1

UNIT -4

Panchanyat raj institutions IN INDIA– Functions, Sources of

Income of Gram Panchayats, Panchayat Samiti( Block Panchayat)
and Zila Parishads (District Panchayath)

The Panchayati Raj System is another name for the rural self-government in India. It
has a historical presence in India. The primary role of the Panchayati Raj has been to
provide a better avenue for local participation in the democratic development of the
country. It has been proved beyond doubt that it is the best way to establish
democratic decentralization. Unlike the urban local government, rural local
government has been found even in ancient Indian societies. When the British first
introduced the concept of local self-government, they did it only for urban areas.
Only in the twentieth century was any modern institution of rural local government
established. The national leadership, including Mahatma Gandhi and Nehru, were
vocal supporters of the idea of Panchayati Raj. Once India gained independence in
1947 and our constitution was implemented, Panchayati Raj became a constitutional
entity. Article 40 of the Indian Constitution asked the state to implement the values of
the Panchayati Raj in India as soon as possible.

As mentioned in the constitution, the Panchayati Raj system in India gained support
from the national leadership and had a historical presence in the country. It became a
reality after the 73rd Amendment to the Indian Constitution in 1992.Panchayati Raj
institutions form India's third layer of government, connecting the people directly to
the constitution and democracy. Following the 73rd Amendment, these institutions
gained various powers and responsibilities, making their study significant. The
decentralization of power to rural bodies in the constitution has sparked enthusiasm
among the people to participate in the democratic process. Panchayati Raj institutions
contribute to economic development and serve as a means of providing social justice
in India.

EVOLUTION OF RURAL SELF-GOVERNMENT IN INDIA

The history of rural local government in India is ancient. It has been found that people
in ancient times, too, were governed by some kind of rural government. This was
known as Panchayat, which meant the assembly of five people. This assembly of five
people had various administrative and judicial powers at that time. This system of
Panchayats remained the same throughout the ages in India despite various
developments at the central level. These local Panchayats became dysfunctional
during the transition from the Mughal to British rule. During British rule, the need for
 2

rural local self-government was not realized till the 870s. Most of the initiatives
undertaken by the British rulers regarding the local government were restricted to
urban areas and the areas of tax collection. The first genuine initiative for the
establishment of any kind of rural local government in India was taken by Lord
Ripon’s administration. In 1882, Lord Ripon, acting on the report submitted by the
Famine Commission in 1880, adopted a resolution of local self-government in India.
The Famine Commission recognized the absence of local bodies as the main
hindrance in effectively distributing relief materials to the affected regions and
population. Based on this resolution in 1885, the British Parliament passed The Local
Bodies Act.
The 1909 report of the Royal Commission on Decentralization acknowledged that
effective decentralization of power is desirable in involving people in local tasks and
village affairs. The report recommended the establishment of village Panchayats for
the first time. However, both of these recommendations, by Lord Ripon and by the
Royal Commission on Decentralization, remained only on paper regarding their
implementation in the rural areas. The British government relied solely on the district
boards established under the Local Bodies Act of 1885 to manage rural areas.
The chairman of the district board, whether selected by right ex-officio, nomination,
or election, was usually the collector or deputy commissioner. In most sub-district
boards, the chairman was typically an official, such as the sub-divisional officer or
Tehsildar. The primary responsibilities of rural boards included maintaining and
improving roads and other communications, providing primary education,
maintaining medical institutions, vaccination, sanitation, veterinary work,
constructing and maintaining markets and rest houses, and managing pounds and
ferries. The primary source of revenue for rural boards was a cess on agricultural
land, which was levied at a rate usually not exceeding 6% of the annual rent value, in
addition to the land revenue.
In its 1909 Lahore session, the Congress passed a resolution urging the government to
promptly establish elected local bodies, starting from village Panchayats and
upwards, with non-official chairpersons. However, the government did not take this
resolution seriously then, and it remained only on paper. The first significant reform
in local self-government was taken as part of the Montagu-Chelmsford Reforms of
1919. Local self-government was transferred to elected members of the provincial
councils under the proposed scheme of dyarchy. The idea behind this was to make the
local bodies more and more representative and establish popular control over them.
Different provinces adopted various provincial acts to establish the rural local
governments after the 1919 reforms. Examples were the Bihar and Orissa Village
Administration Act of 1920, the Punjab Village Panchayat Act of 1935 and the Jaipur
Village Panchayat Act of 1948. Most of these laws covered some selected areas and
did not have universal presence and authority, even within a state. Their functions
 3

were also minimal. The whole idea of creating a local self-government was to make it
representative. However, most rural local bodies remained unrepresentative, and the
state governments nominated their officers. Their financial powers were also limited
and depended on the state government.
In post-independent India, the opportunity to establish a robust Panchayati Raj
system, as Gandhi envisioned, was not fully embraced for various reasons. The 1950
constitution made local self-government a state subject, and only a few states, like
Rajasthan in 1953, showed interest in establishing Panchayati Raj. The governments
in most of the states at that time and even the central government were occupied with
the economic and social development of the country and, therefore, did not take
Article 40 very seriously.
In 1952, the Indian government attempted a community development program, but it
faced challenges due to a lack of public participation. In 1957, the Balvantray Mehta
Committee recommended decentralizing power to the Panchayats. The Panchayati
Raj system was inaugurated by the Indian Prime Minister, Jawaharlal Nehru, on 2nd
October 1959 in the Nagaur district of Rajasthan. This was based on the
recommendations of the Balvantray Mehta Committee. Following this, all states
passed the Panchayat Acts and established Panchayats nationwide. However, despite
the promising start, many Panchayats became dysfunctional by the mid-1960s as state
governments refused to hold elections and provide necessary funds. In the mid-1960s,
only ten states had established rural self-government or Panchayats, but their
structures varied widely, making it hard to assess their functioning. This led to a
decline in the popularity of these institutions in India over the following decade.
The decline of the Panchayati Raj institutions was due to the lack of uniformity in
their structure, changes in development priorities, unclear delineation of powers and
responsibilities, and the reluctance of the bureaucratic machinery to share power with
elected representatives at the Panchayat levels. Most state governments did not
allocate sufficient funds to these institutions, leading to unfulfilled programs. In 1977,
the Janata Party government formed a committee led by Ashok Mehta to re evaluate
the Panchayati Raj System, recognizing the central role of rural areas in India's future
development.

Ashok Mehta committee

According to the committee, there are five main reasons of the failures of the
Panchayati Raj System in India.These are as follows:

1. Most of the states have kept the Panchayats out of most of the programmes of
development
 4

2. Bureaucracy at various levels did not show enough enthusiasm in including

Panchayati Raj institutions in development programmes mainly due to their
unwillingness to work under the elected representatives and share their powers.
3. There had been a lack of conceptual clarity regarding the concept of Panchayati
Raj itself and also regarding its nature, extent of powers and status.
4. Most of the Panchayati Raj institutions have faced discrimination by the state
governments. They were not given enough resources and attention by state
governments.
5. Due to above reasons, most of the Panchayati Raj Institutions had failed to perform
their basic duties, which led to mass disillusionment among the people at various
levels with the working of these institutions.

The Ashok Mehta Committee recommended decentralizing power to intermediate

level districts and establishing Mandal Panchayats for populations of 15000 to 20000
people. It suggested transferring Panchayat Samiti functions to Mandal Panchayats
and involving people through village committees for municipal and welfare functions.
The Ashok Mehta Committee recommended a two-tier Panchayati Raj System in
India, with the Zila Parishad as the primary decentralized body below the state level.
It proposed the Mandal Panchayat as a link between various village Panchayats and
local governments and suggested social audits for program implementation. However,
its recommendations were ultimately rejected in 1979 in favour of the three-tier
system proposed by the Balvantray Mehta Committee.
In 1985, the Planning Commission of India formed a committee under the leadership
of G. V. K. Rao to review the effectiveness of rural development and poverty
alleviation schemes. The committee's mandate was to recommend structural
mechanisms to ensure the efficient implementation of these programs and schemes. It
also assessed the performance of the Panchayati Raj institutions and their relationship
with the administration. The G. V. K. Rao Committee found that most states had not
satisfactorily implemented the decentralisation policy, leaving the Panchayati Raj
institutions without adequate power and responsibility. As a result, the committee
recommended a significant level of decentralisation at the district level.
According to the G. V. K. Rao Committee;
1. There should be regular elections for all the Panchayati Raj institutions and they
should be activated wherever they are not in a working mode.
2. The development of rural areas should not be taken in isolation and it should be
based on a comprehensive view of development.
 5

3. District or Zila Parishads should be given a central role in the activities of rural
development, planning and management. All the programmes should be implemented
at the district level.
4. Rest of the institutions under the Panchayati Raj should also be included in an
effective and prominent way in the management, planning and execution of the rural
development programmes.
5. Planning should also be transformed to a district level. Zila Parishad should have
various committees. Members for these committees should be elected from the Zila
Parishad, in accordance to the system of proportional representation.
6. There is a need to make maximum popular participation possible in the
development programmes, in order for them to be successful.
7. There should be a provision of adequate power and financial resources to the local
level.
8. There should be a block development officer who should be given a central role in
the development of the area.

