UNIT-1

(EVOLUTION OF LOCAL SELF GOVT)

Evolution of local self govt-
 Ancient- During early vedic times they are have been considerable evidences regarding
the existence of sales governing village bodies called sabhas slowly these body is
converted themselves into panchayat at the rural level.
 During the Mauryan Empire and Gupta Empire, village was considered as the basic unit
of administration. Although the representatives of these institutions were not elected by
people, yet these representatives performed the functions for the welfare of the people.
 The study of that period clearly reveals that rulers intended to grand autonomy to the
people. Although, the Mughal rulers followed same policies for the local people,
although the tendency of centralisation was clearly visible in their policies. Thus no
further development was noticed in the local institution during Mughal Empire.
 Rural local government continued to function without interference from the government.
A functionary known as "Muquddam" was held responsible for the maintenance of law
and order and to dispense justice to the people in the rural area.
 Similarly, there was a provision of functionary known as Kotwal who was responsible for
the development of citizens. Although, these functionaries were responsible to work for
the local people, yet they are accountable to the mughal rulers.

Pre independence-
 It is clear that in India the institutions of local government had existed in one or the other
form. However, the present organization and working of local government is the creation
of British especially after 1882.
 The Bengal Chowkidar Act of 1870 exemplified their attempt to revive the village
panchayat system. However, the primary emphasis was on revenue collection rather than
empowering local bodies.
 The first step for the establishment of local government in India was taken in 1689 by the
British government. After this development, many acts were passed in this direction
which emphasized for strengthening the institution of local government.
 After the Bombay Municipal Corporation and Calcutta Municipal Corporation were set
up in 1726.
 Lord Mayo's resolution of 1870 on financial decentralization started the process of
decentralization of finance. This actually gave an idea regarding the viability of local self
government institutions. Lora Ripon's resolution 1882 has been hailed as the Magna
Carta of local self government.
 Montagu-Chelmsford Reforms (1919):
 The Montagu-Chelmsford Reforms of 1919 acknowledged the importance of local self-
government. The reform transferred the subject of local government to the provinces,
advocating for greater popular control in local bodies. Despite these reforms,
democratization at the grassroots level faced challenges.

After independence-
 Article 40 of the constitution of India which enshrines one of the DPSP, lays
down that the state shall take step to organize village panchayats and endow them
with such power and authority as may be necessary to enable them to function as
units of self government.
 Local government in India refers to governmental jurisdiction below the level of
the state. India is a federal republic and three spheres of government central, state
and local. The 73RD and 74TH constitutional amendments give recognition and
protection to local government legislation.
 Since 1992, local government in India takes place in two very distinct forms,
urban localities covered in the 74th amendment of the constitutions, have Nagar
Palika but derive their powers from the individual state governments, which the
power of rural localities have been formalized, while the power of rural localities
have been formalized under the panchayat raj system, under the 73rd amendment
of the constitution
 Within the administrative setup of India, the democratically elected local
governance bodies are called the municipalities, in urban area and panchayat in
rural areas.
 UNIT-2
(STRUCTURAL GROWTH OF LOCAL SELF GOVERNANCE UNDER 73RD
AMENDMENT)

What was the 73rd Constitutional Amendment Act?

 Village panchayats existed in India long before the act was passed in 1992, but the
system had inherent weaknesses like the inability to be a people’s government responsive
to their needs. This was due to a variety of factors like a lack of financial resources, no
regular elections and inadequate representation of the weaker sections like scheduled
castes/tribes and women.
 The Directive Principles of State Policy in the Constitution of India lays down in Article
40 that the government shall facilitate the establishment and smooth functioning of the
gram panchayats.
 In order to address these issues and strengthen the local self-governments in India, the
central government brought about the 73rd Amendment Act in 1992. The act was passed
in both houses and entered into force from 24th April 1993.
 This Act added a new chapter into the Constitution called ‘Part IX: The Panchayats’.
 The chief features of the act are mentioned below:

 This Act made the Panchayati Raj institutions in the country constitutional bodies.
 Under Article 243-B, it has become compulsory for every state to establish
panchayats in their territories.
 Article 243-G makes it mandatory for the state governments to devolve powers,
responsibilities and authority to the panchayats.
 The gram panchayats have a fixed tenure of 5 years.
 State election commissions have been provided with the mechanism to conduct
independent elections to the village panchayats.
 Article 243-D gives provisions for the due representation of women and SC/STs.
  The State Finance Commission should also evaluate the financial position of the
panchayats every five years.

