Opinion No more pocket money

The advocates of bank nationalisation also had to compromise and agree to try out “social control” of banks for two years. This became the first item in a ten-point programme adopted by the All India Congress Committee (AICC). However,as rivalry between the prime minister and deputy prime minister,instead of abating,escalated,the Young Turks,at a subsequent AICC meeting,pressed hard for immediate nationalisation of banks. To their dismay,Indira closed ranks with Morarji and declared that social control would prevail for a minimum of two years.

Though subdued,the Young Turks planned their “revenge” cunningly. Late at night when attendance at the AICC was thin and leaders,including the prime minister and her deputy had gone home,they sprang a surprise. The 10-point programme did include abolition of “privileges” of the princely order,such as flying personal flags,exemption from import duties and other taxes,free police escorts,personal number plates for their cars,gun salutes and so on. No one had said a word about privy purses at any stage. On that fateful night,however,the Young Turks moved an amendment demanding that both the privileges and privy purses be done away with. The motion was carried by precisely 17 votes to 4. But then this was the party’s decision,not to be trifled with.

The next morning S. K. Patil,an outspoken leader of the Congress rightwing,screamed that that the move was “stark madness”. Desai said it was a “breach of faith” with the princes. No one else supported them. Congress president Kamaraj,with a radical image,simply smiled and maintained his customary silence. Y. B. Chavan,who as home minister would have to handle the issue,had “no problem” with the AICC’s decision. Indira,enigmatic as always,merely “regretted” the “manner in which the decision was taken”.

Her instinct was to push through bank nationalisation first and then abolish privy purses,if possible,with the princess’ consent. That was a vain hope. Protracted talks between Chavan and a delegation of the former rulers’ trade union called the “Concord of Princes” broke down in acrimony and discord. The princes hammered home the point that the government was repudiating the solemn promise,enshrined in the Constitution,that privy purses would be given in perpetuity even though,at the time of succession,the amount could be reduced.

While fruitless negotiations went on,V. V. Giri won the presidential election,defeating the Congress nominee Sanjeeva Reddy. The Congress formally split in November 1969,and Indira Gandhi started running a minority government with the support of the Communist Party of India and some other groups “from outside”.

In September 1970 — after clearing all legal hurdles to bank nationalisation,created by adverse verdicts of the Supreme Court — the Congress (I) government moved the bill to amend the Constitution to do away with privy purses in Parliament. All constitutional amendments must be carried by a majority of two-thirds of those present and voting provided they also constitute a simple majority of the total membership of each house. In the Lok Sabha the measure sailed through,336 members voting for it and 155 against. In the Rajya Sabha there was Hitchcockian suspense because the ruling party’s loss of majority in the upper house was graver than that in the lower. In the end,the bill was defeated by a “fraction of a single vote”.

Elation among the princes and Indira’s inveterate opponents was short-lived. For,that very night,after a meeting of the cabinet,President Giri “de-recognised” all the princes. He did them the courtesy of also writing to each one of them separately. Inevitably,like the owners of banks,the princes also appealed to the Supreme Court. On December 15,the apex court declared the presidential proclamation invalid.

Indira Gandhi said nothing for 12 days. On December 27 she advised the President to dissolve the Lok Sabha and order fresh election in February-March 1971. The story of her tremendous triumph in that poll and subsequent rise to Olympian heights is well known. She now had huge majorities in both houses of Parliament. The passage of the bill to abolish privy purses was easy and smooth. The process was completed a few days after the electrifying victory in the war for the liberation of Bangladesh. The President gave his assent to the bill on New Year Day 1972.

The struggle over bank nationalisation and ending princely purses and privileges was at last over. But India Gandhi’s and her government’s problems with the higher judiciary — that had begun in 1967 on an altogether different issues — had been intensified by the Supreme Court’s judgments on the two contentious issues concerning the banks and the princes. This was to lead to a virtual upheaval some two years later.

The writer is a Delhi-based political commentator