Union Territories are created for various reasons, including geographical importance, strategic necessity or historical factors. These areas are under the control of the central government to ensure uniformity in governance across the country. Some Union Territories, such asDelhi (National Capital Territory) andPuducherry, have been granted special status and are allowed to have their own legislative assemblies, which can pass laws on certain matters, though the central government still retains significant authority.[2]
The distinction between states and Union territories is defined in theConstitution of India. The Constitution designed Union Territories to manage areas that require more direct central control or have specific administrative needs. This ensures that regions likeLadakh andJammu and Kashmir remain directly controlled by the central government.[3]
After theStates Reorganisation Act, 1956, Part C and Part D states were combined into a single category of "Union territory". Due to various other reorganisations, only 6 union territories remained:
Delhi, Puducherry, Jammu and Kashmir operate differently from the other five. They were givenpartial statehood and Delhi was redefined as the [National Capital Territory] (NCT) and incorporated into a larger area known as theNational Capital Region (NCR). Delhi, Puducherry, Jammu and Kashmir have an electedlegislative assembly and an executivecouncil of ministers with a partially state-like function.[10]
Due to the existence of union territories, many critics have resolved India into a semi-federal nation, as the central and state governments each have their domains and territories of legislation. Union territories of India have special rights and status due to their constitutional formation and development. The status of "union territory" may be assigned to an Indian sub-jurisdiction for reasons such as safeguarding the rights of indigenous cultures, averting political turmoil related to matters of governance, and so on. These union territories could be changed to states in the future for more efficient administrative control.[11]
The Constitution does not stipulate how tax revenue is to be devolved to the union territories, unlike for the states. The fund's devolution to union territories by the union government has no criteria where all the revenue goes to the union government. Some union territories are provided more funds, while others are given less, arbitrarily by the union government.[12] As union territories are directly ruled by theunion government, some union territories get more funds from the union government than entitled on per capita and backwardness basis when compared to states.
After the introduction ofGST, UT-GST is applicable in union territories that do not have a legislative assembly. UT-GST is levied at par with the applicable state GST in the rest of the country which would eliminate the previous lower taxation in the union territories.[13]
Article 1 (1) of the Indian constitution says that India shall be a "Union of States", which is elaborated under PartsV (The Union) andVI (The States) of the constitution. Article 1 (3) says the territory of India comprises the territories of the states, the union territories and other territories that may be acquired. The concept of union territories was not in the original version of the constitution, but was added by theConstitution (Seventh Amendment) Act, 1956.[14]Article 366(30) also defines Union territory as any union territory specified in the First Schedule and includes any other territory comprised within the territory of India but not specified in that Schedule. In the constitution wherever it refers to Territories of India, it is applicable to the whole country including union territories. Where it refers to only India, it applies to all states only but not to union territories. Thus, citizenship (part II), fundamental rights(part III), Directive Principles of State Policy (part IV), Judiciary role, the Union Territories (part VIII),Article 245, etc. apply to union territories as it refers specifically to Territories of India. The executive power of the Union (i.e. union of states only) rests withPresident of India. The President of India is also the chief administrator of union territories as perArticle 239. The union public service commission's role does not apply to all territories of India as it refers to India only inPart XIV.
The constitutional status of a union territory is similar to a state under the perennialpresident's rule perArticle 356 subject to specific exemptions to a few union territories with legislative assembly. As PerArticle 240 (1), supreme power is accorded to the president in regulating the affairs of all the union territories except Chandigarh,NCT and Puducherry, including powers to override the laws made by Parliament and the constitution of India. Article 240 (2) allows implementingtax haven laws in these union territories to attract foreign capital and investments into India instead of depending on foreigntax haven countries.
The difference between states as listed in the First Schedule of the constitution and union territories with legislative assembly is that states were given autonomous powers as provided in the constitution without any possible interference by the parliament whereas UTs with legislative assembly (Part VIII) has similar powers but parliament is empowered to modify or repeal or suspend the laws made by a union territory (ultimate authority by the parliament unlike the independent nature of the states).
Three of the union territories have representation in the upper house of the Indian Parliament, theRajya Sabha: Delhi, Jammu and Kashmir, and Puducherry. Puducherry, Jammu and Kashmir and NCT of Delhi are the only 3 Union Territories that are exceptional among union territories in that each has its own locally electedlegislative assembly and have a Chief Minister.[citation needed]
Proposed by Gorkha Janmukti Morcha in West Bengal for a separate homeland for Gorkhas. Discussions have included proposals for both statehood and union territory status.
^Bill No. 366 of 2019 [The Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories) Bill, 2019](PDF) (Article 240 (2)).Lok Sabha. 21 November 2019."Archived copy"(PDF). Archived from the original on 24 February 2021. Retrieved27 November 2019.{{cite web}}: CS1 maint: archived copy as title (link) CS1 maint: bot: original URL status unknown (link)