Constitution of India: Formation

The Making of the Constitution of India is a foundational topic in Indian Polity that explains how India established its legal and political framework after independence. It highlights the efforts of the Constituent Assembly in drafting a comprehensive and democratic Constitution. This process reflects the vision of building a sovereign, socialist, secular, and democratic republic.

A country’s constitution is built on the foundation of its past. Ancient India also had democracy, representative institutions, limited powers of rulers, and the rule of law.

Concept of Constitution

What is Constitiution?

The Constitution determines the basic structure of a country’s political system.
It establishes the three major organs of the state — the Legislature, the Executive, and the Judiciary — and defines their powers, responsibilities, and mutual relationships.

What is constitutionalism?

Some countries have constitutions but lack constitutionalism, meaning their governance remains undemocratic, such as North Korea, China, and Russia.

Constitutional Development of India

Constitutional development of India during British rule

Arrival of the East India Company
- 31 December 1600 – The merchants of London established the East India Company under the Charter Act of 1600.
- A Royal Charter was obtained from Queen Elizabeth I, by which the company was granted —
  - A monopoly to trade in India was granted for 15 years.
  - The company’s constitution, powers, and privileges were determined.
  - Lord Mayo became the Chairman.
Expansion of the East India Company
- After the death of Aurangzeb (1707), the Mughal Empire weakened.
- The company gained power by taking advantage of political instability.
Battles of Plassey and Buxar (1757 and 1764)
- 1757 – By defeating the Nawab of Bengal, Siraj-ud-Daulah, the Company became the real ruler in India. From here, the foundation of British rule in India was laid.
- In 1764, in the Battle of Buxar, the East India Company defeated the combined forces of Mir Qasim, Shuja-ud-Daulah, and Shah Alam II, marking the decisive beginning of British political dominance in India.

Company Rule (1773 AD to 1858 AD)

Regulating Act of 1773 AD –

On the recommendation of the secret committee constituted by the British Prime Minister, Lord North.

The Act came into force in 1774.
It was the first step taken by the British government to regulate and control the activities of the East India Company in India.
Through this Act, the Company’s administrative and political functions were recognised for the first time.
Foundation of central administration in India – the Governors of Bombay, Madras, and Bengal were placed under the Governor-General of Bengal. The Governor of Bengal was given the title of “Governor-General of Bengal.”
The first Governor-General was Lord Warren Hastings (1774–1785).
Governing authority – Governor-General + a four-member Council.
- Governor-General – had the right of a casting (decisive) vote.
Acceptance of gifts and bribes from Indians was prohibited.
Company merchants were prohibited from private trade without a license.
Control of the British government over the Company was strengthened through the ‘Court of Directors’ (the governing body of the Company).
Information relating to revenue, military, and civil matters was to be provided to the British government.
‘Justices of the Peace’ were appointed in the Presidency towns, whose function was to supervise cleanliness and health arrangements in their towns.
A Supreme Court was established at Calcutta in 1774.
- Civil, criminal, military, and ecclesiastical jurisdiction.
- Appeal lay to the Privy Council.
- Functioned as a court of record.
- First Chief Justice – Sir Elijah Impey, along with three other judges.

Act of Settlement, 1781

To remove the shortcomings of the Regulating Act of 1773, the British Parliament passed an amended Act in 1781, which is also known as the “Act of Settlement.”
Amending Act / Bengal Judicature Act
Suggestion – Edmund Burke
The Governor-General-in-Council was exempted from the jurisdiction of the Supreme Court.
Orders were issued to take Indian customs and usages into consideration (in orders and laws).
Revenue jurisdiction was abolished (the powers of the Supreme Court were limited).
Establishment of Revenue Boards.

In 1783 –

Dundas Act / Fox’s India Bill
Its objective was to remove the defects inherent in the Regulating Act.
The Bill was not passed – the Lord North–Fox coalition government resigned.

