IAS CORRIDOR

Local Self-Government

Panchayati Raj in India signifies the system of rural local self-government. It has been established in
all the states of India by the Acts of the state legislatures to build democracy at the grass root level. It
is entrusted with rural development.

Introduction

• Oldest and Closest Form of Government:

o Oldest: Managed by local government since human settlements began. Central and State
Governments came much later with the concept of Nation-States.
o Closest: Activities and decision-making seen directly by people, unlike that of state and
union governments.
• Misnomer of Local Self-Government:
o Self-government exists at higher levels too as both state & union governments are made by
elections.
o Term originates from the British Raj era; self-government to some extent was functional
only at local (generally municipal) level.

Even the term Local GOVERNMENT is a misnomer

Most of the subjects of administration in any area of a state are under the State government which is
also held accountable for any maladministration.

• District:
o Principal grassroots territorial level of administration.
o District administration is headed by the District Magistrate/Collector.
• Rural Areas of a district:
o Developmental and regulatory tasks are governed by Panchayati Raj Institutions (PRIs).
• Urban Areas:
o Developmental and regulatory tasks are governed by Urban Local Bodies (ULBs).

- PRIs and ULBs do provide basic amenities to the inhabitants but lack most of the powers to
govern the area under them.
- Thus, at the district level, governance system is scattered and overlapping with district
administration and there is no such concept of District government unlike Union & State
government.

Local Government Definition

• Administration by a body representing local inhabitants.

• Large level of autonomy.
• Raising at least a part of their revenue locally.
• Spending on local services (sewage, sanitation, water supply, street lighting, roads, bridges,
etc.)

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Significance of Local Self-Government

• Grassroot Democracy:
o Foundation for the superstructure of democracy (JL Nehru). Top level democratic system
cannot survive unless built on a strong foundation from below. Helps people develop
political consciousness and democracy takes up roots here.
• School of Democracy:
o Regular elections, debates, dissent, and voting behaviour taking place here becomes
training grounds for both the people living there and the leaders of the future.
• More Capable Level of Government:
o Local Interest: Local issues well understood and known by the local community and all
have the same interest in resolving them.
o Local Knowledge: Local people have better knowledge of the area.
• More Economical:
o Spending is in front of local inhabitants leading to better vigilance.
• Reduces Burden of Higher Levels of governments:
o Local issues dealt with by local institutions can lead to higher governments focussing on
broader policies but for this local bodies need to be empowered with authority, funds etc.
• Two-Way Communication:
o Local issues can be communicated to the higher government by representatives of PRIs
and ULBs. Proper implementation of Government schemes can happen by local bodies.
• Vital for National Progress:
o Local bodies can recognize and tap local resources and talents (human and material)
better and it can lead to more development of the states and the nation as a whole.
• Necessary for Decentralized Planning and Development.
• Real Participation of People:
o Direct democracy is possible only at the grassroots level and not at higher level.

Evolution of Local Administration and Government in India

• Ancient India
o Harappan/Indus Valley Civilization
§ Urban local government – for the planning and management of towns (civic
administration)
o Vedic Age or Aryan age
§ Village-based administration
§ Terms: Gramini, Gramika (village headmen)
o Mauryan Age
§ Patliputra city management: Board of thirty members divided into six committees of
five members each. It was similar to today’s municipal corporation system.
o Gupta Age
§ Councilisation of local government. Council of committee managed rural areas
instead of one headsman
§ Terms: Panch Parmeshwar, Panch Mandlis
o Cholas Administration
§ Uttaramerur (TN) copper plate inscriptions (9th and 10th century AD) provide the
proof

