The Punchhi Commission, constituted in 2007 under the chairmanship of Justice M.M. Punchhi, examined Centre–State relations in light of changes in India’s polity and economy, submitting its report in March 2010.

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• The Punchhi Commission was set up in 2007, over two decades after the Sarkaria Commission, to review evolving Centre–State relations.

• It examined legislative, administrative and financial relations, including the role of Governors, emergency provisions and federal balance.

• The Commission recommended greater consultation with States in framing the terms of reference of the Finance Commission.

• It expressed concern over excessive use of cesses and surcharges and suggested their rationalisation to protect States’ fiscal share.

• On the Governor’s role, it recommended appointment of non-political, neutral persons from outside the State with secure tenure.

• The Commission proposed curbing misuse of Article 356, limiting emergency to specific affected areas rather than the entire State.

• It advised consultation with States on laws in the Concurrent List through the Inter-State Council.

• The report emphasized cooperative federalism, recommending stronger State participation in treaty-making and internal security decisions.