Most state governments were not holding elections for Panchayati Raj institutions due
to a lack of funds and resources and reluctance to delegate power to local bodies.
Despite committees emphasizing the importance of elections, states did not take the
matter seriously. In 1986, a new committee led by L M Singhvi aimed to revitalize
the Panchayati Raj institutions and link them with the concept of self-government.
The committee criticized the prevailing view of these institutions as mere tools for
administrative programs and development agencies, believing this to be harmful to
the proper development of democracy. The committee emphasized the significance of
the Gram Sabha as an embodiment of direct democracy and called for it to be given
due importance and respect.
The L M Singhvi Committee recommended the following:

1. Regular and consistent elections should be held for all Panchayati Raj institutions
at the end of each term, conducted by the Election Commission of India if necessary.
2. Panchayati Raj institutions should not be suspended for six or seven months. This
means that elections for these institutions should be held within six months after the
term of the previous body ends, under any circumstance.
3. Local self-government should be a constitutional body and there should be a new
chapter dealing with these institutions in the constitution.
4. Panchayati Raj institutions should be considered and made the third tier of
government in the constitution.
5. Each state should have a Panchayati Raj judicial tribunal to resolve all disputes
related to Panchayati Raj institutions.
 6

6. The commission recommended regular and adequate financial provisions for all
institutions, with special allocations by the central finance commissions.
7. There should be no participation of political parties in the Panchayat elections.
8. There should be Nyaya Panchayats at every Panchayat or for a group of
Panchayats, with powers of conciliation, mediation, and adjudication.
9. Proper training is essential for all involved in Panchayat functioning.
10. Legislation should be introduced in the parliament incorporating all these
recommendations.

There was a significant debate after the L M Singhvi Commission recommended it. In
1988, the renowned Sarkaria Commission on center-state relationships emphasized
the need for regular elections for local self-government. It also recommended the
formation of state finance commissions to address financial distribution issues
between state and local governments. Additionally, committees led by P K Thungan
(1988) and V N Gadgil (1989) recommended the inclusion of Panchayati Raj
institutions in the constitution. These recommendations were included in the 73rd and
74th Amendments to the Indian Constitution in 1992, establishing the current
structure of the Panchayati Raj system in India.

FUNCTION AND SOURCES OF FINANCE OF THE RURAL LOCAL

GOVERNMENT IN INDIA

The basic structure, function and financial provisions for the rural local self-
government or Panchayati Raj in India has been described in detail in Part 9 of the
Indian Constitution (Article 243 and from 243 A to 243 O). According to the
constitutional provisions, the structure, term, responsibilities and finances for
Panchayats would be broadly defined by these articles. State governments are free to
allocate additional rights and duties to these bodies.

Zila Parishad (District Panchayath)

The main functions of the Zila Parishad are to supervise the working of the Panchayat
Samiti and coordinate between rural and urban local self-governments in the district.
It does provide essential services and facilities to the rural population through
Panchayat Samiti. It is the main planning and executive body for all development
programs for the district. It is responsible for helping improve agriculture in the
district. Therefore, it supplies improved seeds to farmers. It also informs them of new
farming techniques and gives them adequate training. It is responsible for
constructing small-scale irrigation projects and percolation tanks. Recently, it has
been responsible for maintaining common property resources such as pastures and
grazing lands. Though Gram Panchayat or Panchayat Samiti is responsible for
maintaining primary educational institutions, even Zila Parishad sets up and runs
 7

schools in particular villages. It executes programs for adult literacy in the district or
supervises these programs undertaken by other bodies. In certain areas, it runs
libraries, too. Zila Parishad runs primary health centres and hospitals in different
villages. It is responsible for maintaining basic sanitation in the district and runs
cleanliness and health awareness programs. It also runs mobile hospitals for remote
hamlets. It carries various vaccination drives against epidemics and family welfare
campaigns. Zila Parishad constructs and maintains small bridges and roads
connecting villages in the district. It is responsible for the execution of plans for the
development of the scheduled castes and tribes in the district and runs shelter homes
and hostels for tribal and scheduled caste children and students.

The primary source of income for the Zila Parishad is the collection of taxes on
various facilities and services that it provides to the residents, such as water supply,
sanitation, roads, irrigation projects, etc. It collects taxes from commercial activities
within its jurisdiction, such as common marketplaces, fairs, exhibitions, etc.
According to the 73rd constitutional amendment, it has the right to get fixed annual
grant from the state government in proportion with the land revenue and money for
works and schemes assigned to it.

Panchayat Samiti(BLOCK PANCHAYATH)

It is the second tier of the rural local self-government under the Panchayati Raj
system. It works at the block level. In a Panchayat Samiti, all the heads of the Gram
Panchayats in the area are ex-officio members. All state council members who reside
in the block and are not in the ministry and all the elected representatives from the
region, provided they are not ministers, and three members elected by each Gram
Sabha in the region are also parts of the Panchayat Samiti. The block development
officer, appointed by the government, is the ex-officio executive head of the
Panchayat Samiti. Members of the Samiti elect their head, called the chairman, from
among themselves. The chairman presides over the meetings. The term of the Samiti
is five years. The Samiti is generally divided into various sub-committees or
departments that members of the Samiti head.

The primary function of the Panchayat Samiti is to execute the plans made by the Zila
Parishad. It is the actual implementation agency in all matters. It generally runs
schools, water supply, sanitation, communication and other facilities. It also executes
special programs for the development of scheduled castes, scheduled tribes and other
deprived sections of the society in the area. It runs unique hostels for the children
from these sections. It grants permissions or has the right to revoke them for a
particular trade. The Panchayat Samiti regulates the familiar marketplaces in the
region and provides grants to schools and other public welfare institutions. It has the
 8

right to grant funds for the schemes and programs initiated by the Gram Panchayats,
and it monitors their functioning. The Panchayat Samiti coordinates every
development work in the area.

The main sources of income of the Panchayat Samiti are the annual grants provided
by the state governments, Zila Parishads, and other local authorities, government or
private loans mobilized by the Samiti, levies, taxes, and fines collected from the area,
fees for different services, and fees from vehicle registration and licenses, shops, and
market places, etc.

Gram Panchayats

The Gram Sabha is a meeting of all adults who live in the area covered by a
Panchayat. Anyone 18 years old or older and with the right to vote is a member of the
Gram Sabha. Every village Panchayat is divided into various local units or smaller
areas. Each area elects a representative who is known as a member of the Gram
Panchayat. All members of the Gram Sabha also elect a Sarpanch, who is the
Panchayat president. The members and the Sarpanch form the Gram Panchayat. The
Gram Panchayat is elected for five years. Every Gram Panchayat has a secretary, who
is also the secretary of the Gram Sabha. This person is not elected but is appointed by
the government. The secretary is responsible for calling a meeting of the Gram Sabha
and Gram Panchayat and keeping a record of the proceedings.
The Gram Sabha is critical in making the Gram Panchayat play its role and be
responsible. It is where all plans for the work of the Gram Panchayat are placed
before the people. The Gram Sabha prevents the Panchayat from doing wrong things
like misusing money or favouring certain people. It plays a vital role in keeping an
eye on the elected representatives and making them responsible to those who elected
them. Some of the primary responsibilities of the Gram Panchayat are the
construction and maintenance of water resources, roads, drainage, school buildings
and other common property resources. It was levying and collecting local taxes and
executing government schemes to generate employment in the village.

The primary sources of funds for the Gram Panchayat are local taxes collected from
houses and village markets and government funds released for various development
and social justice schemes. These funds are received through various departments.
Donations for community works and fees are one primary source of income for the
Gram Panchayats.
 Unit-IV
Panchanyat raj institutions – Composition, Functions,
Sources of Income of Gram Panchayats, Panchayat
Samiti(Block Panchayath) and Zila Parishads(District
Panchayath.-District Planning Committee
Grama Sabha
The Gram Sabha is the grassroots-level democratic institution in each Village
Panchayat. A vibrant Gram Sabha is essential for the effective functioning of
Village Panchayats. It promotes transparency and accountability in
administration and enhances public participation in the planning and
implementing schemes and in the choice of beneficiaries. It also paves the way
for social audit.

The Gram Sabha is the center of the Panchayati Raj and village development.
People use the Gram Sabha forum to discuss local governance and development
and make need-based plans for the village. The Panchayat implements
development programs under the umbrella mandate and supervises and
monitors the Gram Sabha. All decisions of the Panchayat are made through the
Gram Sabha, and no decision is official or valid without the consent of the
Gram Sabha.
The term Gram Sabha is defined in the Constitution of India under Article
243(b). The Gram Sabha is the primary body of the Panchayati Raj system and is
by far the largest.

It is a permanent body and represents the electorate. All other institutions of the
Panchayati Raj, such as the Gram Panchayat, Block Panchayat, and Zilla
Parishad, are constituted by elected representatives.

Decisions taken by the Gram Sabha cannot be cancelled by any other body; only
the Gram Sabha has the power to cancel its decisions.
Members of Gram Sabha
⮚ Persons, those who are above 18 years of age and
⮚ living in the village and
⮚ Whose names are included in the electoral rolls for the Panchayat at the village
level
Scheduled Meetings of the Gram Sabha
⮚ According to the State Panchayat Raj Acts, the Gram Sabha must meet at least
two to four times in a year.
⮚ For people's convenience, in most of the States, four na onal-international days
have been identified as reference dates for these meetings. They are
✔ Republic Day (26th January)
✔ Labour day (1st May)
✔ Independence Day (15th August)
✔ Gandhi Jayanti (2nd October)
⮚ Gram Panchayats are however free to convene Gram Sabha on other dates according to their convenience.
THE KERALA PANCHAYAT RAJ ACT, 1994
Section 3 - Grama Sabha
Each constituency of a Village Panchayat can be specified as a village under
Clause (g) of Article 243. All persons included in the electoral rolls of a village
within a Village Panchayat area are deemed to constitute the Grama Sabha of that
village.

