Draft Article 274C (Article 303, Constitution of India 1950) was not included in the Draft Constitution, 1948. The Draft Article was discussed on 8 September 1949. It prohibited Parliament and State Legislature from making laws on trade and commerce which discriminate against or give preference to one or more States. However, it empowered Parliament to make laws if necessary to address the issue of scarcity of goods in a territory.
A Member felt the power of Parliament to make laws to address scarcity of goods should be restricted to temporary emergency situations and should apply only during the period of the emergency. He wanted Parliament’s power to be limited to prevent abuse of power which would affect the general public.
Another Member proposed to replace the Draft Article to prohibit only the State Legislatures from making laws on trade and commerce which discriminate against or give preference to one or more States without the permission of Parliament. He also proposed to permit State Legislatures, with prior approval from Parliament, to impose reasonable restrictions on trade and commerce with or within that State on grounds of public interest.
The Assembly rejected both these amendments.
After substantial debate, the Draft Article 274C was adopted on 8 September 1949.