(2) The Executive Council.—To continue as before with maximum limit removed, but the Indian element is to be increased to two members.
Government to be empowered to appoint a limited number of members (not necessarily elected) of the Legislative Council as Under-Secretaries, similar to Parliamentary Under-Secretaries in England.
(3) Legislative Council.—There will be two legislative Bodies. One to be called Legislative Assembly (with elected majority), and the other the Council of State (with official majority).
The Legislative Assembly is to consist of 100 members, two-thirds of whom would be elected. Of the nominated not less than one-third should be non-officials. President to be nominated by the Governor-General.
The Council of State to consist of 50 members, of whom 21 are to be elected. The Governor-General is to be the President.
Bills passed by the Assembly must also be referred to the Council of State, the differences, if any, being settled by a joint session. But in cases where the interests of peace, order and good Government, including sound financial administration, are concerned, Governor-General shall have powers to refer a Bill to the Council of State and it will become law in the form approved by the Council of State even though it is not acceptable to the Assembly.
Legislative Assembly and the Council of State may discuss the Budget, ask questions, and pass resolutions, but they are not binding on the Executive.
The Governor-General to retain his power of assenting to Acts and promulgating ordinances on his own authority. The Crown may disallow any Act.
The Montagu-Chelmsford Scheme proposes periodical (decennial) Parliamentary inquiries to revise the constitution, both for the Central and the Provincial Governments.