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The acting chairman functions till the person appointed as
chairman enters on the duties of the office or till the chairman is able
to resume his duties.
REMOVAL
Although the chairman and members of a SPSC are appointed by
the governor, they can be removed only by the president (and not by
the governor). The president can remove them on the same grounds
and in the same manner as he can remove a chairman or a member
of the UPSC. Thus, he can remove him under the following
circumstances:
(a) If he is adjudged an insolvent (i.e., has gone bankrupt); or
(b) If he engages, during his term of office, in any paid employment
outside the duties of his office; or
(c) If he is, in the opinion of the president, unfit to continue in office
by reason of infirmity of mind or body3 .
In addition to these, the president can also remove the chairman
or any other member of SPSC for misbehaviour. However, in this
case, the president has to refer the matter to the Supreme Court for
an enquiry. If the Supreme Court, after the enquiry, upholds the
cause of removal and advises so, the president can remove the
chairman or a member. Under the provisions of the Constitution, the
advise tendered by the Supreme Court in this regard is binding on
the president. However, during the course of enquiry by the Supreme
Court, the governor can suspend the concerned chairman or
member, pending the final removal order of the president on receipt
of the report of the Supreme Court.
Further, the Constitution has also defined the term ‘misbehaviour’
in this context. The Constitution states that the chairman or any other
member of a SPSC is deemed to be guilty of misbehaviour, if he (a)
is concerned or interested in any contract or agreement made by the
Government of India or the government of a state, or (b) participates
in any way in the profit of such contract or agreement or in any
benefit therefrom otherwise than as a member and in common with
INDEPENDENCE
As in the case of UPSC, the Constitution has made the following
provisions to safeguard and ensure the independent and impartial
functioning of a SPSC:
(a) The chairman or a member of a SPSC can be removed from
office by the president only in the manner and on the grounds
mentioned in the Constitution. Therefore, they enjoy the
security of tenure.
(b) The conditions of service of the chairman or a member, though
determined by the governor, cannot be varied to his
disadvantage after his appointment.
(c) The entire expense including the salaries, allowances and
pensions of the chairman and members of a SPSC are charged
on the consolidated fund of the state. Thus, they are not subject
to vote of the state legislature.
(d) The chairman of a SPSC (on ceasing to hold office) is eligible
for appointment as the chairman or a member of the UPSC or
as the chairman of any other SPSC, but not for any other
employment under the Government of India or a state.
(e) A member of a SPSC (on ceasing to hold office) is eligible for
appointment as the chairman or a member of the UPSC, or as
the chairman of that SPSC or any other SPSC, but not for any
other employment under the Government of India or a state.
(f) The chairman or a member of a SPSC is (after having
FUNCTIONS
A SPSC performs all those functions in respect of the state services
as the UPSC does in relation to the Central services:
(a) It conducts examinations for appointments to the services of
the state.
(b) It is consulted on the following matters related to personnel
management:
(i) All matters relating to methods of recruitment to civil servic
and for civil posts.
(ii) The principles to be followed in making appointments to c
services and posts and in making promotions and transfers fro
one service to another.
(iii) The suitability of candidates for appointments to civil servic
and posts; for promotions and transfers from one service
another; and appointments by transfer or deputation. T
concerned departments make recommendations for promotio
and request the SPSC to ratify them.
(iv) All disciplinary matters affecting a person serving under t
government of the state in a civil capacity including memorials
petitions relating to such matters. These include:
– Censure (severe disapproval)
– Withholding of increments
– Withholding of promotions
– Recovery of pecuniary loss
– Reduction to lower service or rank (demotion)
– Compulsory retirement
– Removal from service
– Dismissal from service4
(v) Any claim for reimbursement of legal expenses incurred by
civil servant in defending legal proceedings instituted again
him in respect of acts done in the execution of his official dutie
(vi) Any claim for the award of a pension in respect of injuri
sustained by a person while serving under the government
the state and any question as to the amount of any such awar
(vii) Any other matter related to the personnel management.
The Supreme Court has held that if the government fails to
irregularity in consultation with the SPSC or acting without
consultation does not invalidate the decision of the government.
Thus, the provision is directory and not mandatory. Similarly, the
court held that a selection by the SPSC does not confer any right to
the post upon the candidate. However, the government is to act fairly
and without arbitrariness or malafides.
The additional functions relating to the services of the state can
be conferred on SPSC by the state legislature. It can also place the
personnel system of any local authority, corporate body or public
institution within the jurisdiction of the SPSC. Hence the jurisdiction
of SPSC can be extended by an Act made by the state legislature.