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• Medieval India
o Setback due to external invasions and instability
o Sultanate: Heavily centralized
• British Period
o Origin of modern local government institutions (mostly urban local governments). Local
governments were set up for modernization and thus increasing the demands for British
goods. They would also help reduce the financial pressure on imperial government as local
resources will be used for local areas. They would also keep the native leaders engaged and
thus prevent dissent and rebellions.
§ 1687: First Municipal Corporation in Madras – mostly nominated members
o Lord Rippon's Resolution of 1882 (Magna Carta of Local Self-Government). He tried to
democratize local government and make them effective institutions of self-government.
o Original Constitution of India – Constitutional importance to the local bodies but not
constitutional status: Article 40 - The State shall take steps to organize village panchayats
and endow them with such powers and authority as may be necessary to enable them to
function as units of self-government. (DPSP) and Entry 5 of State List- Local government,
that is to say, the constitution and powers of municipal corporations, improvement trusts,
districts boards, mining settlement authorities and other local authorities for the purpose of
local self-government or village administration

• Post-Independence India
o Community Development Programme (1952)
§ Inspired from the Extension Services Programme of the USA
§ Implemented by the Ford Foundation and the GOI
§ Mostly rural in nature and for rural development and rural reconstruction and
focussed on agriculture and development in rural areas
§ Blocks came into existence as the territorial units of development
§ District is divided into subdivisions (Tehsil in northern states, subdivision in eastern
states, taluka in western and southern states, circle in some northeastern states).
This division is based on the fields or revenue administration.
§ CDP was based on people's participation and not only based on bureaucracy.

o Balwant Rai Mehta Committee (1957) – to evaluate working of the CDP (1952) and the
National Extension Service (1953) was appointed by the NDC.
§ It found that participation of people was lacking as there was no such institutional
framework.
§ Recommendations:
- Three-tier Panchayati Raj System
§ Gram Panchayat (village level)
§ Panchayat Samiti (block level) – executive tier
§ Zila Parishad (district level) – supervisory and advisory tier
§ Other recommendations: Vertical representation – direct election at Village
Panchayat level and then indirect election for Panchayat Samiti and Zila Parishad,
Regular elections every five years, Inclusion of local legislators (MP, MLA, MLC) in Zila
Parishad as nominated members, District Collector to be the chairman of the Zila
Parishad, Political parties must not be allowed in elections of Village Panchayats,
Devolution of power, finances and taxation rights to the local bodies and entrusting
them with all planning and development activities.

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§ Recommendations were accepted in 1958 by the NDC but single rigid system was not
applied.
§ First Panchayat established in Nagaur district of Rajasthan – 2nd October 1959. Then
Andhra Pradesh in the same year.
§ Many States followed – 2 tier, 3 tier even 4 tier in some states. Some states made
Block level panchayat as the most powerful while some made district level the most
powerful. Some states also established Nyaya panchayats.

o Ashok Mehta Committee (1977) – Report in 1978

§ Two-tier system: Zila Parishad (executive tier), Mandal Panchayats consisting of a
group of villages with overall population 15000-20000.
§ Political parties must be allowed to contest elections – WB became the first state to
allow (some states do not allow political parties even now)
§ Regular social audit by a district level agency and by a committee of legislators
§ If pre-mature dissolution then election must happen within 6 months
§ Nyaya panchayats should be separate bodies from development panchayats and
should be presided by a qualified judge
§ The chief electoral officer of a state in consultation with the chief election
commissioner should organise and conduct the Panchayati raj elections.
§ SC/ST reservations
§ Ministry of Panchayati Raj should be set up in all states

o GVK Rao Committee (1985) – report in 1986. or CAARD Committee-Committee to Advice on

Administrative arrangements for Rural Development appointed by Planning Commission.
§ Bureaucratisation of development administration as against the democratisation
weakened the Panchayati Raj institutions resulting in what is aptly called as 'grass
without roots'.
§ Zila Parishad to manage all rural development programs
§ A CEO for all Zila Parishads to be called District Development Commissioner (DDC)
§ Regular elections

