Buddhism's first great institutional crisis did not concern doctrine in the first instance — it was about money. Around 383 BCE, a century after the Buddha's death, senior monks from the Vajji republic (Vaishali) began accepting gold and silver from lay donors. When the elder Yasa Kakandakaputta objected, a community controversy erupted that ended in the permanent splitting of the sangha into two great streams — the Mahasanghika and the Sthaviravada — setting Buddhism on a path of doctrinal diversification that would eventually produce Mahayana, Vajrayana, and the rich plurality of Buddhist traditions alive today.
The Second Council Schism — Ten Disputed Points
The Second Buddhist Council was held at Vaishali, approximately one century after the First Council at Rajgir. The background involved a group of monks from the Vajji republic — the same republican polity where Mahavira, the Jain teacher, had been born — who had developed ten practices that elder monks elsewhere considered violations of the Vinaya. The elder Yasa, visiting Vaishali, was shocked to find monks collecting money and challenged these practices publicly. The Vajjian monks called him to account; he responded by convening a council of senior monks to adjudicate.
The ten disputed points (dasa vatthuni) ranged from matters of diet and food storage to financial conduct and procedural flexibility in Vinaya observance. The most symbolically important was the tenth: accepting gold and silver — that is, money. The conservatives held that the Vinaya categorically prohibited a monk from handling money. The Vajjian monks and their supporters argued that local customs and circumstances required flexibility. A council of seven hundred monks, presided over by the elder Revata, deliberated and declared all ten points unlawful.
The monks who disagreed with this ruling — reportedly a larger group — then held their own assembly. Because they constituted the "Great Assembly" (Maha-sangha), they became known as Mahasanghika. The conservative minority, calling themselves Sthaviravada (Pali: Theravada; Sanskrit: Sthaviravada) — "Teaching of the Elders" — continued to hold the original Vinaya as inviolable. The account of this council is central to the history of the four Buddhist Councils and is sometimes presented as the first — though some scholars argue it was the second — major institutional rupture in Buddhist history.
Mahasanghika Doctrines — Proto-Mahayana Positions
The Mahasanghika school is important not merely because it was the majority at Vaishali but because its doctrinal innovations anticipated the Mahayana revolution. Several key Mahasanghika positions are directly proto-Mahayana:
Lokottaravada position on the Buddha: The Mahasanghika sub-school called the Lokottaravada ("transcendentalists") held that the historical Buddha was a lokottara (supramundane) being — not truly human at all. His birth, enlightenment, and death were appearances (nirmita) adopted for pedagogical purposes; his real nature was transcendent, beyond ordinary causality. This directly anticipates the Mahayana doctrine of the Buddha's deification and the trikaya doctrine, in which the historical Shakyamuni is merely the nirmanakaya (transformation body) of a timeless cosmic Buddha.
Expanded bodhisattva concept: The Mahasanghikas developed a more positive evaluation of the bodhisattva path (the career that culminates in Buddhahood rather than arhatship) and were less exclusive about the arhat as the supreme ideal. This provided the conceptual infrastructure for the Mahayana claim that the bodhisattva ideal is superior to the arhat ideal.
Inclusive sangha: The Mahasanghikas took a more liberal position on lay participation in the Buddhist community, giving householders a more central soteriological role. Mahayana would later take this much further, making the lay bodhisattva a fully valid spiritual practitioner.
Prajnaparamita tendencies: Some Mahasanghika sub-schools developed philosophical positions that anticipated the Mahayana doctrine of sunyata — the emptiness of the dharmas — against the Sarvastivada Abhidharma position that dharmas were ultimately real. The Prajnaparamita literature, which directly attacks the Sarvastivada realism, thus has intellectual roots in the Mahasanghika doctrinal tradition.
The Eighteen Schools of Early Buddhism
The Mahasanghika–Sthaviravada split was the beginning of a process of progressive fragmentation. Buddhist tradition records that by the time of Ashoka (c. 250 BCE), there were already eighteen schools (nikaya) of early Buddhism — though different traditions enumerate these differently, and the actual number was probably larger. The Sthaviravada stream itself subdivided into many schools, including the Sarvastivada (dominant in Kashmir and Gandhara), the Dharmaguptaka (dominant in Bactria, Central Asia, and China), the Mahisasaka, the Sammitiya, and ultimately the Theravada (predominant in Sri Lanka and Southeast Asia). The Mahasanghika stream also subdivided into multiple sub-schools, including the Ekavyavaharika, Lokottaravada, Gokulika, and Caitika.
