Dr.

RAM MANOHAR LOHIYA

NATIONAL LAW UNIVERSITY

                    
ICT IN LOCAL SELF GOVERNMENT

SUBMITTED TO:                                             SUBMITTED

2017 – 2018
TABLE OF CONTENTS

1. INTRODUCTION……………………………………..……………………………1

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UNDER THE MUGHAL RULE…………….……………..……………….
UNDER THE BRITISH RULE………………….……..……………………..
POST INDEPENDENCE PERIOD………………...………………….........

2. CONSTITUTIONAL PROVISIONS AND FUNCTIONS OF LSG …...............4 - 5

2.1 LOCAL SELF GOVERNANCE (RURAL AREAS)……………...……...
2.2 LOCAL SELF GOVERNANCE (URBAN AREAS)………………….….

3. SUGGESTION FOR ENSURING ACCOUNTABILITY AND

TRANSPARENCY...............................................9
3.1 Measures to ensure Accountability
 Audit
 Independent Grievance Gedrressal Mechanism
3.2Measures to Improve Responsiveness of the Local Bodies to the People
 Delegation of functions
 In-house mechanism for redressal of grievances
 Social audit
 Transparency
3.3Evaluation of Performance of Local Bodies
4.CONCLUSION…………………………………………………………………14
BIBLIOGRAPHY…………………………………………………..………...……….ii

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1. INTRODUCTION:

Local Self Governments in India function at two levels: Rural and Urban. The rural
self governance consists of the Panchayati Raj institutions whereas the Urban Self
governments comprise the Municipal Bodies.
In the words of Sydney Webb Local self governments are “as old as the hills”. The
concept of Local self governments especially in India is almost pre - historic. There is
ample evidence to prove that municipal governments in India have existed since the
earliest of times. India has always been a land of villages and village Panchayats have
formed an integral part of national life. They have helped preserve our democratic
traditions in all aspects be it social, political or cultural. These institutions of self
governance have survived many political upheavals, kingdoms have risen and fallen
but the local self governments have survived to this day. Self governing village
communities characterised by agrarian economies have existed even during the Rig-
Vedic period in India. This has been evidenced in the Rig Veda and there is also
enough evidence to prove the existence of village Gramins and Sabhas. These
institutions later evolved in to the panchayats.1
The concept of local self governments especially panchayats received encouragement
from Hindu kingdoms like the Cholas, Mauryas and the Guptas.

1.1UNDER THE MUGHAL RULE:

During the Muslim rule, local institutions received a set back due to the highly
centralised Mughal governments.
“Mughal government was highly centralized autocracy. The crown was the motive
power of the entire administrative machinery. Where the government is absolute, the
supreme authority concentrated in one man’s hand, the territory larger, and the means
of communications between the districts slow and difficult, the transfer of local
officers frequent, no political life or local initiative is left to the people”.2

1
P.D. Kaushik, “Panchayati Raj Movement in India: Retrospective and Present Status”, P.D.Kaushik
and Bibek Debroy, (eds.), ENERGIZING RURAL DEVELOPMENT THROUGH ‘PANCHAYATS’,
1st ed. 2005, p. 77.
2
Supra n.1.

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Though the Mughals did not take any initiatives in the development of local
institutions, wherever such institutions existed they worked in cooperation with the
same.
1.2UNDER THE BRITISH RULE:
Local institutions during the British period were more a creation of the government
from whom they derived their autonomy rather than a process of spontaneous growth.
The structure and procedure of modern self governments has little to do with those of
the earlier ones.
Lord Ripon is considered as the founding father of the local self governments in India.
He introduced the concept of municipal authorities as units of self government and
passed a resolution intensifying the role of local administration.
Municipal bodies – the urban self government institutions are a creation of the British.
The first such body was created in the madras presidency in 1688 followed by those
in the Bombay and Calcutta presidencies by 1762. Lord Mayo's Resolution of 1870
introduced the system of an elected President in the municipalities. The present form
and structure of the municipal bodies are on the lines of Lord Ripon's Resolution on
local self-government, adopted on 18 May 1882.3
1.3 POST INDEPENDENCE PERIOD:
While drafting the Constitution the commitment to decentralisation took a back seat
since areas like national security, unity and economic growth needed immediate
attention. However on insistence by Gandhi the subject of decentralisation was
included in the Directives Principles of state Policy.
The constitution of the Balwant Rai Mehta Committee in 1957 infused greater
momentum to the Panchayati Raj movement in India. The Committee suggested the
setting up of a three tier structure for the working of the Panchayati Raj Institutions.
The State of Rajasthan became the first state to implement the recommendations of
the Balwant Rai Committee.
The Panchayati Raj movement reached its peak after the constitution of the Ashok
Mehta Committee in 1977. This Committee paved the way to make panchayats an
integral part of the Indian democracy.
3
“Local Government in Asia and the Pacific:
A Comparative Study, country paper: India”,
http://www.unescap.org/huset/lgstudy/country/india/india.html , last visited on 2017-10-04.

