LEGAL PROCESS AND LOCAL GOVERNANCE

1. GANDHIAN CONCEPT OF GRAM SWARAJ ON LSG- 6M

Good governance demands respect for human rights, rule of law, strengthening of democracy, promoting transparency and
capacity in public administration. The responsiveness of the state and its institutions to the needs and aspirations of the people,
and inclusive citizenship are imperative to good governance. Democracy depends upon the equality of all human beings, their
right to participate in social and political transformation and the right to development, to live in dignity. Panchayat Raj is a
system and process of good governance. Villages have always been the basic units of administration in India since ancient times.
The Gram Sabha can become the cornerstone of the whole Panchayat Raj institutional set-up, thereby the Indian democratic
system. So in this paper focus is on Gandhian concept of Panchayat Raj. This is useful to development of India. So in 21st
century this concept becomes powerful in the Nation.
Importance of Democratic Decentralization:
Gandhi's concept of democratic decentralization bears the stamp of his passionate belief in non-violence, truth and individual
freedom. He calls it Panchayati Raj or village Swaraj. He wants to see each village a little republic, self-sufficient in its vital
wants, organically and non-hierarchically linked with the larger spatial bodies and enjoying the maximum freedom of deciding
the affairs of the locality. Gandhi wanted political power to be distributed among the villages in India. Gandhi preferred the term
‘Swaraj’ to describe what he called true democracy. This democracy is based upon freedom. Individual freedom in Gandhi’s
view, could be maintained only in autonomous, self-reliant communities that offer opportunities to the people for fullest
participation.
Village Panchayats
The vehicle that was most ideal to initiate both political and economic democracy at the grassroots level was the Panchayat Raj
system. Mahatma Gandhi's tours all across the country reinforced his convictions that India would benefit if the villages were
governed by Village Panchayats based on the principal of "simple living and high thinking". These were village republics which
were self-contained and self-reliant and having all that people want. These were the institutions where minimum standard of
living could be accorded to all human beings. An individual had maximum freedom and opportunity to develop his personality to
the greatest extent. In these republics there would be a diminution of the state and the roots of democracy deepened. According to
him centralization cannot be sustained as a system without adequate force.
The affairs are to be managed by Panchayats consisting of five persons elected annually. Gandhi aimed at the individual the
centre of the local administration. People are expected to take personal interest and turn up in large numbers at the meeting to
deliberate problems of common interest such as village industries, agricultural production, obligation and planning.
Village -unit of a decentralized system:
Gandhi made it very dear that concentration of either economic or political power would violate all the essential principles of
participatory democracy. To check centralization, Gandhi suggested the institution of village republics both as institutions of
parallel polities and as units of economic autonomy. Village is the lowest unit of a decentralized system. Politically a village has
to be small enough to permit everyone to participate directly in the decision-making process. It is the basic institution of
participatory democracy. The technical skills of the villages will be fully developed, there will be no dearth of men with high
degree of skill and artistic talent. There will be village poets, village artists, village architects, linguists and research workers.
Gandhian decentralization means the creation of parallel politics in which people's power is institutionalized to counter the
centralizing and alienating forces of the modem state. According to Mahatma Gandhi, utilization of the local resources is quite
fundamental to the development of the Panchayat Raj system. The Panchayats with the Gram Sabhas should be so organized as to
identify the resources locally available for development in the agricultural and industrial sectors. Gandhi wrote, "Democracy
becomes an impossible thing until power is shared by all, but let not democracy degenerate into mobocracy".
Each village a little republic, self-sufficient, enjoying maximum freedom for deciding the affairs of the locality. Gandhi also
proposed a scheme of government under the Gandhian Constitution beginning from the primary unit the Village Panchayat to the
level of the All-India Panchayat, with the powers being assigned to all levels of the government. These villages should not only
be self-sufficient but also capable of defending themselves, even if need be, against the whole world.
In his Presidential Address at the Belgaum Congress, Gandhi said that the Panchayat was not only a right medium for securing
cheap justice but also an instrument for avoiding reliance on government for the settlement of mutual justice.
Panchayat Raj system:
The Gandhian ideas of Gram Swaraj and Panchayat Raj system can become vehicles for ushering in the much needed social and
political change by including all the stakeholders in the process of decision-making and public policy formulation. As Gandhi
said, "Panchayat Raj represents true democracy realized. We would regard the humblest and the lowest Indian as being equally
the ruler of India with the tallest in the land".
India's Development policy about Panchayat Raj:
Mahatma Gandhi advocated Panchayat Raj, a decentralized form of Government where each village is responsible for its own
affairs, as the foundation of India's political system. The term for such a vision was Gram Swaraj ("village self-governance").
Recommendations of Balwant Rai Mehta Committee. The Balwant Rai Mehta Committee was a committee appointed by the
Government of India in January 1957 to examine the working of the Community Development Programme (1952) and the
National Extension Service (1953) and to suggest measures for their better working. The recommendations of the committee
were approved by NDC in January 1958 and this set the stage for the launching of Panchayat Raj Institutions throughout the
country. The committee recommended the establishment of the scheme of 'democratic decentralization' which finally came to be
known as Panchayat Raj. (i) Establishment of a 3-tier Panchayat Raj system. This system was adopted by state governments
during the 1950s and 60s, as laws were passed to establish panchayats in various states. It also found backing in the Indian
Constitution, with the 73rd amendment in 1992 to accommodate the idea. The Amendment Act of 1992 contains provision for
devolution of powers and responsibilities to the panchayats both for the preparation of economic development plans and social
justice, as well as for implementation in relation to 29 subjects listed in the eleventh schedule of the constitution.
Social Audit:
The Ministry of Panchayati Raj has issued specific guidelines to make Gram Sabha as a vibrant forum for promoting planned
economic and social development of the villages in a transparent way. The guidelines are a part of the proceedings to observe the
year 2009-10 as year of Gram Sabha and relates to the social audit for the effective implementation of Mahatma Gandhi NREGA.
According to the guidelines, the Gram Sabha as a Key to the self-governance and transparent and accountable functioning are a
forum that ensures direct, participative democracy. It offers equal opportunity to all citizens including the poor, the women and
the marginalized to discuss and criticize, approve or reject proposals of the Gram Panchayat and also assess its performance.
Hence, the States may, by law, endow the Panchayats with such powers and authority as may be required to enable them to
function as institutions of self-government under them, Article 243G read with the Eleventh Schedule stipulates that. Such laws
may also endow powers and responsibilities upon Panchayats for the preparation and implementation of plans for economic
development and social justice including in relation to the 29 matters listed in the Eleventh Schedule. This did lead to the
enactment of Gram Panchayat Acts by various States; these were no more than half-hearted attempts for the creation of rural
local government institutions. But the failure of the Community Development Programme, which had been launched for bringing
a silent revolution in rural society by awakening the dormant forces of progress, led to the appointment of Balwantrai Mehta
Study Team.
Conclusion:
But the studies of several distinguished scholars on the working of the Panchayat Raj in different States and the Status Report of
the Ministry of Panchayat Raj (1996) lead us to the inference that the Gandhian ideal of Gram Swaraj remains an unfinished
agenda even after six decades of the implementation of the Panchayat Raj on the recommendation of the Balwantrai Mehta Study
Team on October 2, 1959. 73rd Amendment was implemented by various States in 1994. Therefore, concerted, systematic and
sustained endeavors are needed on the part of those for whom Gram Swaraj remains a cherished dream for the empowerment of
people and for making national development of India a participatory democracy.

2. HISTORY OF LSG

Panchayats as an institution of local self-government at the village level had its origin in Ancient India. A sort of village council
or an association of the residents of the village consisting of the village elders, Panchayats or Gram Sangha performed
administrative and judicial functions. Sometimes, the Gram Sanghas or Panchayats were from among the villagers who regulated
their own lives through these bodies. We find reference to Gram Sanghas in the Manusmiriti, Kautilaya’s Arthashastra (400
B.C.) and the Mahabharata.

Mahabharata- The Shanti Parva of Mahabharata refers to a Sabha named ‘Sansad’ also. This consisted of the common people
and was, therefore, called the ‘Jan Sansad’.

Ramayana- Valmiki’s Ramayana speaks of the Ganapada, which was a sort of federation of village republics. Only those
persons could become the members who had the general welfare of the people in their hearts (Kashyap, 2003).
MEDIEVAL PERIOD- Local self-governing institutions were disrupted following invasions from the north- west. Not much
effort was made during the medieval period to re-establish the same. Mughal governance was highly centralised. Villages were
penetrated only for purposes of collection of revenue, never that much for administrative purposes. While the emperor had
ultimate control, his team of jagirdars, zamindars, who formed the aristocracy of the Mughals interacted with the peasantry, but
for exploitative purposes. This complicated agrarian relations in the countryside. The pre –British Mughal system of
administration had a highly bureaucratised hierarchy of officials.

BRITISH- The British rulers for the first thought of reversing the trend of centralisation only in 1882 when the Government of
Rippon issued a resolution proposing steps in the direction of local self-government. The resolution called upon the provincial
governments to establish a network of Local Boards charged with definite funds throughout the country.
 Accordingly, the present idea of democratic decentralization (rural local government) is the result of Lord Mayo’s
Resolution (1870) and Lord Rippon’s Resolution (1882).
 The Report of the Royal Commission on Decentralisation (1909), and the Government of India Acts of 1919 and 1935 have
further contributed in this direction (Malik, 2002).
 The British Government, with a view to preserve and stabilise its political control, took various measures and recognised
village panchayats.
 A special Commission was appointed in 1909 on local self-government, which suggested the need for revitalising the
village Panchayats for handling local affairs. The Decentralization Commission, which reported in 1909 made some far-
reaching suggestions to remove some of the defects in the working of the Local Boards. In 1915 a government resolution
endorsed the Commission proposals.
3. POST INDEPENDENCE DEVELOPMENT

 The plea for greater autonomy to the rural bodies received conceptual strength with the advent of Mahatma Gandhi on the
national scene and his advocacy of the doctrine of the national development through autonomous rural organisations, which
he strived to model on the lines of Panchayat system as it prevailed in Ancient India. He envisaged five-tier system of
Panchayats, Taluka Panchayats, District Panchayats, Provincial Panchayats and All-India Panchayats. The administrative
system envisaged by him was that of a pyramid whose broad base would comprise numerous village communities of the
country. Mahatma Gandhi, in 1946 had rightly remarked that the Indian independence must begin at the bottom and every
village ought to be a Republic of Panchayat having powers.
 It was therefore only natural that demands were made in the Constituent Assembly for the revival of the Panchayat system
of government at the local level. Soon after the independence some of the provinces had passed Panchyati Raj Acts
Historical Background of Local Governments in India and taken practical steps to organise village panchayats as units of
rural selfgovernment and endow them with certain powers and authority of administration.
 The Gandhian Constitution for free India drafted by S.N. Agarwal envisaged self-sufficient, self-governing village
communities. Gandhiji was an ardent exponent and devotee of village swaraj (self-rule). For him, the term comprises village
autonomy and self-sufficiency. Thus, Gandhiji wanted to see each village working as a small republic in which the people
will not only solve their problems at their own but also formulate policy and programmes for development (On Gandhiji’s
insistence a clause regarding PRIs was inserted in Indian constitution in Article 40 under the chapter on Directive Principles
of State Policy. Members of the village panchayats were to be elected by all the adults in the village). The village was to be
the primary unit and the foundation of development planning. Later on, the Sarvodaya movement had also drawn on this
philosophy of diffused democracy and decentralisation. As a result, “the movement for Panchayati Raj achieved both an
intellectual respectability and sentimental appeal emphasizing that in such a state the best servants of the village should
form the Panchayat, being elected unanimously, and form the village level there should be indirect election to sub-districts,
provincial and central administration (Henry 1970). Jawaharlal Nehru also referred to the existence of democratic
institutions at the village level in ancient India and said that India’s strength really lay in ‘her widespread system of village
republics or self-governing Panchayats’. These Panchayats were ‘elected by the village folk and thus there was a basis of
democracy in this system.’ Nehru was rather surprised to find that these Panchayats enjoyed both executive and judicial
powers ‘and their members were treated with greatest respect by the King’s officers’ ( Nehru, 1962). On 16th March 1963,
Nehru remarked that community development and Panchayati Raj were among the most helpful developments in the
country, together constituting a revolutionary movement which, even if it had only yielded a fourth of the expected results,
yet had proved’ an amazing success, strengthening India at the very roots and preparing millions of men and women to
shoulder responsibility and to be self-reliant. Still later, on 22 June 1963, Nehru said: “I have full confidence in its success
because I have full confidence in Indian people.” In March 1950, the Planning Commission came into existence and we
began to plan for large-scale economic and social progress. As such the Planning Commission gave concentrated thought
for a period of two years to the development of rural areas. The Planning Commission, therefore, thought of shaping the
village development programmes, so as to attack the five giants of hunger, Poverty, Disease, and Ignorance through a self-
help programme of Community Development. “Community Development is a movement designed to promote better living
for the whole community with the active participation and on the initiative of the community”. Thus, was defined the term
at the Ashridge Conference of Social Development in 1954. The village Panchayats gained further impetus with the
beginning of the First Five Year Plan in 1951. In 1952, several states launched community development and rural
development plans with the help of local Five-Year Plan introduced in 1956. The Panchayat Raj Institutions (PRIs) in India
have travelled a long way to acquire a constitutional status from a mere mentioning of it in the 48 Women in Local
Governance constitution in the form of Directive Principles (Article 40). Article 40 of the Indian Constitution states: “The
state shall take steps to organise Village Panchayats and endow them with such powers and authority as may be necessary to
enable them to function as units of self-government.” The Article remained a dead letter for many years before finding a
place of some importance in the form of the Balwantrai Mehta Study Team Report in 1959. The team had inter-alia
envisaged directly elected Panchayats for a village or a group of villages, an executive body called Panchayat Samiti for a
block with directly elected and co-opted members and an advisory body, Zilla Parishad, at the district level constituted
indirectly with an ex-officio member from the lower tier and others with the Collector as the Chairman (Mishra, S.N, Kumar,
Lokesh, Pal Chaitali, 1996).

The term ‘Panchayati Raj’ came into usage after the acceptance of the recommendations on Democratic Decentralisation of the
Balwant Rai Mehta Study Team. Previously the terms used were ‘village panchayat’, ‘district board’ or ‘sub-district board’,
which were the self-governing bodies at the village or regional levels. Panchayati Raj implies the creation of local government
institutions at the village, block and district levels. The Institutionalisation of democratic decentralisation in the form of statutory
Panchayati Raj thus opened a new chapter in the history and gave a new turn to the evolution of rural local self- government
institutions in India ( Maithali, 1995). Panchayati Raj involves a three-tier structure of democratic institutions at districts, block
and village levels, namely Zila Parishad, Panchayat Samiti, and Village Panchayat respectively. These institutions are considered
as training ground, or democracy and political education. Rural development plans and programmes are implemented at this level
son that fruits of development at this level so that fruits of development can accrue to the community directly. These institutions
were established in 1959 based on the philosophy of decentralization and Gram Swaraj. The philosophy of development that
emerged in India after Independence emphasised the involvement of the Historical Background of Local Governments in India
49 people into a structure that would enable them to actively participate in the process of decision-making. In order to bring
democracy to the grassroots level and involve people in decision-making, an experiment was made with the devolution of power
to the elected representatives and allocation of responsibility and financial resources as it was felt that this would be a major
institutional device for the development of rural areas. Introduction of Panchayati Raj was hailed as one of the most important
political innovations in independent India. It was also considered as a revolutionary step. Panchayati Raj is a system of local self-
government wherein the people take upon themselves the responsibility for development. It is also a system of institutional
arrangement for achieving rural development through people’s initiative and participation. Administration of development
programmes aimed at social economic and cultural development, provision of community and welfare services etc. are entrusted
to these local self-governing intuitions. Balwantrai Mehta himself, who said that a welfare state would never be achieved in
reality so long as local self-government did not function at the District, Taluka and Village levels with elective elements, moved
the Resolution on “Panchayati Raj”. According to him, Panchayats and the cooperatives were the two institutions through which
the people could be trained for the leadership. By the year 1962, Panchayati Raj had come to be accepted as national programme.
It was felt necessary that Panchayati Raj got the widest support of the people and therefore the need for avoiding party politics in
the election to village Panchayats was emphasised. It was hoped that the political parties would also avoid setting up candidates
hoped that political parties would also avoid setting up candidates on party lines for Panchayat elections. Balwant Rai Mehta
Committee was appointed to enquire into, among other things, the lack of initiative, apathy and indifference on the part of the
rural population. According to the Committee there was to be a Panchayat Samiti at the Block level, which was to be indirectly
elected by the village Panchayats. At the district level there was to be a coordinating body called the Zilla Parishad consisting of
the Presidents of the Panchayat Samitis, Members of State Legislatures and Parliament and all district level officers of the
development departments as members and, with the collector as the Chairman. The sixty-fourth and sixty-fifth amendment bills,
which later became the seventy-third and seventy-fourth amendments were the first major constitutional efforts with the stated
objective of transferring power to the grassroots people. It was a great initiative by Rajiv Gandhi as Prime Minister. But
unfortunately, the two bills were lost in the Rajya Sabha by three votes. The 73rd Constitutional Amendment sought to integrate
the democratic process at all levels by formalizing a mechanism wherein people at all levels were to have an opportunity to
participate openly in matters which concern their welfare and development. No doubt, a wide variety of functions have been
assigned to the institutions of Gram Sabha but there is no uniformity in assigning the functions among the states and in most of
the cases they are non-functional. The rural people are not fully involved in the decision – making process and financial
management. They are kept aloof in the development process from planning to execution of rural development schemes and
Programmes. The devolution of powers and functional 50 Women in Local Governance strengthening of the different tiers of the
PR system is progressing at snail’s pace in most of the states. Bureaucratic control over PRIs continues to be very strong. The
financial devolution from centre to the states and the PRIs has not yet taken place. There is lack of proper maintenance of records
and registers by the Panchayats. The elected representatives fail due to illiteracy and lack of awareness as compared to their
better off counter parts. The bureaucrats are unwilling to empower the Panchyats. Politicisation has been the main in the smooth
functioning of Panchayats (Singh, 2005).