The eighteen-schools tradition is significant for UPSC because the three major schools that UPSC tests — Theravada, Mahayana, and Vajrayana — map onto the broader arc of this history. Theravada is the surviving Sthaviravada school. Mahayana grew largely out of Mahasanghika influences combined with Sarvastivada and other philosophical traditions. Vajrayana is a further development within Mahayana incorporating tantric practices.
Dhanyakataka — Location, Stupa, Archaeology
Dhanyakataka is the ancient Prakrit name for a major city on the southern bank of the Krishna river in modern Guntur district, Andhra Pradesh. Today the site is called Amaravati — not to be confused with the modern planned capital city of Andhra Pradesh nearby, which takes its name from this ancient Buddhist site. In its ancient context, Dhanyakataka was a prosperous trading city and the capital of the Satavahana dynasty during parts of their reign. Buddhist tradition records it as one of the most important centres of Buddhist learning in South India.
The ancient city's Buddhist significance centred on the Mahachaitya (great stupa) — one of the largest Buddhist monuments ever built in India. The site's archaeological remains were first systematically examined by British officers in the 18th and 19th centuries. Unfortunately, the stupa had been substantially dismantled by then, with its carved limestone slabs used for construction material locally, sold, or exported. The surviving sculptures are now divided between the Government Museum, Chennai (which holds the finest collection), the British Museum, London (which holds panels removed by Colonel Colin Mackenzie and Walter Elliot in the 19th century), and the small site museum at Amaravati itself.
The Amaravati Mahachaitya
The Amaravati Mahachaitya was a massive stupa originally constructed in the period of Ashoka (c. 250 BCE) and expanded significantly during the Satavahana dynasty. At its height (c. 2nd century CE), it measured approximately 55 metres in diameter and was encased in carved marble-white limestone slabs. It stood at the centre of a large monastic complex with residential viharas, refectories, and a surrounding vedika (railing) decorated with some of the most extraordinary sculptural reliefs produced anywhere in the ancient world.
The Amaravati sculpture style — discussed in the dedicated article on Buddhist art schools — is distinctive for its dynamic, three-dimensional narrative style. Unlike Sanchi's more static relief compositions, Amaravati panels show figures in energetic movement, complex group compositions, and a sophisticated use of the stone surface that anticipates the conventions of later South Asian and Southeast Asian sculpture. The reliefs depict Jataka tales and scenes from the Buddha's life in the early aniconic tradition (c. 3rd–2nd century BCE panels) and in later figurative style (c. 2nd–3rd century CE panels).
Nagarjuna and Dhanyakataka
The philosopher Nagarjuna (c. 150–250 CE) — founder of the Madhyamaka school and author of the Mulamadhyamakakarika — is traditionally associated with Dhanyakataka. Several sources identify him as having been born in South India and as having spent important parts of his career at the Amaravati monastic complex. The Chinese pilgrim Xuan Zang's account of his Indian travels mentions a great monastery at Dhanyakataka (which he calls by a Chinese transliteration) associated with Nagarjuna.
The Nagarjuna–Dhanyakataka connection is important for understanding the intellectual geography of Mahayana Buddhism. Nagarjuna's Madhyamaka philosophy — elaborating the sunyata doctrine of the Prajnaparamita sutras into a rigorous philosophical system — developed not in northern India (the traditional centre of Buddhist scholarship at Nalanda or Taxila) but in the Satavahana cultural sphere of the Krishna delta. This suggests that South India, often overlooked in popular summaries of Buddhist history, was a crucial intellectual centre for the emergence of Mahayana. The philosophical legacy discussed in the Mahayana and Bodhisattva article — Nagarjuna's sunyata, Asanga's Yogachara — thus has a geographic anchor in the great stupa city of the Krishna river valley.
Another figure associated with Nagarjuna's South Indian period is Aryadeva, his principal disciple, who continued the Madhyamaka lineage and wrote the Catuhshataka ("Four Hundred Verses") further developing the arguments of the Mulamadhyamakakarika. The South Indian Madhyamaka lineage eventually passed through multiple teachers to reach Chandrakirti (c. 7th century CE) and Shantideva (c. 7th–8th century CE) — figures whose works form the backbone of Tibetan Buddhist philosophy today.