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Due to industrial development on the other hand, urban areas were facing problems
relating to governance. In view of this the rural - urban relationship committee was set
up in 1963 by the Government of India. The Committee felt that local governments
have an increasingly vital role to play in the promotion of social and economic
interests of the local communities. The Committee made recommendations on the
criterion for the constitution of the municipal bodies with clear demarcation of its
powers and functions and resources.

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2.CONSTITUTIONAL PROVISIONS AND FUNCTIONS OF
LSG
2.1LOCAL SELF GOVERNANCE (Rural areas):
The institutionalising of the Panchayati Raj in India came as a result of the
recommendations of various committees. All these efforts resulted in the 73rd
Constitutional Amendment providing Constitutional status to the Panchayati Raj
institutions. The 73rd amendment was inserted in Part IX of the Indian Constitution
and is an exclusive domain of the State. Most states have made enacted the required
Panchayati Raj Acts in response to the Amendment.
The Constitutional Amendment Act, 1992, marks a water-shed in the history of Local
Self-Government in the country since it gives a constitutional mandate to the State
governments to restructure and revamp rural local bodies in accordance with
Constitutional obligations. The Constitutional Amendment Act4 provides for –
COMPOSITION:
Every state is required to constitute Panchayats at the village, intermediate and district
levels. Also, specific provision for the representation for the backward classes and
women has been made by reserving certain amount of seats for them. In this manner
uniformity in composition is maintained.
CONTINUITY:
Every elected Panchayat has a fixed tenure of five years thereby providing continuity
to the process of decentralisation. In case of premature dissolution of the Panchayats,
a provision for holding elections within six months has been made. There is also a
provision for non interference of courts in the electoral matters. Continuity is thus
ensured.
ACCOUNTABILITY:
The Chairperson of the Gram Panchayat must convene a Gram Sabha consisting of all
those persons registered in the electoral rolls relating to the village at least twice a
year.
The following matters must be presented before the Gram Sabha –
The annual settlement of accounts and audit report
Report on administration of the previous year

4
The Constitution of India 1950, Article 243 (g)

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Proposals for fresh taxation or for enhancement of existing taxes
Selection of schemes and beneficiaries.
The above provisions help build accountability in the panchayati system.
POWERS:
The amendment endows power and authority on the Panchayati Raj Institutes to help
them function as an effective institution of self government. It allows for setting up of
mechanisms for planning and development. The constitution of the District planning
committees aid the process of planning for development. They consolidate the plans
made by the Panchayats and prepare draft development plans.
FUNCTIONS:
Functions of Panchayat bodies5 covers following subjects.
1. Agriculture, including agricultural extension.
2. Land improvement, implementation of land reforms, land consolidation and soil
conservation.
3. Minor irrigation, water management and watershed development.
4. Animal husbandry, dairying and poultry.
5. Fisheries. 6. Social forestry and farm forestry.
7. Minor forest produce.
8. Small scale industries, including food processing industries.
9. Khadi, village and cottage industries.
10. Rural housing.
11. Drinking water.
12. Fuel and fodder.
13. Roads, culverts, bridges, ferries, waterways and other means of communication.
14. Rural electrification, including distribution of electricity.
15. Non-conventional energy sources.
16. Poverty alleviation programme.
17. Education, including primary and secondary schools.
18. Technical training and vocational education.
19. Adult and non-formal education.
20. Libraries.
21. Cultural activities.
22. Markets and fairs.
5
The Constitution of India, Schedule 11

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23. Health and sanitation, including hospitals, primary health centres and dispensaries.
24. Family welfare.
25. Women and child development.
26. Social welfare, including welfare of the handicapped and mentally retarded.
27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the
Scheduled Tribes.
28. Public distribution system.
29. Maintenance of community assets. Traditionally the Panchayats have always been
entrusted with functions like street lighting, sanitation, village commons and water
supply i.e. provision and maintenance of community assets.