The SPSC presents, annually, to the governor a report on its
performance. The governor places this report before both the
Houses of the state legislature, along with a memorandum
explaining the cases where the advice of the Commission was not
LIMITATIONS
The following matters are kept outside the functional jurisdiction of
the SPSC. In other words, the SPSC is not consulted on the
following matters:
(a) While making reservations of appointments or posts in favour of
any backward class of citizens.
(b) While taking into consideration the claims of scheduled castes
and scheduled tribes in making appointments to services and
posts.
The governor can exclude posts, services and matters from the
purview of the SPSC. The Constitution states that the governor, in
respect to the state services and posts may make regulations
specifying the matters in which, it shall not be necessary for SPSC to
be consulted. But all such regulations made by the governor shall be
laid before each House of the state legislature for at least 14 days.
ROLE
The Constitution visualises the SPSC to be the ‘watchdog of merit
system’ in the state. It is concerned with the recruitment to the state
services and advises the government, when consulted, on promotion
and disciplinary matters. It is not concerned with the classification of
services, pay and service conditions, cadre management, training
and so on. These matters are handled by the Department of
Personnel or the General Administration Department. Therefore, the
SPSC is only a central recruiting agency in the state while the
Department of Personnel or the General Administration Department
is the central personnel agency in the state.
The role of SPSC is not only limited, but also recommendations
made by it are only of advisory nature and hence, not binding on the
government. It is up to the state government to accept or reject that
advice. The only safeguard is the answerability of the government to
the state legislature for departing from the recommendation of the
Commission. Further, the government can also make rules which
regulate the scope of the advisory functions of SPSC5 .
Also, the emergence of State Vigilance Commission (SVC) in
1964 affected the role of SPSC in disciplinary matters. This is
because both are consulted by the government while taking
disciplinary action against a civil servant. The problem arises when
the two bodies tender conflicting advice. However, the SPSC, being
an independent constitutional body, has an edge over the SVC.
Finally, the SPSC is consulted by the governor while framing rules
for appointment to judicial service of the state other than the posts of
district judges. In this regard, the concerned state high court is also
JOINT STATE PUBLIC SERVICE COMMISSION
The Constitution makes a provision for the establishment of a Joint
State Public Service Commission (JSPSC) for two or more states.
While the UPSC and the SPSC are created directly by the
Constitution, a JSPSC can be created by an act of Parliament on the
request of the state legislatures concerned. Thus, a JSPSC is a
statutory and not a constitutional body. The two states of Punjab and
Haryana had a JSPSC for a short period, after the creation of
Haryana out of Punjab in 1966.
The chairman and members of a JSPSC are appointed by the
president. They hold office for a term of six years or until they attain
the age of 62 years, whichever is earlier. They can be suspended or
removed by the president. They can also resign from their offices at
any time by submitting their resignation letters to the president.
The number of members of a JSPSC and their conditions of
service are determined by the president.
A JSPSC presents its annual performance report to each of the
concerned state governors. Each governor places the report before
the state legislature.
The UPSC can also serve the needs of a state on the request of
the state governor and with the approval of the president.
As provided by the Government of India Act of 1919, a Central
Public Service Commission was set up in 1926 and entrusted with
the task of recruiting civil servants. The Government of India Act of
1935 provided for the establishment of not only a Federal Public
Service Commission but also a Provincial Public Service
Commission and Joint Public Service Commission for two or more
provinces.
Table 44.1 Articles Related to SPSC at a Glance
Article No. Subject-matter
315 Public Service Commissions for the Union and for
the states
316 Appointment and term of office of member
318 Power to make regulations as to conditions of
service of members and staff of the Commission
319 Prohibition as to the holding of office by members of
commission on ceasing to be such members
320 Functions of Public Service Commissions
321 Power to extend functions of Public Service
Commissions
322 Expenses of Public Service Commissions
323 Reports of Public Service Commissions
NOTES AND REFERENCES
1. Originally, it was 60 years. The 41st Amendment Act of
1976 raised it to 62 years.
2. Added by the 15th Amendment Act of 1963.
3. In 1993, the Supreme Court ruled that appointment of a
university professor (known to be blind) as a member of a
SPSC cannot be set aside on the ground of infirmity of
body or mind.
4. The difference between removal and dismissal is that the
former does not disqualify for future employment under the
government while the latter disqualifies for future
employment under the government.