The Grama Sabha must meet at least once every three months, with the meeting
details communicated by the Convener through a public notice.

The Convener must also invite Block Panchayat, District Panchayat, and
Legislative Assembly members representing the area.
A special meeting can be convened upon written request from at least ten per
cent of the Grama Sabha members, but only once between two general
meetings.
Section 3 - Grama Sabha
The member of a Village Panchayat representing the area of a village is the
convener of that Grama Sabha.

If the convener cannot perform their functions, the President may appoint a
member from an adjacent constituency as the convener.

Every meeting of the Grama Sabha is presided over by the President of the
Village Panchayat or, in their absence, the Vice-President or the convener of the
Grama Sabha.

The Village Panchayat will present a report to the Grama Sabha on the previous
year's development programs, proposed programs for the current year,
associated expenses, annual financial statement, and administrative report.
Section 3 - Grama Sabha

If a decision of the Grama Sabha cannot be implemented, the President will

report the reason to the Grama Sabha.

The Village Panchayats, the Block Panchayats and the District Panchayats
shall give due consideration to the recommendations and suggestions, if any,
of the Grama Sabha.
Section 3A.
Powers, functions and rights of the Grama Sabha.

The Grama Sabha shall assist in

•collecting details for development plans,
• prioritise schemes,
•prepare lists of eligible beneficiaries in the order of priority relating
beneficiary-oriented schemes based on the criteria fixed,
•help implement development schemes, and
•provide and mobilise voluntary service and contribution in cash or in-
kind necessary for the development plans;
Section 3A.
Powers, functions and rights of the Grama Sabha

The Grama Sabha is responsible for suggesting public utility locations(Public

utility schemes, including street lights, water taps, wells, sanitation units, and
irrigation facilities),

•raising awareness on public interest matters(Like promoting cleanliness,

environmental protection, and controlling pollution to combat social evils such
as corruption and clandestine transactions).,

•promoting harmony and organise arts and sports festivals to develop goodwill
among the people of that locality,
Section 3A.
Powers, functions and rights of the Grama Sabha

• monitoring developmental activities, verifying welfare assistance eligibility

of individuals receiving government welfare such as pensions and subsidies,
• collecting information on proposed works, and understanding Panchayat
decisions.
•Receive updates on decisions made of the Grama and reasons for non-
implementation.
• Help with sanitation and garbage removal.

• Identify and suggest solutions for water supply and lighting issues.

• Support parent-teacher associations and public health activities.

• Perform any other prescribed functions.
Section 3A.
Powers, functions and rights of the Grama Sabha

•The Grama Sabha must discuss the report in its meetings and has the right
to know about budget provisions, plan outlay details, fund allocation, and
work execution costs.

•The Audit report must be discussed, and its views must be communicated
to the Village Panchayat.

•The quorum for meetings is 10% of the area's voters, but 50 if

reconvened after adjournment for lack of quorum.
Section 3A.
Powers, functions and rights of the Grama Sabha

The Village Panchayat officers must attend Grama Sabha meetings as required.

•An officer nominated by the Village Panchayat will coordinate the meetings
and assist in recording decisions.

•The Grama Sabha can form sub-committees with at least ten members, half of
whom must be women, for detailed discussions and implementation of
decisions.
Section 3A.
Powers, functions and rights of the Grama Sabha

•Resolutions can be passed by majority vote in Grama Sabha meetings,

but efforts should be made to reach decisions by consensus.

•The Panchayat sets eligibility criteria and priorities for selecting

beneficiaries. These criteria will be published and communicated to the
Grama Sabhas as prescribed.

• The Grama Panchayat will approve the final list without changing the
priority order set by the Grama Sabha.
3.B- Responsibilities of Grama Sabha
3B (1)
(i) sharing information about development and welfare activities;
(ii) participating in and canvassing health, literacy, and other time-bound
developmental programs;
(iii) collecting essential socio-economic data.
(iv) providing feedback on the performance of development programs;
(v) resorting to moral sanction to pay taxes, repay loans, promote
environmental cleanliness, and maintain social harmony;
(vi) Mobilize local resources to supplement the panchayat's resources and
supervise development activities as volunteer teams. Also, make arrangements
to report epidemics, natural calamities, etc
3B (2) The Gram Sabha will report to the village panchayats on matters
specified in Section 3A
CONSTITUTION OF PANCHAYATS AT DIFFERENT LEVELS

Section 4. Power of the Government to constitute and specify the name and
headquarters of Panchayat.

4(1) -The Government shall, by notification in the Gazette, constitute

•A Village Panchayat for each village or group of villages

•A Block Panchayat at the intermediate level

•A District Panchayat for each District Panchayat area and

specify the names and headquarters of such panchayats
Sec 4(2) -The government can expand or reduce the area of a Village
Panchayat or Block Panchayat, change their headquarters, or alter their names.
This is done after consulting with the Panchayat and notifying the proposal.
However, any expansion or reduction cannot take effect until after the existing
committee's term has expired, ensuring a smooth transition.

Sec 5. Incorporation and administration of Panchayats.- Panchayats are

corporate bodies with perpetual succession, a common seal, and the capacity to
sue or be sued, acquire, hold and transfer property, enter into contracts, and
perform necessary functions.
District, Block, and Village Panchayats have specific powers, functions, and
duties as provided by the law.
Section 6. Strength of Panchayats The government will determine the number
of seats for direct election in Village, Block, and District Panchayats based on
their respective populations. The number of seats for each level of Panchayat
will have specific minimum and maximum limits. The goal is to maintain a
consistent ratio between the population and the number of seats.

Type of Panchayat old new

Village Panchayat 14–24 13–23

Block Panchayat 14–24 13–23

District Panchayat 17–33 16–32

Section 7. Composition of Village Panchayat

•Every Village Panchayat should have elected members equal to the seats
specified under Section 6. All seats should be filled by direct election, with
reservations for Scheduled Castes and Scheduled Tribes.

•The Government will determine the number of seats reserved for Scheduled
Castes and Scheduled Tribes in proportion to their population in the Panchayat
area.
•The State Election Commission or an authorized officer under section 10(1B)
shall allocate seats by rotation to different constituencies within the Panchayat
area.
•If the population of Scheduled Castes or Scheduled Tribes in a Panchayat area is
insufficient for seat reservation, one seat shall be reserved for the
group(Scheduled Castes or Scheduled Tribes) with the higher population.
Section 7. Composition of Village Panchayat

(5)Fifty per cent of the seats shall be reserved for women from Scheduled Castes
or Scheduled Tribes, rounded up to the nearest whole number. However, if only
one seat is reserved for Scheduled Castes or Scheduled Tribes, it shall not be
reserved for women from those categories.
(6) In a Village Panchayat , 50% of the seats are reserved for women, including
those under sub-sections (5). The State Election Commission or its authorized
officer under section 10(1B) will rotate these seats to different constituencies
within the Village Panchayat area.
(7) Nothing contained in section 7sub-sections (3) to (6) shall be deemed to
prevent members of the Scheduled Castes or the Scheduled Tribes or the
women from standing for election to the non-reserved seats in a Village
Panchayat.
(8) A Village Panchayat shall have a President and a Vice-President elected by
the members of the Village Panchayat from among themselves.
Section 8- Composition of Block Panchayat.
• Every Block Panchayat shall consist of elected members equal to the
number of seats notified under Section 6(1) and the Presidents of the Village
Panchayats in the territorial area of the Block Panchayat.

•All Block Panchayat seats under Section 6(1) shall be filled by direct
election

•In every Block Panchayat, a specified number of seats shall be reserved for
the Scheduled Castes and the Scheduled Tribes
Section 8. Composition of Block Panchayat.

The government will determine the seats reserved for the Scheduled Castes
and the Scheduled Tribes in a Block Panchayat. This number will be in
proportion to the population of the Scheduled Castes or Scheduled Tribes in
that area compared to the total population of the Block Panchayat area.

The State Election Commission or its authorized officer will allot these seats
to different constituencies in the Block Panchayat area through rotation
under section 10(1B).

In cases where the population of Scheduled Castes or Scheduled Tribes in a

Block Panchayat area is not enough to reserve any seats, one seat will be
reserved for the Scheduled Castes or Scheduled Tribes with a higher
population in that Block Panchayat.
(5)Fifty per cent of the seats shall be reserved for women from Scheduled
Castes or Scheduled Tribes, rounded up to the nearest whole number. However,
if only one seat is reserved for Scheduled Castes or Scheduled Tribes, it shall
not be reserved for women from those categories.
(6) In a Block Panchayat , 50% of the seats are reserved for women, including
those under sub-sections (5). The State Election Commission or its
authorized officer will rotate these seats to different constituencies within
the Block Panchayat area.
(7) Nothing contained in section 7 sub-sections (3) to (6) shall be deemed to
prevent members of the Scheduled Castes or the Scheduled Tribes or the
women from standing for election to the non-reserved seats in a Block
Panchayat.
(8) A Block Panchayat shall have a President and a Vice-President elected by
the members of the Block Panchayat from among themselves.
Section 9. Composition of the District Panchayat.

