• The Union Government has instituted a study by its legal experts on the constitutional implications of the resolution adopted by the All-India Congress Committee giving a mandate to the Government to abolish privy purses and privileges of erstwhile rulers of Indian States, it is learnt. The constitutional provisions which deal with these matters are Articles 291 and 362.

Article 291

• It guarantees payment of privy purse from the Consolidated Fund of India in accordance with covenants or agreements entered into with rulers of Indian States before the commencement of the Constitution and also exempts these sums from income-tax. 

Article 362

• The other Article guarantees the rights and privileges of the ex-rulers.

Source:TH