The inherent deficiencies of diarchy system: 

The inherent demerits of diarchy system are given below: 

1. Faulty principle: 

The diarchy system was theoretically faulty. The governance of the same province was kept under two different powers. Therefore, it was natural to create obstructions in smooth governance. 

2. Arbitrary powers of governor: 

Due to the policy of controlling the ministers, refusing the proposals of ministers and the direct interference in every subject by the Governor, the responsibilities could not be handed over to Indian ministers in real terms. 

3. Lack of control of ministers over bureaucracy:

The Governor had direct control over the appointment of members in public service, their transfers and promotions. It was not under the ministers, who were their immediate bosses. 

4. No finance for Transferred subjects: 

The subjects of administration in the provinces were divided, but there was no financial arrangement for both the subjects separately. Without finance, no effective governance could be imagined.