Lala Lajpath Rai along with Madan Mohan Malavya founded the Nationalist Party
- Parallel governments were established in Satara (Prati Sarkar under Nana Patil), Talcher (Orissa), parts of eastern UP and Bihar.
- In Bengal, Tamluk Jatiya Sarkar functioned in Midnapore district. This National government had various departments like law and order, Health, Education, Agriculture, etc. along with a postal system of its own and arbitration courts.
- The trend of underground revolutionary activity also started during this phase. Jaya Prakash Narain and Ramnandan Misra escaped from Hazaribagh Jail and organised an underground movement.
- In Bombay, the Socialist leaders continued their under ground activities under leaders like Aruan Asaf Ali. The most daring act of the underground movement was the establishment of Congress Radio with Usha Mehta as its announcer.
- The participation was on many levels. School and College students remained in the forefront, women actively participated and workers went on strikes. Though, peasants concentrated their offence on symbols of authority, there was complete absence of anti zamindar violence. There were no communal clashes during the movement. Repression was severe.
- The Movement didn’t evoke much response from the merchant community. In fact, most of the Capitalists and merchants had profited heavily during the war.
- The Muslim League kept aloof and the Hindu Mahasabha condemned the Movement. The Communist Party of India due its ‘People’s war’ line didn’t support the movement.
- The Indian Princes and the landlords were supporting the War effort and therefore didn’t sympathise with the movement.
- Some Congress leaders like Rajagopalachari also didn’t participate.