Pitt’s India Act, 1784 –

The first statutory document establishing the ownership of the British Crown over British-controlled territories.
The political and commercial functions of the Company were separated, marking the beginning of the system of Dual Government.
- For the Company’s
  - Commercial affairs – Board of Directors (six members).
  - Political affairs – a new body was constituted, known as the Board of Control.
The number of members of the Governor-General’s Council was reduced from four to three.
The Governor-General was given the power to dismiss provincial governments.
The Governor-General was required to obtain prior permission from the Company’s Board of Control before engaging in war or making treaties with Indian rulers.

Act of 1786

The Governor-General was given the power to override the decisions of the Council.
The Governor-General was granted the powers of the Commander-in-Chief.
First Governor-General – Lord Cornwallis.

Charter Act of 1793 –

Laid the foundation of administration through written laws.
Provision was made for the salaries of the members and staff of the Board of Control to be paid from Indian revenues.

Charter Act of 1813 –

The Company’s monopoly was abolished (except for trade with China and the tea trade).
Pious clause – permission for the propagation of Christianity.
The Company was to spend ₹1 lakh on education and literature in India – General Committee of Public Instruction – Lord Macaulay.
Local self-governing institutions were given the power of taxation.
Approval of laws by the British Parliament became mandatory.

Charter Act of 1833 –

This Act was a decisive step towards the centralisation of British India.
The Governor-General of Bengal was designated as the “Governor-General of India.” Lord William Bentinck was the first Governor-General of India.
The Company’s commercial monopoly was completely abolished; the Company was entrusted with administrative and political responsibilities.
A fourth member was included in the Governor-General’s Council as a Law Member (could attend meetings but had no voting right).
- First – Lord Macaulay.
Slavery was abolished in 1843.
Under this Charter, laws were codified in India for the first time.
The Governor-General of India was granted unlimited legislative powers over the whole of British India. Laws made earlier were called Regulations, and laws made under the new system were called Acts.
Indians were not to be disqualified from employment on the grounds of colour, religion, birth, or descent.
The Governor-General was given the power to constitute commissions.
- First – in 1834, Lord Macaulay (the first Law Commission with four members).
The first attempt was made to introduce open competition for the selection of civil servants.
Almost the entire area of the United Provinces (present-day U.P.) was separated from the Bengal Presidency and placed under the Agra Presidency.
Freedom was granted to enter, leave, reside in, and trade in India without a license.
Subhash Kashyap described this Act as the “Gangotri of the Indian Central Legislature.”

Charter Act of 1853 – Last Charter Act

Passed in the context of demands by Indians for the end of the Company’s reactionary rule.
The Governor-General’s Council retained the power to make laws for the whole of British India, but the legislative and administrative functions of the Council were separated.
Six special members were added to the Council for legislative work; they were called ‘Legislative Councillors.’
- The total strength of the Council became 12 members, including:
  - The Governor-General
  - The Commander-in-Chief
  - Four representatives of the local governments (provinces) of Madras, Bombay, Calcutta, and Agra – the beginning of local representation for the first time
  - Six special legislative councillors
- The Governor-General was given veto power over legislative Acts.
Under this Act, a legislature for India was constituted for the first time; its first meeting was held on 2 May 1854.
This Act laid the foundation of a more organised administrative system by separating legislative and executive powers in India.
The British government was given the power to terminate the Company’s rule at any time.
Open competitive examinations were introduced.

India under British Rule (From 1858 AD to 1947 AD)

Act for the Better Government of India – India was to be governed directly and in the name of the Crown.
- Magna Carta of Indian Independence
Described by the educated class of India as the Magna Carta of their rights.
After the Revolt of 1857, the British Parliament passed this Act after detailed deliberations.
The East India Company was abolished, and the governing territories and revenue-related powers were transferred to the British Crown.
Main objective – improvement of the administrative machinery through which supervision and control of the Indian government could be exercised from England.
The designation of the Governor-General was changed to ‘Viceroy of India’. Lord Canning was the first Viceroy of India.
The system of Dual Government was abolished – the Board of Control and the Court of Directors were abolished.
A new post, the Secretary of State for India, was created, in whom full control over Indian administration was vested.
- The Secretary was a member of the British Cabinet and was ultimately responsible to the British Parliament. First – Charles Wood.
- A Council of India consisting of 15 members was created to assist him.
  - 8 nominated by the Crown + 7 by the Court of Directors.
  - They could be removed only by the British Parliament.
- Right to ordinary vote.
- Right to casting (decisive) vote also.
- The Secretary of State was bound to accept the advice of the Council in matters relating to finance and All-India Services, but not bound in other matters.
After the Great Revolt of 1857, the British government felt the need to seek Indian cooperation in governance. In pursuance of this policy of association, the British Parliament enacted three Acts in 1861, 1892, and 1909.