9 (1) Every District Panchayat shall consist of

(a) elected members equal to the number of seats notified under

Section6(1) and
(b) the President of the Block Panchayats in the district;

•All District Panchayat seats under Section 6(1) shall be filled by direct
election

•In every District Panchayat , a specified number of seats shall be reserved

for the Scheduled Castes and the Scheduled Tribes.
•The government will determine the seats reserved for the Scheduled Castes
and the Scheduled Tribes in a District Panchayat area. This number will be in
proportion to the population of the Scheduled Castes or Scheduled Tribes in
that area compared to the total population of the District Panchayat area.

•The State Election Commission or its authorized officer will allot these seats
to different constituencies in the District Panchayat areathrough rotation.

•In cases where the population of Scheduled Castes or Scheduled Tribes in a

District Panchayat area is not enough to reserve any seats, one seat will be
reserved for the Scheduled Castes or Scheduled Tribes with a higher population
in that District Panchayat area.
(5)Fifty per cent of the seats shall be reserved for women from Scheduled
Castes or Scheduled Tribes, rounded up to the nearest whole number. However,
if only one seat is reserved for Scheduled Castes or Scheduled Tribes, it shall
not be reserved for women from those categories.
(6) In a District Panchayat, 50% of the seats are reserved for women, including
those under sub-sections (5). The State Election Commission or its
authorized officer will rotate these seats to different constituencies within
the District Panchayat area.
(7) Nothing contained in section 7 sub-sections (3) to (6) shall be deemed to
prevent members of the Scheduled Castes or the Scheduled Tribes or the
women from standing for election to the non-reserved seats in a District
Panchayat.
(8) A District Panchayat shall have a President and a Vice-President elected by
the members of the District Panchayat from among themselves.
CHAPTER 15
MEETINGS, POWERS, FUNCTIONS, DUTIES AND
PROPERTY OF PANCHAYATS

Section 161. Meetings of Panchayats

Meetings of Panchayats.- Panchayat meetings must be held at

prescribed intervals.Provided that the interval between two meetings
shall not exceed one month.
(1)If at least one-third of the members provide written notice to the President
specifying the purpose of a meeting, he must convene a special meeting of the
panchayat to consider that matter.

(2) In a Panchayat meeting, the President presides. If the President is absent,

the Vice-President takes over; if both are absent, a member chosen by the
attendees presides.

(3) The chairperson maintains order and makes final decisions on meeting-
related issues. No discussions are allowed on these decisions.

(4) The time, place, quorum, calling process, and conduct of Panchayat
meetings will be as prescribed in this Act.
(5) Subsection (4) rules may prevent members, the President, or the Committee
Chairman from voting or discussing matters in which they have a financial
interest. They should also be barred from presiding over meetings when
discussing such matters.
(6)In a Panchayat meeting, decisions are made by a majority vote of the
members present. The presiding officer has a casting vote in case of a tie.
(7) A Panchayat cannot modify, vary, or cancel a resolution within three months
from its passing, except by a resolution supported by two-thirds of its
members.
(8) Any member present at a meeting of the Panchayat shall have the right to
give the secretary a note of dissent regarding a resolution passed by the
Panchayat if it has voted against such resolution within forty-eight hours of the
conclusion of the meeting.Any member at a Panchayat meeting can submit a
dissenting note to the secretary regarding a passed resolution if they vote
against it within 48 hours of the conclusion of the meeting.
(9) The secretary must send meeting minutes and any dissent notes to the
Government within ten days.
Section162. Standing Committees. –
(1) In every Panchayats standing committees shall be constituted namely:

(a) In a Village Panchayat

(1) Standing committee for Finance
(2) Standing Committee for Development
(3) Standing Committee for Welfare.

(b) In a block Panchayat

(1) Standing Committee for Finance
(2) Standing Committee for Development
(3) Standing Committee for Welfare
(c) In a District Panchayat

(1) Standing Committee for Finance

(2) Standing Committee for Development
(3) Standing Committee for public works.
(4) Standing Committee for Health and Education
(5) Standing Committee for Welfare
(2) Each standing committee will consist of a specific number of members,
including a chairman, as decided by the Panchayat. All elected members,
except the President and Vice-President, will be part of a standing committee,
and efforts will be made to have an equal number of members in each
committee.
(3) The number of members for each standing committee, as decided by the
Panchayat under sub-section (2), shall not be changed during the term of that
Panchayat.

(4) Members of standing committees are elected by Panchayat members using

the proportional representation system and single transferable vote. Each
member can only serve on one standing committee at a time.
(5) The chairman of every standing committee, except for finance, is
elected by the committee members.

6)The Vice-President is an ex-officio member and Chairman of the

finance committee, and the President is an ex-officio member of all
committees without the right to vote.

(7) A non ex-officio member and the Chairman of a standing committee,

except for the finance committee, can resign by submitting a resignation
letter to the Secretary. The resignation takes effect upon receipt by the
Secretary, who must promptly inform the President and the Panchayat.
(8) When resigning as the chairperson of the standing committee, the person
should submit the resignation letter in person or via registered post, attested
by a gazetted officer, to the Secretary, who will acknowledge receipt.

(9) Except as otherwise provided in this Act, the term of the Chairman of a
Standing Committee or its member shall co-exist with the terms of that
Panchayat.
(10) An election to fill a casual vacancy of a standing committee member
must be conducted within thirty days of the vacancy occurring. If the
vacancy in a standing committee cannot be filled due to a vacancy in a
panchayat member, the standing committee vacancy must be filled within
thirty days of the panchayat member vacancy being filled.

(11) In the event of a casual vacancy for the Chairman of a standing

committee (other than the finance committee), a new chairman will be
elected from among its members at the next committee meeting.

(12) A non-confidence motion can remove the chairman of any standing

committee, except the finance committee, if the majority of committee
members support it.
Section162.A.
Subjects to be dealt with by the standing committees. –
(a) in a village panchayat,
- (i) The standing committee for finance shall handle finance, tax,
accounts, audit, budget, general administration, tax appeals, and subjects
not assigned to other standing committees.
- (ii) The standing committee for development will oversee development
planning, socio-economic planning, agriculture, soil conservation,
animal husbandry, fisheries, industry, public works, housing, and
electricity regulation.
- (iii) The standing committee for welfare shall focus on the development
of scheduled caste and scheduled tribe, women and children, social
welfare, slum improvements, poverty alleviation, public distribution
system, public health, sanitation, education, art and culture,
entertainment, water supply, sewerage, and the environment.
 Section162 A
Subjects to be dealt with by the standing committees
(b) In the Block Panchayat –

(i) The Standing Committee for Finance shall address finance, accounts, audit,
budget, general administration, and subjects not assigned to other standing
committees.
(ii) The Standing Committee for Development will address development
planning, socio-economic planning, agriculture, animal husbandry, minor
irrigation, fisheries, small-scale industry, public works, housing, electricity,
and watershed maintenance.
(iii)The Standing Committee for Welfare will address the development of
Scheduled Castes and Scheduled Tribes, women and children, social
welfare, public health, education, art, culture, entertainment, and the
environment.
Section-162 A
Subjects to be dealt with by the standing committees
(c) In the District Panchayat, -
(i) The Standing Committee for Finance shall address finance, accounts,
audit, budget, general administration, and subjects not allocated to other
standing committees.

(ii) The development standing committee shall handle development planning,

socio-economic planning, agriculture, soil conservation, animal
husbandry, minor irrigation, fisheries, and small-scale industry.

(iii) The standing committee for public works shall handle public works,
housing, spatial planning, and the environment. The Health and Education
Committee covers public health and education.
(c) In the District Panchayat, -
(iv) the standing committee for Health and Education shall deal with
subjects like public health and education;

(v)The standing committee for welfare shall address subjects such as social
welfare, women's and children's development, and the development of
scheduled castes and scheduled tribes.
162 B. Steering Committee

In each panchayat, there will be a steering committee comprising the

President, Vice-President, and the Chairman of standing committees, with
the President as the chairman.

The committee will coordinate and monitor the standing committees and
carry out other tasks assigned by the panchayat.
Section164
Sub-Committees and Ward Committees.
(1) Each Panchayat can create subcommittees to support the Standing
Committee or Functional Committees. These subcommittees may consist of
Panchayat members and others interested in public welfare. If at least fifty
individuals from the Scheduled Tribe are listed on the voters list for a
village Panchayat constituency, they are considered a SubCommittee of the
Grama Sabha within that area and have the same powers and rights
regarding the development of the Scheduled Tribe.
(2) The village panchayat may establish a Ward Committee for each
constituency, comprising the constituency member and other residents
nominated by the panchayat to assess and report on the constituency's
requirements.
(3) The committees' composition, term, procedure, and functions must be in
accordance with the panchayats' bye-laws.
Section 166- Powers, duties and functions of village panchayat. –

1)The village panchayat is responsible for meeting the needs of the village
panchayat area as listed in the Third Schedule. Additionally, it must provide
services to the inhabitants for the matters listed as mandatory functions in the
Third Schedule.
(2) The village panchayat has exclusive power to administer the matters listed in
the Third Schedule and to prepare and implement schemes for economic
development and social justice, subject to the provisions of this Act and the
government's guidelines and assistance.
(3) Village Panchayat has the power to enhance employment facilities, undertake
developmental activities, and start manpower banks.
Explanation. - "Manpower Bank is a register of skilled and unskilled individuals
available for service as needed, maintained by the village panchayat."
Section 166- Powers, duties and functions of village panchayat.
–
(4) The government, district panchayat, and block panchayat will provide
necessary assistance to village panchayats, subject to the availability of
resources, to enable them to discharge their functions.