Result of the 73rd Amendment

 The passing of the 73rd Amendment has improved local self-government in the country
vastly.
 In order to celebrate this and further give impetus to the institutions, the central
government in 2010 decided to observe 24th April every year as National Panchayati Raj
Day.
 Today, the formalised Panchayati raj functions in three levels namely, the Gram
Panchayat (at the village level), the Mandal Parishad/Panchayat Samiti/Block Samiti (at
the Block level), and the Zila Parishad (at the district level).
ZILA PARISHAD-
Introduction to Zilla Parishad ( District Level)
It is a local self-government unit at district level. Panchayat Samiti forms a link between the
Gram Panchayat and Zilla Parishad. The Zilla Parishad is a link between the State government
and the Gram Panchayats. The Zilla Parishad is also known by different names in different
States, like District Develeopment Council, Zilla Parishad and Mohkuma Parishad.
The head of the Zilla Parishad known as the Adhyaksha or President is directly elected from
amongst the elected members. Zila Parishad is another name for Zila Panchayat. At the district
level, it is the third level of the Panchayat Raj structure. In Panchayati Raj Institutions, the Gram
Panchayat is the fundamental unit at the village level and the Zila Parishad is the highest order of
the Panchayat at the district level.

All of the District’s Panchayat Samitis are led by former official Zila Parishad members. The
parish is led by the chairman and vice-chairman.

 The ex-officio secretary of the Zila Parishad is the deputy director general from the
district-level general administration department.
 The Zila Parishad’s administrative structure is headed by the Director General, who may
be an IAS officer or a senior civil servant.
  In addition to the Deputy General Managers and other district and block-level officials,
he also manages the Parish Department.
Functions of Zila Parishad are as under:
1. It is responsible for giving proper advice to Gram Panchayats and Block Samitis & assist in
their functioning.
2.It acts as a connecting link between state government and bodies at the lower level.
3.It overlooks the implementation of the Five-year plans.
4.In accordance with the Block Samiti, it makes the developmental plans for the whole district.
5.It even gives advice to the State government regarding the development efforts and plans in the
district level.

ANCHALIK PANCHAYAT-

This is the Council of States in India, which is divided into five councils. These are regional
councils formed from advisory groups created from the states of India. These councils were
established to enhance cooperation among the states.
Anchalik Panchayats:
a. President – to be elected by the elected members of the Anchalik Panchayats.
b. Vice President - to be elected by the elected members of the Anchalik Panchayats.
c. Members – One member from each Gaon Panchayat area to be directly elected by people.
President of the Gaon Panchayats falling within the jurisdiction of the Anchalik Panchayat.
Members of Parliament and Legislative Assembly.
Local Self-Government: Anchalik Panchayats are local self-government bodies at the grassroots
level. They play a crucial role in decentralizing governance and ensuring that decision-making
power is distributed to the regional level.

Elected Representatives: These councils are composed of elected representatives from the region.
Members are elected through democratic processes, and they represent the interests of the local
population.
Administrative Functions: Anchalik Panchayats are responsible for various administrative
functions at the regional level. These can include matters related to local infrastructure, public
services, and rural development.

Funding and Budgeting: They have control over a portion of the state's budget, which they can
use to fund and execute projects and programs aimed at the development of the region.

Decision-Making: These councils make important decisions related to local development, public
services, and other regional matters. They have the authority to plan and execute projects that
address the specific needs of the region.

Development and Welfare: Anchalik Panchayats focus on promoting regional development and
the welfare of the local population. They work towards improving living standards, education,
healthcare, and other aspects of the region's well-being.
GRAM PANCHAYATS AND GRAM SABHA-

Panchayati Raj in India signifies the system of rural local self-governance. It is entrusted with
rural development. The Panchayati Raj is a three-tier structure consisting of the Zila Parishad,
Panchayat Samiti and Gram Panchayat. The Gram Panchayat is further divided into Gram Sabha
and Nyaya Panchayat/ The Panchayati Raj System was constitutionalized through the 73rd
Constitutional Amendment Act of 1992 which came into effect on April 24, 1993.
Gram Sabha is the general assembly of all the people of a village, who have attained the age of
18 years and their name is entered in the voter list.
The executive committee of the Gram Sabha is known as Gram Panchayat which consists of the
representatives elected by the Sabha.
The differences between a Gram Sabha and Gram Panchayat are given in the table below:
Differences between Gram Panchayat and Gram Sabha

Gram Panchayat Gram Sabha

Gram Panchayat is the lower element of Panchayati Raj that Gram Sabha is the legislative body that
functions at the village level with the welfare and operates at the village level and takes into
 development of the village in mind. account the annual budget and audit
reports of the Gram Panchayat.

It is a temporary body, as the members of the panchayat are It is a permanent body.

elected for a term of five years.

The Gram Panchayat consists of ward members and The Gram Sabha consists of every person
Sarpanch. whose name is registered in the voter list
of the perspective village.

The members of the Gram Panchayat are directly elected by The members of Gram Sabha are not
the members of the Gram Sabha. elected.

Every month a meeting is organised by the gram panchayat. The decisions taken by the Gram Sabha
The functions of the Gram Panchayat may bifurcate as cannot be annulled by any other body.
obligatory and optional functions. The obligatory functions The power to do so rests with the Gram
include civic roles such as sanitation, drains and ponds. Sabha only.

NYAYA PANCHAYAT-
The Nyaya Panchayat is a part of the Panchayat system, which was established to resolve
villagers’ problems. Its many functions include resolving minor criminal and civil issues in
which the parties present their arguments to the Panchayat members.
Functions of Nyaya Panchayat
Its functions are as follows:

 It aims to resolve minor criminal and civil disputes by having the disputants explain their
sides to the Panchayat members.
 They have the right to raise small fines but not to imprison persons. Their primary goal is
to provide low-cost, quick justice.
 If either party is dissatisfied, they can take their case to the District or High Court.