Indian Councils Act, 1861 –

Beginning of constitutional development / Policy of Association / Liberal Despotism
The Governor-General could nominate a minimum of 6 and a maximum of 12 members to the Legislative Council for law-making.
- Tenure – two years.
- At least half of them had to be non-official members.
The process of associating Indian representatives in law-making was initiated. Foundation of representative government.
- In 1862, Lord Canning appointed three Indians to the newly constituted Legislative Council (for the first time):
  - The Maharaja of Patiala
  - The Raja of Banaras
  - Sir Dinkar Rao
Legislative powers were restored to the Madras and Bombay Presidencies, initiating the process of decentralisation.
The trend of centralisation started by the Regulating Act of 1773 was reversed.
The portfolio system introduced by Lord Canning in 1859 was recognised, marking the beginning of the cabinet system (Father – Lord Canning).
The Viceroy was authorised to issue ordinances (Section 22). Such ordinances were valid for only six months.
The Governor-General was given veto power.
Members of the Central Executive Council increased from 4 to 5 (the fifth being a legal expert).
The Central Government was given more powers than the provincial governments.
Provision was made for the establishment of High Courts at Calcutta, Bombay, and Madras.

Native Marriage Act (1872) –

Enacted due to the efforts of Keshab Chandra Sen.
Governor-General – Lord Northbrook.
Inter-caste marriages were given legal recognition.
Polygamy was prohibited.
Minimum age – girl: 14 years, boy: 18 years.

Royal Titles Act (1876) –

Sixth member added to the Central Executive Council (in charge of Public Works Department).
On 28 April 1876, a proclamation was made declaring Queen Victoria as the Empress of India.

Ilbert Bill – 1883

The Ilbert Bill was introduced in 1883 during the tenure of the then Viceroy, Lord Ripon, by Sir Courtenay Ilbert (Law Member of the Indian Legislative Council).
Its objective was to confer upon Indian judges the authority to try cases in which European residents in India were accused.
The Bill was not passed.

Birth of the Indian National Congress (1885)

The Indian National Congress was founded in 1885.
Its founder (originator) was A. O. Hume, who was an Englishman.
W. C. Banerjee became the first President of the Congress.
At its first session, held from 28 to 30 December 1885 at Bombay under the presidentship of Mr W. C. Banerjee, the Congress demanded reforms in the Legislative Councils and their expansion.
Session of 1889 (Fifth Session):
- The speech of Surendranath Banerjee was noteworthy. He stated:

“If this demand of yours is fulfilled, then
all your other demands will be fulfilled.
On this depends the entire future of the country and
the future of the administrative system.”

Indian Councils Act, 1892

It was mainly influenced by the resolutions passed at the sessions of the Indian National Congress from 1889 to 1891.
In 1891, the Congress reiterated its firm resolve that good governance in India would not be possible unless the people of India were allowed to raise their voice in the legislatures through their elected representatives.
For the first time, elected representatives were included in the Councils (indirect method) – appointment of non-official members in the Central and Provincial Legislative Councils.
The number of additional members was increased to “a minimum of 10 and a maximum of 16”. Earlier, it was 6 to 12.
Increase in the powers of the Councils –
- Indian members were now permitted to discuss the annual financial statement (budget). However, members were not given the right to move amendments to the budget.
- Voting and supplementary questions were not permitted.
- Members of the Councils were allowed to ask questions on matters of public interest, subject to certain conditions and restrictions (with six days’ prior notice).
Beginning of representative government – Ferozeshah Mehta was the first elected Indian member.

