The Indian Councils Act of 1861

It is an important act in the political and constitutional history of india. It made the beginning of representative institutions by associating Indians with the law-making process. It led to the beginning of decentralization. Portfolio system was introduced and viceroy was empowered to issue ordinances. The act also provided for the establishment of legislative councils in some provinces.

• It made the viceroy nominate some Indians as non official members of his expanded council. In accordance with the act Lord Canning the then viceroy nominated three Indians to his legislative council—the Raja of Benaras, the Maharaja of Patiala and Sir Dinkar Rao. 
• It restored the legislative powers to the Bombay and Madras Presidencies that had been taken away by the Regulating Act of 1773. It thus reversed the centralising tendency that started from the Regulating Act of 1773 and reached its climax under the Charter Act of 1833. This policy of legislative devolution resulted in the grant of almost complete internal autonomy to the provinces in 1937.
• It also provided for the establishment of new legislative councils for Bengal, North-Western Frontier Province (NWFP) and Punjab, which were established in 1862, 1866 and 1897 respectively. 
• It empowered the Viceroy to make rules and orders for the more convenient transaction of business in the council.
• It also gave recognition to the ‘portfolio’ system, introduced by Lord Canning in 1859. Under this, a member of the Viceroy’s council was made in-charge of one or more departments of the government and was authorised to issue final orders on behalf of the council on matters of his department(s)
• It empowered the Viceroy to issue ordinances, without the concurrence of the legislative council, during an emergency. The life of such an ordinance was six months.