(5) Grants-in-aid will be distributed through the concerned village panchayat

(6) The Government shall, as soon as may be, after the commencement of this
Act, All relevant institutions, schemes, and properties will be transferred to the
village panchayat.

(7)The village Panchayat will oversee transferred institutions and schemes with
government guidance, following state and national policies.

(8) The village panchayat has no authority to sell, transfer, alienate, or pledge the
properties transferred to it.
Section 172. Powers, duties and functions of block panchayats.

(1) The block panchayat is responsible for meeting the needs of the block
panchayat area as listed in the Fourth Schedule.

(2)Subject to the provisions of this Act and the Government's direction, the
block panchayat has exclusive power to administer the matters listed in the
Fourth Schedule and to prepare and implement schemes for economic
development and social justice.

(3) The Government and the district panchayat will assist block
panchayats in carrying out their functions.
(4) All grants-in-aid for matters listed in the Fourth Schedule will be
distributed through the relevant block panchayat.

(5) After this Act commences, the Government will transfer all relevant
assets to the block panchayats.

(6) The Block Panchayat administers transferred institutions and schemes

according to government guidelines and state and national policies.

(7) The Block Panchayat shall not have the power to sell, transfer,
alienate, or pledge the properties transferred to it.
Section 173. Power, duties and functions of district panchayats.

1) District panchayats are responsible for addressing the needs outlined in

the Fifth Schedule within their respective areas.
2) The District Panchayat has exclusive power to administer matters listed
in the Fifth Schedule and prepare and implement economic development
and social justice schemes.
3) The Government shall provide necessary financial, technical, and other
assistance to the district panchayat, subject to resource availability, to
enable them to discharge their functions.
4) All grants-in-aid for matters in the Fifth Schedule will be distributed
through the relevant district panchayat.
(5) After this Act begins, the government will transfer all related assets to the
district panchayats. Each transferred institution will be under the respective
district panchayat's name.

(6) The district Panchayat will administer the transferred institutions and
schemes, following government guidelines and technical assistance and
keeping them in line with state and national policies.

(7) The district Panchayat shall have no power to sell, transfer, alienate or
pledge the properties transferred to it.
Section 182.Powers and functions of the Panchayath Secretary. –

(i) The secretary can attend Panchayat and Standing Committee meetings in an
advisory capacity but cannot propose resolutions or vote. They must record
their views on matters for the Panchayat's consideration and provide written
remarks on whether a resolution should be referred to the Government.

(ii) attend any meeting of a committee of the Panchayat if required to do so by

the person presiding thereon;
(iii) The Secretary may request a review of any resolution by the Panchayat if
he believes it exceeds legal powers or poses a risk to human life, health, or
public safety. If the Panchayat upholds its decision after the review, the
matter will be referred to the Government, with notification to the President.
If the Government does not decide within fifteen days, the resolution will be
implemented, and the Government will be informed.
(iv) control the officers and employees working under the Panchayat,
subject to the general superintendence and the control of the President;

(v) discharge all the duties and exercise all the powers specifically imposed
or conferred on the Secretary by or under this Act.
(vi) meet the expenses delegated by the President;
(vii) give amounts either by cheque or cash for all kinds of expenditure
authorised by the Panchayat;
(viii) be responsible for the safe custody of the Panchayat fund;
(ix) maintain and keep the accounts of receipts and expenditure of the
Panchayat; and
(x) Keep the record of the meeting and proceedings of the Panchayat; and
(xi) have power to initiate disciplinary action against the employees of the
Panchayat referred to in section 180.
(xii) place before the standing committee for finance the monthly accounts of
the panchayat before the tenth of the succeeding month or at the first
meeting of the succeeding month;

(xiii) prepare the annual accounts and Statement of the preceding financial
year and place before the panchayat before the thirtieth or June of the
succeeding financial year;

(xiv) furnish the returns, accounts statements and other details when called
for by the Government or any audit authority;

(xv) inspect or cause to be inspected the accounts of the institutions under

the control of the panchayat;
(xvi) keep the records of the Panchayat, the Standing Committees, the
Executive Committees, such other Committees and the Grama Sabhas;

(xvii) Co-ordinate the preparation of the annual plans and five year plans
within the time specified by the Government so as to enable the District
Planning Committee to approve the same;

(xviii) disburse the plan funds to the officers concerned and to render
utilisation certificate to the Government as ordered by it.
District Planning Committee
Kerala Municipality Act Section 53.

District Planning Committee.—53 (1)

The Government shall constitute in every district, a District Planning

Committee at the district level to consolidate the plans prepared by the
Panchayats and the Municipalities in a district and to prepare a draft
development plan for the district as a whole.
Section 53 (2)
"The Committee will consist of fifteen members:
(a) twelve members will be elected, from among the elected members of
the Panchayats at the district level and the Municipalities in the
district, in proportion to the ratio between the population of the rural
areas and the urban areas in the district;
(b) the President of the District Panchayat in that district;
(c) a government-nominated person with administrative experience
(d) the District Collector concerned, ex-officio

It is required that fifty percent of the members elected under clause (a) be
women, and two members belong to Scheduled Caste or Scheduled
Tribe, with one of them being a woman.
Section 53 (3)

In Sectionn 53 (2)

(i) the members mentioned in clause (a) shall be elected under the
guidelines, supervision and control of the State Election Commission;

(ii) the President of the District Panchayat mentioned in clause (b) shall be
the Chairman of the Committee;

(iv) the District Collector referred to in clause (d) shall be the Secretary of
the Committee.
Section 53 (4) &(5)

(4)The district-level officers of the departments of the Government in the

District shall be the Joint Secretaries of the Committee.

(5)The members of the Lok Sabha and the members of the State Legislative
Assembly representing any area within a district are permanent invitees of
the District Planning Committee of that District.

If an area is represented by a member of the House of the People or a

member of the Legislative Assembly across multiple districts, they will be
permanent invitees to the District Planning Committees of all the districts
involved.
Section 53 (6),(7) &(8)
(6) A member of the Rajya Sabha representing the state will be a permanent
invitee to the District Planning Committee of the district in which they are
registered as an elector on the electoral roll of any Municipality or
Panchayat.
(7) A member nominated to the State Legislative Assembly is a permanent
invitee to the District Planning Committee of the district where they reside.

(8) When a Member of Parliament or a Member of the Legislative

Assembly is appointed as Minister, elected as Speaker or Deputy Speaker,
appointed as the Government Chief Whip, or recognized as Leader of the
Opposition, they may nominate a person from their area to represent them
in the District Planning Committee or Committees to which he was a
permanent invitee.
Section 53 (9) &(10)
(9)The Committee will consolidate plans from Panchayats and Municipalities,
draft a district-wide development plan, and perform other district planning
functions as assigned by the Government.

(10)The Committee shall, in preparing the draft development plan,-

(a) have regard to
(i) matters of common interest between the Panchayats and the Municipalities,
including spatial planning, sharing of water and other physical and natural
resources, the integrated development of the infrastructure and environmental
conservation; and
(ii) the extend and the type of available resources, whether financial or
otherwise;
(b) Consult the institutions and organizations specified by the Governor by
order.
Section 53 (11) &(11A)

The Chairman will send the development plan recommended by the

Committee to the Government for approval.

When preparing the State Plan, the Government will consider the proposals
and priorities outlined in the draft development plans for each district by the
District Planning Committee.
Section 53 (11B) &(12)

(11B) The District Planning Committee monitors the progress of approved

district planning schemes and State plans, evaluating completed action
programs, especially regarding their physical and financial achievements.

(12) The Committee meeting procedure, including the quorum, is governed

by prescribed rules.
https://secforuts.org/73amendment
 The 73rd Constitution Amendment in 1992

• The 73rd Amendment Act 1992 has provided Constitutional status to the
Panchayati Raj Institutions .
• The 73rd Amendment is about rural local governments (which are also
known as Panchayati Raj Institutions
• Panchayat is described as an 'Institutions of Local Self Government' in
Article 243 of the Indian Constitution.
• The 73rd Amendment of 1992 added a new Part IX to the constitution
titled “The Panchayats”, which covers provisions from Articles 243 to
243(O). It also introduced a new Eleventh Schedule covering 29
subjects within the functions of the Panchayats.
• This subject of 'Local Government' is outlined in the State List within the
Seventh Schedule of the Constitution (Article 246).
•Through these amendments local self-governance was introduced in
rural and urban India.
•The Acts came into force as the Constitution (73rd Amendment) Act, 1992 on
April 24, 1993 and

•the Constitution (74th Amendment) Act, 1992 on June 1, 1993.

• But once the Constitution was amended, the States had to change their
laws about local bodies in order to bring these in conformity with the
amended Constitution.