Composition of Nyaya Panchayat

Every Panchayat that comes under the jurisdiction of Nyaya Panchayat elects a member for such
Nyaya Panchayat. The elected member must be –

 30 years old or above,

 He must be a registered voter in the concerned Panchayat,
 He must be literate to read and write in the concerned State’s language, and
 He must not be debarred from being elected to the Panchayat under any law in force.
Whoever is elected as the Nyaya Panch shall not hold the office of Sarpanch, or a Parishad, or of
a member of Samithi, or a State Legislature or Union Parliament simultaneously.

Jurisdiction of Nyaya Panchayats

A Nyaya Panchayat’s jurisdiction usually depends upon the required situation at the local level
or extends from five to seven Panchayat divisions of the earlier set-up. For the demarcation of
the exact jurisdiction of such Nyaya Panchayats, an officer in charge is appointed who in most
cases is the Collector.
A Nyaya Panchayat is empowered with both civil and criminal jurisdiction. Its civil jurisdiction
covers suits seeking compensation for wrongfully gaining or injuring movable property, suits for
damages, suits for a specific movable property whose value does not go beyond the limit
prescribed by the statute and suits for breach of such contracts where no immovable property is
affected. Its criminal jurisdiction covers certain offences under the Indian Penal Code, 1860 like
theft, outraging the modesty of a woman, trespass, injuring public property, mischief, etc. The
Nyaya Panchayats also deal with the Prevention of Cruelty to Animals Act, Primary Education
Act, Public Gambling Act, etc. The State Government has the authority to decide which offences
are to be tried under the Nyaya Panchayats.
QUALIFICATIONS OF NYAYA PACHAYATA-
 25 Years of age
 Not member of any local regional or national political party
 The state government may make provisions for state level agencies than nyaya Panch of
the nyaya panchayat in such manner as may be prescribed.

Disqualification of Nyaya Panchs

 (1)Any Nyaya Panch of the Nyaya Panchayat, including its Pramukh, shall be disqualified if he
has been convicted of an offence and awarded imprisonment for a term exceeding six months, or
if in an inquiry by the presiding authority finds him at fault in the discharge of his duties by
reason of misconduct, negligence or dereliction of duty or for refusing to perform any function
expected of him in his capacity as a Nyaya Panch or Pramukh of a Nyaya Panchayat:

Provided that the panch concerned has been given seven days in writing and in a simple
language easily understandable in the local context to explain his conduct to the satisfaction of
the presiding authority.

Provided further that the Presiding authority shall duly hear the party concerned in person,
and record the reasons for the final decision.

(2) Upon disqualification, the member shall be suspended immediately and shall not be eligible
for re-election until the expiry of 5 years from the date of his suspension.

(3) The decision of the Presiding authority on disqualification shall be final and binding and not
subject to any review or appeal.

