The Bihar Reorganisation Act, 2000
๐ Background of the Act
The demand for a separate Jharkhand state had existed for decades, especially from tribal communities in southern Bihar who felt economically and culturally neglected.
Several political movements, such as the Jharkhand Mukti Morcha (JMM), had pushed for a separate identity.
Recognizing these long-standing demands, the Parliament passed the Bihar Reorganisation Act in 2000, along with other similar reorganisation laws (e.g., for Uttaranchal and Chhattisgarh).
๐ฏ Objective of the Act
The main purpose of the Act is:
To create a new state โ Jharkhand โ from the southern part of Bihar.
To reallocate assets, liabilities, employees, and institutions between Bihar and Jharkhand.
To define administrative boundaries, representation in Parliament, and other legal structures.
To safeguard the interests of both states during the transition.
๐ Key Provisions of the Act
1. Formation of Jharkhand (Section 3)
A new state named Jharkhand was formed from the southern part of Bihar.
It includes 18 districts: Ranchi, Lohardaga, Gumla, East Singhbhum, West Singhbhum, Dhanbad, Bokaro, Giridih, Koderma, Hazaribagh, Palamu, Garhwa, Deoghar, Dumka, Godda, Sahebganj, Pakur, and Chatra.
2. Territorial Changes
The geographical boundaries of both Bihar and Jharkhand were clearly defined.
The map of India was updated to reflect these changes.
3. Representation in Parliament and State Legislature
Lok Sabha (House of the People):
Bihar: 40 seats
Jharkhand: 14 seats
Rajya Sabha (Council of States):
Bihar: 22 seats
Jharkhand: 6 seats
Legislative Assembly (Vidhan Sabha):
Jharkhand was given its own Assembly with 81 members.
4. High Court (Section 31)
A separate High Court for Jharkhand was established in Ranchi.
Bihar continued to have its own High Court in Patna.
5. Division of Assets and Liabilities (Sections 47โ58)
Assets like government buildings, factories, vehicles, and public sector undertakings were to be divided based on location or population ratio.
Liabilities like loans, pensions, and ongoing schemes were divided between the two states.
6. All India Services and Employees (Sections 60โ67)
IAS, IPS, and other officers were allocated between Bihar and Jharkhand by the Central Government.
Employees were given the option to express preference, but final allocation was made keeping administrative needs in mind.
7. Continuity of Laws (Section 84)
All laws that were applicable in Bihar continued in Jharkhand until amended or repealed by the new state's legislature.
โ๏ธ Important Case Laws Related to Bihar Reorganisation Act, 2000
1. Union of India v. Jharkhand Vananchal Rajya Vidyut Parishad Engineers Association (2003)
Issue: Allocation of electricity board employees between Bihar and Jharkhand.
Held: The Supreme Court ruled that under the Reorganisation Act, the Central Government has the authority to allocate employees, and the allocation must be respected. The employees could not challenge allocation merely because it was against their preference.
2. State of Bihar v. Bihar State Electricity Board (2006)
Issue: Dispute over assets and liabilities of the electricity board.
Held: The Supreme Court upheld that division of electricity assets and employees must follow the Reorganisation Act, and any resistance from either state's electricity board must be handled through appropriate legal and administrative processes.
3. Tata Iron & Steel Co. Ltd. (TISCO) v. State of Jharkhand (2005)
Issue: After the formation of Jharkhand, whether companies like TISCO had to pay taxes to the new state or to Bihar.
Held: The court ruled that tax liabilities must be paid to the state in which the business now exists geographically. Hence, TISCO had to pay taxes to Jharkhand, not Bihar.
๐ Key Effects of the Act
| Aspect | Impact |
|---|---|
| New State Created | Jharkhand officially became Indiaโs 28th state on 15th Nov 2000 |
| Tribal Representation | Empowered tribal communities with local governance |
| Administrative Clarity | Separate bureaucracies and legal systems established |
| Division of Resources | Assets and employees shared between Bihar and Jharkhand |
| Political Shift | New political dynamics and regional parties emerged in Jharkhand |
๐ Summary
| Topic | Details |
|---|---|
| Act Name | Bihar Reorganisation Act, 2000 |
| Date of Enforcement | 15th November 2000 |
| New State Formed | Jharkhand |
| No. of Districts in Jharkhand | 18 (initially) |
| High Court | Separate High Courts for Bihar (Patna) and Jharkhand (Ranchi) |
| Parliamentary Seats | Bihar โ 40 LS, Jharkhand โ 14 LS |
| Purpose | To reorganize Bihar and create Jharkhand for administrative efficiency and better representation |
| Special Provisions | Allocation of employees, division of assets/liabilities, continuity of laws |
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