National Movement and Constitutional demands

Swaraj as the Goal (Congress Session of 1906)

For the first time, the Congress clearly declared that its ultimate goal was Swaraj (Self-Rule).
Meaning of Swaraj:
- Moderates:
  - Parliamentary self-government under the British Empire.
- Extremists:
  - Complete independence.

Indian Councils Act, 1909 (Morley–Minto Reforms)

This Act was introduced under the pressure of the demands of the Indian National Congress and the growing national movement. Its objective was to provide greater representation to Indians in administration.
Based on the recommendations of the Arundell Committee.
02 Schedules + 08 Sections.
Provision for communal representation for Muslims based on separate electorates – applicable only to the Muslim community.
Communalism was given legal sanction, and Lord Minto came to be known as the father of communal electorates.
The number of additional members in the Central Legislative Council (Governor-General’s Council) was increased from 16 to 60. In the Provincial Councils, it was increased from 30 to 50.
Permission was given for discussion on the budget, matters of public interest, and supplementary questions, but voting on the budget was not permitted.
Indians were given representation in both administration and law-making.
- For the first time, Indians were included in the executive councils. Satyendra Prasanna Sinha was appointed as the first Indian member of the Viceroy’s Executive Council.
- Two Indians were appointed as members of the Secretary of State’s Council for India:
  - K. C. Gupta (first)
  - Syed Vilgrami
The official majority in the provinces was abolished.
Greater autonomy was granted to local self-governing institutions.
Provision for separate representation for:
- Presidency Corporations
- Chambers and Corporations
- Universities
- Zamindars
For the first time, a resolution on public interest was moved – Gopal Krishna Gokhale.
Mazumdar described the Act as ‘moonlight of the moon’.
Members of the Legislative Councils were divided into four categories:
- Ex-officio members
- Nominated official members
- Nominated non-official members
- Elected members

Government of India Act, 1919 (Montagu–Chelmsford Reforms)

The British government enacted the Government of India Act in 1919, which came into force in 1921.
47 Sections + 5 Schedules + Preamble.
This Act was based on the Montagu–Chelmsford Reforms, introduced by the British government for the gradual development of self-governing institutions in India. Its objective was the gradual establishment of responsible government, but its pace and direction were entirely under the control of the British Parliament.
The responsibility for framing the Indian Constitution rested with the British Parliament.
Note: Mesopotamia Commission Report (1916–17) – British administration was inefficient.
Montagu declared responsible government.
Introduction of the system of Dyarchy in the provinces: 1921–1937
1. Reserved Subjects:
  - Police, judiciary, finance, industries, justice, irrigation, minerals, and land revenue – under the control of the Governor and his Executive Council
  - In these subjects, the Governor governed with the assistance of the Executive Council, which was not responsible to the Legislative Council.
2. Transferred Subjects:
  - Education, health, agriculture, and public works are under the control of provincial ministers.
  - In these subjects, the Governor governed through ministers responsible to the Legislative Council.
Thus, a partially responsible government was established.
This Act divided central and provincial subjects.
Subjects such as foreign affairs, defence, political relations, banking, public debt, civil and criminal law, communication services, etc., were included in the Federal List.
For the first time in the country, the Central Legislative Council was abolished, and a bicameral system, along with the system of direct elections, was introduced.
1. Council of States:
  - Upper House; elected + nominated members; total members – 60; term – 5 years, Formed four times – 1921, 1926, 1930, 1936.
2. Legislative Assembly:
  - Lower House; elected + nominated + official + non-official members; total members – 145; term – 3 years, Formed six times – 1920, 1923, 1926, 1930, 1934, 1945.
Powers were equal, but budgetary powers were vested only in the Legislative Assembly.
On 9 February 1921, the Duke of Connaught inaugurated the new legislature (Central Legislative Assembly).
- Speaker – Frederick Whyte
- Deputy Speaker – Sachchidanand Sinha
  - First Indian Speaker – Vithalbhai Patel
  - Last Indian Speaker – G. V. Mavlankar
For the first time, the system of direct elections was introduced.
- A limited franchise was granted based on property, tax, or education.
- Limited women’s suffrage was given. (Not universal)
Provision was made for the establishment of a Public Service Commission; consequently, the Central Public Service Commission was established in 1926 for the recruitment of civil servants (on the recommendation of the Lee Commission, 1923).
The Central Budget was separated from provincial budgets, and provincial legislatures were authorised to prepare their own budgets.
Extension of the communal electorate system – Sikhs, Christians, Anglo-Indians, and Europeans.
The expenses of the Secretary of State for India were to be met from British revenues (earlier from Indian revenues).
Provision for the appointment of a High Commissioner in London to assist the Secretary of State.
Three Indians were made compulsory members of the Viceroy’s Executive Council.
Note: Failure of dyarchy in provinces – Committee Chairman: Alexander Mudiman.
Criticism of the Act
- Indian National Congress – disappointing and unsatisfactory.
- Lokmanya Tilak – ‘a sunrise without the sun’.
- Subhas Chandra Bose – ‘new chains forged for the people’.
- Annie Besant – ‘not worthy of England, not acceptable to India’.