45 Finance Commission
A
rticle 280 of the Constitution of India provides for a Finance
Commission as a quasi judicial body. It is constituted by the
president of India every fifth year or at such earlier time as he
considers necessary.
COMPOSITION
The Finance Commission consists of a chairman and four other
members to be appointed by the president. They hold office for such
period as specified by the president in his order. They are eligible for
reappointment.
The Constitution authorises the Parliament to determine the
qualifications of members of the commission and the manner in which
they should be selected. Accordingly, the Parliament has specified the
qualifications of the chairman and members of the com-mission1. The
chairman should be a person having experience in public affairs and the
four other members should be selected from amongst the following:
1. A judge of high court or one qualified to be appointed as one.
2. A person who has specialised knowledge of finance and accounts
of the government.
3. A person who has wide experience in financial matters and in
FUNCTIONS
The Finance Commission is required to make recommendations to the
president of India on the following matters:
1. The distribution of the net proceeds of taxes to be shared
between the Centre and the states, and the allocation between
the states of the respective shares of such proceeds.
2. The principles that should govern the grants-in-aid to the states by
the Centre (i.e., out of the consolidated fund of India).
3. The measures needed to augment the consolidated fund of a
state to supplement the resources of the panchayats and the
municipalities in the state on the basis of the recommendations
made by the state finance commission2 .
4. Any other matter referred to it by the president in the interests of
sound finance.
Till 1960, the commission also suggested the grants given to the
States of Assam, Bihar, Odisha and West Bengal in lieu of assignment
of any share of the net proceeds in each year of export duty on jute and
jute products. These grants were to be given for a temporary period of
ten years from the commencement of the Constitution.
The commission submits its report to the president. He lays it before
both the Houses of Parliament along with an explanatory memorandum
ADVISORY ROLE
It must be clarified here that the recommendations made by the
Finance Commission are only of advisory nature and hence, not binding
on the government. It is up to the Union government to implement its
recommendations on granting money to the states.
To put it in other words, ‘It is nowhere laid down in the Constitution
that the recommendations of the commission shall be binding upon the
Government of India or that it would give rise to a legal right in favour of
the beneficiary states to receive the money recommended to be offered
to them by the Commission’3 .
As rightly observed by Dr. P.V. Rajamannar, the Chairman of the
Fourth Finance Commission, “Since the Finance Commission is a
constitutional body expected to be quasijudicial, its recommendations
should not be turned down by the Government of India unless there are
very compelling reasons”.
The Constitution of India envisages the Finance commission as the
balancing wheel of fiscal federalism in India. However, till 2014, its role
in the Centre-state fiscal relations was undermined by the erstwhile
Planning Commission, a non-constitutional and a non-statutory body.
Dr. P.V. Rajamannar, the Chairman of the Fourth Finance commission,
highlighted the overlapping of functions and responsibilities between
the Finance Commission and the erstwhile Planning Commission in
federal fiscal trans-fers.4 In 2015, the Planning Commission was
replaced by a new body called NITI Aayog (National Institution for
Transforming India).
Table 45.1 Finance Commissions Appointed so far
Finance Chairman Appointed Submitted Period of
Commission in Report in implementation
of Report
First K.C. Neogy 1951 1952 1952–57
Second K. Santhanam 1956 1957 1957–62
Third A.K. Chanda 1960 1961 1962–66
Fourth Dr. P.V. 1964 1965 1966–69
Sixth Brahamananda 1972 1973 1974–79
Reddy
Seventh J.M. Shelat 1977 1978 1979–84
Eighth Y.B. Chavan 1982 1984 1984–89
Ninth N.K.P. Salve 1987 1989 1989–95
Tenth K.C. Pant 1992 1994 1995–2000
Eleventh A.M. Khusro 1998 2000 2000–2005
Twelfth Dr. C. 2002 2004 2005–2010
Rangarajan
Thirteenth Dr. Vijay Kelkar 2007 2009 2010–2015
Fourteenth Y.V. Reddy 2013 2014 2015–2020
Fifteenth N.K. Singh 2017 2020 2020–2026
(expected)
Table 45.2 Articles Related to Finance Commission at a Glance
Article No. Subject-matter
280. Finance Commission
281. Recommendations of the Finance Commission
NOTES AND REFERENCES
1. Vide the Finance Commission Act, 1951.
2. This function was added by the 73rd and 74th Constitutional
Amendment Acts of 1992, which have granted constitutional