74TH CONSTITUTIONAL AMENDMENT ACT

Article 243Q of Indian Constitution

Constitution of Municipalities. (1) There shall be constituted in every State,—
(a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an
urban area;
(b) a Municipal Council for a smaller urban area; and
(c) a Municipal Corporation for a larger urban area, in accordance with the provisions of this Part: Provided that a Municipality
under this clause may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the
area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such
other factors as he may deem fit, by public notification, specify to be an industrial township.
(2) In this article, “a transitional area”, “a smaller urban area” or “a larger urban area” means such area as the Governor may,
having regard to the population of the area, the density of the population therein, the revenue generated for local administration,
the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit,
specify by public notification for the purposes of this Part.

Article 243R of Indian Constitution

Composition of Municipalities.
(1) Save as provided in clause(2), all the seats in a Municipality shall be filled by persons chosen by direct election from the
territorial constituencies in the Municipal area and for this purpose each Municipal area shall be divided into territorial
constituencies to be known as wards.
(2) The Legislature of a State may, by law, provide—
(a) for the representation in a Municipality of—
(i) persons having special knowledge or experience in Municipal administration;
(ii) the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies
which comprise wholly or partly the Municipal area;
(iii) the members of the Council of States and the members of the Legislative Council of the State registered as electors within
the Municipal area;
(iv) the Chairpersons of the Committees constituted under clause (5) of article 243S: Provided that the persons referred to in
paragraph (i) shall not have the right to vote in the meetings of the Municipality;
(b) the manner of election of the Chairperson of a Municipality.

Article 243S of Indian Constitution- Constitution and composition of Wards Committees, etc.
(1) There shall be constituted Wards Committees, consisting of one or more wards, within the territorial area of a Municipality
having a population of three lakhs or more.
(2) The Legislature of a State may, by law, make provision with respect to—
(a) the composition and the territorial area of a Wards Committee;
(b) the manner in which the seats in a Wards Committee shall be filled.
(3) A member of a Municipality representing a ward within the territorial area of the Wards Committee shall be a member of that
Committee.
(4) Where a Wards Committee consists of—
(a) one ward, the member representing that ward in the Municipality; or
(b) two or more wards, one of the members representing such wards in the Municipality elected by the members of the Wards
Committee, shall be the Chairperson of that Committee.
(5) Nothing in this article shall be deemed to prevent the Legislature of a State from making any provision for the constitution of
Committees in addition to the Wards Committees.

Article 243T of Indian Constitution- Reservation of seats.

(1) Seats shall be reserved for the Scheduled Castes and the Scheduled Tribes in every Municipality and the number of seats so
reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that
Municipality as the population of the Scheduled Castes in the Municipal area or of the Scheduled Tribes in the Municipal area
bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Municipality
(2) Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to the
Scheduled Castes or, as the case may be, the Scheduled Tribes.
(3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the
Scheduled Tribes) of the total number of seats to be filled by direct election in every Municipality shall be reserved for women
and such seats may be allotted by rotation to different constituencies in a Municipality.
(4) The offices of Chairpersons in the Municipalities shall be reserved for the Scheduled Castes, the Scheduled Tribes and
women in such manner as the Legislature of a State may, by law, provide.
(5) The reservation of seats under clauses (1) and (2) and the reservation of offices of Chairpersons (other than the reservation for
women) under clause (4) shall cease to have effect on the expiration of the period specified in article 334.
(6) Nothing in this Part shall prevent the Legislature of a State from making any provision for reservation of seats in any
Municipality or offices of Chairpersons in the Municipalities in favour of backward class of citizens.

Article 243U of Indian Constitution- Duration of Municipalities, etc.

(1) Every Municipality, unless sooner dissolved under any law for the time being in force, shall continue for five years from the
date appointed for its first meeting and no longer: Provided that a Municipality shall be given a reasonable opportunity of being
heard before its dissolution.
(2) No amendment of any law for the time being in force shall have the effect of causing dissolution of a Municipality at any
level, which is functioning immediately before such amendment, till the expiration of its duration specified in clause (1).
(3) An election to constitute a Municipality shall be completed,—
(a) before the expiry of its duration specified in clause (1);
(b) before the expiration of a period of six months from the date of its dissolution: Provided that where the remainder of the
period for which the dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any
election under this clause for constituting the Municipality for such period.
(4) A Municipality constituted upon the dissolution of a Municipality before the expiration of its duration shall continue only for
the remainder of the period for which the dissolved Municipality would have continued under clause (1) had it not been so
dissolved.

Article 243V of Indian Constitution- Disqualifications for membership

(1) A person shall be disqualified for being chosen as, and for being, a member of a Municipality—
(a) if he is so disqualified by or under any law for the time being in force for the purposes of elections to the Legislature of the
State concerned: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has
attained the age of twenty-one years;
(b) if he is so disqualified by or under any law made by the Legislature of the State.
(2) If any question arises as to whether a member of a Municipality has become subject to any of the disqualifications mentioned
in clause (1), the question shall be referred for the decision of such authority and in such manner as the Legislature of a State may,
by law, provide.

Article 243W of Indian Constitution- Powers, authority and responsibilities of Municipalities, etc.
Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow—
(a) the Municipalities 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 Municipalities, subject
to such conditions as may be specified therein, with respect to—
(i) the preparation of plans for economic development and social justice;
(ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to
the matters listed in the Twelfth Schedule;
(b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred
upon them including those in relation to the matters listed in the Twelfth Schedule.

Article 243X of Indian Constitution- Power to impose taxes by, and Funds of, the Municipalities.
The Legislature of a State may, by law,—
(a) authorise a Municipality 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 Municipality 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 Municipalities 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 Municipalities
and also for the withdrawal of such moneys therefrom, as may be specified in the law.

Article 243Y of Indian Constitution- Finance Commission

(1) The Finance Commission constituted under article 243-I shall also review the financial position of the Municipalities and
make recommendations to the Governor as to—
(a) the principles which should govern—
(i) the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the
State, which may be divided between them under this Part and the allocation between the Municipalities at all levels of their
respective shares of such proceeds;
(ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Municipalities;
(iii) the grants-in-aid to the Municipalities from the Consolidated Fund of the State; (b) the measures needed to improve the
financial position of the Municipalities;
(c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Municipalities.
(2) The Governor shall cause every recommendation made by the Commission under this article together with an explanatory
memorandum as to the action taken thereon to be laid before the Legislature of the State.

Article 243Z of Indian Constitution- Audit of accounts of Municipalities.

The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Municipalities and
the auditing of such accounts.

Article 243ZA of Indian Constitution- Elections to the Municipalities

(1) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to the
Municipalities shall be vested in the State Election Commission referred to in article 243K.
(2) Subject to the provisions of this Constitution, the Legislature of a State may, by law, make provision with respect to all
matters relating to, or in connection with, elections to the Municipalities.

Article 243ZB of Indian Constitution- Application to Union territories

The provisions of this Part shall apply to the Union territories and shall, in their application to a Union territory, have effect as if
the references to the Governor of a State were references to the Administrator of the Union territory appointed under article 239
and references to the Legislature or the Legislative Assembly of a State were references in relation to a Union territory having a
Legislative Assembly, to that Legislative Assembly: Provided that the President may, by public notification, direct that the
provisions of this Part shall apply to any Union territory or part thereof subject to such exceptions and modifications as he may
specify in the notification.

Article 243ZC of Indian Constitution- Part not to apply to certain areas.

(1) Nothing in this Part shall apply to the Scheduled Areas referred to in clause (1), and the tribal areas referred to in clause (2),
of article 244.
(2) Nothing in this Part shall be construed to affect the functions and powers of the Darjeeling Gorkha Hill Council constituted
under any law for the time being in force for the hill areas of the district of Darjeeling in the State of West Bengal.
(3) Notwithstanding anything in this Constitution, Parliament may, by law, extend the provisions of this Part to the Scheduled
Areas and the tribal areas referred to in clause (1) 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.

Article 243ZD of Indian Constitution- Committee for district planning

(1) There shall be constituted in every State at the district level a District Planning Committee to consolidate the plans prepared
by the Panchayats and the Municipalities in the district and to prepare a draft development plan for the district as a whole.
(2) The Legislature of a State may, by law, make provision with respect to—
(a) the composition of the District Planning Committees;
(b) the manner in which the seats in such Committees shall be filled: Provided that not less than four-fifths of the total number of
members of such Committee shall be elected by, and from amongst, the elected members of the Panchayat at the district level and
of the Municipalities in the district in proportion to the ratio between the population of the rural areas and of the urban areas in
the district;
(c) the functions relating to district planning which may be assigned to such Committees;
(d) the manner in which the Chairpersons of such Committees shall be chosen.
(3) Every District Planning 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 infrastructure and environmental conservation;
(ii) the extent and type of available resources whether financial or otherwise;
(b) consult such institutions and organisations as the Governor may, by order, specify.
(4) The Chairperson of every District Planning Committee shall forward the development plan, as recommended by such
Committee, to the Government of the State.

Article 243ZE of Indian Constitution- Committee for Metropolitan planning

(1) There shall be constituted in every Metropolitan area a Metropolitan Planning Committee to prepare a draft development plan
for the Metropolitan area as a whole.
(2) The Legislature of a State may, by law, make provision with respect to—
(a) the composition of the Metropolitan Planning Committees;
(b) the manner in which the seats in such Committees shall be filled: Provided that not less than two-thirds of the members of
such Committee shall be elected by, and from amongst, the elected members of the Municipalities and Chairpersons of the
Panchayats in the Metropolitan area in proportion to the ratio between the population of the Municipalities and of the Panchayats
in that area;
(c) the representation in such Committees of the Government of India and the Government of the State and of such organisations
and Institutions as may be deemed necessary for carrying out the functions assigned to such Committees;
(d) the functions relating to planning and coordination for the Metropolitan area which may be assigned to such Committees;
(e) the manner in which the Chairpersons of such Committees shall be chosen.
(3) Every Metropolitan Planning Committee shall, in preparing the draft development plan,—
(a) have regard to—
(i) the plans prepared by the Municipalities and the Panchayats in the Metropolitan area;
(ii) matters of common interest between the Municipalities and the Panchayats, including co-ordinated spatial planning of the
area, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental
conservation;
(iii) the overall objectives and priorities set by the Government of India and the Government of the State;
(iv) the extent and nature of investments likely to be made in the Metropolitan area by agencies of the Government of India and
of the Government of the State and other available resources whether financial or otherwise; (b) consult such institutions and
organisations as the Governor may, by order, specify.
(4) The Chairperson of every Metropolitan Planning Committee shall forward the development plan, as recommended by such
Committee, to the Government of the State.

Article 243ZF of Indian Constitution- Continuance of existing laws and Municipalities

Notwithstanding anything in this Part, any provision of any law relating to Municipalities in force in a State immediately before
the commencement of the Constitution (Seventy-fourth Amendment) Act, 1992, 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 Municipalities 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 Legislative Assembly of that State or, in the case of a State having a Legislative Council, by each House of the
Legislature of that State.
Article 243ZG of Indian Constitution- Bar to interference by courts in electoral matters.
Notwithstanding anything in this Constitution,—
(a) 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 243ZA shall not be called in question in any court;
(b) no election to any Municipality 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.

4. MUNICIPALITIES- MEANING, EVOLUTION, TYPES

(i) Meaning of Municipalities

Municipalities, also known as Urban Local Bodies (ULBs) refer to the system of ‘Urban Local Self-Governance’ in India i.e.
a system of governance of Urban Areas through the representatives elected by the people. They have been established in urban
areas across all States as the third tier of government, aiming to build democracy at the local level. This system ensures that
urban populations participate directly in the decision-making process, thereby enhancing the effectiveness and accountability of
urban development initiatives.

(ii) Constitutional Provisions Regarding Municipalities

The original constitution did not contain any provision regarding the Municipalities or Urban Local Bodies (ULBs). However,
the 74th Constitutional Amendment Act, of 1992, which gave constitutional status to the Urban Local Governance, added
detailed constitutional provisions regarding the Municipalities. The same is discussed in detail in the sections that follow:
Part IX-A of Constitution
 The 74th Constitutional Amendment Act of 1992 added a new Part IX-A to the Constitution of India, entitled ‘The
Municipalities’.
 Part IX-A of the Indian Constitution consists of Articles 243-P to 243-ZG, which provides for various provisions
regarding the Municipalities.
Twelfth Schedule (12th Schedule) to Constitution
 The 74th Constitutional Amendment Act of 1992 has also added a new Twelfth Schedule (12th Schedule) to the
Indian Constitution.
 This Twelfth Schedule (12th Schedule) outlines the powers, authority, and responsibilities of Municipalities.
 It contains a comprehensive list of 18 functions that have been devolved to Municipalities to enable them to govern
and manage a variety of local issues effectively.
(iii) Significance

 Towns and cities contribute substantially to the economic development of the country.
 These urban centres also play an important support role in the development of the rural hinterland.
 To keep this economic transformation in line with needs and realities at the grass-root level, it is necessary that the
people and their representatives are fully involved in the planning and implementation of the programmes at the local
level.
 If democracy in Parliament and State Legislatures is to remain strong and stable, its roots must reach towns and villages
and the cities where the people live.

(iv) Evolution of Urban Bodies

The concept of Urban Local Governance in India has existed since the ancient days. There is evidence of the same existing
during the Harappan period. However, Urban Local Governance, as an organized formal institution in the modern sense,
was introduced first in India during British rule.
The major events in this context are as follows:
 1688– The first Municipal Corporation in India was established at Madras (now Chennai).
 1726– Municipal Corporations were established in Bombay (now Mumbai) and Calcutta (now Kolkata).
 1870- Lord Mayo’s Resolution on Financial Decentralisation was introduced in 1870.
o This envisioned the development of local self-government institutions to manage Municipal finances more
effectively.
 1882- Lord Ripon’s Resolution of 1882, often referred to as the ‘Magna Carta’ of Local Self-Government, laid the
foundation for the modern framework of local governance.
o For the same reason, Lord Ripon is called the ‘Father of Local Self-Government in India’.
 1907-1909– The Royal Commission on Decentralisation was appointed in 1907 and it submitted its report in 1909.
o The Royal Commission on Decentralisation was chaired by C.E.H. Hobhouse which focused on enhancing
local self-governance structures.
 1919- Government of India Act of 1919 introduced the Dyarchical Scheme, which made Local Self-Government a
transferred subject under the control of a responsible Indian Minister.
o This had the effect of promoting greater local autonomy.
  1924– The Cantonments Act was enacted in 1924 by the Central Legislature to govern the administration of
cantonment areas.
 1935– The Government of India Act of 1935 made Local Self-Government a Provincial Subject. This led to
transferring greater responsibility and autonomy to provincial governments for managing local affairs.
 1949 Onwards– Post independence, 1949 onwards, the Government of India appointed several committees and
commissions to make recommendations on improving the functioning of urban local governments in India.
 1992– Finally, the 74th Constitutional Amendment Act, 1992 was passed by the Parliament, which gave the
Municipalities constitutional status as well as a uniformity of structure throughout the country.
o This brought the states under constitutional obligation to adopt the new urban local government in
accordance with and as per the structure provided by the provisions of the Act.

(v) Constitution of Municipalities (243 Q)

 Based on the recommendations of various committees, the Parliament enacted the 74th Constitutional Amendment
Act, 1992, which gave the Municipalities or Urban Local Bodies (ULBs) in India constitutional status.
 The 74th Constitutional Amendment Act of 1992 added various provisions in the Constitution regarding the
Municipalities or Urban Local Bodies (ULBs).
o Important constitutional provisions regarding the Municipalities are discussed in detail in the sections that
follow.
Three Types of Municipalities
 The 74th Constitutional Amendment Act of 1992 provides for the constitution of the following three types
of Municipalities or Urban Local Bodies (ULBs) in every State:
o A Nagar Panchayat (by whatever name called) for a Transitional Area,
o A Municipal Council for a Smaller Urban Area.
o A Municipal Corporation for a Larger Urban Area.