Decisive events in constitutional development

Simon Commission

The British government announced in November 1927 the constitution of a seven-member statutory commission under the chairmanship of Sir John to ascertain India’s position under the new Constitution / to review the Act. It was constituted in 1928.
- Sir John Simon (Chairman)
- Lord Burn
- Edward de Dagan
- Harmshan
- C. R. Attlee
- Lenn Fox
- Earl Kona

Establishment of a federation of British India and continuation of the system of communal electorates.
All the members of the Commission were British – hence, it was opposed.
- It was completely boycotted – Congress Madras Session (1927, President – G. V. Mavlankar).
The Commission submitted its report in 1930.
Recommendations –
- Abolition of the system of dyarchy in the provinces; recommendation to provide fully responsible government in the provinces.
- Expansion of governments in the princely states.

Nehru Committee (10-Member Committee) – Report: 1928

Formed in response to the challenge of the Secretary of State for India, Lord Birkenhead, during the opposition to the Simon Commission.

Number	Name of Members	Post /Role	Organisation/Group
1	Motilal Nehru	Chairman	(Indian National Congress)
2	Pandit Jawaharlal Nehru	Secretary	(Indian National Congress)
3	Subhas Chandra Bose	Member	Indian National Congress
4	Ali Imam	Member	Muslim League
5	Shuaib Qureshi	Member	Muslim League
6	M. S. Aney	Member	Hindu Mahasabha
7	M. R. Jayakar	Member	Hindu Mahasabha
8	G. R. Pradhan	Member	Harijan representative
9	Sardar Mangal Singh	Member	Sikh representative
10	Tej Bahadur Sapru	Member	Liberal
11	M. N. Joshi —	Member	Labour Union

Opposition to the Nehru Report –
- Muhammad Ali Jinnah presented the “Fourteen Points” in March 1929

Resolution on Purna Swaraj (1929):

At the Calcutta Session (1928), it was decided that one year would be given to the British to accept Dominion Status (self-governing status).
When the British Government rejected this demand, the Congress, at the Lahore Session (1929), passed a historic resolution in which the complete independence of India was declared.
The Congress abandoned the demand for Dominion Status and now declared Purna Swaraj (complete independence) as its final objective.
It was decided to observe 26 January 1930 as Independence Day.

Round Table Conferences and the White Paper (1930–1935):

After the declaration of Purna Swaraj at the Lahore Session in 1929, the Civil Disobedience Movement intensified in India.
The British Government convened the Round Table Conferences to pacify the growing mass movement in India and to consider constitutional reforms.

First Round Table Conference (November 1930 – January 1931):

The Congress did not participate as it was engaged in the Civil Disobedience Movement. Only the Princely States, the Muslim League, and other parties participated.

Second Round Table Conference (September – December 1931):

After the Gandhi–Irwin Pact, Mahatma Gandhi participated as the sole representative of the Congress. Gandhiji regarded the Depressed Classes as part of Hindu society, but Dr B.R. Ambedkar opposed this view. Due to communal issues, no concrete decision could be reached.

