The Supreme Court of India has issued a notice to the Central Government in response to a fresh constitutional challenge against the National Investigation Agency (NIA) Act, 2008. The petition argues that the Act is "unconstitutional" because it creates a federal agency with the power to investigate and prosecute crimes that primarily fall under the "Police" and "Public Order" categories, which are State subjects under the Seventh Schedule of the Indian Constitution.

The petitioner contends that the current structure of the NIA Act infringes upon the federal principles of the Constitution by allowing the Central Government to take over investigations without the consent of the State governments. The plea suggests that while the Union has the authority to legislate on matters of national security, the broad powers given to the NIA to handle a wide range of scheduled offenses effectively bypasses the traditional authority of state police forces.

During the preliminary hearing, the bench noted the importance of the questions raised regarding the balance of power between the Union and the States in the realm of criminal justice. The Court has asked the Union of India to file a detailed counter-affidavit explaining the legislative competence and the necessity of maintaining a centralized agency for the specific offenses listed under the Act.

This challenge follows several years of debate regarding the NIA’s expanding jurisdiction, particularly after the 2019 amendments that granted the agency the power to investigate offenses committed outside India and expanded the list of scheduled offenses to include human trafficking and cyber-terrorism. Similar concerns have been voiced by various State governments in the past, arguing that the Act undermines the "Spirit of Federalism."

The outcome of this case could have significant implications for how national-level criminal investigations are conducted in India. If the Court finds merit in the petitioner's arguments, it may lead to a re-evaluation of the procedural requirements for NIA interventions or a more precise definition of the agency’s jurisdictional boundaries relative to State police authorities.