Which of the following accurately describes the legal and institutional basis of "Special Category State" status in India?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. It is not mentioned in the Constitution and was granted by the National Development Council.
The "Special Category Status" (SCS) is a classification that does not exist in the original Constitution of India. It was introduced in 1969 based on the recommendations of the Fifth Finance Commission and formally approved by the National Development Council (NDC). The status was designed to provide preferential treatment to states facing geographical or socio-economic disadvantages, such as hilly terrain or low population density. Following the recommendations of the 14th Finance Commission, this classification was largely phased out, except for the North-Eastern and hill states.