Third Round Table Conference (November – December 1932):

The Congress boycotted this Conference. Only a few communal representatives and the Princely States participated.

White Paper (March 1933): Framework of the Constitution:

After the three Round Table Conferences, the British Government published a White Paper in March 1933. It provided for a federal structure and provincial autonomy. It proposed the establishment of dyarchy at the Centre and responsible governments in the provinces.
British Parliament – A Joint Committee was constituted under the chairmanship of Lord Linlithgow. The Committee reported that the federal system would come into operation only when at least 50 per cent of the Princely States agreed to join it.

Communal Award (August 1932):

Ramsay MacDonald announced a scheme for the representation of minorities in August 1932.
In August 1932, the British Prime Minister declared that the system of separate electorates would not only be extended to Muslims, Sikhs, Christians, Europeans, and Anglo-Indians, but would also be extended to the Depressed Classes.

Poona Pact (24 September 1932):

As a result of the Communal Award, Mahatma Gandhi’s fast led to an agreement between Congress leaders and leaders of the Depressed Classes, which came to be known as the Poona Pact.
Under this Pact, the joint Hindu electorate was retained, and seats were reserved for the Depressed Classes.

Government of India Act, 1935 and its Result

Government of India Act, 1935:

Based on the reports of the Round Table Conferences of 1930, 1931, and 1932.
The Bill was introduced in the British Parliament on 19 December 1934.
After being passed by both Houses and receiving the Royal Assent on 4 August 1935, the Act came into force.
This Act proved to be a milestone in the establishment of a fully responsible government in India.
The Act consisted of 14 Parts, 321 Sections, and 10 Schedules.
Section 5 – Provision for the establishment of an All-India Federation (Federation of India):
- (The term used was “Federation of India”, not “All-India Federation”).
- The Federation was to be formed by combining:
  - Provinces of British India (11) – Compulsory
  - Chief Commissioners’ Provinces (6) – Compulsory
  - Indian Princely States (562) – Voluntary (they did not join)
Before this, India was a unitary state where the provinces were subordinate to the Centre.
For the Federation to come into existence, the consent of at least 50% of the princely states was required. The princely states did not accept this provision, and therefore, the federal structure never came into operation.
A division of powers between the Centre and the units was made based on three lists (Seventh Schedule):
1. Federal List – 59 subjects
2. Provincial List – 54 subjects
3. Concurrent List – 36 subjects
[The residuary powers were vested in the Viceroy (Section 104).]
The system of Dyarchy in the provinces was abolished, and provincial autonomy was introduced (with effect from 1 April 1937). The Council of Ministers was made responsible to the legislature.
Dyarchy was introduced at the Centre. Consequently, federal subjects were divided into Reserved and Transferred subjects, though this provision never came into operation.
1. Reserved Subjects: Under the control of the Governor-General and his Executive Council, responsible to the British Government.
  - Defence, foreign affairs, ecclesiastical affairs, and tribal areas.
2. Transferred Subjects: Under the control of the Governor-General and his Council of Ministers, responsible to the legislature.
  - Education, health.
Under this Act, two new provinces were created: Odisha and Sindh.
- With effect from 1 April 1937, the administration of Burma was completely separated from India.
A clear division of powers between the Centre and the Provinces was made.
The Act provided for the establishment of a Federal Public Service Commission, Provincial Public Service Commissions, and Joint Public Service Commissions for two or more provinces.
It also provided for the establishment of a Federal Court in 1937.
The Federal Court came into existence
- on 1 October 1937 and
- ceased to exist on 27 January 1950.
- Appeals lay to the Privy Council, whose appellate jurisdiction
  - was abolished by the Constituent Assembly in September 1949.
- Composition of the Federal Court:
  - 1 Chief Justice and 6 other Judges, appointed by the Crown.
    - First Chief Justice: Sir Maurice Gwyer
  - Two Indian judges:
    - (i) M. R. Jayakar
    - (ii) M. S. Sultan
- First Chief Justice of independent India: H. J. Kania
Under this Act, elections were held in February 1937 for 11 Provincial Legislatures.
- Total seats: 1585.
- In the elections, the Congress achieved a sweeping success. Out of 836 general seats, the Congress (election symbol: yellow box) won 715 seats.The Muslim League suffered a severe defeat, winning only 51 of 482 seats.
- Congress formed ministries in 5 provinces:
  - United Provinces – Govind Ballabh Pant
  - Bihar – Shri Krishna Singh
  - Odisha – B. N. Das
  - Central Provinces and Berar – B. G. Kher / Ravi Shankar Shukla
  - Madras – C. Rajagopalachari
- Congress emerged as the largest party in 3 provinces:
  - Assam – Sadullah
  - Bombay – B. G. Kher
  - North-West Frontier Province – Dr Khan Sahib
- Congress performed poorly in 3 provinces:
- Bengal –
  - Founder: Fazlul Haq
  - Muslim League + Krishak Praja Party
- Punjab – Founder: Sir Fazl-i-Hussain
  - Unionist Party
- Sindh – Ullah, Sumro, Ali Khan (Coalition)