Reservation in panchayati Raj system-

Reservation to SC and ST is in relation to their population in that state. For OBC and women,
1/3 of all the elected seats must be reserved for women. OBC quota can be decided by the
state law- We have a huge SC/ST population in India but the problem is that it is not equally
distributed. In some places, it is highly concentrated whereas in others it rarely exists. But, the
reservation policies are uniform throughout the states. In case of political reservation, local
demographics are very important. This is because in political reservation, we are concerned with
empowerment through representation. It is only in some states and regions that the reservation
policies in Panchayati System are truly benefitting the SC/ST. In all the other areas, it is not
helping the cause as much as it should have.
 Reservation of seat for SC and ST is linked to the overall average population of SC and ST in the
state. It does not serve much purpose. For reservation of SC and ST, they must be linked to
state’s average in rural areas for Panchayats and urban average for Municipalities.
2. The nature and purpose of reservations under article 243D and article 243T is about
political representation- Political reservation is not something that could be based upon
economic or social basis. The main concern in Political reservation is that whether a community
is being adequately represented and participating in the Decision-Making process or not. In cases
of political reservation for SC/ST, the concept of creamy layer cannot be introduced because the
whole concept of creamy layer lies in the socio-economic basis. I personally feel that there must
be political reservation in our country. Our forefathers have exploited backward communities in
the past and we must pay this back. The reason for their backwardness lies in our history. Thus,
if they are not part of the decision making process, we must include them by way of reservation.
People say that only the empowered people in SC/ST come to the power. The counter-argument
is that only an empowered person can effectively govern. If we put a weak person in power, he
will succumb to pressure and various other forces. The whole purpose of political reservation
shall stand forfeited. It is true that the empowered people are using reservation for their own
benefit. But, still the whole SC/ST community is getting benefitted a lot.
Just because a problem exists in a system, it does not mean that the whole concept of political
reservation is bad. The concept is perfectly noble and justified. I think the only thing we need is
awareness. The awareness must exist both on the part of the government as well as the people.
Unless, both of them understand and identify the problem, it is not going to help the situation.
3. There is no limit of reservation in article 243, it only talks about proportionality. Article
243 is just an enabling provision- We know that the provisions in our Constitution relating to
Panchayati Raj are simply enabling provisions(Enabling means that the provisions in the
Constitution merely provide a broad framework, in order to implement that framework,
respective state governments have to pass corresponding laws). There is a reason for this. The
reason is that the reservation policies cannot be uniform throughout India. Customized policies
need to be made on a case to case basis since political situation in every part of country is
different.
4. Reservation can exceed 50% of the total seats only in Tribal Areas- By making an
exception in reservation with relation to tribal areas; the Tribal areas are getting highly benefitted
 by it. There are a lot of tribal areas which exist in places which are very rich in natural resources
and forest. The Panchayat (Extension to Scheduled Areas) Act, 1996 gives a lot of power to the
Tribal Panchayats if someone is to encroach upon their area. This is a highly welcome measure
as Tribal people are the ones who have been living in those areas since a long time and they must
have some authority in deciding about what is rightfully theirs.
Thus, Tribal people have been benefitted by PESA. But still, in the states of Chhattisgarh and
Jharkhand, where a large chunk of tribal population resides, it is not applicable. This issue must
be immediately addressed and it must be made applicable in those areas as well.
5. Provisions under Schedule V of the Constitution- Schedule V of the Constitution of India
provides for special provisions such as:
A. Report by governor to the President regarding the administration of these areas.
B. Tribes Advisory Council to advise governor.
C. Union government to give directions to the state as to the administration of these areas.
Despite these special provisions, the pressure on natural resources in these areas continues due to
the large projects being set up therein and unscrupulous elements indulging in illegal mining and
forest felling. Land alienation and exploitation have also continued. This is leading to dislocation
of the communities and loss of major sources of livelihood, and also increased vulnerability and
disenchantment with governance.
6. 3F (Fiscal, Function and Functionary) Strategy- Function and Functionaries self-
reliance- Under 3F strategy, if functionaries’ self-reliance is achieved, it would solve a lot of
problems related to reservation. Right now, the power vests with the state government in all the
spheres of governance. If this changes and more power is given to Panchayats, they might decide
what is best for them on a case to case basis. By this I propose that even the elected
representatives of the Panchayats must be involved in the decision making in the real sense.
7. Reservation needs to be provided for SC, ST and OBC in those constituencies only when
there population is 5% or more in those areas- There are some areas where there is no
SC/ST/OBC population. Still, due to rotation policy/basis, those constituencies get reservation
from time to time. It makes the whole process, a farce, and forfeits the very purpose of
reservation since in those areas there is no SC/ST population. This must come to an end.
8. For SC and ST, mere reservation is not enough. People who get elected work for their
own benefit and not for the community - It is important to observe that in case of SC/ST, it is
 the empowered people in those communities who get elected and are chosen to govern. But, after
getting elected, they tend to ignore their community and start living in Ivory towers. They work
for their own benefit and not for the community. There is a need to put a check on this. There
should be Grievance Redressal Committees in all the areas where the SC and ST population is in
sufficient numbers.
9. Rotation in the reservation of seats- While the Constitution does not mandate rotation of
seats after just one election cycle, this often is the practice across the states. It counters the intent
of reservation. Candidates who win elections for the first time from reserved seats do not get
adequate opportunity to gain in experience and grow in stature by getting re-elected. Often,
proxy candidates are put up, who serve a term, after which the seats gets de-reserved and
becomes available to the existing powerful groups and individuals. Moreover, the rotation after
one election cycle often leads to an unhealthy attitude of the elected, having little hope for re-
election.
 UNIT- 3
(MUNICIPALITIES)

Urban local bodies are small local bodies that administer or govern a city or a town of a specific
population.
The 74th Amendment Act has added a new Part IX-A to the Constitution of India. This part is
entitled as 'The Municipalities' and consists of provisions from Articles 243-P to 243-ZG.
Additionally, the act also added a new Twelfth Schedule to the Constitution.
The 74th Amendment Act of 1992 provides a basic framework of decentralisation of powers and
authorities to the Municipal bodies at different levels. However, responsibility for giving it a
practical shape rests with the States.
The term ‘Urban Local Government’ in India signifies the governance of an urban area by the
people through their elected representatives. The jurisdiction of an urban local government is
limited to a specific urban area, which is demarcated for this purpose by the state government.

Introduction

 The 74th Amendment Act has added a new Part IX-A to the Constitution of India.
 This part is entitled as ‘The Municipalities’ and consists of provisions from Articles 243-
P to 243-ZG.
 Additionally, the act also added a new Twelfth Schedule to the Constitution. This
schedule contains 18 functional items of municipalities.
  The Act has brought Municipalities under the purview of the justiciable part of the
Constitution.
 In other words, state governments are under constitutional obligation to adopt the new
system of municipalities in accordance with the provisions of the act [Article 243 Q].
 The act aims at revitalising and strengthening the urban governments so that they
function effectively as units of local government.