• Both Dantwala Committee Report on Block-Level Planning (1978) and the Hanumantha Rao
Committee Report on District Planning (1984)have suggested that the basic decentralised
planning function should be done at the district level.
• The Hanumantha Rao Committee advocated separate district pianning bodies under either
the District Collector or a minister. In both the models, the Collector should play a significant
role in the decentralised planning though the Committee stated that Panchayati Raj
institutions would also be associated with this process (of decentralised planning). The
committee recommended that the Collector should be the coordinator, at the district level, of
all developmental and planning activities.

o LM Singhvi Committee (1986) report on Revitalisation of Panchayati Raj Institution for

Democracy and Development.
§ Constitutional status for Panchayati Raj Institutions should be given in a new part
§ Separate Nyaya Panchayats should be set up for a cluster of villages
§ Reorganisation of villages to make Gram Panchayats more viable
§ Called Gram Sabha as embodiment of direct democracy

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§ Panchayati Raj tribunals should be set up in each state to deal with election disputes,
dissolution and functioning of Panchyats.

o Thungon Committee 1988

- A sub-committee of the Consultative Committee of Parliament for the purpose of
evaluating and making recommendations regarding the political and administrative
structures in the district for district planning. It suggested to strengthen PRIs and most of the
recommendations are now part of the Constitution.

o Gadgil Committee 1988

- Committee on Policy and Programmes to advise on how best the PRIs could be made
effective. These recommendations became the basis for drafting the bills to amend the
constitution for PRI.

o Rajiv Gandhi Government (1989)

- 64th Constitutional Amendment Bill in the LS (not approved by RS)
- Opposition claimed that the bill was for centralisation in the country

o V. P. Singh Government – Bill could not be passed in LS as government fell in 1990.

o 73rd and 74th Constitutional Amendment Acts (1992) – Narasimha Rao Government
introduced in 1991 and became effective on 24th April 1993.
§ 73rd Amendment: Part IX, Eleventh Schedule (29 subjects)
§ 74th Amendment: Part IX-A, Twelfth Schedule (18 subjects)
§ Provisions: Mandatory, Mandatory with flexibility in implementation, Optional

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PART IX - THE PANCHAYATS
243. Definitions. And then 243A to 243-O

PART IXA - THE MUNICIPALITIES

243P. Definitions to 243Z and then 243ZA to 243ZG

PART IXB - THE CO-OPERATIVE SOCIETIES

243ZH to 243ZT

Article 243. Definitions

• District: District in a State

• Gram Sabha: A body consisting of persons registered in electoral rolls relating to a village
within a Panchayat area at the village level
• Intermediate-level: Level between village and district levels specified by the Governor of State
• Panchayat: Institution of self-government with whatever name for rural areas established
under Article 243B
• Panchayat area: Territorial area of a Panchayat
• Population: Population as ascertained at the last preceding census
• Village: Specified by Governor by notification for the purpose of this part

Article 243A. Gram Sabha (Compulsory)

• Powers and functions as provided by State Legislature by law

Article 243B. Constitution of Panchayats

• Panchayats at village, intermediate, and district levels (Compulsory)

• Intermediate level is not mandatory for states with population under twenty lakhs

Article 243C. Composition of Panchayats

• Composition provisions to be provided by State Legislature by law.

• Ratio between the population of the territorial area of a Panchayat at any level and the number
of seats in such Panchayat to be filled by election shall, so far as practicable, be the same
throughout the State
• Direct election for all seats of panchayats (Compulsory) and territorial constituencies to have
nearly the same number of seats for similar population as far as practical
• State legislature may be law can provide for the representation of the chairpersons of the
panchayat at the village level in the panchayats at intermediate and the district level
• State legislature may by law can also provide for the representation of chairpersons of the
panchayats at intermediate level in the panchayat of the district level
• State legislature may by law can also provide for the representation of LS, LA members whose
constituency party or completely comes falls within the panchayat area but this
representation is allowed only at intermediate level or district level and not in village
panchayat

