The 26th Constitutional Amendment Act of 1971 abolished the privy purse and privileges of the former rulers of the princely states.
Privy purse conferred 'special status' to the ruling class, which continued the British practice of ruler and ruled.
'Privy purse' was an added economic pressure on a newly born independent nation, that was ridden with poverty, hunger and security challenges.
Therefore, the then Prime Minister, Indira Gandhi, argued the case for the abolition of the privy purse. So, by the 26th Amendment to the Constitution of India in 1971, 'privy purse' was abolished. The amendment leads to the omission of Articles 291 and 362.
The payments of 'privy purse' were made to the former rulers under the constitutional provisions of Article 291 and Article 362.