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Raghunathrao Ganpatrao Etc. Etc vs Union Of India on 4 February, 1993

19. The Supreme Court had cited Raghunathrao Ganpatrao (supra) and the abolition of privy purses. At the time of the nation's independence, most princely states acceded to the Indian Union through compacts and other instruments. A few states (notably Hy- derabad, Travancore, Bhopal, Jodhpur, Junagarh and Kashmir), re- sisted. Sardar Patel's skills and the untiring efforts of late V.P. Menon led to the complete integration of most of these states, be- fore 1947, and the remaining, after 1947. As part of the bargain (of acceding to the Union), the Central Government granted to the rulers 'privy purses', i.e. specified sums of money payable annually to the (erstwhile) rulers of such States. The quantum of the 'privy purse' payment was determined by the erstwhile states' revenue, the gun salutes it was entitled to, etc. These payments were free from tax and were guaranteed by a provision in the Constitution of India - Article 29. The amounts could be anything between Rs. 5,000 per annum and Rs. 26 lakhs per annum. Privy purse pay- ments to the former rulers were questioned as anachronistic and the first attempt to abolish the system, which also included the at- tempt to abolish titles was not a success; a Constitutional amend- ment did not pass muster in 1969. Ultimately, by the 26th Amend- ment to the Constitution of India in 1971, the then Prime Minister, Indira Gandhi, argued the case for abolition based on equal rights for all citizens and the need to reduce the Government's revenue deficit. The Constitutional Amendment recorded the following as its objectives and reasons:
Supreme Court of India Cites 82 - Cited by 49 - S R Pandian - Full Document
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