FISCAL RESPONSIBILITY
The State Legislatures continue to have the power to endow the Panchayats and
municipalities with the necessary financial requisites to facilitate their efficient
functioning. The Amendment provides for the setting up of a Finance Commission in
every State to monitor the financial status of the Panchayats by making necessary
recommendations concerning –
Distribution of net proceeds from taxes, tolls, duties and fees between the state and
the Panchayats.
Determination of the taxes, tolls, duties and fees.
Grants-in-aid to the Panchayats from the Consolidated fund of the State
Any other measure that would improve the financial standing of the Panchayats.
The above provisions give the States greater latitude in restructuring the fiscal system
to meet the changing needs of local governments.

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2.2LOCAL SELF GOVERNANCE (Urban Areas):
The Government enacted the Constitutional amendment act of 1992 – the 74th
Constitutional amendment Act6 taking into consideration the recommendations of the
Rural-Urban relationship Committee.
Its features are:
COMPOSITION:
The structure and functioning of municipalities vary from state to state. The structure
is not hierarchical. However, the Municipal Corporation enjoys a greater measure of
autonomy than other forms of local government. It enjoys the power of dealing
directly with the state government whereas the municipalities have no direct access to
the state government and are answerable to the District Collector and Divisional
Commissioner.
Municipalities and Corporations have deliberative and executive wings. In general,
deliberative wings of Municipal Corporations comprise the Corporation Council, the
Standing Committee and the Mayor, whereas the executive wings comprise the
Municipal Commissioner, the Deputy/Assistant Municipal Commissioner, the
Municipal Engineer and subordinate administrative staff.
FUNCTIONS:
Functions of municipal bodies7 are as following subjects.
1. Urban planning including town planning.
2. Regulation of land-use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes. 6. Public health,
sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped
and mentally retarded.
10. Slum improvement and upgradation.
11. Urban poverty alleviation.

6
The Constitution of India, Article 243
7
The Constitution of India, Schedule 12

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12. Provision of urban amenities and facilities such as parks, gardens, playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds; and electric
crematoriums.
15. Cattle pounds; prevention of cruelty to animals.
16. Vital statistics including registration of births and deaths.
17. Public amenities including street lighting, parking lots, bus stops and public
conveniences.
18. Regulation of slaughter houses and tannery

FINANCES:
Municipal Bodies (corporations and councils) perform various functions for which
adequate financial resources are a must. However, there is no separate list of taxes
exclusively for municipal bodies. Municipal finance was left to the discretion of the
respective state governments to specify by law matters relating to imposition of taxes.
Municipal Revenues are basically of the following types:
1. Tax revenue;
2. Non-tax revenue
3. Grants-in-aid;
4. Borrowings or loans.

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3. Accountability and Transparency
While democracy, including local democracy, is by no means a perfect tool to
improve governance, the only antidote to imperfections in democracy is more and
better democracy. The improvement of conditions through local empowerment is
necessarily an evolutionary process. Experience over the last decade shows that, in
many cases, local governments are beset by the same problems of corruption,
patronage, arbitrary exercise of power and inefficiency which have bedevilled
governance. This failure is part of a larger process of democratic evolution and needs
to be addressed with patience, perseverance and innovation. In an environment where
corruption is still a major problem, local governments cannot be expected to be
islands of probity and competence, overnight. The exercise of power often becomes
distorted, sometimes leading to a patronage-based, unaccountable governance
structure. Not surprisingly, power at the local level is also, at times, sought to be
exercised in a similar manner. The difference is that local corruption and arbitrariness
are far more glaring and visible and touch people’s lives more directly as they affect
basic amenities and services. Since power is prone to corruption and abuse, there is
need for effective instruments of accountability to be able to check abuse of power
and give citizens a voice in improving the quality of services.
3.1 Measures to ensure Accountability