 The Governor has to specify a Transitional Area, a Smaller Urban Area, or a Larger Urban Area, keeping in view
the following factors:
o The population of the area,
o The density of the population therein,
o The revenue generated for local administration,
o The percentage of employment in non-agricultural activities,
o Economic importance, and
o Such other factors as he/she may deem fit.
Note: If there is an Urban Area where Municipal Services are being provided by an Industrial Establishment, then
the Governor may specify that area to be an ‘Industrial Township’. In such a case, a Municipality may not be constituted.

(vi) Composition of Municipalities (243R)

A Municipality, usually, consists of a Chairperson and other members. The Chairperson as well as other members of a
Panchayat shall have the right to vote in the meetings of the Panchayats. The State Legislature may also provide for the
representation of the following persons in a Municipality.
o Persons having special knowledge or experience in Municipal Administration without the right to vote in the
meetings of the Municipality.
o The members of the Lok Sabha and the State Legislative Assembly represent constituencies that comprise
wholly or partly the Municipal Area.
o The members of the Rajya Sabha and the State Legislative Council registered as electors within the Municipal
Area.
o The Chairpersons of Committees (other than Wards Committees).

(vii) Election of Chairperson and Members of Municipalities

 All the members of a Municipality or Urban Local Bodies (ULBs) shall be elected directly by the people of the
Municipal Area.
o For this purpose, each Municipal Area shall be divided into territorial constituencies to be known
as Wards.
 The State Legislature may provide the manner of election of the Chairperson of a Municipality.
Note: As per Article 243V, the minimum age for contesting Municipality elections in India is 21 years.

(viii) Important Committees in a Municipality

Wards Committees
 There shall be constituted a Wards Committee, consisting of one or more wards, within the territorial area of a
municipality having a population of three lakh or more.
 The state legislature may make provision w.r.t. the composition and the territorial area of a Wards Committee and the
manner in which the seats in a wards committee shall be filled.
Other Committees
 In addition to the Wards Committees, the state legislature is also allowed to make any provision for the constitution of
other committees.
 The chairpersons of such committees may be made members of the municipality.

(ix) Duration of Municipalities

 The 74th Constitutional Amendment Act of 1992 provides for a five-year term of office for every Municipality from
the date of its first meeting.
o However, it can be dissolved before the completion of its term.
 Fresh elections to constitute a Municipality shall be completed:
o before the expiry of its duration of five years,
o in case of dissolution, before the expiry of a period of six months from the date of its dissolution.
 It is to be noted that if the remainder of the period (for which the dissolved Municipality would have continued) is b, it
shall not be necessary to hold any election for constituting the new Municipality for such period.
 Moreover, a Municipality constituted upon the dissolution of a Municipality before the expiration of its duration shall
continue only for the remainder of the period for which the dissolved Municipality would have continued had it not
been so dissolved.
o In other words, a municipality reconstituted after premature dissolution does not enjoy the full period of five
years but remains in office only for the remainder of the period.
 The 74th Constitutional Amendment Act of 1992 also makes two more provisions with respect to the dissolution of a
Municipality:
o a Municipality must be given a reasonable opportunity to be heard before its dissolution, and
o no amendment of any law for the time being in force shall cause dissolution of a Municipality before the expiry
of the five-year term.

(x) Reservation of Seats in Municipalities

Reservation of Seats for SCs and STs
 The 74th Constitutional Amendment Act of 1992 provides for the reservation of seats for the Scheduled Castes
(SCs) and the Scheduled Tribes (STs) in every Municipality in the proportion of their population to the total population
in the Municipal Area.
 The State Legislature shall provide for the reservation of offices of Chairpersons in the Municipalities for Scheduled
Castes (SCs) and Scheduled Tribes (STs).
 The reservation of seats as well as the reservation of offices of Chairpersons in the Municipalities for the Scheduled
Castes (SCs) and Scheduled Tribes (STs), shall cease to have effect after the expiration of the period specified
in Article 334.
o Presently, this reservation is to last till 2030.

Reservation of Seats for Women

 The Act provides for the reservation of not less than one-third of the total number of seats for women (including the
number of seats reserved for women belonging to the Scheduled Castes and Scheduled Tribes).
 Further, the State Legislature shall provide for the reservation of offices of Chairpersons in the Municipalities
for women.

Reservation of Seats for Other Backward Classes (OBCs)

The Act authorizes the State Legislature to make any provision for the reservation of seats in any Municipality or offices of
Chairperson in the Municipality in favor of Backward Classes.
Disqualification of Members of Municipalities
 A person shall be disqualified for being chosen as or for being a Member of a Municipality if he/she is so disqualified:
o under any law for the time being in force for elections to the Legislature of the State concerned,
o under any law made by the State Legislature.
 All questions of disqualifications shall be referred to such authority as determined by the State Legislature.

(xii) Powers and Functions of Municipalities

 The State Legislature may endow the Municipalities or Urban Local Bodies (ULBs) with such powers and
authority as may be necessary to enable them to function as institutions of self-government.
 State’s provisions for the devolution of powers and responsibilities upon Municipalities or Urban Local Bodies
(ULBs) may contain:
o the preparation of plans for economic development and social justice, and
o the implementation of schemes for economic development and social justice as may be entrusted to them,
including those in relation to the 18 matters listed in the Twelfth Schedule.

(xiii) Jurisdictions of Municipalities

The jurisdiction of an Urban Local Government is limited to a specific Urban Area which is demarcated for this purpose by the
State Government.

(xiv) Finances of Municipalities

As per the provisions regarding the finances of Municipalities or Urban Local Bodies (ULBs), the State Legislature may:
 authorize a Municipality to levy, collect, and appropriate taxes, duties, tolls, and fees,
 assign to a Municipality taxes, duties, tolls, and fees levied and collected by the State Government,
 provide for making grants-in-aid to the Municipalities from the Consolidated Fund of the State, and
 provide for the constitution of funds for crediting all money of the Municipalities.

District Planning Committee (DPC)

 A District Planning Committee is to be constituted by every State at the district level to consolidate the plans
prepared by Panchayats and Municipalities in the district, and to prepare a draft development plan for the district as
a whole.
 The State Legislature may make provisions with respect to the following:
o The composition of such Committees,
o The manner of election of Members and Chairpersons of such Committees, and
o The functions of such Committees in relation to district planning.

Metropolitan Planning Committee (MPC)

 Every Metropolitan Area shall have a Metropolitan Planning Committee (MPC) to prepare a Draft Development
Plan and forward it to the State Government.
 The State Legislature may make provisions with respect to the following:
o The composition of such Committees,
o The manner of election of Members and Chairpersons of such Committees,
o The representation in such Committees of the Central Government, State Government, and other
organizations, and
o The functions of such Committees in relation to planning and coordination for the Metropolitan Area.
Note: Metropolitan Area refers to an area having a population of 10 lakh or more, in one or more districts, and consisting of
two or more Municipalities or Panchayats or other contiguous areas.

Significance of Municipalities
As the third tier of the government in India, the Municipalities or Urban Local Bodies (ULBs) carry multifarious significance as
can be seen as follows:
 Municipalities effectively decentralize urban governance, transferring powers and responsibilities to the local level.
 Municipalities are pivotal in transforming representative democracy into participatory democracy in urban areas,
involving citizens in the decision-making processes for urban development and management.
 Municipalities empower local urban communities by engaging them directly in governance and development
activities, allowing for more inclusive and localized decision-making.
 Reservations for marginalized groups like Scheduled Castes, Scheduled Tribes, and women in Municipalities ensure
their political empowerment and enhance their representation in urban governance.
 Municipalities bring governance closer to urban residents, making the administration more responsive to local needs,
problems, and aspirations, and improving civic engagement.
 Municipalities enhance the efficiency of public service delivery and the implementation of urban development
programs, addressing local issues and infrastructural needs more effectively.
 Municipalities provide a platform for emerging urban leadership, nurturing their administrative and managerial
capabilities, and preparing them for higher responsibilities in urban governance.

Features of the 74th Constitutional Amendment Act 1992

The salient features of the 74th Constitutional Amendment Act of 1992 are as follows:
 Three Types of Municipalities – The Act provides for three types of Municipalities in every State – Nagar Panchayat,
Municipal Council, and Municipal Corporation.
 Composition of Municipalities – The Act provides for the composition of Municipalities and the way of
election/nomination of their members.
 Ward Committees and Other Committees – The Act empowers the State Legislature to make provisions for the
constitution of Ward Committees and Other Committees for specified areas and for specified purposes.
 Election of Chairperson and Members – The Act provides detailed provisions regarding the election of Members and
Chairperson of Municipalities.
 Reservation of Seats – The Act makes provisions for the reservation of seats for Scheduled Castes, Scheduled
Tribes, Women, and OBCs in Municipalities.
  Duration of Municipalities – The Act provides for a five-year term of office to every Municipality from the date of
its first meeting.
 Disqualifications of Members of Municipalities – It details conditions regarding disqualifications of members of
Municipalities.
 Powers and Functions – The State Legislature may endow the Municipalities with such powers and authority as
may be necessary to enable them to function as institutions of self-government.
 Finances of Municipalities – The State Legislature may authorize a Municipality to levy, collect, and appropriate
taxes, duties, tolls, and fees.
 Audit of Accounts – The State Legislature may make provisions with respect to the maintenance of accounts by
Municipalities and the auditing of such accounts.
 Application to Union Territories – The provisions of the Municipalities are applicable to the Union Territories.
However, the President may direct that they would apply to a Union Territory subject to such exceptions and
modifications as specified by the President of India.
 Exempted Areas – The Act does not apply to the Scheduled Areas and Tribal Areas in the States. However, the
Parliament may extend the provisions of Municipalities to the Scheduled Areas and Tribal Areas subject to such
exceptions and modifications as it may specify.
 Bar to Interference by Courts in Electoral Matters – The Act bars the interference by courts in the electoral matters
of Municipalities.
o It declares that the validity of any law relating to the delimitation of constituencies or the allotment of seats to
such constituencies can not be questioned in any court.
o It further lays down that no election to any Municipality is to be questioned except by an election petition
presented to such authority and in such manner as provided by the State Legislature.

Central Council of Local Government

– The Central Council of Local Government was constituted in 1954 under Article 263 of the Constitution of India by an order
of the President of India.
– The Council consists of the Union Minister for Housing and Urban Affairs in the Government of India and the Ministers
for Local Self-Government in States.
– The Union Minister acts as the Chairman of the Council.
– The Council is an advisory body and deals with the matters of Urban Local Government only.
a. Earlier, it dealt with both urban as well as rural local governments, but after 1958 it has been dealing with matters of urban
local government only.

State Election Commission

– State Election Commission is a constitutional body, functioning at the state level.
– It is vested with the functions and responsibilities of superintendence, direction, and control of the preparation of electoral
rolls and the conduct of all elections to the Panchayats.
– The State Election Commission (SEC) consists of a State Election Commissioner to be appointed by the Governor of the
State.
a. His/her conditions of service and tenure of office shall also be determined by the Governor.
b. He/she shall not be removed from the office except in the manner and on the grounds prescribed for the removal of a judge
of the State High Court.
c. His/her conditions of service shall not be varied to his/her disadvantage after his/her appointment.
State Finance Commission

– The Governor of a State shall constitute a State Finance Commission, after every five years, to review the financial position
of the Panchayats.
– The State Legislature may provide for the composition of the State Finance Commission, the required qualifications of its
members, and the manner of their selection.
– The State Finance Commission shall make the following recommendations to the Governor of the State:
1. The principles that should govern:
a. The distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls, and fees levied by the
State and the allocation of shares amongst the Panchayats at all levels.
b. The determination of taxes, duties, tolls, and fees that may be assigned to the Panchayats.
c. The grants-in-aid to the Panchayats from the Consolidated Fund of the State.
2. The measures needed to improve the financial position of the Panchayats.
3. Any other matter referred to by the Governor in the interests of sound finance of the Panchayats.
– The Governor shall place the recommendations of the commission along with the action taken report before the State
Legislature.
– 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 State Finance
Commission).
5. MUNICIPAL COUNCIL- COMPOSITION AND FUNCTIONS

Composition
The members of the Municipal Council or Municipality are elected representatives for a term of five years. The town is divided
into wards according to population, and representatives are elected from each ward separately. The members elect a chairperson
and vice chairperson among themselves to preside over and conduct meetings. A chief executive officer, along with officers like
an engineer, sanitary inspector, health inspector, and education officer who come from the state public service are appointed by
the state government to control the administrative affairs of the Nagar Palika. Employees of the state government of India,
including Chief Officer, Town Planning Engineer, Auditor, Sanitary Inspector, Medical Officer for Health, and Education Officer,
among many others, who come from the state public services, are appointed to handle the administrative affairs of the
Municipality.

Requirements
The population requirements for forming a Municipal Council or Municipality vary across different states in India. The specific
population thresholds are defined by the respective state governments through their municipal acts or legislation. In Andhra
Pradesh, a Municipality can be formed if the population of the area is more than 25000 and below 100000. The population
requirement for a municipality to be classified as a Municipal Council can vary from state to state but typically ranges from
around 20,000 to 100,000 residents. Again, the exact population requirement may vary depending on the state. The establishment
of municipalities is primarily based on several factors that are taken into consideration by the state governments. These factors
may vary from state to state but generally include the following:

Population, Geographical area, Urbanization, Revenue, Infrastructure

Functions
The Municipality is responsible for: Water supply, Hospitals (Excluding district hospitals, regional speciality hospitals),
Roads (Excluding major district roads), Street lighting, Drainage, Fire brigade, Market places, Government schools, Sewage
treatment, Veterinary clinics, Agriculture, Public health care, Public amenities, Social forestry, Social welfare, Infrastructure
development, Urban planning, Records of births and deaths, Sports and recreational facilities, Sanitation, Solid waste
management, Maintaining gardens, parks and playgrounds, Providing education to unprivileged children, issuance of trade
certificate, birth and death certificate, building permit, occupancy certificate, etc.

Sources of income
A steady and adequate supply of funds is essential for the smooth running of all these programmes. The various sources of
income of municipal bodies are:

 The income from taxes, including on houses, entertainment, electricity, water tax (in certain cities), vehicles, property,
and land
 Toll tax is the most important income of a municipality. All commercial vehicles may receive toll taxes, except auto
rickshaw.
 Income is also generated from commercial activities like hotels, tourist centers, renting and sale of municipal property,
and education cess.
 Financial grants from the state government are a major source of income for all municipal bodies. Loans are also
provided if special projects are undertaken for citizens' welfare.
 Professional tax collection from all the employers, i.e. government and private sectors

6. Obligatory and discretionary Functions of Urban Local Bodies

It is a common practice to divide the organisation of a corporation or a municipality into two parts:

(a) deliberative and (b) executive part

The corporation, council or municipal board or council consisting of the elected representatives of the people constitutes the
deliberative part. It acts like a legislature.
 It discusses and debates on general municipal policies and performance, passes the budget of the urban local body, frames broad
policies relating to taxation, resources raising, pricing of services and other aspects of municipal administration.

It keeps an eye on municipal administration and holds the executive accountable for what is done or not done. For instance, if
water supply is not being properly managed, or there is an outbreak of an epidemic, the deliberative wing criticises the role of the
administration and suggests measures for improvement.

The executive part of municipal administration is looked after by the municipal officers and other permanent employees. In the
corporations, the Municipal Commissioner is the executive head, and all other departmental officers like engineers, finance
officers, health officers etc. function under his/her control and supervision.

In a large corporation, such as Delhi or Mumbai Municipal Corporation, the Commissioner is usually a senior IAS officer. In
municipalities, the executive officer holds a similar position and looks after the overall administration of a municipality.

Municipal functions are generally classified into obligatory and discretionary types.

The obligatory (compulsory) functions are those that the municipal body must perform. In this category fall such functions as
water supply; construction and maintenance of roads, streets, bridges, subways and other public works, street lighting; drainage
and sewerage; garbage collection and disposal; prevention and control of epidemics.

Some other obligatory functions are public vaccination and inoculation; maintenance of hospitals and dispensaries including
maternity and child welfare centres; checking food adulteration; removal of slums; supply of electricity; maintenance of
cremation and burial grounds; and town planning. In some States some of these functions may be taken over by State
Government.

The discretionary functions are those that a municipal body may take up if funds permit. These are given less priority. Some of
the discretionary functions are construction and maintenance of rescue homes and orphanages, housing for low income groups,
organising public receptions, provision of treatment facilities, etc.

7. Type of urban governments

There are eight types of urban governments in India.

