The British government finally decided to divide the country into two separates states after all the efforts of keeping Hindus and Muslims together in a single state went in vain. Lord Ismay, the Chief of Staff of Lord Mountbatten, was asked to frame the partition plan of India. Though the plan was deliberately kept secret from the Indians yet Nehru grabbed the chance of seeing the plan before it was put before the Indians. The British Government approved the Plan and sent it to India in May 1947.
The plan announced on 3 June 1947 suggested these points:
The British Government would divide India into two separate states.
Dominion status would be given to the successor governments of the two states.
A Boundary Commission would be appointed to demarcate the boundaries if any of the communal group decides in favor of dividing the province of Punjab and Bengal.
The Sindh Legislative Assembly would be authorized to opt out whether it desires to join the current Constituent Assembly or the New Constituent Assembly.
A Referendum would be conducted in the North West Frontier Province to know the public opinion on the question of joining the new state of Pakistan. The Electoral College for the Referendum would be the same as it was for in 1946.
Baluchistan would be granted freedom of choice.
A referendum would be conducted in Sylhet to take the decision whether it wants to join East Bengal or stay as a part of Asam.
3rd June Plan materialized the dream of Iqbal of a separate state for the Muslim of the Sub-Continent and bestowed them with Muslim state of Pakistan on August 14, 1947. The Muslim League, therefore, hailed the Plan.
According to the Plan, the British Government transferred the Power to the governments of the two New States of Pakistan and India.