Audit:
The most general definition of an audit is an evaluation of a person, organisation,
system, process, project or product. Audits are performed to ascertain the validity and
reliability of information and also provide an assessment of a systems internal control.
Traditionally, audits were mainly financial audits, associated with obtaining Local.
Common Issues information about a company’s financial accounts and reporting
systems. Indeed, the dictionary defines the term audit as “an official examination of
accounts.” Audits today are diverse in scope, and are ultimately directed at improving
governance. The three broad categories of audits, in this context, are Compliance
Audits, Financial Audits and Performance Audits situational Mechanisms to Ensure
accountability.8
8
Dhaliwal S S, Good governance in Local self-Government’(2004, Deep & Deep Publication Pvt. Ltd.
New Delhi)10

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Independent Grievance Redressal Mechanism (Local Body Ombudsman)

Apart from the above, there is need for institutionalising a grievance redressal
mechanism which would address complaints regarding elected functionaries and
officials of the local bodies. This would provide a platform to the citizens for voicing
their complaints and also bring out the deficiencies in the system for suitable remedial
action. With increased devolution to the local government institutions, a plethora of
developmental schemes will be implemented at the grass roots level. On an average, a
Panchayat could be handling a crore worth of programmes every year. Such a large
size of public funds increases public expectations. It also gives rise to concerns that
decentralisation without proper safeguards may increase corruption, particularly if the
process is not simultaneously accompanied by the creation of suitable accountability
mechanisms similar to those available at the Union and State Government level. Local
body Ombudsman should be constituted for a group of districts to look into
complaints of corruption and maladministration against functionaries of local bodies,
both elected members and officials. For this, the term ‘Public Servant’ should be
defined appropriately in the respective State legislations. The Ombudsman should
have the authority to investigate cases and submit report to competent authorities for
taking action. Such competent authorities should normally take action as
recommended. In case of disagreement, reasons must be recorded in writing and be
placed in the public domain. These would require amendments in the respective State
Panchayat Acts and the Urban Local Bodies Acts to include provisions pertaining to
the local body Ombudsman

3.2Measures to Improve Responsiveness of the Local Bodies to the People

In order to ensure efficient service delivery, accessibility and reach, there is need for
improving the responsiveness of the local bodies to the citizens. Such responsiveness
could be enhanced through:
• Delegation of functions
• In-house mechanism for redressal of grievances
• Social audit
• Transparency

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Delegation of Functions:
To make the lowest functionary accountable and to inculcate responsibility at the
cutting edge level, there has to be delegation of functions to the lowest possible
functionary in the local bodies. This would make the local bodies responsive in their
interface with the common man.

In-house Mechanism for Redressal of Grievances:

While audit and governmental control are necessary for making the local bodies
accountable and an independent grievance redressal body would provide the citizens
with the much needed instrument for enforcing accountability, the local bodies
themselves should be in a position to learn from mistakes and mould themselves
according to the needs of the people. This would require a robust in-house mechanism
for redressal of grievances.

Social Audit

Institutionalising a system of social audit is essential for improving local service

delivery and for ensuring compliance with laws and regulations. An effective system
of social audit will have to be based on two precepts; first, that service standards are
made public through citizens’ charters and second, that periodic suo motu disclosure
is made on attainment of service delivery standards by the local bodies. Social audit
processes are also important to ensure effectiveness. They should also evolve a
suitable framework of social audit clarifying its objectives, scope and methods. Such
framework may be evolved in each State through extensive consultations with the
civil society organisations and others. The NGOs and the CBOs should be given
support and encouragement to mobilise the local community in undertaking social
audit. The formal audit should give due consideration to the findings of social audit
and vice versa.
Therefore, an effective system of social audit at all levels of local self government is
critical to ensure accountability and transparency in these institutions. Some of the
action points suggested in the Report9 in this regard are mentioned below: (a) Social
audit should not be individually prescribed for each scheme implemented by the local

9
Report, Expert Group on Planning at Grassrooot level,(March 2006) 78

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bodies. A multiplicity of social audits separately prescribed for each scheme
undermines the importance of the process.
(b) Adequate publicity needs to be given for social audit.
(c) Social audit “action taken reports” have to be time bound and placed in the public
domain. It is advisable to precede a social audit with the action taken on the previous
social audit.
(d) Opportunity has to be given to people to inspect the records of the local bodies
particularly their documentation on property lists, tax assessments and tax collected,
measurement books and muster rolls.
(e) In case of PRIs it may also be advisable to adopt a system where a higher level of
Panchayat, such as the Intermediate Panchayat, provide details of the comparative
performance of all Panchayats falling within its jurisdiction, so that people can get an
idea of where their Panchayat stands in respect of each service delivered. Local
Governance 104 105 Common Issues
(f) State Governments should encourage conduct of social audit of Gram Panchayats
by the committees of Gram Sabha.
(g) Space has to be provided to Community Based Organisations to be involved in the
social audit.