1. Municipal Corporation: Municipal corporations are created for the administration of big cities like Delhi, Mumbai,
Hyderabad and others. A Municipal Corporation has three authorities namely, the council (legislative wing of the corporation),
the standing committee (to facilitate the working of the council) and the commissioner (chief executive authority of the
corporation).The council consist of councillors directly elected by people and is headed by a Mayor while the Commissioner is
appointed by state government and is generally an IAS officer.
2. Municipality: The municipalities are established for the administration of towns and smaller cities. They are known by
various other names like municipal council, municipal committee, municipal board, borough municipality, city municipality and
others. In composition they are quite similar to municipal corporations except that head of council is called President /chairman
and in place of commissioner they have a chief executive officer/chief municipal officer.
3. Notified Area Committee: A notified area committee is created for the administration of two types of areas- a fast
developing town due to industrialisation, and a town which does not yet fulfill all the conditions necessary for the constitution of
a municipality, but which otherwise is considered important by the state government. It is called so because it is created by a
notification and unlike the municipality it is an entirely nominated body, i.e. all members, including the Chairman, are nominated
by the state government. Thus, it is neither a statutory body (created by law) nor an elected body.
4. Town Area Committee: It is set up by a separate act of state legislature for the administration of a small town. It is a
semi-municipal authority entrusted with limited number of civic functions. It may be wholly elected or wholly nominated or
partly elected and partly nominated as provided by state government.
5. Cantonment Board: It is established for municipal administration for civilian population in the cantonment areas (area
where military forces and troops are permanently stationed). It is set up under the provisions of the Cantonment Act, 2006 by
central government and works under Defence ministry of central government. It is partly elected and partly nominated body
having the Military officer commanding the station as its ex-officio President. Vice president is elected amongst by the elected
members of board. The executive officer of the cantonment board is appointed by the President of India.,
6. Township: It is established by large public enterprises to provide civic amenities to its staff and workers, who live in the
housing colonies built near the plant. It is not an elected body and all members, including the town administrator, is appointed by
the enterprise itself.
7. Port Trust: The port trusts are established in the port areas like Mumbai, Kolkata, Chennai and so on for two purposes:
(a) to manage and protect the ports; (b) to provide civic amenities. It is created by an Act of Parliament and it consists of both
elected and nominated members.
8. Special Purpose Agency: The states have set up certain agencies to undertake designated activities or specific functions
that legitimately belong to the domain of municipal corporations, municipalities or other local urban governments. In other words,
these are function based, not area based. They are known as ‘single purpose’, ‘uni-purpose’ or ‘special purpose’ or ‘functional
local bodies’ like town improvement trust, housing boards, pollution control boars etc. They are established as statutory bodies
by an act of state legislature or as departments by an executive resolution. They function as an autonomous body and are not
subordinate agencies to local municipal bodies.

8. STATE FINANCE COMMISSION - ROLE IN FINANCIAL POWERS OF LSG

243I. Constitution of Finance Commissions to review financial position

(1)The Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (Seventy-third
Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the
financial position of the Panchayats and to make recommendations to the Governor as to--
(a)the principles which should govern--
(i) the distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the
State, which may be ided between them under this Part and the allocation between the Panchayats at all levels of their respective
shares of such proceeds;
(ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Panchayats;
(iii)the grants-in-aid to the Panchayats from the Consolidated Fund of the State;

(b)the measures needed to improve the financial position of the Panchayats;

(c)any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats.

(2)The Legislature of a State may, by law, provide for the composition of the Commission, the qualifications which shall be
requisite for appointment as members thereof and the manner in which they shall be selected.
(3)The Commission shall determine their procedure and shall have such powers in the performance of their functions as the
Legislature of the State may, by law, confer on them,(4)The Governor shall cause every recommendation made by the
Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the
Legislature of the State.

The role of SFCs in empowering local governance- Despite the challenges, the role of State Finance Commissions in
empowering local governance cannot be overstated. Let’s explore how SFCs contribute to this empowerment.
Reviewing the ground realities- SFCs assess the actual financial needs and capacities of Panchayats, ensuring that fiscal policy
is informed by ground realities rather than top-down estimations.
Recommending equitable distribution- By recommending how state revenues should be shared, SFCs play a pivotal role in
ensuring that local bodies have the means to address community needs effectively.
Promoting fiscal autonomy and accountability- Through their recommendations, SFCs encourage Panchayats to explore and
enhance their sources of revenue, thereby promoting fiscal autonomy and accountability.

9. CANTONMENT BOARD- COMPOSITION AND FUNCTION

What is the Cantonment Board?

 A cantonment board is formed to oversee municipal administration for the civilian population living in the cantonment
area. It operates under the administrative control of the Ministry of Defence. In contrast to othertypes of urban local
bodieswhich are created and administered by the state government, a cantonment board is created and administered by
the central government. The Cantonments Act of 2006 was enacted to consolidate and amend the law relating to
cantonment administration in order to provide greater democratisation, improve their financial base, and make
provisions for developmental activities and matters related to them. The Cantonments Act of 1924 was repealed by this
Act. The country currently has 62 cantonment boards.
Members of Cantonment Board

 A cantonment board is made up of members who are both elected and nominated.
 The elected members serve for a five-year term, while the nominated members (i.e., ex-officio members) serve for as
long as they hold the office in that station.
 The military officer commanding the station serves as the board's ex-officio president and presides over its meetings.
 The vice-president of the board is chosen by the elected members from among themselves for a five-year term.
 The Category I cantonment board is made up of the following individuals:
o A military officer in command of the station
o A cantonment executive engineer
o Health Officer in the cantonment
o A first-class magistrate nominated by the district magistrate
o three military officers nominated by the officer commanding the station
o eight members elected by the cantonment area's residents
o the cantonment board's chief executive officer
 A cantonment board's functions are similar to those of a municipality. These are statutorily divided into obligatory and
discretionary functions.
 Tax revenue and non-tax revenue are both sources of income.
 The president of India appoints the executive officer of the cantonment board. He is in charge of putting all of the
board's and committees' resolutions and decisions into action.
 He is a member of the central cadre established for this purpose.
 The board's ex officio president is the cantonment's station commander.
 The chief executive and member-secretary is an officer of the Defence Estates Organisation.
 To balance the official representation, the board has equal representation of elected and nominated/ex officio members.

They are classified into four groups based on their civil population.Constitutional Provisions

 It was established in accordance with the provisions of the Cantonments Act of 2006, which was enacted by the Central
Government. According to Entry 3 of the Union List (Schedule VII) of the Indian Constitution, urban self-government
of cantonments and housing accommodation within them is the subject matter of the Union of India.
 As per Section 10(2) of the Act, every Cantonment Board is deemed to be a municipality under clause (e) of article
243P of the Constitution for the purpose of:
o Receiving grants and allocations; or
o Implementing the Central Government schemes of the social sector, public health, hygiene, safety, water
supply, sanitation, urban renewal, and education.

Significance

 It provides for public health, water supply, sanitation, primary education, and street lighting, among other things,
to the residents of the cantonment.
 It also provides for training and administration of the Army in the said area.
 Cantonments serve as an "interim location" for units and soldiers between two tenures of difficult and challenging
"border and field postings" to focus on training and administration.

Shortcomings

 Cantonments have a number of restrictions in place, including prohibitions on any construction activity or the use of
specific roads.
 These constraints have become a source of contention between the civilian population living within cantonments and the
military.
 Civilian residents of cantonments are dissatisfied with the way cantonment boards operate.
 One of the most common complaints from civilians living in cantonments is that occupying common areas is difficult,
and there are limited resources for infrastructure development.
 Citizens from non-military backgrounds who live inside cantonments face difficulties obtaining home loans because it is
considered defence land.
 Certain government schemes, such as the Pradhan Mantri Awas Yojna, are not always applicable to people living in
cantonments.
 Even building additional floors or carrying out basic renovations is a problem for civilians living in cantonments
because it requires multiple permissions.
 There were also restrictions on movement within cantonments due to security concerns.
  If cantonments are abolished, it will have a negative impact on Army training and administration in these areas, as well
as pose a security risk.

9. WARD COMMITTEES

Article 243S of Indian Constitution- Constitution and composition of Wards Committees, etc.

(1) There shall be constituted Wards Committees, consisting of one or more wards, within the territorial area of a Municipality
having a population of three lakhs or more.
(2) The Legislature of a State may, by law, make provision with respect to—
(a) the composition and the territorial area of a Wards Committee;
(b) the manner in which the seats in a Wards Committee shall be filled.
(3) A member of a Municipality representing a ward within the territorial area of the Wards Committee shall be a member of that
Committee.
(4) Where a Wards Committee consists of—
(a) one ward, the member representing that ward in the Municipality; or
(b) two or more wards, one of the members representing such wards in the Municipality elected by the members of the Wards
Committee, shall be the Chairperson of that Committee.
(5) Nothing in this article shall be deemed to prevent the Legislature of a State from making any provision for the constitution of
Committees in addition to the Wards Committees.

10. MUNICIPAL FUND

Municipal bonds are among the biggest sources of funding projects and infrastructure by local governments in most parts of the
world. Municipalities such as the city council and town council raise funds directly from investors through municipal bonds. This
investment type allows local governments to provide funds for roads, bridges, and water supply systems, with little reliance on
funds or money from the central or state governments. Key takeaways:
 Local governments or municipal corporations release Municipal Bonds. The investors purchase these bonds instead of
providing them with an interest that is paid periodically, and they repay the actual amount when they mature.
 These bonds finance long-term infrastructure works such as roads, schools, and sanitation systems.
 They do not require bank loans with high interest rates, and the financial autonomy of local governments is also
protected.

Different Types of Municipal Bonds

There are several different types of Municipal Bonds. One is the tax-exempt bond, in which the interest earned by investors is
exempt from certain taxes usually the income tax; they are becoming a more attractive option to investors seeking to save on
taxes while supporting public infrastructure projects. Each has unique features that appeal to different kinds of investors:

General Obligation Bonds

They do not have specific sources of revenue. They are just secured by the taxing power of the issuer municipal. They usually
give a feeling of safety for investment, more so in the case of well-established municipalities.

Revenue Bonds
These are different from general obligation bonds which are paid back using income from the project that they financed. A good
example of this is a bond to finance a toll road-the investors get their money through the collected tolls.

Tax-Exempt Bonds
Tax-exempt bonds are a category of municipal bonds. The tax-exempt interest income raised by these bonds attracts investors
who have low tax liabilities but can still support projects undertaken by the local government like schools, roads, and public
utilities.

Project-Specific Bonds
Project-specific bonds come under different types of municipal bonds. These types of bonds are issued for raising funds for
specific infrastructure projects, such as energy plants, bridges, or water systems, and repayment is made from the revenues that
the particular project itself generates.

11. BLOCK DEVELOPMENT OFFICERS- POWERS AND DUTIES

The constitution is composed of ex-official members (all sarpanchas of the panchayatsamiti area, the MPs and MLAs of the area
and the SDO of the subdivision), co-opt members (representatives of SC/ST and women), associate members (a farmer of the
area, a representative of the cooperative societies and one of the marketing services), and some elected members. The samiti is
elected for 5 years and is headed by the Chairman and the Deputy Chairman

Powers of Block Development Officer (BDO.):

(a) As a Chief Executive Officer:

(i) Block Development Officer is to see that the plans and programmes approved by the appropriate authorities are executed
efficiently.
(ii) He signs contracts and authenticates all letters and documents for and on behalf of the Panchayat Samiti subject to the prior
approval of the appropriate authority.
(iii) He draws and disburses money out of the Panchayat Samiti Fund.
(iv) He takes steps to remove any irregularity pointed out by the auditors about Panchayat Samiti accounts.
(v) He inspects on behalf of the Panchayat Samiti, the financial position of the Panchayats with special reference to the levy of
taxes, and their recovery of loans and maintenance of regular accounts.
(vi) He helps Panchayats to draw up plans and see that they conform to the plans and priorities of the Panchayat Samiti. He also
sees that the construction programmes undertaken by the Panchayat conform to the standards laid down and completed within the
scheduled time.

(b) As a Head of the Block Office: (i) BDO exercises supervision and control over the extension officers and other employees
of the Panchayat Samiti and the staff borne on transferred schemes. He can censure a Panchayat Samiti employee under him,
subject to the right of appeal of the latter to the standing committee on taxation, finance and administration.
(ii) He formulates annual budget and places it before the Panchayat Samiti, prepares the annual administrative report and
quarterly progress reports for the consideration of the Panchayat Samiti and transmits the same to Zila Parishad and the State
Government.
He supplies copies of resolutions and proceedings of the Panchayat Samiti and standing committees to the Zila Parishad or the
State Government or their duly authorized officers.
(iii) He reports without delay all cases of fraud, embezzlement, theft or loss of money or other property of the Panchayat Samiti.

(c) As a Secretary: (i) He issues notices for the meetings of the Panchayat Samiti and standing committees under instructions
from the Pradhan and Chairman of the respective committees.
(ii) He attends all such meetings himself or authorizes a senior officer subordinate to him to attend such meetings. However, he
does not exercise right to vote while attending such meetings.
(iii) He causes minutes to be recorded and circulated.

(d) Emergency Functions:

In case of fire, floods or epidemics, he directs the execution of any work or act and incurring of expenditure upon it which
normally, requires the sanction of Panchayat Samiti or its standing committee. In every such case, the action taken and reaction
thereof requires reporting to the competent authority.
It may not be out of place to point out that the role of B.D.O. in Panchayat Samiti meetings is more than secretarial. He can
render advice regarding the legality and the various consequences of a proposed course of action.
Owing to his long experience, knowledge of precedents and insight into legal, financial and administrative matters, his advice is
given every consideration. He sometimes acts as a moderator when the Samiti fails to compose the differences. A competent and
sympathetic B.D.O. can win the trust and respect of the Panchayat Samiti members.
He is assisted by a team of experts in agriculture, co-operation, animal husbandry, cottage industries, etc. Commenting on the
significance of Block organisation, Ramaswamy remarks, “Block organisation is the symbol of cooperation between a
democratic government and its free people. It is only now that the block officers, have started going to the farms and homes of
the villagers to do what the villagers wanted.”

2. Functions of Block Development Officer:

Next comes the village level worker who is in-charge of about ten to twelve villages and performs multi-purpose functions. He is
generally a matriculate. In the initial stages of the community development programme the village level worker was portrayed as
the hinge upon which the development programme in the village revolved.
As a multiple- purpose functionary, he has to serve as common agency of all the development departments and educate the
people to adopt the programmes of technical and financial assistance.

His main functions are as follows:

(a) Agricultural, Education, Store and Distribution of Agricultural Supplies:
It was an important function in the initial stages. However, with the emergence of co-operative stores, the distribution function
has been taken away from him. Through camps, individual talks, group meetings and demonstration, he imparts agricultural
education which means making the villagers aware of fertilizers, improved seeds and use of insecticides.
(b) Social Education: Formerly he explained to the people, the philosophy of the community development programme and the
opportunities available under it. Now, this responsibility mostly devolves upon Gram Sabha and Samitis. However, he has to do a
lot of explaining in Gram Sabhas and Panchayats. In the words of Dr. S. C. Jain, “The V.L.W.’s role has become as one of an
enabler rather than that of the initiator.
(c) Production Plan and Allied Services: Since 1957, the V.L.W. has started helping the Village Panchayats in framing their
production programmes and executing and reviewing them. He draws up the plan in accordance with instructions from above,
summons Gram Sabha meetings, explains the plan to Gram Sabha and sanctifies it as village plan after the rectification of the
plan by the Gram Sabha.He secures technical and financial assistance through the help of Extension Officer and by expediting
applications for loan or subsidy.
(d) Attending Works Programme: In the initial stages, he persuaded the villagers to make contribution to the work programmes,
organised ‘Sram dan’, secured the assistance of overseer, maintained record of works and secured grants from the government for
executing the programme. This function is claiming comparatively less attention now.
(e) Organising Co-operatives and other Auxiliary Agencies: The village level worker organises co-operatives, youth clubs,
Bal Mandirs and Mahila Mandals. He convenes their meetings quite frequently.
(f) House Keeping: He sends reports and returns and maintains records. He attends staff meetings at the Block Headquarters and
attends to supervisors and visitors who call upon him when he is on official tour.
(g) Attending Panchayat Samiti and Gram Sabha Meetings: He is required to attend Panchayat and Gram Sabha Meetings in
his circle. These meetings are convened on an average about five per month and take nearly five and a half days.