Satavahana Patronage and Buddhist South India
The Satavahana dynasty was the primary patron of the Amaravati stupa complex. The Satavahanas — who ruled the Deccan and parts of South India from roughly the 2nd century BCE to the 2nd century CE — were Brahmanical in their personal religious orientation (they performed Vedic sacrifices and used Sanskrit titles) but supported Buddhist and Jain institutions with equal generosity. This pattern of mixed patronage is typical of Indian dynastic practice, in which royal legitimacy was reinforced by supporting all major religious communities.
Buddhist patronage: The great expansion of the Amaravati Mahachaitya — the addition of carved limestone railing slabs, the enlargement of the stupa drum, and the construction of subsidiary viharas — took place primarily under Satavahana patronage. Inscriptions on the stupa identify donors from both royal and merchant communities.
Successor dynasty: The Ikshvakus (c. 3rd century CE) who succeeded the Satavahanas in the Krishna-Guntur region also patronised the Amaravati complex. A separate Buddhist site at Nagarjunakonda (named for Nagarjuna) in the Krishna valley was their major Buddhist centre.
UPSC note: UPSC 2023 questions tested the Amaravati school of art in relation to its patron dynasty. The primary patron was the Satavahana dynasty, not the Ikshvakus (who were secondary). This distinction is often a UPSC trap.
Kalachakra Tantra and Dhanyakataka
In the Vajrayana Buddhist tradition, Dhanyakataka holds a unique cosmological significance beyond its historical and archaeological importance. The Vajrayana text known as the Kalachakra Tantra ("Wheel of Time") is said, according to tradition, to have been first taught by the historical Buddha Shakyamuni at Dhanyakataka — to a great assembly that included the king of the mythical kingdom of Shambhala, who had travelled to South India to receive the teaching. The Kalachakra Tantra subsequently passed through a lineage of Shambhala kings until it was reintroduced to India by the master Chilupa (c. 10th century CE) and then transmitted to Tibet.
The Kalachakra initiation is one of the most important events in Tibetan Buddhism. The Dalai Lama has conferred the Kalachakra initiation publicly in many countries — each time, by tradition, the place of the initiation is identified as Dhanyakataka, the primordial site of the teaching's first revelation. This makes the ancient Satavahana city on the Krishna river simultaneously an archaeological site, a Madhyamaka philosophical centre, and the cosmological origin point of a living Tibetan Buddhist ritual tradition.
Consider the following pairs:
- Sthaviravada — Teaching of the Elders; conservative early Buddhist school
- Mahasanghika — Great Assembly; arose after the Second Buddhist Council
- Lokottaravada — sub-school of the Mahasanghika; held the Buddha was supramundane
How many of the above pairs are correctly matched?
Exam Quick-Reference Table
| Concept / Site | Key Details |
|---|---|
| Second Council | Vaishali, c. 383 BCE; 700 monks; presided by Revata; convened by Yasa Kakandakaputta; ten points declared unlawful; Mahasanghika–Sthaviravada split |
| Mahasanghika | "Great Assembly"; liberal majority at Vaishali; proto-Mahayana positions; lokottara Buddha; relaxed Vinaya; bodhisattva path valorised |
| Sthaviravada / Theravada | "Teaching of the Elders"; conservative minority; strictly upheld the ten refusals; basis of modern Theravada in Sri Lanka/SE Asia |
| Lokottaravada | Mahasanghika sub-school; Buddha is supramundane (lokottara); his human life was a pedagogical appearance; anticipates Mahayana trikaya |
| Dhanyakataka | Ancient name of Amaravati; Krishna river, Guntur district, Andhra Pradesh; one of largest stupas in India; Satavahana patronage; Nagarjuna connected; Kalachakra tradition |
| Amaravati Mahachaitya | c. 55m diameter; white limestone; expanded under Satavahanas; dynamic narrative sculpture; aniconic → figurative; influences Sri Lanka and SE Asia |
| Nagarjuna | c. 150–250 CE; Madhyamaka school; Mulamadhyamakakarika; sunyata; South India / Dhanyakataka; "second Buddha"; disciple: Aryadeva |
| Satavahana vs Ikshvaku | Satavahana = primary patron of Amaravati stupa; Ikshvaku = secondary (3rd century CE successors); Nagarjunakonda = Ikshvaku Buddhist site |
| Kalachakra Tantra | Vajrayana text said to have been first taught at Dhanyakataka; connected to mythical kingdom of Shambhala; Dalai Lama confers Kalachakra initiation worldwide |