• They were given one year’s time for making necessary changes in
their respective State laws in the light of these amendments.
Article 243 {Definitions} In this Part, unless the context otherwise
requires,-

a. "district" means a district in a State;

b. "Gram Sabha" means a body consisting of persons registered in
the electoral rolls relating to a village comprised within the area of
Panchayat at the village level;
c. "intermediate level" means a level between the village and district
levels specified by the Governor of a State by public notification to
be the intermediate level for the purposes of this Part;

d. "Panchayat" means an institution (by whatever name called) of

self government constituted under Article 243B, for the rural areas;
e. "Panchayat area" means the territorial area of a Panchayat;

f. "population" means the population as ascertained at the last preceding

census of which the relevant figures have been published;

g. "village" means a village specified by the Governor by public

notification to be a village for the purposes of this Part and includes a
group of villages so specified.
1. Article 243 A -Gram Sabha-
The Gram Sabha is a body comprising all the individuals registered in the
electoral rolls about a village within the jurisdiction of the Panchayat at the
village level.

Since all the individuals registered in the electoral rolls are members of the
Gram Sabha, there are no elected representatives. The Gram Sabha is the only
permanent unit in the Panchayati Raj system and has not been formed for a
specific period.

While it serves as the foundation of the Panchayati Raj, it is not part of the
three tiers. The state legislature determines the powers and functions of the
Gram Sabha through law.
2. Three Tier Structure (243 B)

• All States now have a uniform three tier Panchayati Raj structure. At the
base is the ‘Gram Panchayat‘. A Gram Panchayat covers a village or group
of villages.

• The intermediary level is the Mandal (also referred to as Block or Taluka).

These bodies are called Mandal or Taluka Panchayats.
• The intermediary level body need not be constituted in smaller States(243
B(2)-Panchayats at the intermediate level may not be constituted in a State having a
population not exceeding twenty lakhs).
• At the apex is the Zilla Panchayat covering the entire rural area of the
District.
3. Article 243C (Composition of Panchayats)

•Under this part, a State's Legislature may make laws regarding the
composition of Panchayats, subject to certain provisions.

• The ratio between a Panchayat's population and the number of seats to be

filled by election must be consistent throughout the State.

•All Panchayat seats must be filled by direct election from territorial

constituencies within the Panchayat area, ensuring a consistent population-
to-seat ratio.

•Seats at all levels to be filled by direct elections [Article 243C (2)].All the
three levels of Panchayati Raj institutions are elected directly by the people.
243© (3). The state legislature can determine the representation of the
following:
a. Village-level Panchayat Chairpersons in intermediate or district-level
Panchayats.
b. . Intermediate-level Panchayat Chairpersons in district-level Panchayats.
c. House of the People and State Legislative Assembly members
representing Panchayat areas.
d. Council of States and State Legislative Council members in relevant
Panchayat levels.
4. The Panchayat Chairperson and members can vote in Panchayat meetings.
5. Chairpersons of village-level Panchayats are elected according to state law,
while intermediate and district-level Chairpersons are elected from
among the members.
4 .Article 243 E (Duration of Panchayats).

The term of each Panchayat body is five years.

No law can dissolve a functioning Panchayat before the completion of its term.
If the State government dissolves the Panchayat before the end of its five year
term,fresh elections must be held within six months of such dissolution.
(Article 243E).

If the remaining term of the dissolved Panchayat is less than six months, there
is no need to hold an election for a new Panchayat.
This is an important provision that ensures the existence of elected local
bodies. Before the 73rd amendment, in many States, there used to be indirect
elections to the district bodies and there was no provision for immediate
elections after dissolution.
Article 243F - Disqualifications for membership

A person seeking election to the panchayat must possess the qualifications

prescribed for a member of state legislature.

Minimum age for contesting election to the panchayat is 21 years (as against
25 years for State Legislature).

If there's a question about a member's disqualification, it will be referred to

the authority specified by the State Legislature.
Election- Article 243K

The State government is required to appoint a State Election Commissioner

who would be responsible for conducting elections to the Panchayati Raj
institutions.

The superintendence, direction and control of the preparation of electoral

rolls for, and the conduct of, all elections to the Panchayats shall be vested in a
State Election Commission consisting of a State Election Commissioner to
be appointed by the Governor.

Now, the office of the State Election Commissioner is autonomous like the
Election Commissioner of India. (Article 243K)
The State Election Commissioner shall not be removed from his office
except in like manner and on the like grounds as a Judge of a High
Court and the conditions of service of the State Election Commissioner
shall not be varied to his disadvantage after his appointment.

However, the State Election Commissioner is an independent officer and

is not linked to & NOT under the control of the Election Commission of
India.
The Commissioner's conditions of service and tenure are determined by
the Governor, subject to state law. The Commissioner can only be
removed from office for similar reasons as a High Court Judge.

The Governor must provide necessary staff when requested. The state
legislature can make laws regarding Panchayat elections, within the
provisions of the Constitution.
Art.243 (O)- (Bar to interference by courts in electoral matters)

The validity of any law related to the delimitation of constituencies or

allotment of seats under Article 243K cannot be questioned in court.

Elections to any Panchayat can only be challenged through an election

petition as provided by State Legislature.
Laxmibai v. Collector, Nanded, (2020) 12 SCC 186

The High Court has discretionary jurisdiction under Article 226 of the
Constitution of India and may choose not to exercise it if an alternative
remedy is available, especially in election matters. The remedy for election
disputes is through an election petition as mandated by Article 243-O of the
Constitution of India.

The High Court should refrain from interfering in election matters after
results have been declared and direct parties to the remedy provided by the
statute. The writ petition should not have been entertained, and the High
Court's ruling on election expenses does not warrant interference.
Kauser v. State Election Commission, AIR 2021(Himachal Pradesh High
Court)

The petitioner by way of this instant petition has challenged the election of
Respondent as Member, Block Development Committee, Misserwala,
District Sirmour in the elections to Panchayati Raj Institutions of the State
concluded in January 2021.

The writ petition has been filed seeking that the respondent election
commission may be directed to start the fresh election and declare the
election under challenge as null and void.
The issue before the High Court is the maintainability of writ petitions under
Article 226 of the Constitution of India vis-à-vis Article 243-O of the
Constitution of India in respect of limitation in exercise of judicial review
by the Court in election matters.

Section 162 of the H.P. Panchayati Raj Act provides that no election
under the Act shall be called in question except by an election petition
presented in accordance with the provisions of the chapter and Section 175
of the Act enumerates the grounds for declaring election to be void.
Reservation of seats.(243 D)

•Seats must be reserved for Scheduled Castes and Scheduled Tribes in every
Panchayat, with the number of reserved seats proportionate to the population of
these communities in the area.
•Additionally, at least one-third of the seats must be reserved for women
from these communities.
•The office of the Chairpersons in the Panchayats must also be reserved for
Scheduled Castes, Scheduled Tribes, and women.

•The reservation of seats and Chairperson offices will cease to have effect at the
end of the period specified in Article 334.

•The state legislature can reserve Panchayat seats and Chairperson positions
for backward-class citizens.
• It's important to note that the reservation of seats and offices of
Chairpersons is not permanent and shall cease to have effect on the
expiration of the period specified in Article 334.

• The State Legislature, as the governing body, has the authority to

make provisions for reserving seats in any Panchayat or offices of
Chairpersons in the Panchayats at any level in favour of a backward
class of citizens.
Article 243G. Powers, authority and responsibilities of Panchayats.

The Legislature of a State may, by law, endow the Panchayats with such
powers and authority……. …with respect to-

(a) the preparation of plans for economic development and social

justice;

(b) the implementation of schemes for economic development and

social justice as may be entrusted to them including those in relation to
the matters listed in the Eleventh Schedule.
243 H. Powers to impose taxes by, and Funds of, the Panchayats-

The Legislature of a State may, by law,-

(a) authorise a Panchayat to levy, collect and appropriate such taxes,
duties, tolls and fees in accordance with such procedure and subject to
such limits;
(b) assign to a Panchayat such taxes, duties, tolls and fees levied and
collected by the State Government for such purposes and subject to such
conditions and limits;
(c) provide for making such grants-in-aid to the Panchayats from the
Consolidated Fund of the State; and
(d) provide for Constitution of such Funds for crediting all moneys
received, respectively, by or on behalf of the Panchayats and also for the
withdrawal of such moneys therefrom, as may be specified in the law.
State Finance Commission (Article 243 I )
• Constitution of Finance Commission to review financial position.
The State government to establish a Finance Commission in each State to
determine the principles on the basis of which adequate financial resources
would be ensured for panchayats and municipalities (Article 243 I)

The State government is also required to appoint a State Finance Commission

once in five years. This Commission would examine the financial position of
the local governments in the State.

It would also review the distribution of revenues between the State and local
governments on the one hand and between rural and urban local governments
on the other.
This innovation ensures that allocation of funds to the rural local governments
will not be a political matter.
•The Governor of a State shall, within one year from the commencement of the
Constitution (Seventy-third Amendment) Act, 1992, and every fifth year
thereafter, establish a Finance Commission to review the financial position of
the Panchayats.
• The commission will make recommendations on the distribution of proceeds
of taxes, grants-in-aid, and measures to improve the financial position of
the Panchayats.
•The Legislature of a State may determine the composition and qualifications
of the Commission,
•the Commission shall have the authority to establish its procedures and
powers.
•The Governor shall present the Commission's recommendations to the
State Legislature along with an explanatory memorandum on the action taken.
Article 243 J (Audit of accounts of Panchayats)

The Legislature of a State may, by law, make provisions with respect to

the maintenance of accounts by the Panchayats and the auditing of such
accounts.
243 M. Part not to apply to certain areas.