Transparency

Suo moto disclosure of information, especially with regard to duties, functions,

financial transactions and resolutions should become the norm for all the local bodies
as provided under the RTI Act, 2005. Several local bodies have developed there own
transparency mechanisms Such practices may also be adopted by other local bodies.

3.3Evaluation of Performance of Local Bodies

Local bodies have to be evaluated in terms of efficiency, effectiveness and resource
mobilisation, apart from the efforts to promote participation and transparency as
indicated above. One way of achieving this would be to benchmark the performance
of local bodies. To ensure effective service delivery, the performance of local bodies
has to be closely monitored. The best way of doing this is to fully involve these
institutions at all levels in the monitoring process. This can be done by development
of yardsticks for monitoring through discussions at the local level. The development

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of indicators can itself become a very good capacity building exercise. Another way
of encouraging such self-assessment of performance is to consolidate data relevant to
a particular indicator and compare it with the best possible status, as well as the
minimum actual level of achievement within a particular area, say, within the district
in the case of PRIs and within the State for ULBs. It may also be worthwhile for these
bodies to lay down certain accepted quality standards concerning service delivery and
give wide publicity to them by way of citizens’ charters, followed by periodic checks
to ensure conformity.
Apart from the above, evaluation of the performance of local bodies may also be
attempted from the viewpoint of the citizens. This essentially brings the concept of
‘feedback mechanism’ to the fore. The feedback could be on legal and procedural
conformity, services and amenities, public works and projects and planning and
vision. It could be organised around polling booths, villages (if they are part of a
larger Panchayat), wards and even communities. The feedback could consist of
indicating a satisfaction score on the categories mentioned above. The collation of
these feedbacks would provide a ‘Citizens’ Report Card’ on the performance of the
local bodies.

4. CONCLUSION:
Local Self Governments are also essential to widen the democratic base of our
political structure. These forms of governance encourage people’s participation at
various levels of governance. Hence, democracy is seen from the very grass-root
levels of administration. Over the past couple of decades, India has seen the
implementation and framing of efforts to modernise local government. These efforts
have revealed the nation’s commitment to local government which was earlier
considered to be a weak link in the Indian system. Undoubtedly, it remains a system
in transition that has great hope for further evolution.10

The biggest challenge before the LSG is the corruption and nepotism at every stage in
functioning of Local Government. This can be minimised by ensuring accountability
10
Mayraj Fahim, “Local Government in India- Local government in India Still Carries Characteristics
of its Colonial Heritage”, http://www.citymayors.com/government/india_government.html, last visited
on 2017-10-06.

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and transparency of elected office holder at local level. Other problems that are faced
by local government is lack of funds and matter of autonomy. Central and State
government has to adopt a comprehensive method to ensure a greater autonomy to the
people at local level. Idea of Swaraj should be imparted in best manner possible to
ensure peoples say and participation in policy making and decisions’ at local level.
Peoples should have a say in local matters. This is the real idea of swaraj and it must
provided to the people. Without ensuring peoples participation accountability and
transparency can not be achieved.

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BIBLIOGRAPHY
BOOK REFERRED
P.D.Kaushik and Bibek Debroy, (eds.), ENERGIZING RURAL DEVELOPMENT
THROUGH ‘PANCHAYATS’, 1st ed. 2005, Academic Foundation, New Delhi.
Dhaliwal S S, Good governance in Local self-Government’(2004, Deep & Deep
Publication Pvt. Ltd. New Delhi)10

STATUTES REFFERED
The Constitution of India 1950, Article 243 (g)
The Constitution of India 1950, Article 243 (h)
The Constitution of India 1950, Schedule 11
The Constitution of India 1950, Schedule 12

ARTICLES REFERRED
“Local Government in Asia and the Pacific: A Comparative Study,
Country paper: India” http://www.unescap.org/huset/lgstudy/country/india/india.html.

“Local Self Governance – Urban”,

http://www.pria.org/intervention/urbanselfmore.htm.

Mayraj Fahim, “Local Government in India- Local Government in India Still Carries
Characteristics of its Colonial Heritage”,
http://www.citymayors.com/government/india_government.html.

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