TAMIL NADU PANCHAYAT ACT 1994

Objective and applicability of the Tamil Nadu Panchayat Act 1994

The Tamil Nadu Panchayat Act, 1994, was enacted with the primary goal of furthering the objective of decentralized democracy
and making the systems and institutions of local self-governance solid and formal. The Act deals with multiple aspects, like the
creation, constitution, powers, and functions of various tiers of panchayat bodies in the state of Tamil Nadu. It attempts to
distribute the multiple types of powers and functions between the tiers of panchayats and empower the decision-making bodies of
the people of the communities. The Act intends to address the implementation of initiatives related to development projects at the
ground level. It attempts to include representation from various groups in the marginalized sections of society, which provides for
Scheduled Castes, Scheduled Tribes, and women to have an intersectional decision-making process.
The Act creates various authorities and offices under its folds, assigns them particular functions to fulfil and entitles them to
certain powers. As a presiding officer for the three-tier system, the Act creates the offices of president, vice-president,
chairperson, and vice-chairperson. The Act also assigns authority to the executive authority, commissioner, and secretary for the
process of scrutinising and supervising the implementation of certain schemes and duties assigned to the respective tiers in the
three-tier system.
The Act is applicable throughout the state of Tamil Nadu and rules over the creation of the panchayat system, its powers, and its
functions in the sphere of self-governance at the grassroot level.

Important definitions
Section 2 of the Act deals with the essential definitions and attempts to cover and describe the terminologies used throughout the
Act.

Panchayat (Section 2(21)): refers to the three tiers, which are village panchayats, panchayat unions, and district panchayats,
which are formed under this Act.

Village Panchayat (Section 2(37)): It refers to the panchayat responsible for a particular revenue village or a group of
contiguous revenue villages.

Panchayat Union (Section 2(23)): Panchayat Union refers to a body of self-governance that consists of a group of village
panchayats within specified jurisdictional limits.

District Panchayat (Section 2(9)): Refers to the tier that constitutes a panchayat for each panchayat district of Tamil Nadu.

Gram Sabha (Section 2(13)): Refers to a group of people registered in the electoral roll of a village that constitutes a village
panchayat.

Chairman (Section 2(3)): Refers to the elected head of the three bodies – village panchayat, the panchayat union, and the district
panchayats.
Panchayat Village (Section 2(25)): refers to the revenue village, which will have a village panchayat.

Overview of key provisions in Tamil Nadu panchayat Act 1994

The Tamil Nadu Panchayat Act is a comprehensive piece of legislation that became a milestone in shaping the landscape of
politically decentralized governance in the state of Tamil Nadu. In the three-tier system of governance, at the bottom tier we have
the village panchayat, panchayat union councils in the mid-tier and district panchayats at the top tier. The various features or
provisions that make the Act wholesome are:

Panchayati Structures
Section 3 – Gram Sabha: The provision deals with the creation of a gram sabha to create a village plan, approve the plan, and
deal with the budgeting aspects of the village governance and administration meticulously. They also approve the audit report of
the village panchayat and scrutinize the progress of various projects and their implementations, including but not limited to
government schemes. The Gram Sabha always provides guidance and recommendations to the village panchayats, which must
abide by the said recommendations. Every Gram Sabha meeting is supervised by the President and the Vice President of the
Gram Sabha. In case both the President and the Vice President are absent, a member selected by other members presides over the
meeting. It is pertinent to note that there are specific territorial limits or jurisdictions for each tier of governance. It specifies the
extent of the territory of geography on which the administrative powers and functions of each tier, namely village panchayats,
panchayat unions, and district panchayats, would apply. This distinction helps to prevent the overlapping of powers and focuses
the system on a particular area.

Constitution of Panchayats
Section 4 – Formation of Panchayat Villages: This Section deals with the framework or constitutions of village panchayats in
terms of deciding its members, the number of seats, the criteria for their selection, etc. It states that the panchayats are constituted
through direct election to highlight the significance of democratic representation at the grassroots level. The Inspector declares
with a notification that a specific local area comprises a revenue village, some revenue villages, or a portion of a revenue village
as the “Panchayat Village” for the administration and delineation of territoriality.

Section 8 – Strength of Village Panchayat: This Section states that the Inspector will specify the number of members of a
village panchayat based on the population of the villages constituting the panchayat as a whole. The number of members can be
altered by the inspector from time to time by notification. In any case, the number can be at least 5 or more than 15.

Section 9 – Duration of Village Panchayat: Every Village Panchayat has a tenure or term of five years from the date of the first
meeting post-election unless dissolved, the tenure remains constant. If dissolved, a fresh election is conducted to constitute the
body before six months of the dissolution date.

Section 10: Election of Village Panchayat Members: The Act prescribes the process of election for members of the village
panchayats. One person cannot contest for election in more than one ward. A person who contests for election as a member
cannot compete for the position of President of the Village Panchayat or member of the Panchayat Union Council or District
Panchayat.

Section 11: Reservation of Seats: This Section attempts to achieve inclusive representation for women and marginalized
communities in the administrative and decision-making bodies. It states that a certain number of seats must be reserved for
people belonging to Scheduled Castes and Scheduled Tribes based on the proportion of the total number of seats to be filled in
each village panchayat. Seats shall also be reserved for women belonging to the SC and ST categories at least 1/3rd of the total
seats reserved for SC and ST members. Seats shall also generally be reserved for women, not less than one-third of the total seats
to be filled in village panchayats. The reservation of seats will cease to have effect once the effect of Article 334 of the Indian
Constitution also ceases.

Panchayat Union Councils

Section 15: Formation of a Panchayat Union Council: The state government can notify any particular area as a development
block to implement the national extension service scheme or community development projects for the administration. These areas
get notified as “Panchayat Development Block.” Each Panchayat Development Block will have a Panchayat Union.

Section 17, 18 Term and Tenure: The Panchayat Union Council will have elected members for a duration of five years if it
remains undissolved. If it undergoes dissolution, a fresh election must be conducted within six months of the date of dissolution.

Section 19: Election of Members: Panchayat Union Councils will comprise people elected from wards constituting the
panchayat Union, and the number of members will be proportionate to the region’s population based on the last census. A person
is ineligible to contest from more than one ward or more than one panchayat union council. A person contesting the election for
being a member of the panchayat Union Council becomes ineligible to compete as a member of Village Panchayat, District
Panchayat or a village panchayat president.

Section 20: Reservation of Seats: Seats shall be reserved for people from Scheduled Castes and Scheduled Tribes and women
from the community to seek adequate representation and inclusivity in the decision-making and governance bodies.

District Panchayats

Section 24: Formation of District Panchayat: The government, via notification, creates a district panchayat for the
administration of a particular district or portions of the municipality, town, or industrial township. The district panchayat will be
considered a corporate body with perpetual succession.

Section 25: Constitution of District Panchayat: The district panchayat will consist of elected members, members of the House
of People, members of the state legislative assembly for the constituencies within the district, and members of the Council of
States registered as electors within the district. All these members have the right to participate in district panchayat proceedings.

Section 26: Election: Members are elected from the wards, forming the distinct as per the method prescribed by the government
from time to time. A person is ineligible to contest from more than one ward or more than one panchayat union council. A person
contesting an election for being a member of the Panchayat Union Council becomes ineligible to contest as a member of Village
Panchayat or District Panchayat or a president of Village Panchayat.

Section 32: Reservation of Seats: The provision provides for the reservation of seats for women and people from Scheduled
Castes and Tribes for inclusive representation in decision-making bodies. Seats for SC and ST individuals are reserved based on
the proportion of their population in the district. Seats are to be reserved for women belonging to SC and ST communities;
however, the same should not be less than one-third of the total seats reserved for SC and ST individuals. Seats are to be reserved
for women in general, not less than one-third of the total seats in the district panchayat.

Qualification and disqualification of Members

These Sections deal with the qualifications and disqualifications of being a member or president of the panchayat.

Section 33: Qualification of Candidate: A candidate whose name is present in the electoral roll of the panchayat and has
attained 21 years of age is qualified to contest for election as a member or president of the panchayat.

Section 34: Disqualification of Government Officers and Servants: No officer holding office as a government servant, village
administrative officer, or village servant for the state or central government is qualified to contest for election. An officer who
used to hold office but has been dismissed for corruption or disloyalty is disqualified for five years from the date of dismissal.
Section 35: Persons convicted of offences related to elections are also disqualified from contesting panchayat elections for six
years from the date of conviction.

Section 36: If a person is declared by a court to be of unsound mind, is not 21 years of age, and does not appear on the electoral
roll, then the person is not eligible to be a voter for the panchayat elections.

Section 37: Enlists a large number of offences for which, when a person is convicted, they become disqualified to contest
elections. Some of the offences include: promoting enmity between people of different religions, bribery, undue influence,
cruelty towards a woman by husband or relative, preaching or practicing untouchability, adulteration of food, insulting national
flag, etc.

Section 38A: If a person is a member of a state legislative assembly or of either house of the parliament, then the person is
disqualified to be the president, vice-president, chairman, vice-chairman or member of the panchayats.

President and Vice President of Village Panchayats

Every village panchayat will have a president and a vice-president for efficient administration.

Election of President (Section 43): The election of the president shall take place from the names of those who appear in the
electoral roll of the village in the prescribed procedure. The election of the president shall happen at the same time and place as
the election of members of the panchayat. Every president is elected for a term of five years.

Election of Vice President (Section 44): The Vice President is elected from the elected members of the village panchayat based
on the procedure prescribed.

Functions of the President (Section 46): The president is tasked with the responsibility of convening meetings of the village
panchayat and gram sabhas. He has the right to access all the village panchayat records, and he must discharge his duties as per
the power bestowed upon him by the Act. He must also see to the implementation of all the schemes and programmes given to
the village panchayat for implementation. He shall be the point of correspondence between the village panchayat and the
government.

Chairman and Vice Chairman of Panchayat Union Council

Every Panchayat Union Council will have a chairman and vice chairman for administration and governance.

Section 50: Election of Chairman: The chairman is elected from the elected members of the panchayat union council as per the
procedure prescribed.

Section 51: Election of Vice Chairman: The vice chairman is also elected from the elected members of the panchayat union
council as per the procedure prescribed.

Section 52: Function of Chairman: The Chairman is tasked with the duty of convening meetings and discharging duties
prescribed by the Act. He shall have access to all the records and the point of correspondence for communication with the
Government.

Chairman and Vice-Chairman of District Panchayat

Every district panchayat will have a chairman and a vice chairman for administration purposes.
Section 56: Election: As soon as the members of a district panchayat are elected, they shall elect a chairman and vice chairman
within themselves. It is pertinent to note that there shall be a reservation of seats for the Chairman, Vice Chairman, President, and
Vice President of all three tiers for women and people belonging to the SC and ST communities as well as women belonging to
the SC and ST communities.

Members of the Panchayat structures and their rights

Section 81: Every member has certain rights. They can seek the attention of the executive commissioner or the secretary towards
any negligence in the executive of work assigned to the panchayat or towards any waste of the panchayat property and may
provide suggestions for improvement. They have the right to move resolutions to the President and Chairman on administration
matters. They shall have access to panchayat records after giving notice to the Executive Authority or Commissioner.

Executive authority, commissioner and secretary of village Panchayat

Sections 83 and 84: The government has the power to appoint, by notification, any person based on the rules and procedures as
the executive authority of a village panchayat for fulfilling certain functions with powers bestowed upon him. He has the power
to implement the resolutions of village panchayats. He controls all the officers and servants of the village panchayats and fulfils
any other function conferred upon him by the Act.
Section 85: The government shall appoint a commissioner for every Panchayat Union Council who shall be a Development
Officer appointed under the National Extension Service Scheme. He shall attend meetings but not with the right to move
resolutions or vote, carry the resolutions of the panchayat council into effect, furnish periodical reports on progress and tax
collection, control all the officers and servants under the council and perform any other duties bestowed on him based on this
Act.
Sections 87 and 88: The government shall appoint an officer not below the rank of Divisional Development Officer as the
Secretary for the District Panchayat. He shall supervise the implementation of all district panchayat projects, attend meetings,
carry out resolutions, furnish periodic reports on progress, control all the officers and servants under the council and perform any
other duties bestowed on him based on this Act.

Procedure of Panchayats
Section 89: Every meeting is presided over by the president or the chairman, and in their absence, the vice president or vice
chairman, as the case may be and in their absence, a member selected by other members. The presiding authority decides all the
matters to be discussed in a meeting.
Section 90: Every panchayat must meet and conduct business at a specific time and place. Two meetings shall never be apart by
more than sixty days.
Section 91: Members having a conflict of interest in any matter shall not be allowed to discuss or vote on those matters. The
President or Chairman, has the power to prohibit any particular member from voting upon being satisfied that they have an
interest in the matter being voted upon. Such a prohibition can be challenged, but the decision of the meeting is final.
Section 92: The minutes of every meeting must be recorded and provided to all the members within 48 hours of the meeting and
shall be submitted to the inspector within three days.

The three tiers – their powers and functions in Tamil Nadu

The Panchayat System in Tamil Nadu has been differentiated into three active tiers of levels of administration to maintain parity
in jurisdictions, powers, and functions. Each tier has an important role in administering and conducting local governance. Let’s
explore the three tiers and their unique governance roles and functions. A fresh election will be held in cases of casual vacancies
in the president’s office.

Village Panchayats
Constitution: One village panchayat is constituted for each revenue village or a group of revenue villages to define their
jurisdiction and allow for smooth governance and administration.
Composition: Every village panchayat has elected representatives who carry the position of president and specific ward
members. The population of the village decides the number of ward members.

Functions:
 Regional Planning (Sections 116-118): Village panchayats are entrusted with the duty of creating and supervising
the implementation of a plan of action related to the field of local development, which can be in the form of
developing infrastructure, managing public health conditions and maintaining healthy levels of sanitation.
 Economic Growth (Sections 110 and111): The village panchayats play an active role in the promotion of
economic ventures inside the villages for the purpose of growing the spirit of entrepreneurship. They also help in the
field of economic development by providing support to farmers and agriculturists, promoting small-scale and
cottage industries and initiating initiatives for livelihood maintenance.
 Social Justice (Sections 116-118): This is one of the most important functions of a village panchayat. They are
entrusted with the responsibility of managing programs aiming to alleviate poverty, maintaining official
documentation for births and deaths and taking any initiative necessary for the development of society and the
promotion of community welfare efficiently.
 Local Governance: This is the primary responsibility of village panchayats, as they are bodies of local self-
governance and are entrusted with the power to make decisions on any issue or subject that has an impact on the
welfare of the village and its population.

Panchayat Unions
Constitution: Panchayat Unions consist of a number of village panchayats within a certain jurisdictional limit or specified area.
Composition: Panchayat Unions consist of representatives who are elected democratically and include a chairperson and ward
members and representatives who represent each village panchayat under the supervision or limits of the union.

Functions:
  Planning and Coordinating (Sections 112 and 113): The panchayat unions are entrusted with the responsibility of
conducting development initiatives across all village panchayats within their jurisdiction. They also scrutinise all
initiatives taken by village panchayats to provide an overview of their progress and address obstacles.
 Rural Progress (Section 115): The panchayat unions are focused on activities that would result in the development
of rural areas. These activities include the promotion of agricultural initiatives, giving support to rural industries and
any other economic growth projects.
 Poverty Eradication (Section 115): This is a socio-economic responsibility wherein the Panchayat Unions are
entrusted with the responsibility of addressing the problems and difficulties faced by financially struggling people.
They also take initiatives to alleviate or eradicate poverty from the lives of people under their jurisdiction.
 Maintaining Infrastructure (Section 126): While the village panchayats are entrusted with the responsibility of
building infrastructure and developing it through various construction projects, the panchayat unions are responsible
for managing it and preventing any damage or degradation. They usually maintain the public amenities, utilities,
grazing grounds, and playgrounds.

District Panchayats
Constitution: Each revenue district has a district panchayat to look over its governance and administration in Tamil Nadu.
Composition: Each district panchayat has representatives who are democratically elected and have positions of a Chairperson
and member representing each constituency based on territory inside the district.

Functions (Section 163-166):

 District-Wide Planning: District Panchayats have a very important responsibility of developing plans of action for
initiating economic progress in each district and conducting projects that lead to social justice and societal growth
and development.
 Supervision: They are the higher authorities that supervise the progress of projects undertaken by the village
panchayats and the panchayat unions. They are entrusted with the power to monitor the development of each project,
and they can do it by seeking project updates and reports of progress from relevant stakeholders.
 Approving Schemes: If certain schemes are undertaken to be implemented throughout the district, then the district
panchayats have the responsibility of reviewing the schemes and approving their implementation after understanding
their feasibility.
 Fiscal Oversight: The district panchayats are responsible for monitoring the monetary progress and performance of
the subordinate tiers of panchayats and handling financial responsibilities effectively.

Additional and Supplementary Powers and Functions

 Financial Independence: Each level of governance has a level of financial autonomy and must levy taxes and
maintain the duty of collecting revenue from members of the panchayats. Monetary funds are provided by the state
government, and every level of governance maintains funds, which are in the form of Panchayat Funds.
 Committees and Councils: Panchayats have to form committees, which are in the form of Standing Committees
and District Planning Committees, and each of these committees has certain functions and roles to fulfil in terms of
decision-making and development at various levels of administration.
 Development Initiatives: Panchayat Development Planning Committees and Development Authorities are pivotal
in creating and supervising plans that are essential for maintaining economic and financial growth and promoting
social welfare.
The three tiers of the Panchayat System in Tamil Nadu are formulated to maintain governance at every level and provide
upliftment to the local public. They facilitate grassroots democracy and participative decision-making processes and foster
connections between relevant stakeholders. The distinction of functions and distribution of power helps maintain an efficient
form of administration through public development initiatives, growth projects and interconnected governance structures. These
unique roles and functions are essential to creating an efficient self-governance mechanism.

