In 1946 British authorities had come to the conclusion that a graceful withdrawal from India was the best option. The Cabinet Mission was sent to India in March 1946 to establish a national government and work out a constitutional arrangement for transfer of power.
Three groups were planned which would have separate meetings to work out their constitution. The Congress ruled provinces like Madras, Bombay, UP, Bihar, Central Province would form Group A; Punjab, North East Frontier Province and Sind would go into Group B and Bengal and Assam would make up Group C. The common Center would look after defence, foreign affairs and communication. A province could leave the group to which it was assigned after the first general elections and after 10 years it could demand modification of both the groups and union constitutions.
The Congress accepted the proposals on June 4, 1946 for it viewed them as an opportunity to draft the constitution. But it opposed compulsory grouping as contradiction to provincial autonomy. According to it provinces should not have to wait till the first general elections to take place. Absence of elected representatives from princely states was deplored by the Congress. The League accepted the Cabinet Mission Plan on 6th June, 1946, thinking that on the refusal of the Congress to the plan it would be invited to form the interim government. They were impressed that grouping clause will lead to emergence of a separate state. It harped on compulsory grouping of B and C into solid entities.