How does the division of investigative powers between Central and State agencies affect federalism in India?

India follows a federal structure where powers and responsibilities are divided between the Centre and the States as per the Constitution. Investigative powers, especially concerning law and order and criminal investigations, are an important aspect of this division. However, in recent times, there have been debates and legal challenges regarding the overlapping and encroachment of central agencies into areas traditionally under state jurisdiction.

• Constitutional Division:
  • Law and order is a State subject under List II (State List) of the Seventh Schedule.
  • Certain offences, such as those related to national security, economic offences, and inter-state crimes, are under the Centre’s jurisdiction (List I and List III).
• Central Agencies:
  • Agencies like CBI, ED, NIA, etc., are established by the Centre to investigate specific types of offences (corruption, money laundering, terrorism).
  • These agencies often require State consent to operate within their boundaries, as per the Delhi Special Police Establishment Act for CBI.
• Overlap and Encroachment:
  • Central agencies sometimes take up cases already investigated by State police, causing friction and allegations of overreach.
  • The Supreme Court has questioned whether agencies like the ED are bypassing State authority, especially in cases where federal laws are invoked for crimes that also fall under the State’s domain.
• Impact on Federalism:
  • Frequent intervention by central agencies can undermine the autonomy of States, disturbing the federal balance.
  • States may perceive such actions as politically motivated or as an infringement on their constitutional powers.
  • This can lead to legal disputes, non-cooperation, and a trust deficit between the Centre and States.
• Judicial Stand:
  • The judiciary has played a key role in interpreting the limits and scope of investigative powers, emphasizing cooperative federalism and the need for consent and coordination between Centre and States.