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• State legislature may be law can also provide for the representation of the RS, LC members
who are registered as electors in a panchayat at the intermediate level – representation at the
intermediate level and if they are registered as elector in the panchayat area at district level
then representation at the district level.
• Right to vote for Chairperson and members whether elected directly or not (Compulsory)
• Chairperson of the panchayat at the village level to be elected in a manner as specified by the
state legislature by law
• Chairpersons of panchayats at intermediate level and district level have to be elected by and
from amongst the elected members of that panchayat level. (Compulsory)

Article 243D. Reservation of seats

• Reserved seats for Scheduled Castes and Scheduled Tribes at every panchayat level
(Compulsory). Number of reserved seats among the total number of directly elected seats to
follow the same proportion as population of SC or ST among the overall population of the
panchayat area. Seats can be allotted by rotation to different constituencies of the Panchayat
area.
• At least One third of reserved seats for SC/ST will be reserved for SC/ST women (Compulsory)
• At least One third of total seats reserved for women at every panchayat level direct election
seats - including the seats reserved for SC/ST women in that panchayat (Compulsory). Seats
can be allotted by rotation to different constituencies of the Panchayat area.
• Reservation of Chairpersons' offices at all levels of panchayats for SC/ST and women
(Compulsory) – scheme of this reservation to be provided by the legislature of the state by law.
Number of reserved seats for chairpersons at all levels among the total number seats of
chairpersons to follow the same proportion as population of SC or ST among the overall
population of the entire state. Seats can be allotted by rotation to different panchayats at all
levels.
• At least One third seats of the total number of chairpersons at levels of the state shall be
reserved for women (Compulsory). Seats can be allotted by rotation to different panchayats at
all levels.
• SC/ST reservation in panchayat elected members and chairpersons sunset clause as per Art
334.
• State legislature may by law can provide for reservation of backward classes among elected
members at all levels and chairpersons at all levels.

Article 243E. Duration of Panchayats

• Duration: Five years from first meeting unless dissolved under any law (Compulsory)
• No dissolution effect from law amendments during functioning period
• Election before expiry of 5 year term or within six months of its dissolution (Compulsory)
• If Panchayat was dissolved prematurely when less than 6 months was remaining for its full
term that is 5 years then within 6 months election clause is not applicable
• When a panchayat is dissolved prematurely and a new panchayat is constituted then the new
panchayat continues not for 5 years but for the remaining term of the dissolved panchyat

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Article 243F. Disqualifications for election and membership

• Disqualification by any law for state legislative elections except that minimum age here is 21
(Compulsory) years and not 25 years.
• State legislature by law can provide for other disqualifications
• Authority and manner to decide on disqualification questions to be provided by State
legislature by law

Article 243G. Powers, authority and responsibilities of Panchayats

Subject to the provisions of this Constitution, the

Legislature of a State may, by law, endow the
Panchayats with such powers and authority as
may be necessary to enable them to function as
institutions of self-government and such law may
contain provisions for the devolution of powers
and responsibilities upon Panchayats at the
appropriate level, subject to such conditions as
may be specified therein, with respect to

o Preparation of plans for economic

development and social justice
o Implementation of schemes for
economic development and social
justice as delegated by the state
including the matters listed in
Eleventh Schedule

Article 243H. Powers to impose taxes by, and funds of, the Panchayats

• Authorisation by State Legislature by law to

o Levy, collect, and appropriate such taxes, duties, tolls, and fees with such procedure
and such limits
o Assign to Panchayats such taxes, duties, tolls, and fees collected by the state
government for such purpose and such conditions and limits
o Provide for Grants in aid from Consolidated Fund of the State
o Provide for Constitution of Funds for Panchayats for crediting moneys received by
panchayats or withdrawal of moneys from such fund

Article 243I. Constitution of Finance Commissions to review financial position

(Compulsory)

• Mandatory constitution of Finance Commission within 1 year from the commencement of 73rd
CAA and then every 5th year by Governor to review the financial position of the Panchayats and
to recommend governor regarding it.