Historical Background

 In 1989, the Rajiv Gandhi government introduced the 65th Constitutional Amendment
Bill (Nagarpalika bill) in the Lok Sabha. The bill aimed at strengthening and revamping
the municipal bodies by conferring constitutional status on them.
 Although the bill was passed in the Lok Sabha, it was defeated in the Rajya Sabha in
October 1989 and, hence, lapsed.
 The National Front Government under V P Singh introduced the revised Nagarpalika Bill
in the Lok Sabha again in September 1990. However, the bill was not passed and finally
lapsed due to the dissolution of the Lok Sabha.
 P V Narasimha Rao’s Government also introduced the modified Municipalities Bill in the
Lok Sabha in September 1991. It finally emerged as the 74th Constitutional Amendment
Act of 1992 and came into force on 1 June 1993.

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.
Features of 74th Amendment Act, 1992
The main provisions introduced by the above Act were as follows:-

Constitution of Municipalities
The Act provides for the constitution of 3 types of municipalities, depending upon the size and
area in every state.

1. Nagar Panchayat (for an area in transition from rural to the urban area);
2. Municipal Council for the smaller urban area; and
3. Municipal Corporation for a larger urban area.

Composition of Municipalities

 The seats shall be filled by direct elections. 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.
 It may also provide for the representation of the following persons in a municipality.

 Persons having special knowledge and experience in municipal administration

without the right to vote in the meetings of the municipality.
 The members of the Lok Sabha and the state legislative assembly representing
constituencies that comprise wholly or partly the municipal area.
 The members of the Rajya Sabha and the State Legislative Council registered as
electors within the municipal area.
 The chairpersons of committees (other than ward committees).

Constitution of Wards Committees

 This provides for the constitution of Ward Committees in all municipalities with a
population of 3 lakhs or more.
Reservation of seats

 The Act provides for the reservation of seats for the scheduled castes and the scheduled
tribes in every municipality in the proportion of their population to the total population in
the municipal area.
 Further, it 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 SCs
and the STs).
 The state legislature may provide for the manner of reservation of offices of chairpersons
in the municipalities for SCs, STs and women.
 It may also make any provision for the reservation of seats in any Municipality or offices
of chairpersons in municipalities in favour of backward classes.

Duration of Municipalities

 The municipality has a fixed term of 5 years from the date appointed for its first meeting.
 Elections to constitute a municipality are required to be completed before the expiration
of the duration of the municipality.
 If the municipality is dissolved before the expiry of 5 years, the elections for constituting
a new municipality are required to be completed within a period of 6 months from the
date of its dissolution.

Powers and Functions of the Municipalities

 All municipalities would be empowered with such powers and responsibilities as may be
necessary to enable them to function as effective institutions of self-government.
 The State Legislature may, by law, specify what powers and responsibilities would be
given to the municipalities in respect of preparation of plans for economic development
and social justice and for implementation of schemes as may be entrusted to them.
 An illustrative list of functions that may be entrusted to the municipalities has been
incorporated as the Twelfth Schedule of the Constitution.
Finances of Municipalities
It has been left to the Legislature of a State to specify by law matters relating to imposition of
taxes. Such law may specify:

 Taxes, duties, fees, etc. which could be levied and collected by the Municipalities, as per
the procedure to be laid down in the State law.
 Taxes, duties, fees, etc. which would be levied and collected by the State Government
and a share passed on to the Municipalities.
 Grant-in-aid that would be given to the Municipalities from the State.
 Constitution of funds for crediting and withdrawal of money by the Municipality.

Finance Commission
The Finance Commission, constituted under Article 243-I to review the financial positions of
Panchayati Raj Institutions, shall also review the financial position of the municipalities and will
make recommendations to the Governor.
The recommendations of the Finance Commission will cover the following:

 The distribution between the State Government and Municipalities of the net proceeds of
the taxes, duties, tolls and fees leviable by the State.
 Allocation of share of such proceeds between the Municipalities at all levels in the State.
 Determination of taxes, duties, tolls and fees to be assigned or appropriated by the
Municipalities.
 Grants-in-aid to Municipalities from the Consolidated Fund of the State.
 Measures needed to improve the financial position of the Municipalities.
The governor shall place the recommendations of the commission along with the action taken
report before the state legislature.

Elections to Municipalities
The superintendence, direction and control of the preparation of the electoral rolls for, and the
conduct of, all elections to the panchayats and municipalities shall be vested in the State Election
Commissions.
Audit and Accounts
The maintenance of the accounts of the municipalities and other audits shall be done in
accordance with the provisions in the State law. The State Legislatures will be free to make
appropriate provisions in this regard, depending upon the local needs and institutional framework
available for this purpose.

Committee for District Planning

 Every state shall constitute, at the district level, a district planning committee 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.
 Planning and allocation of resources at the district level for the Panchayati Raj
institutions are normally to be done by the Zila Parishad.

Metropolitan Planning Committees

Every metropolitan area shall have a metropolitan planning committee to prepare a draft
development plan.