Statutory powers and functions of the three tiers

Section 110: Duty of Village Panchayat to provide for certain matters within the limits of its funds like construction, repair and
maintenance of village roads, lighting of public places, drainage construction, street cleaning, public toilets, maintenance of
burial grounds, maintenance of public wells, etc.
Section 111: Power of village panchayat to offer for matters related to and make provisions for: planting and preserving trees,
opening public markets, controlling fairs and festivals, public landing places, public slaughterhouses, public reading rooms,
literacy centres and other utilities.
Section 112: Panchayat Union Council to provide for the construction, repair and maintenance of public roads, construction of
water works, dispensaries, child welfare centres, poor houses, orphanages, shops and stalls, elementary schools, epidemic
prevention measures, control of fairs, veterinary relief, birth and death statistics, cottage industries, and improvement in
agriculture.
Section 113: Panchayat Union Councils are entrusted with the execution of the National Extension Service Cheme for the
development of the regional community.
Section 120: The village panchayat is responsible for all unreserved forests vested in it under this Act, which shall be
administered for the benefit of the village.
Section 123: The government can, by notification, add to the function of the Panchayat Union Council, which it needs to abide
by.
Section 132: Any communal property or income of any particular revenue village is entrusted to the village panchayat for the
benefit of the village.

Panchayat Union Fund and Village Union Fund

Every administrative body requires funds for implementing projects and conducting their business with ease. In this regard,
Section 185 calls for the constitution of a panchayat union fund and a village panchayat fund for each panchayat union and
village panchayat. For each panchayat union, a general fund and an education fund are created.
The Panchayat Union General Fund shall include the receipts of the proceeds from local cess, local cess surcharge, surcharge on
duty and entertainment tax. It also includes fees on licenses issued by the Panchayat Union Council. Fees levied on markets, fees
for occupation of road, use of choultries, etc.
The panchayat union education fund, on the other hand, will include local education grants paid by the government, fines and
penalties levied, income derived from the endowment, and sums received for elementary education.
Village Panchayat Fund includes all the house tax or any other tax or cess levied, professional tax, proportionate share of
proceeds of the local cess, local cess surcharge, surcharge on the duty on transfers of property, entertainment tax received by the
Village Panchayat, income derived from fisheries, fees for temporary occupation, etc.

Implementation of the Tamil Nadu Panchayat Act 1994 – Challenges and Recommendations
The success of any legislation depends largely on the efficacy of its implementation, the obstacles it faces in terms of
implementation, and how those obstacles are countered effectively. The effectiveness of any Act can be analysed by studying the
extent of its judicious implementation. Let’s have a look at the implementation status of the Act.

Areas of implementation
 Public empowerment: The Act has empowered the local public and has governed their needs effectively by
maintaining the ethos of decentralised decision-making and allowing communities to be autonomous and self-
governing in every way possible. Through community participation and participatory democracy, local communities
are empowered effectively.
 Devolution of powers: Distribution of powers in the fields of administration, finances, planning and governance.
Panchayats have a very influential effect on making sure that the local authorities are involved in the process of
societal development and growth.
 Social inclusion: The process of social inclusion is governed by facilitating diversity in representation bodies. The
Act makes space for allowing inclusivity and diversity in the decision-making process. This allows a diversified
view of social issues and an intersectional problem-solving approach.
 Development projects: The Act creates a formal legal framework for developing plans towards establishing
projects related to development and infrastructure for the upliftment of local communities and community-involved
projects.

Challenges for Implementation

 Lack of resources: A lot of panchayat bodies fail to secure enough monetary support and financial backing for
undertaking projects towards the development of infrastructure and growth. The lack of funds creates a major
obstacle to developing public amenities and utilities and also to maintaining the administration effectively
throughout. The resource problem also leads to delays in the completion of projects and makes people lose faith in
the administrative abilities of the institution.
 Administrative capacities: The lack of a well-structured and well-functioning administrative setup at the regional
level is a major reason for failures in the administrative operations of the local bodies. Many panchayats have a
dearth of proper administrative capacity in India, which becomes a reason for their inefficiency.
 Political involvement: There are multiple situations where political influences in these self-governing bodies have
led to power imbalances, corruption and malice in many ways. These political influences have an adverse effect on
the impartial and fair decision-making process as they try to fulfil their own agenda and forget the interests of the
community.
 Awareness and capacity building: Lack of awareness, education, political knowledge and administrative ideas in
the elected members as well as the members of the community often affects effective governance or administration
of the local areas. There must be capacity-building exercises to address the unique challenges and initiate effective
governance.
 Infrastructure deficiency: Lack of infrastructural developments in both physical and technological spheres can
affect the progress of the community and maintain the proper progress of infrastructural issues. This also affects the
digitalisation of administration and can hamper areas of communication and data storage.
  Lack of coordination: Issues of coordination that exist amongst various tiers of panchayats and different
administrative departments of the governments of the state can highly impact the wholesome level of planning and
implementation of development projects. Having strong communication and coordination can help in achieving
coordinated progress and development for all projects.
 Election lacunas: There are many conflicts and loopholes that exist in the process of election, and that leads to a lot
of disputes and conflicts that delay the process and create irregularities in the process. This has a larger consequence
for the smooth functioning of the panchayats. Disruptions in the election process affect the impartiality and fairness
of representative democracy.
 Community Involvement: Even though the main object of the Act is to engage the community and the local public
in participating in the process of self-governance, their lack of interest in actively and meaningfully engaging in the
process can lead to disruptions and obstacles in the efficient administration and functioning of the bodies.

Recommendations for countering the challenges

 Capacity building: There must be investments made by the government in the field of building a strong capacity
for all stakeholders to make them capable of administering the right way. They must invest in training programs and
skill development initiatives for the members of the panchayat who are democratically elected by the people.
 Financial support: There must be newer sources of financial support for the panchayat bodies and local self-
governing institutions. The Government must explore newer avenues for the increased generation of financial
resources for administration.
 Transparency in governance: The self-governing institutions must always maintain transparent functioning to
counter the involvement of political and corrupt elements. Having an accountable and transparent governance
mechanism helps build community trust in the functioning of the institutions.
 Digitalisation and technology integration: The local self-governing bodies must always try to incorporate modern
technological solutions for data management, information processing, security and accessibility in terms of
maintaining efficient coordination between the government and panchayats.
 Community awareness building: There must always be initiatives to promote awareness amongst the people of the
community. There must be attempts to create a well-functioning culture of community involvement in the sphere of
local governance.
 Coordination between various departments: The panchayat bodies must actively attempt to maintain meticulous
coordination between the various departments of the government for effective scrutinisation of projects,
infrastructural developments and the progress of initiatives and schemes.
 Reviewing and amending: There must be efficient periodical review procedures in place to review the progress of
initiatives and projects undertaken by the panchayat bodies and systems. By ensuring a proper legislative formal
procedure for reviewing and scrutinising the process. This allows for making changes and implementing regular
action plans for the development of public works.
While certain obstacles come in the path of absolute meticulous implementation of the Act, there need to be certain changes in
the system to address the loopholes and hindrances effectively and immaculately implement the law.

STATE CONTROL OVER PANCHAYAT

In India, the Panchayati Raj system functions as a decentralized system of governance at the local level. It is a three-tier structure
consisting of:

1. **Village Panchayats (Gram Panchayats)** at the base level,

2. **Panchayat Samitis** at the block level (intermediate tier), and
3. **Zila Parishads** at the district level.

While these institutions are meant to function autonomously, state governments retain significant control over them in various
ways. This control is exercised through legislative, administrative, and financial mechanisms.

1. Legislative Control
- **State Laws and Amendments**: The Panchayati Raj system is governed by state laws enacted as per the **73rd
Amendment Act of the Constitution** (1992). Each state government frames laws specifying the powers and functions of
Panchayats. Therefore, states have the authority to amend these laws and redefine roles and responsibilities.
- **Dissolution and Suspension**: State governments hold the power to dissolve or suspend Panchayat bodies for
mismanagement, corruption, or failure to perform their duties. This, however, has to be backed by legislative procedures.
- **Approval of By-laws**: Panchayats cannot frame their own rules without the state government's approval. The state must
approve the by-laws, rules, and regulations framed by the Panchayats for proper functioning.

2. Administrative Control
 - Supervisory Role: State governments exercise administrative control through officials like the District Magistrate, Block
Development Officers (BDOs), and other district-level officers. These officials often oversee and supervise the working of
Panchayats.
- Training and Capacity Building: States are responsible for training elected Panchayat members to develop their skills and
capacity. They organize workshops and training sessions to improve the administrative capabilities of these local bodies.
- Approval of Plans: Panchayats are required to prepare development plans, but these plans usually need state approval to
ensure alignment with broader state policies and priorities.

3. Financial Control
- **State Grants and Funds Allocation**: While the Central Finance Commission allocates funds to Panchayats, these funds are
largely routed through state governments. The **State Finance Commissions** are also responsible for the distribution of funds
to local bodies. However, in many cases, state governments exercise substantial discretion in releasing or withholding funds.
- **Auditing and Inspections**: Panchayat accounts are subject to audits by state-appointed officials. States have the authority
to investigate financial irregularities or malpractices in Panchayat administration.
- **Imposition of Conditions on Grants**: States often attach conditions to the utilization of grants given to Panchayats. This
ensures that funds are used for specific purposes in line with state policies and priorities.

4.Judicial Control
- The state government has the authority to set up **judicial bodies** (such as Lok Adalats) to resolve disputes related to
Panchayats. They can also enforce disciplinary actions against errant Panchayat members or officials.

Issues with State Control

Despite being designed as autonomous institutions, Panchayats in India often face challenges due to excessive control by state
governments. This control can sometimes stifle the independent functioning of local governments. The common criticisms
include:
- **Limited Devolution of Powers**: Many state governments have been reluctant to fully devolve powers to Panchayats,
keeping critical subjects such as land revenue, health, education, and sanitation under their direct control.
- **Political Interference**: State governments often dissolve Panchayats prematurely or dismiss elected representatives on
political grounds.
- **Financial Dependence**: The inability to generate their own revenue forces Panchayats to depend on state funds, which can
lead to delays and underfunding.

Constitutional Safeguards
The 73rd Amendment attempted to minimize state overreach by giving constitutional status to Panchayats. It included provisions
like:
- **Compulsory elections every five years** (Article 243E),
- **Reservation of seats** for SCs, STs, and women (Article 243D),
- **Constitution of State Finance Commissions** every five years (Article 243I).

However, the actual implementation and devolution depend largely on state governments.

In summary, the Indian Panchayat system is characterized by significant state control, exercised through legislative, financial,
and administrative means. While the intention is to ensure accountability, in practice, this sometimes hampers the autonomy of
local self-governance.

LEGISLATIVE CONTROL

Legislative control of the state over local bodies in India primarily refers to the legal and statutory measures that state
governments use to regulate, guide, and oversee the functioning of local self-governing institutions like Panchayats (rural local
bodies) and Municipalities (urban local bodies). This control is exercised through various constitutional provisions, state
legislation, and administrative rules.

1. Constitutional Basis of State Control

- The **73rd and 74th Constitutional Amendments** (1992) provided constitutional status to rural and urban local bodies,
respectively. Despite this, the structure, powers, and functioning of these local bodies are still determined by state laws.
- **Article 243 to 243ZG** (73rd and 74th Amendments) of the Constitution give the state legislatures the power to create and
regulate Panchayats and Municipalities. These Articles include provisions related to the constitution, powers, election, and
financial resources of these bodies.

2. State Legislation for Local Bodies

- **Enactment of State Laws**: Local bodies in India function based on state-specific legislation enacted by the respective state
legislatures. For example:
- Panchayats function as per **Panchayati Raj Acts** enacted by different states.
 - Urban local bodies operate as per **Municipal Acts** or **Corporation Acts** enacted by state governments.

These Acts outline the composition, powers, responsibilities, and functioning of these local self-governing institutions. States
have the authority to amend these laws as per local requirements and changing administrative needs.

- **Rule-Making Powers**: State legislatures delegate extensive rule-making powers to local bodies. However, these rules and
regulations must be in line with state laws and usually require state approval.

3. Control through Legislative Provisions

The following mechanisms exemplify how state legislatures exercise control over local bodies:

- Defining Functions and Powers: State laws specify the functions and responsibilities of Panchayats and Municipalities. These
laws delineate the range of services to be provided by local bodies, such as health, sanitation, education, and water supply. In
practice, state governments often retain control over key functions and limit the authority of local bodies.

- **Constitution and Dissolution**: State laws outline the procedures for the constitution, election, and dissolution of local
bodies. States have the legislative power to alter the structure of local bodies, modify their terms of office, and even dissolve
them in case of non-performance or failure to conduct elections on time.

- **Legislative Overrule**: State legislatures have the power to review and even nullify decisions taken by local bodies if they
are deemed to be against state laws or public interest. If local bodies pass by-laws, they often require approval from the state
government.

- **Financial Control**: State legislatures determine the financial powers of local bodies through laws. They outline the taxation
powers, the manner of budget preparation, and fund allocation. They also have the power to alter or curtail these financial powers
through legislative amendments.

- **Audit and Accountability**: State governments use legislative provisions to set up auditing and accountability frameworks.
State laws often mandate that local bodies be subjected to regular audits and inspections by state-appointed authorities. Financial
irregularities are investigated based on state laws.

4. Approval and Amendment of By-Laws

- Local bodies are empowered to frame by-laws to regulate various activities and functions. However, state laws typically require
these by-laws to be approved by state authorities. This gives state governments the power to approve, modify, or reject any by-
laws or regulations proposed by local bodies.

5. Administrative Supervision through Legislation

State governments also have control over the administrative functioning of local bodies through legislative provisions. For
instance:
- State laws empower state-appointed officers (like District Collectors or Commissioners) to oversee the functioning of local
bodies.
- Specific laws require local bodies to consult state authorities or take approval for significant decisions, like major
developmental projects, contract approvals, or appointment of key officials.

6. Delegated Legislation
In many cases, state governments use delegated legislation to control local bodies. State legislatures pass enabling laws that
authorize the state government to frame rules and regulations that local bodies must follow. This form of delegated legislation
allows states to exercise extensive control without requiring frequent amendments to the primary law.

### **Issues with State Legislative Control**

- **Limited Autonomy**: Excessive legislative control often results in limited autonomy for local bodies, which can hamper
their ability to address local issues independently.
- **Frequent Amendments**: State governments sometimes amend local laws frequently, leading to instability in local
governance structures.
- **Overreach and Political Interference**: In some states, legislative control is used to interfere politically in the functioning of
local bodies, leading to frequent dissolutions or dismissals of elected representatives.

### **Safeguards under the Constitution**

The Constitution has laid down certain safeguards to protect local bodies from undue state interference:
- **Fixed tenure of five years** for local bodies, with mandatory elections (Article 243E).
- **State Election Commissions** are responsible for conducting local body elections independently (Article 243K).
- **State Finance Commissions** are tasked with recommending the distribution of financial resources (Article 243I).
Despite these safeguards, the legislative framework in most states allows state governments to retain significant control over local
bodies. The degree of decentralization and autonomy largely depends on the political will and administrative arrangements in
individual states.

JUDICIAL CONTROL

Judicial control over local bodies in India involves oversight and review of the actions, decisions, and functioning of Panchayats
and Municipalities by the courts. The judiciary, through its powers of judicial review, plays a crucial role in ensuring that these
bodies operate within the framework of the law and do not exceed or abuse their authority. This form of control ensures
accountability, checks arbitrary actions, and protects the rights of citizens.

### Forms of Judicial Control over Local Bodies

1. **Judicial Review**
- **Constitutional Provisions**: The judiciary in India has the power of judicial review to assess the constitutionality of laws,
actions, or decisions made by local bodies. If a local body's action or decision is challenged as violating fundamental rights or
constitutional principles, the courts can declare it ultra vires (beyond legal authority) and strike it down.
- **Grounds for Judicial Review**: Local bodies' decisions can be reviewed on grounds such as illegality, irrationality,
procedural impropriety, or violation of natural justice.

2. **Writ Jurisdiction**
- **High Courts (Article 226)** and the **Supreme Court (Article 32)** have the power to issue writs such as habeas corpus,
mandamus, prohibition, certiorari, and quo warranto. These writs are tools for enforcing the rights of individuals against any
unlawful action by local bodies.
- For example, if a Panchayat takes action outside its jurisdiction or violates due process, a **writ of certiorari** can be issued
to quash that decision. A **writ of mandamus** can compel a local body to perform its duty if it has failed to do so.

