Indian Councils Act of 1861

Historical Background-

After the War of Independence, Sir Syed Ahmed Khan advised the British Government to take Indian nationals into the administration of India. He argued in his pamphlet The Causes of the Indian Revolt that the failure of the British to admit Indians into the Legislative Council, prevented them from having any say in government policies that touched them directly and was the major cause behind the revolt.
To consider ways and means of establishing closer contacts with the public opinion in the country British parliament enacted three acts Indian Councils Acts of 1861, of 1892 and of 1909.

The Indian Councils Act of 1861 is an important landmark constitutional and political history of India because of two main reason

First, it enabled the Viceroy to associate representatives of the Indian people with work of legislation by nominating them to his expanded council. In 1862, Lord Canning, the then viceroy, nominated three Indians to his legislative council— the Raja of Benaras, the Maharaja of Patiala and Sir Dinkar Rao
Secondly, it decentralized the legislature powers of the Governor-General’s Council and vested them in the Governments of Bombay and Madras

Portfolio system : First time portfolio system started; each member of Viceroys Council was allocated portfolio of particular department was authorized to issue final orders on behalf of the council on matters of his department. Any bill related to public revenue or debt, military, religion or foreign affairs could not be passed without the Governor-General’s assent.
This Act restored the legislative powers of the Governor-in-Councils of the Presidencies of Madras and Bombay.
Emergency: The Viceroy was authorized to exercise a veto and issue ordinances in a situation of emergency with the life of such an ordinance was six month.
New provinces could also be created for legislative purposes and Lieutenant Governors be appointed for them.
New legislative councils: Bengal (1862), North-Western Frontier Province (NWFP) (1866)and Punjab (1897)