Article 291

Article 291 of the Constitution of India, before its repeal, dealt with the payment of privy purses to the former rulers of princely states who had acceded to the Indian Union after independence. It was an important transitional provision that honoured the commitments made by the Government of India during the political integration of the country. The article was later repealed by the Constitution (Twenty-sixth Amendment) Act, 1971, symbolising the end of feudal privileges in independent India.

Historical Background and Context

At the time of India’s independence in 1947, the subcontinent comprised over 560 princely states, each ruled by monarchs under subsidiary alliances with the British Crown. During the integration of these states into the Indian Union, the rulers agreed to cede their sovereignty and merge with India in exchange for certain guarantees.
One of the central guarantees was the payment of privy purses—annual sums of money meant to compensate the rulers for the loss of their ruling privileges, income, and estates. These arrangements were formalised through Instruments of Accession and Merger Agreements, forming the foundation for Article 291 in the Constitution of India.
The purpose of this provision was to ensure a peaceful and voluntary merger of the princely states into the Indian Union by maintaining the goodwill and cooperation of their rulers during the early years of nation-building.

Provisions of Article 291

Article 291 originally contained two main clauses dealing with the payment and financial responsibility for privy purses.
Clause (1): Guarantee of Privy Purse Payments

• Guaranteed the payment of privy purses to the rulers of Indian states as per the covenants and merger agreements made prior to the commencement of the Constitution.
• These payments were charged on the Consolidated Fund of India, ensuring that they were permanent liabilities of the Union Government and could not be withheld without constitutional amendment.
• The privy purses were exempt from income tax, thereby providing former rulers with financial security.
• The quantum of the privy purse varied from ruler to ruler and was determined based on the size, revenue, and status of the princely state concerned.

Clause (2): Contributions from States

• Applied to States listed in Part A or Part B of the First Schedule of the Constitution.
• Allowed the Government of India to require financial contributions from the Consolidated Fund of the respective State toward the payment of privy purses, as determined by the President of India.
• These contributions were to be made according to the terms of agreements concluded under Article 278(1).

Through these provisions, Article 291 institutionalised the financial arrangements between the Union, the States, and the former rulers, ensuring that their merger into the Indian Union was conducted under constitutionally recognised guarantees.

Political and Constitutional Significance

The inclusion of Article 291 reflected the transitional nature of India’s early constitutional arrangements. The payment of privy purses was not merely an act of generosity but a contractual obligation that facilitated the voluntary integration of the princely states.
By upholding these commitments, the framers of the Constitution sought to demonstrate that the Indian Republic respected its promises, thereby consolidating national unity at a crucial stage of its formation.
However, over time, the concept of privy purses came to be viewed as incompatible with the principles of republican equality and economic justice. As India moved toward a more egalitarian society, public sentiment grew against maintaining hereditary privileges for former rulers.

Repeal of Article 291

Article 291 was repealed by the Constitution (Twenty-sixth Amendment) Act, 1971, which came into force on 28 December 1971. This amendment abolished the payment of privy purses and officially ended all special privileges and recognition previously granted to former rulers of Indian States.
The 26th Amendment also repealed Article 362, which had safeguarded the rights and privileges of former rulers, and amended Article 366 to remove references to “rulers” and “privy purses.”
The repeal of Article 291 marked a historic shift in India’s constitutional philosophy, moving away from the remnants of monarchical traditions toward complete republican equality.

Debates and Constitutional Developments

The abolition of privy purses was preceded by intense political debate. The Government of India, under Prime Minister Indira Gandhi, initially attempted to end these payments through a Presidential Order in 1970, but the Supreme Court struck it down, ruling that the executive could not override a constitutional guarantee without amending the Constitution.
Subsequently, the government introduced and passed the Twenty-sixth Amendment, thereby constitutionally terminating the privileges and payments of former rulers.
The repeal was justified on the grounds that:

• India was a republic, and continuing to pay privy purses contradicted the principles of equality and democracy.
• The payments placed an unnecessary financial burden on the exchequer.
• The social and political context had evolved, and feudal privileges had no place in a modern democratic state.

Related Constitutional Provisions

Article 291 was linked with other constitutional articles concerning financial and administrative arrangements during India’s transition from monarchy to republic:

• Article 278: Dealt with financial agreements between the Union and States regarding pre-Constitution obligations.
• Article 362: Provided for the recognition of rights and privileges of former rulers (also repealed by the Twenty-sixth Amendment).
• Article 363: Barred the jurisdiction of courts in disputes arising out of pre-Constitution treaties and covenants with princely states.

Together, these provisions formed the legal foundation for India’s post-independence integration process.

Historical Importance of Privy Purses

The system of privy purses played a vital role in India’s political consolidation after 1947. By assuring financial and ceremonial respect to the former rulers, the Government of India was able to secure their cooperation in a peaceful and orderly transition from princely rule to democratic governance.
However, as the democratic ethos deepened, the continuation of such payments came to be seen as inconsistent with the egalitarian spirit of the Constitution. The abolition of privy purses in 1971 represented India’s final break from its feudal past and reaffirmed the sovereignty of the people as the ultimate source of authority.

Significance of the Repeal

The repeal of Article 291 had far-reaching implications for India’s political and constitutional evolution:

• It marked the end of hereditary privileges and feudal entitlements.
• It reinforced the constitutional principle of equality before the law.
• It symbolised India’s progression from a transitional democracy to a fully republican state.
• It freed the Union from the continuing financial liability of paying privy purses to former rulers.

Contemporary Relevance

While Article 291 no longer exists in the Constitution, its historical significance remains profound. It serves as a reminder of the delicate compromises that underpinned India’s unification and of the subsequent constitutional evolution that reaffirmed democratic ideals over inherited privilege.