In 1946, the French India Congress was formed with the objective of integrating the French possessions with India. Later the following year, the French India Students Congress adopted a resolution on merger. In January 1948, the French People’s Convention passed a resolution expressing its determination to merge the French possessions with the motherland. The Communist Party also asked the people to accept only the merger.

The new Government under Jawahar Lal Nehru was anxious to integrate the French Indian territories with the country. India signed an agreement with France in June 1948 which gave power to the people for determining the political status of their land. Accordingly, the municipal elections in Pondicherry, Karaikal and Yanam were held in October, 1948. The elections were rigged and all municipalities except one were captured by the French India Socialist Party, a pro-French outfit. The new councillors at a meeting accepted the autonomy offered by the French Government. However, their efforts were thwarted by the Indian Government that assured a distinct status and help for Pondicherry after its merger with India.

As the freedom movement gathered momentum under V. Subbiah, the pro-French leader Eduard Goubert switched his loyalty to the pro-merger camp. A momentous event in the freedom movement of Pondicherry occurred on March 18, 1954, when the members of the executive council and mayors of Pondicherry and seven adjoining communes proclaimed their decision to merge with India without a referendum. All the communes in Karaikal also followed suit. This decision was to be confirmed by the Representative Assembly and when the Socialist party was preparing to move the merger resolution, the French Governor scuttled it by postponing the session.

Provoked by this, the Socialist party planned to capture the outlying communes one by one and move to Pondicherry. The Communist Party was also ready to launch a campaign of direct action to merge Pondicherry with India. Accordingly, the leaders of the Socialist Party hoisted the Indian national flag atop the Nettapakkam police station on the last day of March in 1954. Subsequently, many villages in Mannadipet and Bahour communes came under the sway of the pro-mergerists. In the Karaikal region, all the communes and Karaikal municipality passed a resolution in favour of merger. The National Youth Congress began a Satyagraha. A freedom fighters’ procession was lathi charged and the flags carried by the processionists were seized and torn by the French Indian Police.

India and France, following talks, issued a joint statement on March 13, 1954 announcing a modality for deciding the status of the French settlements. Five days later the elected members of the Representative Assembly and the municipal councillors of Pondicherry and Karaikkal took part in a referendum at Keeloor. Of the 178 members voting, an overwhelming majority of 170 members favoured the merger of French Indian territories with the motherland. Three days later, an agreement on the de facto transfer of the French territories to India was signed in New Delhi between the two countries.

A treaty of cession was signed by the two countries in May 1956. It was ratified by the French Parliament in May 1962. On August 16, 1962 India and France exchanged the instruments of ratification under which France ceded to India full sovereignty over the territories it held. Pondicherry and the other enclaves of Karaikal, Mahe and Yanam came to be administered as the Union Territory of Pondicherry from July 1, 1963.