The Constitution of India
Article 258
Power of the Union to confer powers, etc, on States in certain cases
(1) Notwithstanding anything in this Constitution, the President may, with the consent of the Government of a State, entrust either conditionally or unconditionally to that Government or to its officers functions in relation to any matter to which the executive power of the Union extends.
(2) A law made by Parliament which applies in any State may, notwithstanding that it relates to a matter with respect to which the Legislature of the State has no power to make laws, confer powers and impose duties, or authorise the conferring of powers and the imposition of duties, upon the State or officers and authorities thereof.
(3) Where by virtue of this article powers and duties have been conferred or imposed upon a State or officers or authorities thereof, there shall be paid by the Government of India to the State such sum as may be agreed, or, in default of agreement, as may be determined by an arbitrator appointed by the Chief Justice of India, in respect of any extra costs of administration incurred by the State in connection with the exercise of those powers and duties.
Why this exists
India's Constitution splits subjects between Union and State lists, but practical administration often needs local hands and offices that only States have on the ground. Borrowing from similar 'delegation of functions' provisions in the Government of India Act, 1935, Article 258 lets the Union rely on State machinery for Union tasks — either through a one-off Presidential arrangement needing State consent (clause 1), or automatically through a Parliamentary law (clause 2) — while making sure States aren't left paying the Centre's bills (clause 3).
How courts read it
In Jayantilal Amratlal Shodhan v. F.N. Rana (1964), the Supreme Court upheld a notification entrusting the Union Government's land-acquisition functions under the Land Acquisition Act to State Governments and their officers under Article 258(1). The Court held that 'functions' in clause (1) covers even quasi-judicial administrative powers of the Union executive, and that entrustment can validly extend to officers, not just the State Government as such — confirming Article 258 as a genuine tool of administrative federalism rather than a narrow, symbolic power.
Common misconceptions
- Myth: The Union can force any State to do its work under Article 258 without asking.
Fact: Under clause (1), the President needs the State Government's consent before entrusting Union functions to it. - Myth: States never have to help with Union laws unless the Union pays first.
Fact: Under clause (2), a Parliamentary law can impose duties on States automatically, without needing prior consent — payment for extra costs under clause (3) is a separate, later entitlement.