3. **Appeals and Revision**

- State laws governing Panchayats and Municipalities often provide for **appeal and revision mechanisms** against the
decisions of these bodies. Citizens or aggrieved parties can appeal to designated courts or tribunals if they are dissatisfied with a
local body's decision. These courts can review the decisions for legality, fairness, and adherence to due process.
- In cases involving corruption, misuse of powers, or disputes regarding elections in local bodies, appeals can be made to
designated **state-level appellate authorities or civil courts**.

4. **Election Disputes**
- The judiciary exercises control over disputes related to local body elections. State laws generally empower **District Courts
or designated judicial officers** to hear and resolve disputes concerning the validity of elections to Panchayats and
Municipalities. Courts have the authority to nullify elections or disqualify candidates if electoral malpractice or irregularities are
proven.
- Local body election disputes can also be escalated to High Courts or the Supreme Court, especially in cases involving
questions of law or constitutional interpretation.

5. **Public Interest Litigation (PIL)**

- Citizens can file **Public Interest Litigations (PILs)** to seek judicial intervention in matters affecting the larger public
interest, such as environmental issues, misuse of funds, illegal construction, or neglect of public duties by local bodies. The
judiciary can issue directions to local bodies to take corrective actions based on PILs.
- PILs have played a significant role in cases where local bodies have failed to enforce laws related to public health, sanitation,
environmental protection, and urban planning.

6. **Quasi-Judicial Powers of Tribunals**

- Some states have established **State Municipal Tribunals** or **Panchayat Raj Tribunals** to handle disputes involving
local bodies. These tribunals function with quasi-judicial powers and are authorized to adjudicate disputes related to property
taxation, licensing, land disputes, and other local governance issues.
- These tribunals’ decisions are subject to judicial review by High Courts under writ jurisdiction.

7. **Intervention in Case of Misuse or Abuse of Power**

- Local bodies sometimes misuse their powers for political or personal gains. If any action or resolution passed by a local body
results in an abuse of power or is against the principles of natural justice, aggrieved parties can approach the judiciary for
intervention. Courts can strike down such actions if found to be unreasonable, discriminatory, or mala fide.

8. **Contempt of Court Proceedings**

 - Local bodies must comply with judicial orders and directions issued by courts. If they fail to do so, courts have the authority
to initiate **contempt of court proceedings** against the concerned officials of the local bodies. This ensures that the judiciary's
orders are respected and enforced at the grassroots level.

9. **Dispute Resolution between Local Bodies and State Authorities**

- Disputes often arise between local bodies and state governments or state authorities regarding jurisdiction, powers, and
functions. In such cases, local bodies can seek judicial redress in High Courts or the Supreme Court, which can clarify the scope
of powers and functions of the respective entities.

### Key Cases Demonstrating Judicial Control

Several landmark cases illustrate the judiciary’s role in controlling and guiding local bodies in India:

- **T.N. Godavarman Thirumulpad v. Union of India** (1996) – In this case, the Supreme Court gave directives to local
bodies to protect forests and natural resources, demonstrating judicial intervention to enforce environmental laws.
- **Bangalore Medical Trust v. B.S. Muddappa** (1991) – The Supreme Court intervened to protect public parks and ensure
that urban planning norms were followed, highlighting the judiciary’s role in preventing the misuse of land by Municipal bodies.
- **Municipal Council, Ratlam v. Vardhichand** (1980) – The Supreme Court held that local bodies are legally obligated to
provide basic civic amenities like proper sanitation to citizens and issued directions accordingly.

### Conclusion
Judicial control over local bodies in India plays a crucial role in maintaining the rule of law and ensuring accountability at the
grassroots level. Through mechanisms like judicial review, writ jurisdiction, appeals, PILs, and quasi-judicial tribunals, the
judiciary acts as a watchdog to safeguard citizens’ rights and promote good governance. This control not only prevents local
bodies from overstepping their legal limits but also helps in the effective implementation of policies and programs intended for
local development.

ADMINISTRATIVE CONTROL

Administrative control over local bodies in India refers to the oversight and supervision exercised by the state governments over
Panchayats (rural local bodies) and Municipalities (urban local bodies) through a network of officials and administrative rules.
This control aims to ensure that local bodies function effectively, adhere to rules and regulations, and align their activities with
state policies and priorities.

### Forms of Administrative Control Over Local Bodies

1. **Supervision by State Officials**

State governments appoint officers such as District Collectors, Block Development Officers (BDOs), Municipal
Commissioners, and Chief Executive Officers (CEOs) to oversee the functioning of local bodies. These officers play a key role in
ensuring that the activities of Panchayats and Municipalities comply with state policies and laws. Administrative control is
exercised through:
- **Regular Inspections**: State-appointed officers conduct periodic inspections of local bodies to check compliance with rules,
review ongoing projects, and ensure adherence to financial regulations.
- **Monitoring Meetings**: District and block-level officials hold regular meetings with Panchayat and Municipal officials to
review the implementation of government schemes, programs, and policies.

2. **Financial Supervision and Audits**

State governments exercise substantial control over the financial matters of local bodies by:
- **Budget Approval**: Local bodies prepare their annual budgets, but in many cases, these budgets are subject to approval by
the state government or state-level authorities. This ensures that local budgets align with state priorities.
- **Fund Release**: State governments allocate and release funds to local bodies, especially funds from the central and state
governments for various schemes. They often attach specific conditions to the release of these funds, influencing the spending
priorities of local bodies.
- **Audits and Financial Reviews**: The accounts of Panchayats and Municipalities are audited by state-appointed auditors to
check for financial irregularities. Auditing mechanisms are often set up by the **Comptroller and Auditor General (CAG)** or
the Local Fund Audit Department.

3. **Approval of Plans and Projects**

Local bodies are tasked with preparing and implementing development plans, but in many cases, these plans require approval
from state authorities. This system of approval allows state governments to:
- Ensure that local development projects are in line with state and central government priorities.
- Verify that the plans adhere to prescribed guidelines, rules, and regulations.
4. **Control over Recruitment and Personnel**
- **Appointment of Key Officers**: State governments appoint key officials such as CEOs, Municipal Commissioners, and
other administrative staff in local bodies. These officials are often responsible for implementing policies, executing projects, and
maintaining coordination between local and state governments.
- **Transfer and Posting of Staff**: The power to transfer, post, and discipline officials in local bodies often lies with state
governments. This control over personnel provides states with a means to influence the functioning of local bodies.
- **Capacity Building and Training**: The state government is responsible for organizing training and capacity-building
programs for local body representatives and officials to improve their administrative skills and knowledge.

5. **Supervision through Reporting and Information Flow**

- **Submission of Reports**: Local bodies are required to submit periodic reports to the state government on the progress of
schemes, revenue generation, and expenditure. This reporting mechanism allows the state to monitor the activities of local bodies.
- **Maintenance of Records**: Local bodies maintain records and registers on various aspects of governance, which are
regularly reviewed by state authorities.

6. **Regulatory Approvals and Permissions**

State governments often exercise control over local bodies through regulatory approvals for:
- **By-laws and Rules**: Local bodies can propose their by-laws, but these require state government approval. This gives state
authorities a say in how local regulations are framed and implemented.
- **Major Contracts and Agreements**: Local bodies generally require state government approval for entering into major
contracts or agreements, especially those involving large-scale public projects or funding from external sources.

7. **Review and Corrective Action**

- **Investigations and Enquiries**: State governments can initiate investigations into alleged irregularities or corruption in
local bodies. They have the authority to order inquiries and take corrective actions, including disciplinary measures against
officials or elected representatives of local bodies.
- **Removal of Office Bearers**: State governments can dismiss or suspend elected representatives or officials of local bodies
if they are found guilty of misconduct, misuse of powers, or financial irregularities. However, this power is usually regulated by
state laws and requires adherence to specific procedures.

8. **Alignment with Central and State Programs**

- Local bodies play a key role in implementing various central and state government programs like the Mahatma Gandhi
National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Awas Yojana (PMAY), Swachh Bharat Abhiyan,
and Smart Cities Mission. State governments guide and supervise the execution of these programs at the local level to ensure
proper implementation and utilization of resources.

### Issues and Challenges with Administrative Control

1. **Limited Autonomy**: Excessive administrative control can undermine the autonomy of local bodies, leading to limited
decision-making power at the grassroots level.
2. **Centralization of Power**: The significant role of state-appointed officials in local bodies often leads to a centralized system
of governance, where decision-making rests with state authorities rather than local representatives.
3. **Political Interference**: State control over local bodies is sometimes misused for political gains, with undue influence
exerted on local officials or elected representatives.
4. **Delays in Fund Release and Approvals**: Bureaucratic procedures and delays in approvals from state authorities can
hamper local development projects and reduce the efficiency of local bodies.

### Constitutional Safeguards and Recommendations

The **73rd and 74th Constitutional Amendments** sought to enhance the autonomy of local bodies while ensuring
accountability. However, despite these amendments, the state still retains substantial administrative control. To address this, the
following measures are recommended:
- Greater devolution of powers to local bodies for decision-making in key areas.
- Streamlining the approval processes to reduce delays and enhance local governance efficiency.
- Regular capacity-building programs to empower local representatives and officials.
- Establishing clear guidelines to minimize political interference and ensure the impartial functioning of local bodies.

### Conclusion

Administrative control over local bodies in India is essential for maintaining accountability, uniformity, and efficient
implementation of policies and programs. However, this control should be balanced with the need for greater autonomy and
decentralization to allow local bodies to function effectively and address local issues. Empowering local governments with
adequate administrative powers while maintaining checks and balances can help strengthen grassroots democracy and improve
governance.

CASE LAWS
1. TN PANCHAYAT ACT

The **Tamil Nadu Panchayats Act, 1994** is a significant legislation that governs the functioning of rural local bodies in Tamil
Nadu. It aligns with the constitutional provisions set by the **73rd Amendment Act, 1992**, which introduced the Panchayati
Raj system across India. Over the years, several key case laws have emerged, shaping the interpretation and implementation of
this Act.

Here are some important case laws related to the Tamil Nadu Panchayats Act, 1994:

### 1. **K. Krishnan vs District Collector, Tirunelveli (2004)**

- **Background**: This case dealt with the issue of removing elected members of a Panchayat. The petitioner challenged the
authority of the District Collector to remove the elected President of a Panchayat on allegations of corruption.
- **Judgment**: The Madras High Court ruled that the **District Collector’s powers under Section 205 of the Tamil Nadu
Panchayats Act, 1994**, which allows for the suspension and removal of a Panchayat president for misconduct or incapacity,
must be exercised with due diligence and based on adequate evidence. The court emphasized that the principles of natural justice
should be upheld and that any action must involve a fair opportunity for the person concerned to present their case.
- **Significance**: This judgment reinforced the need for procedural fairness in taking disciplinary action against elected
representatives of Panchayats and upheld the importance of following principles of natural justice.

### 2. **T. Sathiyamoorthy vs State of Tamil Nadu (2011)**

- **Background**: In this case, the petitioner, an elected Panchayat President, was disqualified by the State under Section 41
of the Tamil Nadu Panchayats Act, 1994, which deals with the qualifications and disqualifications of Panchayat members. The
disqualification was based on allegations of financial irregularities.
- **Judgment**: The Madras High Court held that any disqualification of an elected representative should be supported by
substantial evidence and not merely based on allegations. The court noted that the disqualification provisions should be invoked
only in cases where clear and irrefutable evidence of misconduct or criminal activity is present.
- **Significance**: The judgment emphasized that elected representatives should not be arbitrarily disqualified, and adequate
safeguards must be in place to protect their tenure.

### 3. **S. Ganapathy vs State of Tamil Nadu (2012)**

- **Background**: This case dealt with the powers of the District Collector to annul the decisions of the Panchayat under
Section 202 of the Tamil Nadu Panchayats Act, 1994. The petitioner argued that the annulment was arbitrary and without due
process.
- **Judgment**: The Madras High Court ruled that while the District Collector has supervisory authority over the decisions of
Panchayats, any annulment must be based on a thorough examination of facts and compliance with the law. The Collector’s
actions must not be arbitrary or politically motivated.
- **Significance**: This case highlighted the checks and balances needed in the exercise of supervisory powers by state
officials over Panchayats to prevent misuse or arbitrary decisions.

### 4. **L. Ramar vs The Inspector of Panchayats (2013)**

- **Background**: This case pertained to the dissolution of a Panchayat by the state government. The petitioner challenged the
decision to dissolve the Panchayat, alleging it was taken without giving a fair hearing to the elected members.
- **Judgment**: The court observed that the power of dissolution under the Tamil Nadu Panchayats Act, 1994, must be
exercised with caution. It ruled that the dissolution of a democratically elected body is a serious matter and must be backed by
justifiable grounds and due process, including the right to a fair hearing.
- **Significance**: This case reinforced the requirement for due process and transparency in the dissolution of Panchayats by
state authorities.

### 5. **K. Latha vs State of Tamil Nadu (2015)**

- **Background**: The petitioner challenged the reservation of seats in Panchayats for Scheduled Castes and women, alleging
that the reservation process was not conducted in accordance with the principles laid down in the Tamil Nadu Panchayats Act,
1994.
- **Judgment**: The High Court upheld the validity of the reservation policy, stating that it was in line with the constitutional
provisions and the Tamil Nadu Panchayats Act, 1994. The court ruled that the Act’s provisions on reservation were intended to
ensure fair representation for marginalized groups and women in local governance.
- **Significance**: The judgment affirmed the constitutionality of reservation policies and emphasized their importance in
promoting inclusivity and social justice at the local level.

### 6. **A.V. Krishnan vs State Election Commission, Tamil Nadu (2016)**

 - **Background**: This case involved allegations of irregularities in Panchayat elections conducted under the Tamil Nadu
Panchayats Act, 1994. The petitioner claimed that the elections were not conducted in a free and fair manner.
- **Judgment**: The court examined the procedures followed by the State Election Commission and emphasized the need for
transparency and adherence to election rules. It ruled that any deviation from prescribed procedures could be grounds for setting
aside the election results.
- **Significance**: The case underscored the importance of fair and transparent election processes at the grassroots level and
the accountability of the State Election Commission in ensuring the same.

### Key Takeaways from the Case Laws:

- **Protection of Elected Representatives**: Courts have emphasized procedural fairness and natural justice in disciplinary
actions and disqualifications.
- **Limits on State’s Supervisory Powers**: While state officials have supervisory authority, their powers should not be
exercised arbitrarily or politically.
- **Importance of Due Process**: Actions like dissolution or annulment of decisions must be backed by substantial grounds and
adherence to due process.
- **Fair Elections and Representation**: Courts have upheld the importance of fair elections and reservation policies to ensure
inclusivity in local governance.

73RD CONSTITUTION AMENDMENT ACT

The **73rd Constitutional Amendment Act, 1992** is a landmark in the history of Indian democracy as it institutionalized the
Panchayati Raj system. It added **Part IX** to the Constitution of India and introduced the **Eleventh Schedule**, which lists
29 functions to be devolved to Panchayats. It also provided for a three-tier Panchayati Raj structure at the village, intermediate,
and district levels and mandated regular elections, reservations, and specific financial powers.

Over the years, several cases have come up that have helped in interpreting and implementing the provisions of the 73rd
Amendment Act. Here are some significant case laws related to this amendment:

### 1. **State of U.P. v. Pradhan Sangh Kshettra Samiti (1995)**

- **Background**: This case involved the interpretation of the **powers and autonomy** of Panchayats under the 73rd
Constitutional Amendment Act. The issue was whether state governments could intervene excessively in the functioning of
Panchayats.
- **Judgment**: The Supreme Court held that the purpose of the 73rd Amendment is to strengthen local self-governance and
that state governments must not intervene excessively in the matters that fall under Panchayat jurisdiction as defined by the
Eleventh Schedule. The court emphasized the need for functional autonomy of Panchayats and the limitation of state interference
in day-to-day governance.
- **Significance**: This case reinforced the principle of devolution of powers to local bodies, as envisaged in the 73rd
Amendment.

### 2. **Kishan Singh Tomar v. Municipal Corporation of Ahmedabad (2006)**

- **Background**: This case questioned the mandatory nature of holding regular elections for local bodies, including
Panchayats, under the 73rd Amendment.
- **Judgment**: The Supreme Court ruled that **holding timely elections to local bodies** is mandatory as per Article 243E
of the Constitution. Any delay, except for extraordinary circumstances, would violate the constitutional mandate. The court
stressed that the democratic process must be followed, and elected representatives must be allowed to complete their tenure
unless removed by valid legal processes.
- **Significance**: This judgment upheld the mandatory provision of holding elections for local self-governments within the
stipulated time frame.

### 3. **State of Karnataka v. Union of India (2002)**

- **Background**: This case examined whether the powers and functions of the Panchayats, as specified in the **Eleventh
Schedule**, were obligatory for the states to devolve upon Panchayats or if they had discretion in implementing them.
- **Judgment**: The Supreme Court clarified that while the Eleventh Schedule indicates functions to be devolved, the states
have **discretion in delegating these powers** based on local needs and administrative feasibility. However, states must make
sincere efforts to strengthen local bodies.
- **Significance**: The case brought clarity to the scope and flexibility available to states in delegating powers under the
Eleventh Schedule, recognizing local variances.