Continuance of Existing Laws and Municipalities

 All the state laws relating to municipalities shall continue to be in force until the expiry of
one year from the commencement of this act.
 In other words, the states have to adopt the new system of municipalities based on this act
within the maximum period of one year from 1 June 1993, which is the date of
commencement of this act.
 However, all municipalities existing immediately before the commencement of this act
shall continue till the expiry of their term, unless dissolved by the state legislature
sooner.

Bar to Interference by Courts in Electoral Matters

 The act bars the interference by courts in the electoral matters of municipalities.
 It declares that the validity of any law relating to the delimitation of constituencies or the
allotment of seats to such constituencies cannot be questioned in any court.
  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 a manner as provided by the state
legislature.

Types of Urban Governments

The following eight types of urban local bodies are created in India for the administration of
urban areas:

1. Municipal corporation
2. Municipality
3. Notified Area Committee
4. Town Area Committee
5. Cantonment Board
6. Township
7. Port Trust
8. Special Purpose Agency

Municipal Personnel
There are three types of municipal personnel systems in India. The personnel working in the
urban governments may belong to any one or all three types. These are:

1. Separate Personnel System

2. Unified Personnel System
3. Integrated Personnel System

Municipal Revenue
There are five sources of income of the urban local bodies. These are as follows:

1. Tax Revenue
2. Non-Tax Revenue
3. Grants
 4. Devolution
5. Loans
TOWN COMMITTEES-

A town committee is formed in an urban area which has a population less than 10,000. Is
constituted by the government in an urban area where it is not possible to create a municipal
board but such place may require some urban facilities. So the Assam municipal provides
provisions for the creation of town committee in Assam. At present there are 52 town
communities in India.

COMPOSITION-

Town committee consists of the members as fixed by the state government from time to time but
generally a town committee consists of not more than 10 and not less than 4 members. The state
government may appoint two members from ST and SC to represent these people in committee.
ELECTIONS-
The state government may appoint any person, whether a member of the town committee or not
to be its chairman or vice chairman or both, fix the term of office of members of chairman or
vice chairman of the town committee.

In every town committee seats are reserved for SC and STs in proportion in their population in
the total population. Also one third of this is a reserved for women in every town committee.

Data on committee constituted for such area under section 335 of the municipal act shall be
deemed to be municipal board under this act anta area to be a municipality. The government
imposes taxes in the notified area.

The election of members of the town committee may take place after due notice not less than one
month issued.

POWERS-
The executive committee of the previous approval of the district council may make rules with the
regard of the following-

The qualification for voting at such election and the preparation of electoral roles there of –
 The term of office of members of the committee.
 The procedure and the conduct of business in the committee.
 The appoint of the staff of the committee.
 Any other matter relating to or connected with the committee.
 It also has the power to levy and collect taxes for the maintenance of the primary schools
established, roads, bridges, rest house construction public well, tanks, sighting,
installation within town and for many other matters.

FUNCTIONS-

Town committee performs and functions relating to all round development of the town area. It
performs functions relating to-
 Maintenance of health and sanitation of the members of town committee.
 Maintaining street light.
 Maternity and child welfare.
 Supplying electricity and drinking water.
 Keeps records for weaker section of the people.
 Registration of birth and death and maintenance of registers.
 Prevention of cattle epidemics.
 Construction and maintenance of rest house.
 Removal of encouragement on roads, public places and property vested in the town
committee.

Thus, the town committee looks after the overall welfare of the people of the city.
 UNIT-IV
(MUNICIPAL CORPORATION AND COUNCIL)

FINANCE COMMISSION ON MUNICIPALITIES-

Article 243 gave the State Finance Commission authority over city councils or municipalities. A
State Finance Commission performs all the tasks as the central finance commission. It disburses
state funds to the Panchayati Raj institutions.

Setting up the Commission: The government will establish a Finance Commission for
Panchayats and Municipalities every five years. It's responsible for reviewing the financial
situation of these local bodies and performing certain duties.

Composition: The Commission will have a Chairperson, an expert in economics and state
finance, and up to two other members with experience in various fields like administration,
planning, and law. The government appoints them.

Secretary: There will be a Secretary for the Commission, chosen by the government, who will
manage its day-to-day activities and carry out tasks delegated by the Commission.

Location: The Commission's main office will be at a place decided by the government.

Term: The Chairperson and Members will serve for one year, or until they finish their report or
reach the age of sixty-five. The government can extend their term for up to six months. They can
also resign if they wish.

Compensation: The salaries and benefits of the Chairperson and Members will be determined by
the government. If they receive a pension from previous work, their salary will be adjusted
accordingly.
Acting Chairperson: If the Chairperson can't perform their duties due to various reasons, one of
the Members can be authorized by the government to act as Chairperson temporarily.

Removal: The Chairperson or Members can be removed by the government for misconduct or
incapacity, following the prescribed procedure.

Vacancies: The absence of members or defects in the Commission's structure won't affect its
decisions or actions.

Procedures: The Commission will decide when and where to meet and establish its own rules.
The Commission's recommendations will be verified by the Commission's Secretary.