The specified provisions do not apply to Nagaland, Meghalaya, and

Mizoram, the hill areas in Manipur, and the Darjeeling District in
West Bengal, where specific councils are already established under
current laws.

Similarly, the reservation of seats for the Scheduled Castes, as outlined

in Article 243D, does not apply to the State of Arunachal Pradesh.
The provisions of the 73rd amendment were not made applicable to the areas
inhabited by the Adivasi populations in many States of India.

In 1996,a separate Act was passed extending the provisions of the Panchayat
system to these areas. Many Adivasi communities have their traditional customs
of managing common resources such as forests and small water reservoirs, etc.

Therefore, the Act protects the rights of these communities to manage their
resources in ways acceptable to them. For this purpose, more powers are given
to the Gram Sabhas of these areas and elected village panchayats have to get
the consent of the Gram Sabha in many respects.

The idea behind this Act is that local traditions of self government should
be protected while introducing modern elected bodies.
The Provisions of the Panchayath Extension to the Scheduled Panchayats
(Areas) Act, 1996

Enactment of PESA was a step taken by the GOI to provide for the extension
of the provisions of the Part-IX of the Constitution relating to the Panchayats
to the Fifth Schedule Areas with certain modifications as provided under
Article 243M(4)(b) of the Constitution.

This legislation has not only extended the development, planning and audit
functions to the Grama Sabha in the Fifth Schedule Areas but has also
endowed it with the management and control of natural resources and
adjudication of justice in accordance with traditions and customs.
Fifth Schedule Areas

The Fifth Schedule of the Constitution deals with the administration and
control of Scheduled Areas as well as of Scheduled Tribes residing in any
State other than the States of Assam, Meghalaya, Tripura and Mizoram(sixth
schedule).

“The Provisions of PESA, extends Part IX of the Constitution with certain

modifications and exceptions, to the Fifth Schedule Areas notified under
Article 244(1) of the Constitution.

At present, Fifth Schedule Areas exist in 10 States viz. Andhra Pradesh,

Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya
Pradesh, Maharashtra, Odisha, Rajasthan and Telangana.
PESA exclusively empowers Gram Sabha to
(i) safeguard and preserve the
(a) traditions and customs of the people, and their cultural identity,
(b) community resources, and
(c) customary mode of dispute resolution

(ii) carry out executive functions to

(a) approve plans, programmes and projects for social and economic
development;
(b) identify persons as beneficiaries under the poverty alleviation and
other programmes
(c) issue a certificate of utilisation of funds by the Panchayat for the plans;
programmes and projects
PESA empowers Gram Sabha/ Panchayat at appropriate level with

i. right to mandatory consultation in land acquisition, resettlement and rehabilitation of

displaced persons
ii. panchayat at an appropriate level is entrusted with planning and management of minor
water bodies
iii. mandatory recommendations by Gram Sabha or Panchayat at appropriate level for
prospective licenses/lease for mines and concession for the exploitation of minor minerals
iv. regulate sale/consumption of intoxicants
v. ownership of minor forest produce
vi. prevent land alienation and restore alienated land
vii. manage village markets
viii. control over money lending to STs
ix. control over institutions and functionaries in social sector, local plans including Tribal
sub plans and resources
Importance of PESA

• Effective implementation of PESA will not only bring development but will
also deepen democracy in Fifth Schedule Areas.

• It will enhance people’s participation in decision making.

• PESA will reduce alienation in tribal areas as they will have better control
over the utilisation of public resources.

• PESA will reduce poverty and tendency to migrate among tribal population
as they will have control and management over natural resources which will
improve their livelihood and income.
• PESA will minimise exploitation of tribal population as they will be
able to control and manage money lending, consumption and sale of
liquor and also village markets.

• And most importantly PESA will promote cultural heritage through

preservation of traditions, customs and cultural identity of tribal
population.
subjects listed in the eleventh schedule
ELEVENTH SCHEDULE -(Article 243G)
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.
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."
The Constitution (Seventy Fourth Amendment) Act, 1992)

•which came into effect on 1 June 1993, introduced Part IX A (the

Municipalities).

•The 74th Constitutional Amendment Act was passed to constitutionalise the

system of Urban Local Government, also known as the Municipalities.

•It provides a framework for the decentralisation of obligations and duties to the
Municipal bodies at different levels of a state.
The Amendment Act added a new part to the Constitution, Part IX-A,
which consisted of Articles from 243-P to 243-ZG, ensuring uniformity in
the laws made for the municipalities.

The Act provided a constitutional status to Urban Local Bodies (ULBs).

Article 243W of the CAA authorised the State Legislatures to enact laws to
endow local bodies with powers and authority as may be necessary to enable
them to function as institutions of self-government and make provisions for
devolution of powers and responsibilities.
In many ways the 74th amendment is a repetition of the 73rd amendment,
except that it applies to urban areas.

All the provisions of the 73rd amendment relating to direct elections,

reservations, transfer of subjects, State Election Commission and State
Finance Commission are incorporated in the 74th amendment also and thus
apply to Nagarpalikas.

The Twelfth Schedule of the Constitution enumerates 18 specific functions to

be devolved to Urban Local Bodies .
It was enacted to constitutionally recognise municipal governments. It made
municipal governments a formal part of the three-tier governing system, along
with the Union Government and the State Governments.

According to the 74th CAA, urban areas would be governed by one of the three
mentioned types of urban local governments namely the Nagar Panchayat,
Municipal Council and Municipal Corporation based on the size of the
area.
What is an urban area? It is very easy to identify a big city like Mumbai or Kolkata, but it is not so easy to
say this about some very small urban areas that are somewhere between a village and a town. The Census of
India defines an urban area as having:
(i) a minimum population of 5,000;
(ii) at least 75 per cent of male working population engaged in non-agricultural occupations and
(iii) a density of population of at least 400 persons per sq. km.

About 34% of India’s population lives in urban areas.

The 74th CAA established clear structures in the relationship between state and
municipal governments. Before the Amendment, there was no formal
recognition of how the two would operate with respect to each other. The state
governments had their municipal Acts but there was no constitutional mandate
to actually follow them.

Further, without the amendment, there was no way of ensuring that the state
municipal Acts would give at least some minimal autonomy to the municipal
governments.

The Act defined the relationship by recommending clear division of functions

and increased fiscal autonomy for municipalities. This was to make sure that
there was minimal or no overlapping roles of the two governments, and that the
dependency of the municipal government on the state government could be
reduced.
Characteristic Features of 74th
Constitutional Amendment Act, 1993
1) Types of Municipalities (243Q)

The 74th Constitutional Amendment act provides for three types of

Municipalities: Nagar Panchayat, Municipal Corporation and the Municipal
Council.

• Nagar Panchayat- for a transitional area between a rural

and urban area.
• Municipal Council for a small urban area.
• Municipal Corporation for a large urban area.

❖ Municipalities represent urban local self-government.

2. Composition of Municipalities- (243 R)

All seats in a Municipality are filled by direct election from territorial

constituencies known as wards. The State Legislature may provide
representation in a Municipality of persons with special knowledge in
Municipal administration, members of the House of the People and the
Legislative Assembly, members of the Council of States and the
Legislative Council, and Chairpersons of Committees. Additionally,
the Legislature may determine the manner of election of the
Chairperson of a Municipality.
3. Reservation of seats (243T)

Seats must be reserved for Scheduled Castes and Scheduled Tribes in every
Municipality in proportion to their population. There should also be reserved
seats for women from these communities. Additionally, at least one-third of
the seats in every Municipality should be reserved for women.

Chairperson positions in the Municipalities must also be reserved for

Scheduled Castes, Scheduled Tribes, and women. The reserved seats and
Chairperson offices (excluding women's reservations) will no longer apply
after the period in Article 334 expires. The State Legislature can also make
provisions for reserving seats in favour of backward-class citizens.
4. Duration of Municipalities (243U) –

states that every Municipality will last for five years from its first
meeting, unless dissolved earlier under existing law. Any amendment to
a law will not cause a Municipality's dissolution until its five-year term
ends.

An election to form a Municipality must occur before the five-year term

ends or within six months of its dissolution.

A Municipality formed upon another's dissolution will last only for the
remaining term of the dissolved Municipality.
5. Disqualifications for membership (243V)

• A person can be disqualified from serving as a municipal member if

they break the state's election or other laws.

•A person who is at least twenty-one years old –

•If there are doubts about disqualification, the matter will be referred to
the authority specified by the state legislature.
6. Powers, authority and responsibilities of Municipalities-243W

The State Legislature may grant Municipalities and Committees- the

necessary powers for self-government and carrying out assigned
responsibilities, preparing plans for economic development and social
justice and implementing entrusted functions and schemes, including those
listed in the Twelfth Schedule.