### 4. **Bihar Panchayat Parishad v. State of Bihar (2006)**

- **Background**: This case focused on the allocation of financial resources to Panchayats and whether state governments
were adequately empowering Panchayats to discharge their functions as mandated by the Eleventh Schedule.
- **Judgment**: The Patna High Court held that the **provisions related to the financial powers** of Panchayats under the
73rd Amendment must be implemented effectively, and state governments must transfer funds and resources to Panchayats for
them to function effectively. It was emphasized that token devolution without financial autonomy is not in line with the
objectives of the 73rd Amendment.
- **Significance**: The case highlighted the importance of financial autonomy and resource devolution for the effective
functioning of Panchayats.

### 5. **Bihari Lal Radhika Devi v. State of Bihar (1997)**

- **Background**: The case questioned the reservation policy for Scheduled Castes (SCs), Scheduled Tribes (STs), and
women in Panchayati Raj institutions as mandated by the 73rd Amendment.
- **Judgment**: The Patna High Court upheld the reservation policy for SCs, STs, and women in Panchayats, stating that it
was in line with the constitutional mandate. The court held that reservations are essential to promote social inclusivity and
empower marginalized communities.
- **Significance**: The case reinforced the need for inclusive representation of weaker sections in local governance.

### 6. **Union of India v. Rakesh Kumar (2010)**

- **Background**: This case dealt with the issue of whether government officials or employees could contest elections for
Panchayats and hold offices under the 73rd Amendment provisions.
- **Judgment**: The Supreme Court ruled that government employees or persons holding an office of profit are **not
eligible** to contest Panchayat elections unless there are specific rules to that effect. The court emphasized that the intention of
the 73rd Amendment is to ensure **clean and transparent governance** at the local level.
- **Significance**: This judgment underscored the importance of transparency and ethical governance in Panchayati Raj
institutions.

### 7. **Sunderlal Patwa v. State of Madhya Pradesh (1994)**

- **Background**: In this case, the issue was whether a state government could dissolve a Panchayat before its stipulated term
based on certain alleged irregularities.
- **Judgment**: The court held that a state government must follow due process and provide reasonable opportunity to the
members of a Panchayat before taking any drastic action like dissolution. The court emphasized the **protection of democratic
norms** and the autonomy of elected local bodies.
- **Significance**: This case protected the autonomy of Panchayats and laid down procedural safeguards against arbitrary
dissolution.

### 8. **Dattatraya Moreshwar v. State of Maharashtra (1997)**

- **Background**: The case challenged the powers of a state government to impose its will on the functioning of Panchayats
under the provisions of the 73rd Amendment.
- **Judgment**: The Bombay High Court ruled that while states have supervisory authority over Panchayats, they must not
undermine the spirit of the 73rd Amendment, which intends to promote local self-governance and devolution of powers. The
court noted that states should focus on guiding and assisting Panchayats rather than exercising excessive control.
- **Significance**: The case highlighted the principle of local self-governance and restrained state overreach in Panchayati
affairs.

### Key Takeaways from the Case Laws:

- **Mandatory Elections**: Courts have stressed the importance of holding timely elections to Panchayats and protecting their
autonomy.
- **Reservation for Marginalized Communities**: The judiciary has upheld the reservations for SCs, STs, and women in local
governance to promote inclusivity.
- **Financial Autonomy**: Courts have emphasized the importance of transferring adequate financial resources to Panchayats to
enable them to perform their functions effectively.
- **Procedural Safeguards**: Disciplinary actions or dissolution of Panchayats must adhere to principles of natural justice and
follow due process.

74TH CONSTITUTION AMENDMENT ACT

The 74th Amendment to the Constitution of India, passed in 1992, significantly restructured the governance of urban local bodies
(ULBs) in India. It aimed to provide constitutional recognition and strengthen the functioning of municipal bodies in urban areas.
Here are some key case laws related to the 74th Amendment Act:

### 1. **Municipal Corporation of Greater Mumbai v. Abhilash Lal & Ors. (2007)**
- **Summary**: This case involved the powers of the Municipal Corporation concerning urban planning and regulation. The
Supreme Court examined the scope and functions of municipal bodies in light of the 74th Amendment. The Court upheld the
autonomy of municipal bodies in planning and decision-making processes.
- **Key Takeaway**: The judgment reinforced the intent of the 74th Amendment to devolve powers to local urban bodies and
ensure local self-governance.
### 2. **Union of India v. Ravi Shankar & Ors. (2011)**
- **Summary**: The case dealt with the issue of devolving powers to municipal corporations and addressed questions of
administrative and functional autonomy of urban local bodies. The Court reiterated the need for a clear delegation of powers to
municipalities, as mandated by the 74th Amendment.
- **Key Takeaway**: It underscored the principle of local self-governance and emphasized that municipalities should not
merely remain implementation agencies of the state government but act independently within the constitutional framework.

### 3. **State of Maharashtra v. Jalgaon Municipal Council & Ors. (2003)**

- **Summary**: This case revolved around the authority of municipalities over taxation powers. The Supreme Court stressed
the importance of the autonomy of local bodies in financial matters and the rights of local self-governance as envisaged by the
74th Amendment.
- **Key Takeaway**: The ruling reinforced the provision in the 74th Amendment that emphasized fiscal autonomy and
accountability of municipal bodies.

### 4. **P.A. Inamdar v. State of Maharashtra (2005)**

- **Summary**: Though primarily focused on the regulation of private professional educational institutions, this case also
examined the extent of municipal regulation in urban planning matters. The Court ruled on the significance of involving urban
local bodies in planning and regulating institutions within their jurisdictions.
- **Key Takeaway**: This case reinforced that municipal authorities must be consulted and have a role in the development
activities within their jurisdictions.

### 5. **Jamshedpur Notified Area Committee v. Union of India (2007)**

- **Summary**: The case discussed the scope of powers of notified area committees in urban areas, and whether such
committees fall under the purview of the 74th Amendment Act. The Court concluded that the constitutional mandate for local
governance through municipalities applied to all urban bodies including notified area committees.
- **Key Takeaway**: The ruling emphasized that all forms of urban local bodies should conform to the provisions of the 74th
Amendment.

### 6. **Greater Bombay Municipal Corporation v. Indian Oil Corporation (1991)**

- **Summary**: In this case, the dispute revolved around the authority of municipal corporations to impose certain taxes on
entities like oil corporations. Although decided before the 74th Amendment, the principles of local autonomy and power
distribution became even more relevant post-amendment.
- **Key Takeaway**: The decision illustrated the need to clearly delineate powers between municipal and state bodies, a gap
that the 74th Amendment aimed to fill.

### 7. **Shramik Mukti Dal v. Municipal Corporation of Greater Mumbai (2012)**

- **Summary**: This case explored the authority of municipal corporations in the regulation of slum redevelopment projects.
The Bombay High Court discussed the importance of empowering municipal bodies to take decisions in areas such as urban
housing and development.
- **Key Takeaway**: It stressed the need for effective and autonomous decision-making by local bodies in critical urban
management areas.

These cases illustrate the judiciary’s evolving stance on the constitutional status and autonomy of urban local bodies post the 74th
Amendment Act. The emphasis has been on empowering local bodies, ensuring decentralization, and holding them accountable
to their functions.

LICENSING POWER OF LOCAL BODIES

Local bodies in India have various licensing powers to regulate activities, ensure public safety, and maintain law and order within
their jurisdictions. The 73rd and 74th Constitutional Amendments empowered local bodies to function as institutions of self-
governance, including their licensing authority. These powers are primarily vested in Urban Local Bodies (ULBs) like Municipal
Corporations, Municipal Councils, and Nagar Panchayats.

### Key Licensing Powers of Local Bodies:

1. **Trade and Business Licenses**:

- **Purpose**: To regulate commercial activities within municipal limits and ensure compliance with safety, health, and
environmental standards.
- **Examples**: Licenses for restaurants, shops, hawkers, small-scale industries, markets, hotels, cybercafés, etc.
- **Legal Provisions**: Various state-specific municipal laws like the *Karnataka Municipal Corporations Act*, *Delhi
Municipal Corporation Act*, and others empower local bodies to issue and regulate these licenses.
2. **Building and Construction Licenses**:
- **Purpose**: To regulate the construction and alteration of buildings within municipal limits and ensure compliance with
building codes, safety norms, and urban planning laws.
- **Examples**: Construction licenses for residential buildings, commercial establishments, industrial premises, etc.
- **Legal Provisions**: Local bodies issue permissions based on zoning regulations, floor area ratio (FAR), building height
restrictions, and fire safety norms.

3. **Health and Sanitation Licenses**:

- **Purpose**: To ensure public health standards and regulate services impacting public hygiene and sanitation.
- **Examples**: Licenses for meat shops, dairy units, eateries, waste management services, food processing units, etc.
- **Legal Provisions**: Local bodies, through health departments, issue licenses and conduct inspections to enforce health
standards.

4. **Hawker and Vendor Licenses**:

- **Purpose**: To regulate street vending and hawking, manage public space, and control congestion in urban areas.
- **Examples**: Street vending licenses under specific regulations and schemes for hawkers.
- **Legal Provisions**: *Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014* mandates
local bodies to issue licenses and establish vending zones.

5. **Water and Sanitation Licenses**:

- **Purpose**: To regulate the extraction and distribution of water resources and ensure the maintenance of sanitation
infrastructure.
- **Examples**: Licenses for water supply connections, sewage discharge, drainage systems, etc.
- **Legal Provisions**: Local bodies regulate based on the *Environment Protection Act, 1986*, and other state laws on water
usage.

6. **Fire Safety Licenses**:

- **Purpose**: To ensure that establishments meet fire safety requirements and have adequate fire prevention measures.
- **Examples**: Licenses for high-rise buildings, commercial centers, public halls, etc.
- **Legal Provisions**: Local bodies, in coordination with the Fire Department, issue licenses and regulate compliance with
fire safety standards.

7. **Advertisement Licenses**:
- **Purpose**: To regulate outdoor advertising within municipal limits and prevent unauthorized advertisements.
- **Examples**: Licenses for billboards, hoardings, banners, digital displays, etc.
- **Legal Provisions**: Local bodies often have regulations under the respective municipal acts to control and levy taxes on
advertisements.

8. **Liquor and Public Entertainment Licenses**:

- **Purpose**: To regulate the sale of liquor and activities involving public entertainment to ensure public order.
- **Examples**: Licenses for bars, clubs, theaters, amusement parks, events, etc.
- **Legal Provisions**: Though the power to regulate liquor primarily lies with the state government, local bodies play a role
in issuing ancillary licenses and no-objection certificates (NOCs).

### Constitutional and Legal Backing:

The 74th Constitutional Amendment Act, which introduced **Part IX-A** to the Constitution, empowers local bodies with
administrative, financial, and legislative powers. Article 243W, read with the Twelfth Schedule, provides for devolution of
powers, including:

- **Urban Planning** (Item 1)

- **Regulation of Land Use and Building Control** (Item 2)
- **Planning for Economic and Social Development** (Item 6)
- **Public Health, Sanitation, and Solid Waste Management** (Item 6)
- **Regulation of Markets** (Item 9)
- **Public Amenities including Street Lighting, Parking, etc.** (Item 17)
- **Regulation of Slaughterhouses and Tanneries** (Item 14)

TAXATION POWERS OF LOCAL BODIES

Local bodies in India, both urban and rural, have been empowered to levy and collect certain types of taxes as part of their
revenue generation to finance local development and administrative functions. The **73rd and 74th Constitutional
Amendments** laid down provisions to decentralize governance and empower **Urban Local Bodies (ULBs)** and **Rural
Local Bodies (Panchayats)** to mobilize resources.

The taxation powers of local bodies are specified in the Constitution of India and are subject to state-specific legislation. Here’s
an overview of the taxation powers of local bodies:

### 1. **Taxation Powers of Urban Local Bodies (ULBs)**

Urban Local Bodies include Municipal Corporations, Municipalities, and Nagar Panchayats. Their taxation powers are
enumerated under the **74th Constitutional Amendment (1992)**, which introduced **Part IX-A** to the Constitution of India
and the **Twelfth Schedule**.

#### Key Taxes Levied by ULBs:

1. **Property Tax**- Property tax is the primary source of revenue for most municipal bodies. It is levied on land and
buildings based on their area, usage (residential, commercial, industrial), and market value.
Purpose**: Revenue generated from property tax is used for providing municipal services like street lighting, sanitation, and road
maintenance.

2. **Water Tax**: Municipal bodies impose water taxes or charges for supplying water to households, commercial
establishments, and industries.
Purpose**: To maintain and expand water supply infrastructure and ensure sustainable water management.

3. **Sewerage/Drainage Tax**: This is levied to provide and maintain the sewage system and drainage services within urban
areas - **Purpose**: To cover expenses related to wastewater management and sewer maintenance.

4. **Conservancy/Scavenging Tax- This tax is imposed for waste collection and disposal services. It covers solid waste
management and street cleaning operations.
- **Purpose**: To fund activities related to waste management and hygiene.

5. **Vehicle and Parking Tax- Municipalities levy parking taxes for designated public parking spaces and vehicle entry fees
for specific areas, especially in metropolitan cities.
Purpose**: To regulate traffic and maintain parking facilities.

6. **Advertisement Tax**:
- This tax is imposed on billboards, hoardings, neon signs, and other advertising displays in public areas.
- **Purpose**: To control and regulate outdoor advertisements within the city limits.

7. **Profession Tax**:
- Some states allow municipal bodies to collect professional taxes from individuals engaged in professions, trades, and
employment.
- **Purpose**: To generate revenue from individuals employed or practicing any trade, occupation, or profession.

8. **Entertainment Tax**:
- Municipalities can impose entertainment tax on tickets for cinema halls, amusement parks, events, etc.
- **Purpose**: To generate revenue from entertainment activities and events.

9. **Betterment Tax or Development Charges**:

- This is levied on properties that benefit from municipal projects such as road improvements, parks, or new amenities.
- **Purpose**: To recover a portion of the cost of development projects from the beneficiaries.

### 2. **Taxation Powers of Rural Local Bodies (Panchayats)**

Rural local bodies include **Gram Panchayats, Panchayat Samitis**, and **Zila Parishads**. Their taxation powers are laid
out in the **73rd Constitutional Amendment (1992)** and **Part IX** of the Constitution, along with the **Eleventh
Schedule**.

#### Key Taxes Levied by Panchayats:

1. **House Tax or Property Tax**:
- Gram Panchayats can levy house taxes on residential properties within their jurisdiction.
- **Purpose**: To fund rural development projects, maintenance of public properties, and provision of basic services.

2. **Water Tax**:
- Panchayats impose water taxes or charges for supplying water for drinking and irrigation purposes in rural areas.
- **Purpose**: To maintain and extend water supply facilities in villages.
 3. **Land Cess and Agricultural Income Tax**:
- In some states, Panchayats have the power to levy cesses on land and agricultural produce.
- **Purpose**: To fund rural infrastructure projects like roads, community halls, schools, etc.

4. **Market Fees and Toll Taxes**:

- Panchayats can collect market fees on goods sold in rural markets or weekly bazaars and toll taxes on roads and bridges
constructed by the Panchayat.
- **Purpose**: To maintain and improve rural roads and markets.

5. **Entertainment Tax**:
- Panchayats may levy taxes on entertainment shows or events within the Panchayat jurisdiction, similar to urban local bodies.
- **Purpose**: To generate revenue from local entertainment activities.

6. **Profession Tax**:
- Just like urban local bodies, some Panchayats have been given the authority to collect professional taxes within their
jurisdiction.
- **Purpose**: To raise revenue from individuals engaged in various trades and occupations.

### Constitutional Provisions:

- **Article 243H**: This Article allows state legislatures to empower Panchayats to levy, collect, and appropriate taxes, duties,
tolls, and fees.
- **Article 243X**: This Article allows state legislatures to authorize Municipalities to levy, collect, and appropriate taxes,
duties, tolls, and fees.

### Role of State Legislation:

While the Constitution provides a broad framework, the actual powers and taxes imposed by local bodies are detailed in state-
specific laws. For instance:
- **Karnataka Panchayat Raj Act, 1993** and **Karnataka Municipal Corporations Act, 1976**
- **Maharashtra Municipal Corporations Act**
- **Delhi Municipal Corporation Act, 1957**
- **Kerala Panchayat Raj Act, 1994**
- **West Bengal Municipal Act, 1993**

Each state prescribes the type of taxes local bodies can impose and the extent of their taxation powers, which may vary from state
to state.

### Conclusion:
The taxation powers of local bodies are crucial for maintaining autonomy and enabling local self-governance. These powers help
local bodies generate revenue independently, which is then used to provide essential services, build infrastructure, and develop
the community.