may be filled
only by candidates from those sections.

Article 371G (53rd Amendment Act, 1986), Mizoram : Parliament cannot make laws
on “religious or social practices of the Mizos, Mizo customary law and procedure,
administration of civil and criminal justice involving decisions according to Mizo
customary law, ownership and transfer of land… unless the Assembly… so decides”.

Article 371H (55th Amendment Act, 1986), Arunachal Pradesh: The Governor has a
special responsibility with regard to law and order, and “he shall, after consulting the
Council of Ministers, exercise his individual judgment as to the action to be taken”.

Article 371J (98th Amendment Act, 2012), Karnataka: There is a provision for a
separate development board for the Hyderabad-Karnataka region. There shall be
“equitable allocation of funds for developmental expenditure over the said region”, and
“equitable opportunities and facilities” for people of this region in government jobs and
education. A proportion of seats in educational institutions and state government jobs in
Hyderabad-Karnataka can be reserved for individuals from that region. 2

Conclusion

These particular rules are in place to protect the interests of some backward regions as
well as to foster law and order in the states. It also attempts to defend and preserve the
indigenous peoples' economic and social interests in these states. However, no specific
provision was initially made for the states. Following revisions made in relation to the
reorganisation of the States or the Union territories introduced these clauses. Article 371I,
which deals with Goa, and Article 370E, which deals with Andhra Pradesh and
Telangana, are neither "special" nor "extraordinary."

2
 Special Provisions to some states, Insight IAS 
https://www.insightsonindia.com/polity/functions-and-responsibilities-of-the-union-and-the-states-issues-and-
challenges-pertaining-to-the-federal-structure-devolution-of-powers-and-finances-up-to-local-levels-and-
challenges-therein/devolution-of-powers-and-finances-up-to-local-levels-and-challenges-therein/special-
provisions-to-some-states/