Staff: The government will provide a secretary and other staff to assist the Commission. Their
salaries and conditions of service will be determined by the government. The Chairperson will
have control over these staff members.
Finance Commission, in the context of the Union Territory of Jammu and Kashmir. The Finance
Commission has several roles and responsibilities, including:

Deciding how to distribute taxes, duties, tolls, and fees collected by the Union Territory between
itself and local governing bodies called Panchayats. It also determines how much of this money
should go to different levels of Panchayats.

Deciding which taxes, duties, tolls, and fees can be assigned to or used by the Panchayats.

Recommending financial assistance or grants from the Union Territory's Consolidated Fund to
the Panchayats.

Suggesting ways to improve the financial condition of the Panchayats.

Similar to the above points, but for Municipalities instead of Panchayats.

Addressing financial matters referred to the Finance Commission by the government to ensure
the financial stability of Panchayats or Municipalities.

Handling any other issues or tasks assigned by the government related to financial matters.

Additionally, the Commission has the power to request information or documents from
individuals or public servants if it believes this information is relevant to its functions. However,
there are some exceptions to this power, such as not requesting information that could harm the
Union Territory's security or disclose confidential government proceedings unless the person
providing the information agrees.

Finally, the Commission must submit its report to the government within a specified timeframe.

GOVERNMENT CONTROL OVER MUNICIPAL CORPORATION AND MUNICIPAL

COUNCIL-

 LEGISLATIVE CONTROL- Urban local bodies are set up by the laws passed by the
legislature. Government can bring changes in their organization, powers and functions
through a law passed by the legislature.
 FINANCIAL CONTROL- Government undertakes the audit of the accounts of urban local
bodies from time to time for checking regulatories committed by this institutions while
spending money. For raising loans from the financial institutions. Municipal councils have
to seek the prior approval of the government.
 CONTROL THROUGH GOVERNMENT OFFICIAL-
 Executive officer of urban local bodies are government, exercises its control over
these body through these officials.
 Executive officer and a commissioner of Municipal Corporation and the key
instruments of governmental cover over the urban local bodies,
 The director urban of local bodies also performs such a role.

 POWER TO DISMISS THE URBAN LOCAL INSTITUTIONS-

  Under 74 amendment of the constitution this institutions have been given is stable
5 year tenure.
 However even then if the opinion of the government and institution is not
competent to perform its duties or persistently makes default in performance of
duties, the government can dismiss it even before the expiry of its term.
 ADMINISTRATIVE CONTROL-
 The government can seek any report, recorder information from the municipal
councils and corporations.
 The government can appoint any officer of its own to scrutinize and examine the
work done by a municipal corporation and council.
 The sanction in respect of the bye- law passed by a municipal corporation/ council
has to be obtained from the government.
 The state legislature may provide for the manner of reservation of offices of
chairperson in the municipality for the SC and ST’s and women.
 It may i.e. the state legislature may make any provisions for reservation of seats in
any municipality or officers of chairperson in municipalities in favour of
backward classes.
 The state legislature may assign to a municipality taxes, duties and tolls and fees
levied and collected by the state government.
 Grant in aid is given to municipalities from the state.
 Taxes, duties, fees etc are collected by the municipalities as per the procedure laid
down in the state law.
 A person or a member of municipality can be disqualified by or under any law for
the time being in force for the purposes of elections to the legislature of the state
concerned.
 The state legislature also has the power to determine authority of a particular
committee to deal which all questions and disqualification of the member of
municipality specially. (Municipal corporation and Municipal Council)

GOVERNMENTAL CONTROL OVER MUNICIPALITIES-

Although the 74th Amendment of the Constitution has granted sufficient autonomy to urban
local institutions and these have been accorded constitutional status, these are not completely
free from governmental control. The urban local government institutions work within the limits
prescribed by the State municipal Act which creates and governs them.

Legislative Control: Urban local bodies are created and governed by laws passed by the
government. The government can change their organization, powers, and functions through new
laws.

Financial Control: The government audits the accounts of these bodies to check for financial
irregularities. They also need government approval to borrow money.

Control through Government Officials: Key officials in urban local bodies are government-
appointed, and they play a role in government control over these bodies.

Power to Dismiss: Even though there's a five-year term limit, the government can dismiss an
urban local institution if it believes it's not performing its duties effectively.

Administrative Control: The government can request reports, records, and information from
these bodies, appoint its officers to oversee their work, and approve the bylaws they pass.

While local government institutions in India have not always achieved their goals, they have the
potential to become stronger and more efficient if local resources, efforts, and representatives are
involved. The Constitution's 73rd and 74th Amendment Acts have tried to make these
institutions stable, representative, and independent for self-governance.

However, there is still a need to make these local government systems work better. People need
to actively participate and commit to these institutions for them to succeed. Without the full
support and involvement of the people, local government systems won't function effectively.
Since 2006, a central ministry called the Panchayati Raj Ministry has been overseeing the
working of these local institutions. Its role is to suggest national-level reforms based on
consensus to make Panchayati Raj (local government) a more effective and efficient system

UNIT-V

COOPERATIVE SOCIETY-

It is an organisation that is formed by a group of people whose primary objective is the

promotion of economic interest of its member.