In October 1939, the Congress ministries resigned in 8 provinces.
- The Muslim League observed “Deliverance Day” on 22 December 1939 (supported by Dr B. R. Ambedkar).
  - Note: Bicameral legislatures were introduced in 6 provinces:
  - (Legislative Council – Upper House – Lower House)
    1. United Province
    2. Bihar
    3. Madras
    4. Assam
    5. Bombay
    6. Bengal

The strength of the Central Legislative Assembly was increased to 375, and that of the Council of State to 260.
For the first time, the designations Premier and Minister were used in administration.
The franchise was expanded (approximately 10% of the population).
The Governor-General was given veto power (a power later reflected in Article 123 of the Constitution).
There was no Preamble in the Act.
Provision was made for joint sittings.
The Act envisaged that British rule would grant Dominion Status, not complete independence.
Separate electorates were provided for the Depressed Classes, women, and labour.
The Government of India Act, 1858, was repealed.
(Note: It sanctioned constitutional autocracy.)
The Act also provided for the establishment of the Reserve Bank of India.

Reserve Bank of India (RBI)

Headquarters (HQ): Mumbai
The Reserve Bank of India (RBI) was established on 1 April 1935 and was nationalised on 1 January 1949.
It was established under the Reserve Bank of India Act, 1934.
It was set up on the recommendations of the Hilton Young Commission.
The first Governor was Sir Osborne Smith, and the first Indian Governor was Sir C. D. Deshmukh.

Criticism:
- Jawaharlal Nehru:
  - Described it as a “new charter of slavery” (in a letter).
  - Also compared it to “a machine with many brakes but no engine.”
- Muhammad Ali Jinnah: Termed it as “thoroughly rotten, fundamentally bad, and totally unacceptable.”
- Clement Attlee: Regarded it as a “symbol of mistrust.”
- C. Rajagopalachari: Considered it worse than the system of dyarchy.
- Coupland: Described it as “a great achievement of political thought.”
- Madan Mohan Malaviya: Characterised it as “hollow from within.”

Events after 1940

August Offer (1940):

It was issued due to the constitutional crisis that arose after the resignation of the Congress ministries.
In 1940, the then Viceroy of India, Lord Linlithgow, announced the August Offer on 8 August 1940.
Under this offer, for the first time, the British Government accepted that the task of framing the Constitution of India would be carried out by the Indians themselves (there was no mention of a Constituent Assembly).
It was stated that after the end of the war, dominion self-government would be established in India.
The primary objective of the August Offer was to secure India’s cooperation in the Second World War.
Both the Indian National Congress and the Muslim League expressed dissatisfaction:
- Congress: Demanded complete independence.
- Muslim League: Demanded partition.

Individual Satyagraha (1940):

It is also known as the “Delhi Chalo Movement.”
It was launched on 17 October 1940 from Pavnar Ashram, Maharashtra.
It was sponsored by Mahatma Gandhi.
The first satyagrahi was Vinoba Bhave.
The second satyagrahi was Pandit Jawaharlal Nehru.
As a result of this movement, the August Offer failed.