The State Legislature decides the extent of the powers and functions to be
handed over to the Municipal bodies. The powers are bestowed on the
municipalities, considering the necessity of this body in urban areas.
7. Power to impose taxes by, and Funds of, the Municipalities (243X)

The State Legislature can authorise Municipalities to impose and collect

taxes, assign certain state-collected taxes to Municipalities, provide grants-
in-aid from the state fund, and establish funds for managing Municipalities'
finances.
8. Finance Commission- 243-I
The Governor of the state holds the responsibility of setting up a State
Finance Commission to look after the finances of the urban areas. It is the
Consolidated Funds of the State that funds the activities of the State
authorities and the urban level bodies under the state.

The Finance Commission, under Article 243-I, will review the financial
position of Municipalities and make recommendations to the Governor
regarding the distribution of taxes and grants to the Municipalities,
measures to improve their financial position, and any other financial
matters as referred by the Governor. The Governor must present these
recommendations to the State Legislature.
9. Audit of accounts of Municipalities (243Z).

The Legislature of a State may enact laws for the maintenance and auditing of
accounts by the Municipalities.

10. State Election Commissions (243ZA)

The State Election Commission (as referred in 243 K ) conducts independent
elections every five years to elect municipal bodies in various urban areas of
the state government. The State Election Commission has significant authority
in preparing electoral rolls and conducting municipal elections. Simultaneously,
the State Legislature has the power to enact laws related to municipal elections
within the boundaries of the Constitution.
11. Non- applicability to certain areas (243ZC)

This part do not apply to the Scheduled Areas and tribal areas mentioned
in Article 244.

However, Parliament can extend these rules to the Scheduled Areas and
tribal areas with exceptions and modifications specified in the law without
it being considered a constitutional amendment. No such law shall be
deemed an amendment of this Constitution for article 368.
12. Committee for District Planning (Art. 243 ZD)

Every state shall have a District Planning Committee at the district level to
consolidate plans from Panchayats and Municipalities and prepare a
development plan for the entire district.

The state legislature may make provisions regarding the committee's

composition, seat filling, functions, and chairperson selection.

The committee must consider common interests and available resources

and consult specified institutions. The committee chairperson must
forward the recommended development plan to the state government.
12. Committee for District Planning (Art. 243 ZD)

• In each state, a District Planning Committee will be formed to consolidate

plans from Panchayats and Municipalities and prepare a development plan
for the district.

• The state legislature may make provisions for the composition and filling
of seats in District Planning Committees.Not less than four-fifths of the
total committee members must be elected by and from the elected members
of the Panchayat and municipalities in the district, in proportion to the rural
and urban population ratio.
Every District Planning Committee shall, in preparing the draft
development plan,
(a) have regard to-

Panchayats and municipalities share interests in spatial planning, resource

sharing, integrated infrastructure development, and environmental
conservation. Therefore, consideration should be given to the available
resources, whether financial or otherwise.

(b) Consult such institutions and organizations as the Governor may, by

order specify.
• The chairperson of every District Planning Committee shall forward the
development plan, as recommended by such committee, to the State
Government.
Composition of District Planning Committee (DPC):

Elected Members:
While the composition of the DPC and the manner in which the seats are to
be filled have been left to the choice of states, article 243ZD stipulates that
four fifths of the total number of members of DPC will be elected by, and
from amongst, the elected members of the Panchayat at the district level
and of the municipalities in proportion to the ratio between the population
of rural and urban areas in the district.

But in many states the situations is not so. In some states all are nominated
members.
Most of the major states have constituted DPCs as per the information
available.

The large and conspicuous omissions, where DPCs have not yet been
constituted, include Uttarakhand and Jharkhand.

STATUS OF DISTRICT PLANNING COMMITTEES AND PROCESS OF INTEGRATED DISTRICT PLAN IN INDIA,
International Journal of Advance Research,https://doi.org/10.5281/zenodo.3938813
Committee for Metropolitan planning ( 243ZE)

In each Metropolitan area, there shall be a Metropolitan Planning

Committee responsible for creating a development plan for the area.
The State Legislature can make laws about the composition of the
Committees, the functions assigned to them, and the manner in which
members are elected.

The Committee must consider plans from Municipalities and

Panchayats, address common interests, consult with specified
institutions and organizations, and send the development plan to the
State Government.
Adv Richard Rajesh Kumar & Anr. v State of Kerala & Ors(2023 Kerala H.C)

The Court was considering a plea filed by two natives of Kochi, aggrieved
by the fact that there is no MPC in spite of Article 243 ZE that mandates it
for metropolitan areas that have a population of over 10 lakh.

Kerala High Court Directed State To Constitute Metropolitan Planning

Committee For Kochi Without Further Delay.
13. Bar to interference by courts in electoral matters (243ZG)

Notwithstanding anything in this Constitution, the validity of any law

related to constituency delimitation or seat allotment under Article 243ZA
cannot be challenged in court.

No Municipality election can be questioned except through an election

petition as provided by State Legislature law.
Continuance of existing laws and Municipalities.( 243ZF)

Despite any provisions in this Part, any law concerning Municipalities in

force in a State before the Constitution (Seventy-fourth Amendment) Act,
1992, which conflicts with this Part, will remain in force until amended
or repealed by a competent authority or until one year from such
commencement, whichever is earlier.

All existing Municipalities will continue until the end of their term unless
dissolved earlier by the State's Legislative Assembly or both Houses of
the Legislature in a State with a Legislative Council.
Twelfth Schedule
It contains 18 functional items which is covered in Article 243 (W). They are as follows
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.
12. Provision of urban amenities and facilities such as parks. gardens, and 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 tanneries.
• After Part IX of the Constitution, Added Part IX -A and consists of
provisions from articles 243-P to 243-ZG.
PART IX-A THE MUNICIPALITIES
•243-P. Definitions
•243-Q. Constitution of Municipalities.
•243-R. Composition of Municipalities
•243-S. Constitution and composition of Wards Committees
•243-T. Reservation of seats
•243-U. Duration of Municipalities
•243-V. Disqualifications for membership
•243-W. Powers, authority and responsibilities of Municipalities
•243-X. Power to impose taxes by, and Funds of, the Municipalities
•243-Y. Finance Commission
•243-Z. Audit of accounts of Municipalities
IMPLEMENTATION OF 73RD AND 74TH AMENDMENTS
All States have now passed a legislation to implement the provisions of the
73rd and 74th amendments.

Today there are nearly 500 Zilla Panchayats, about 6,000 block or
intermediary Panchayats, and 2,50,000 Gram Panchayats in rural India and
over 100 city Corporations, 1400 town Municipalities and over 2000 Nagar
Panchayats in urban India.
The 73rd and 74th Amendment Act: Differences
It lies in the very area of focus of both these acts. The
73rd Constitutional Amendment Act focuses on the working of the
Panchayati Raj System at the village level areas.

On the other hand, the 74th Constitutional Amendment Act focuses on

the urban local bodies, the municipalities. Both these Amendment Acts
have proved to be the milestone for the efficient decentralisation of
powers at various levels of the country.
The 73rd and 74th amendments have created uniformity in the structures of
Panchayati Raj and Nagarpalika institutions across the country.

The presence of these local institutions is by itself a significant

achievement and would create an atmosphere and platform for people’s
participation in government.

The provision for reservation for women at the Panchayats and

Nagarpalikas has ensured the presence of a significant number of women
in local bodies. As this reservation is also applicable for the positions of
Sarpanch and Adhyaksha, a large number of women elected representatives
have come to occupy these positions.
.
While reservations for Scheduled Castes and Tribes are mandated by the
constitutional amendment, most States have also made a provision to
reserve seats for Backward Castes.
As the Indian population has 16.2 per cent Scheduled Castes and 8.2 per
cent Scheduled Tribes, about 6.6 lakh elected members in the urban and
local bodies hail from these two communities.

This has significantly altered the social profile of local bodies. These
bodies have thus become more representative of the social reality they
operate within.

The dominant social groups which controlled the village earlier do not
wish to give up their power. Now the constitutional mandate made it a
reality.
The Constitutional amendments assigned as many as 29 subjects to the local
governments. All these subjects are related to functions linked to local
welfare and development needs.

The experience with the functioning of local government in the past decade
has shown that local governments in India enjoy limited autonomy to
perform the functions assigned to them. Many States have not transferred
most of the subjects to the local bodies. This shows that the local bodies
cannot really function in an effective manner.
Criticism against the formation of the local bodies- This formation of local
bodies has not changed the way in which decisions are taken at the central and
the State level. People at the local level do not enjoy much powers of choosing
welfare programmes or allocation of resources Local bodies have very little
funds of their own.

The dependence of local bodies on the State and central governments for
financial support has greatly eroded their capacity to operate effectively. While
rural local bodies raise 0.24% of the total revenues collected, they account for
4% of the total expenditure made by the government. So they earn much less
than they spend. That makes them dependent on those who give them grants.
What was the need for the 74th CAA?
Lack of focus on the Urban Decentralisation was an aspect that national
policy makers adopted since India’s independence, but focussed
significantly more on rural self governing bodies than urban ones. While
devolution of powers to panchayats was an aspect of the Directive
Principles of State Policy, the same was not mentioned for urban areas, i.e.
urban local bodies.

Urban local bodies are referred to in the State List under Schedule 7 which
implies that state governments have control over local governments. In the
first five decades of independence, urban governance was not a priority.
State governments maintained control of cities as local governance
remained a state subject. Urban areas ended up getting less importance
than rural areas in national policies regarding governance.