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• Recommendations on:
o Principles of Distribution between State and Panchayats of net proceeds of taxes,
duties, tolls, and fees leviable by the state and the allocation between panchayats at all
levels of their respective share of such proceeds
o Principles to determine Taxes, duties, tolls, and fees which can be assigned to
Panchayats or can be appropriated by the Panchayats
o Principles for Grants in aid to Panchayats from the Consolidated fund of the state
o Measures needed to improve the financial position of Panchayats
o Any other matter in the interest of sound finance of the Panchayats
• Composition and qualifications for appointment as per State Legislature by law
• Procedure to be determined by the commission and powers to be conferred by State
Legislature by law
• Governor to present recommendations to State Legislature with an explanation about the
actions taken as per the recommendation

The Central Finance Commission

shall also suggest the measures
needed to augment the
consolidated fund of a state to
supplement the resources of the
panchayats in the states (on the
basis of the recommendations
made by the finance commission of
the state).

Article 243J. Audit of accounts of Panchayats

• Provisions by State Legislature by law on maintenance and auditing of accounts of panchayats

Article 243K. Elections to the Panchayats

• 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. (Compulsory)
• Conditions of service and tenure of State Election Commissioner – governor by rule
determines and cannot be varied to disadvantage after appointment

• State Election Commissioner removal process same as HC judge

• Governor shall provide staff to the State Election Commission for its functions
• Legislature of a State may, by law, make provision with respect to all matters relating to, or in
connection with, elections to the Panchayats – other than mandatory provisions

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Article 243L. Application to Union territories

• Provisions applicable to Union territories

• References to Governor replaced by the Administrator of the UTs
• Legislative Assembly of the state references in replaced by LA of the UT if applicable
• President can notify any exceptions and modifications in UT or a part of UT of these provisions

Article 243M. Part not to apply to certain areas

• Exclusions:
o Scheduled Areas and tribal areas under Article 244. Parliament may, by law, extend the
provisions of this Part to the Scheduled Areas and the tribal areas referred in this clause
subject to such exceptions and modifications as may be specified in such law, and no
such law shall be deemed to be an amendment of this Constitution for the purposes of
article 368. "Provisions of the Panchayats (Extension to the Scheduled Areas) Act",
1996, popularly known as the PESA Act or the Extension Act (for Schedule 5)
o States of Nagaland, Meghalaya, Mizoram. But their State legislature if passes a
resolution by total membership and two-third present and voting then can make a law
to extend this part in the state except Scheduled Areas and tribal areas under Article
244 if any.
o Hill areas in Manipur with District Councils
o Provisions of panchayat at the district level shall not apply to the hill areas of the
Darjeeling district for which Darjeeling Gorkha Hill Council exists and provisions of this
part will not affect any function and powers of the Darjeeling Gorkha Hill Council
• Exclusion of Arunachal Pradesh from reservation of seats for Scheduled Castes

Article 243N. Continuance of existing laws and Panchayats

- Any provision of any law relating to Panchayats in force in a State immediately before the
commencement of 73rd , which is inconsistent with the provisions of this Part, shall continue to
be in force until amended or repealed by a competent Legislature or other competent authority
or until the expiration of one year from such commencement, whichever is earlier. Provided
that all the Panchayats existing immediately before such commencement shall continue till
the expiration of their duration, unless sooner dissolved by a resolution passed to that effect
by the State legislature.

Article 243O. Bar to interference by courts in electoral matters

- The validity of any law relating to the delimitation of constituencies or the allotment of seats to
such constituencies, made or purporting to be made under article 243K, shall not be called in question
in any court and no election to any Panchayat shall be called in question except by an election petition
presented to such authority and in such manner as is provided for by or under any law made by the
Legislature of a State

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