According to the provisions of the Agreement, a State Legislative Assembly of 32 members (Lepcha- Bhotia 15 + one seat to the monks + Nepalese 15 + one seat to the Scheduled Castes among the Nepalese untouchables), a Chief Minister, and a Council of Ministers responsible to the Assembly to be elected on the universal adult franchise was envisaged. With a view to carrying out special provisions of the Indo-Sikkimese Treaty, an Office of the Chief Executive to be manned by an Indian functionary was created between the two, and deference of opinion between him the ruler was to be referred to as the Political Officer at Gangtok, whose opinion would be binding. 

The political atmosphere in Sikkim was surcharged with and in such excitements, elections to the State Assembly were held in April 1974. With exception of one Lepcha- Bhotia seat to a nominee of the Sikkim National Party, the remaining 31 seats were captured by the newly formed Sikkim Congress. Lhendup Dorji Kazi, the leader of the Sikkim Congress Legislature Party, was sworn in as the first duly elected Chief Minister of Sikkim. These and other developments were seen as evidence of the dilution of “Sikkim’s International Status” by the Ruler, which may be seen as a conflict between the head of the state and his people.

The State Assembly met in an emergency season and passed this resolution: “ The institution of Chogyal (the head of the state) is hereby abolished and Sikkim shall henceforth be a constituent unit of India”. While the ruler went on asking for the right of self-determination for Sikkim, this Resolution of the Assembly was put to the electorate and 97 percent favoured it. This led to the Indian Parliament passing the 38th Constitutional Amendment Bill on April 26, 1975. 

Thus, Sikkim ceased to exist as an Indian protectorate and became the 22nd state of the Indian Union. Accordingly, the office of the Chogyal stood abolished and provisions of the Indo-Sikkimese Treaty, Tripartite Agreement, and the Government of India ACT, 1974 were made inoperative. Lhendup Dorji Kazi (LD Kazi), Chief Minister, emerged as the central figure after these epoch-making developments. His style of functioning was that of an old-world patriarch, addicted to advice from all corners, but too old to learn anything afresh.