A cooperative society is an autonomous association of persons united voluntarily to meet their

common economic, social and cultural needs. To protect the interest of weaker section, the
cooperative society is formed.

Objectives Of Cooperative Society

 To provide support and services to the members of the society and not to earn the profit
 To help each other mutually and not to have competition
 To practice fair and transparent business activities
 To deliver the quality goods and produce to the end customers
DISSOLUTION OF SOCIETY

 Cancellation of Registration: The Registrar has the authority, under Section 94, to cancel
the registration of a cooperative society if certain conditions are met.
 Liquidator Appointment: Upon cancellation, the Registrar, as per Section 95(1), can
appoint a liquidator to oversee the winding-up process. The liquidator can be changed if
needed.

 Immediate Possession: The liquidator, upon appointment, gains immediate control over
all assets, properties, and records of the society. No winding-up steps can be taken during
any existing stay orders.

 General Powers: The liquidator, under the control of the Registrar, has extensive powers
to manage the society’s affairs, make legal decisions, and determine debts and
contributions.

 Claims Investigation: The liquidator is responsible for investigating and settling claims
against the society, prioritizing them and paying them off in accordance with available
assets.

 Debt Recovery: The liquidator, if necessary, can take steps to recover dues as outlined in
Section 102.

 Surplus Disposal: After settling all claims, any remaining surplus is disposed of
according to Section 96.

 Distribution of Fund: Section 96 outlines the distribution of funds, including the reserved
fund and cash in hand, to discharge liabilities and repay share capital.

 Registrar’s Approval: The members of the dissolved society, within three months of
notice, can select an object for fund allocation. If they fail to do so, the Registrar, with
government approval, decides the allocation.

 Liquidator’s Report: Once the liquidation is complete, the liquidator submits a report to
the Registrar, who, when satisfied, orders the closure of liquidation proceedings.
  Surplus Assets: After meeting all liabilities, surplus assets are not divided among
members but applied to objectives specified in the bye-laws or the cooperative
development fund.

 Bar of Legal Proceedings: Section 99 prohibits legal proceedings against the liquidator or
the cooperative society without the Registrar's leave. The cooperative society is dissolved
upon approval of the final accounts by the Registrar, and its name is removed from the
Register of Cooperative Societies.

Registration of Cooperative Societies in Simple English:

 Appointment of Registrar:The State Government can appoint an officer as the Registrar

of Cooperative Societies to oversee registration, supervision, assistance, and overall
development of the cooperative movement in the state.
 Societies Eligible for Registration: Cooperative societies with the primary goal of
promoting the economic interests and general welfare of their members can be registered
under this Act. Societies with unlimited liability cannot be registered after the
commencement of this Act. Existing societies with unlimited liability can choose to
continue or convert to limited liability within a year of the Act's commencement.
 Registration Criteria and Restrictions: No society shall be registered if its declared
objectives are unlikely to be achieved or if it is economically, technically, or
cooperatively unsound. Cooperative societies wishing to function as a Cooperative Bank
must specify this in their bylaws during registration.
 Cooperative Bank Eligibility: A registered Cooperative Society designated as a
Cooperative Bank is deemed eligible under the Deposit Insurance and Credit Guarantee
Corporation Act, 1961.
 Membership Criteria: Individuals above eighteen years of age can become members of a
registered cooperative society. The bye-laws may set a higher minimum age.
 Conditions of Registration: A society must consist of a minimum number of eligible
persons, and the word "limited" must be included in its name. No society with similar
objectives should already exist in the registration area, unless justified.
 Restrictions on Share Acquisition: No member should hold more shares than prescribed,
and additional shares can only be acquired after full payment for existing shares.
 Registrar's Authority: The Registrar has the authority to decide disputes related to the
formation, registration, or continuation of a society under this Act.
 Bye-laws: Cooperative societies must frame their own bye-laws, which govern their
functioning. Bye-laws should align with cooperative principles.
 Application for Registration: Interested parties must submit an application to the
Registrar, providing necessary information, proposed bye-laws, and a viability scheme.
 Certificate of Registration: The Registrar may register the society after due consideration.
If conditions are not met, a refusal order with reasons must be communicated within sixty
days.
 Amendment of Bye-laws: Amendments to bye-laws must be approved by the General
Assembly, forwarded to the Registrar, and can only be enforced after registration by the
Registrar.
 Division of Cooperative Societies: Societies can decide to divide by special resolution,
subject to member and creditor options and Registrar approval.
 Amalgamation of Cooperative Societies:
 Cooperative societies with similar objectives can amalgamate by special resolution, with
member and creditor options and Registrar approval.
 Merger of Cooperative Societies:
A cooperative society can merge into another by special resolution, with member options
within a specified period.
 Location Head Office: Every cooperative society must specify the full address of its head
office in its bye-laws.
 Fees and Charges: A one percent registration fee based on the proposed share capital
must be deposited along with the application. The Registrar may also prescribe fees for
various services rendered.