Panchayati Raj and Urban Local Bodies

I. Introduction to Constitutional Amendments

• In 1989, the central government initiated two constitutional amendments to strengthen local governments.
• The 73rd Amendment (1992) relates to Panchayati Raj Institutions (PRIs) (rural local governments).
• The 74th Amendment (1992) relates to Urban Local Bodies (ULBs) (Nagar Palikas).
• Both amendments came into force in 1993.

II. The 73rd Amendment Act of 1992 (Panchayati Raj)

• Added a new Part IX (Articles 243 to 243-O) to the Constitution.
• Added the Eleventh Schedule, listing 29 functional items of Panchayats.

Salient Features of 73rd Amendment Act:

1. Three-Tier Structure:
   • Gram Panchayat: Village/Group of villages (lowest tier).
   • Mandal (Block or Taluka): Intermediate level (not needed in smaller states).
   • Zilla Panchayat: District level (apex tier).
   • Gram Sabha: Mandatory creation, comprising all adult members registered as voters. Functions decided by State legislature.
2. Elections:
   • All three levels elected directly by people.
   • Term of each Panchayat: five years.
   • If dissolved, fresh elections must be held within six months.
3. Reservations:
   • One-third of positions reserved for women.
   • Reservations for Scheduled Castes (SCs) and Scheduled Tribes (STs) at all three levels, proportionate to their population.
   • State may provide reservations for Other Backward Classes (OBCs).
   • Rotation of reserved seats is allowed.
   • If a seat is reserved for SC/ST woman, a Sarpanch must be a Dalit woman or an Adivasi woman.
4. Transfer of Subjects:
   • Twenty-nine subjects (from State List) identified in the Eleventh Schedule are to be transferred to Panchayati Raj institutions.
   • These subjects are primarily linked to development and welfare functions at the local level.
   • Actual transfer depends on State legislation, which decides how many of these 29 subjects are transferred.
5. State Election Commissioners:
   • State government is required to appoint a State Election Commissioner for conducting Panchayat elections.
   • This task was previously performed by State administration.
   • Office of State Election Commissioner is now autonomous, like the Election Commission of India.
   • An independent officer, not under control of Election Commission of India.
6. State Finance Commission:
   • State government must appoint a State Finance Commission every five years.
   • Commission examines financial position of local governments in the State.
   • Reviews distribution of revenues between State and local governments (rural and urban).
7. Disqualifications:
   • A person is disqualified if disqualified under any law for elections to State legislature, or any law made by State legislature.
   • Cannot be disqualified on the ground that age is less than 21 years (if already attained 21).
   • Further disqualifications referred to State legislature authority.

III. PESA (Panchayat Extension to Scheduled Areas) Act 1996

• The 73rd amendment provisions were not applicable to areas inhabited by Adivasi populations (5th Scheduled Areas).
• PESA Act, 1996, was passed to extend the Panchayati system to these areas.
• Key Provisions:
  • Recognizes traditional customs of managing common resources (forests, small water reservoirs).
  • Grants rights to communities to manage their resources in ways acceptable to them.
  • More powers to Gram Sabhas and elected village panchayats; mandatory consent of Gram Sabha in many respects.
  • Aims to protect traditional self-government bodies in modern elected bodies.
  • Applicable in 10 states: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana.

PESA Empowers Gram Sabha/Panchayat at Appropriate Level (Specific Powers):

• Mandatory consultation in land acquisition, resettlement, and displaced persons.
• Planning and management of minor water bodies.
• Mandatory recommendations from Gram Sabha or Panchayat for prospective licenses/lease for mines and exploitation of minor minerals.
• Regulate sale/consumption of intoxicants.
• Ownership of minor forest produce.
• Prevent land alienation and restore alienated land.
• Manage village markets.
• Control over money lending to STs.
• Control over institutions and functionaries in social sector (local plans, tribal sub plans, resources).

IV. The 74th Amendment Act of 1992 (Urban Local Bodies)

• Added a new Part IX-A (Articles 243-P to 243-ZG) to the Constitution.
• Added a new Twelfth Schedule, containing eighteen functional items of municipalities.

Salient Features of 74th Amendment Act:

1. Composition:
   • All members of a municipality elected directly by people of municipal area.
   • Each municipal area divided into territorial constituencies known as wards.
   • State legislature may provide for manner of election of chairperson of municipality.
   • May also provide for representation of the following persons in a municipality:
     • Persons having special knowledge or experience in municipal administration (without the right to vote in the meetings of 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 wards committees).
2. Wards Committees:
   • A wards committee shall be constituted, consisting of one or more wards, within territorial area of a municipality having population of three lakh or more.
   • State legislature may make provision with respect to the composition and territorial area of a wards committee and the manner in which seats in a wards committee shall be filled. It may also make any provision for the constitution of committees in addition to the wards committees.
3. Metropolitan Planning Committee:
   • Every metropolitan area must have a metropolitan planning committee to prepare a draft development plan.
   • State legislature makes provisions regarding:
     • Composition of such committees.
     • Manner of election of members.
     • Representation of Central government, state government, and other organizations.
     • Functions of such committees in relation to planning and coordination for the metropolitan area.
     • Manner of election of chairpersons.
   • Two-thirds of members to be elected by elected members of municipalities and chairpersons of panchayats in the metropolitan area from amongst themselves.
   • Representation in proportion to ratio between population of municipalities and panchayats in that metropolitan area.
4. Bar to Interference by Courts in Electoral Matters:
   • The act bars interference by courts in electoral matters of municipalities.
   • Validity of any law relating to delimitation of constituencies or allotment of seats cannot be questioned in any court.
   • No election to any municipality can be questioned except by an election petition presented to such authority and in such manner as provided by State legislature.
5. Incorporation of Provisions from 73rd Amendment:
   • All provisions of the 73rd amendment relating to direct elections, reservations, transfer of subjects, State Election Commission, and State Finance Commission are incorporated in the 74th amendment and thus apply to Nagar Palikas as well.