Panchayats have been in existence in India since ancient times but since the early British days in spite of being a unit of local administration they had to work under Government control.

After Indian leaders started pressing for local autonomy at the national level, the Britishers sought to meet this ever-growing demand by offering concessions at the lowest level, at the initial stage, by giving powers of self-government to Panchayats in rural areas and municipalities in urban areas, under various local names under different enactments, e.g. the Bengal Local Self-Government Act, 1885; the Bengal Village Self-Government Act, 1919; the Bengal Municipal Act, 1884, etc.

The Government of India Act, 1935 gave the power to enact legislation to the Provincial Legislature. Thus, new Acts were enacted by many other states vesting powers of administration, including criminal justice, in the hands of the Panchayats.

By the makers of the Constitution of independent India, a directive was included in the Constitution of 1949 in Art. 40 as follows. “The state shall take steps to organize village Panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.”

The aim is to foster democratic participation, to involve the people in the development efforts, and to ease the administrative burden on the State Governments. The advent of planning led to a reconsideration of the role of the village Panchayats.

The First Five-Year Plan envisaged an important role for the panchayat institutions in community development.

The Second Plan called for “well organized democratic structure of administration within the distinct”, in order to evoke popular initiative and participation. As part of economic and social planning, a government-sponsored integrated program of community development was started in 1952 with a view to create in the rural people a sense of participation in the nation-building programs. The community development program necessitated the creation of new administrative units for rural development.

 Shri Balwant Rai MehtaStudy Team

In January 1956, a Study Team on Community Development and National Extension Service, headed by Shri Balwant Rai Mehta was appointed to review the working of Community Development Program. The Committee recommended the established or Panchayati Raj or the scheme of “Democratic Decentralization” as referred to by the Committee. Democratic decentralization or Panchayati Raj as it is now known, aims at making democracy real by decentralizing authority to the lowest levels. It thus becomes a system of democracy at the `grass-roots’ in which authority is exercised even at the lowest levels by the democratically elected representatives of the people. Panchayati Raj confers on the rural people both the power of decision making regarding developmental activities and also its execution and implementation.

To achieve these objectives the Committee recommended a three-tier system of local self-government with Panchayats at the village level, Panchayat Samitis at the block level and Zila Parishads at the district level. Each tier was to be organically linked to the other by indirect election. Direct election was to be held only for the Panchayats at the village level, while the bodies at the block and the district levels  were to be constituted by means of indirect election from the lower levels.  All planning and development activities were to be entrusted to these bodies. All Central and State funds meant to be spent in a block area were to be assigned to the intermediate tier i.e. the Panchayat Samitis at the block level. The Panchayat Smiti was envisaged as the most important body and accordingly the main development functions were assigned to it. In January 1958, the National Development Council endorsed the recommendations of the Mehta Committee regarding the scheme of Panchayati Raj. It expressed the view that while the broad pattern and fundamentals should be uniform, there should be no rigidity about the form and pattern, which may very according to the conditions prevailing in different States.

Rajasthan was the first State in the country, which introduced the Panchayati Raj scheme on 2nd October 1959. Naturally it proved a pattern of organization to other States, which adopted the system with some variations. All States in the country today have Panchayati Raj in one form or the other except Meghalaya, Mizoram and Nagaland, which have tribal councils instead.

Defects in the system introduced in 1959

The Panchayati Raj in India had not been an outright success. Its functioning for over thirty years had demonstrated numerous shortcomings in its workings. Some of the glaring defects of the Panchayati Raj are discussed below:

1.      The scheme was defective in so far as distribution between the structures at different levels had not been made along scientific lines. An effort had been made to combine the development and local self-government functions, even though the requirements of the two types of functions, even quite different. The blending of these two types of functions had greatly jeopardized the autonomy of the local self Government institutions and had virtually converted them into agents of the State Government, which was against the basic principles of local self Government. Again functions had been allocated to various structures without due regard to their competence or capacity. For example, the Panchayati Raj institutions had been entrusted with the responsibility of providing services like roads, schools, medical relief etc., without making available necessary financial resources. It was difficult to under stand as to how these agencies can provide the services without adequate finances.

2.      Various Panchayati Raj institutions were constituted in violation of the democratic norms. For example, the Panchayat Samitis was elected by the members of the village panchayat. These indirect elections not only cut off the members of the Panchayat Samiti from the common voters but also increased the charges of corruption and bribery. Even the Zila Parishad, which enjoyed significant   powers over other tiers, consisted of mainly ex-office members.

3.      There had been a steady infiltration of party politics at the various levels of Panchayati Raj, contrary to the expectation entertained at the time of introduction of Panchayati Raj that these institutions shall work without Party Politics. The active involvement of political parties at the various level of Panchayati Raj had also resulted in play of caste, creed and similar other factors which posed a serious threat to the unity of the people.

Besides the above, the Panchayat System was ridden with several other evils. To revitalize the institution and strengthen the democracy at the grass-root level, the Government headed by Mr. Rajiv Gandhi moved he Constitution 64th Amendment Bill in the Parliament in October 1989. The 64th amendment sought to introduce a uniform Panchayati Raj System throughout the country to ensure reservations for women and backward classes and to introduce uniformity in the Panchayats’ powers to raise their own resources. But the Bill was defeated in the Rajya Sabha. The Congress Government headed by P.V.Narasimha Rao in December 1992 got two Constitutional Amendment Acts passed by Parliament. These Acts have been passed to restructure and strengthen the local self-government at the gross-root level. It aims to remove the anomalies, which were noticed in the functioning of the Panchayat Raj System from 1959 to 1992.

The 73rd amendment act 1992

The Amendment Act has provided a Constitutional basis for the Panchayati Raj Institutions by including a new part in the Constitution viz., Part IX under the title of “The Panchayats”.

This part envisages constitution of Panchayats at

(i)      Villages

(ii)     Intermediate, and

(iii)    District levels.

At the village level it is known as Village Panchayat, at the intermediary level, panchayat Samiti and at the district level Zila Parishad. A uniform 3-tier structure would be constituted only in States having a population more than twenty lakhs. The smaller States will have a 2-tier system where the Panchayat will be filled by persons chosen by direct election from territorial constituencies. There shall be Chairperson of Panchayats elected at the village level, intermediate level and district level. Seats shall be reserved for Scheduled Castes and Scheduled Tribes proportionately to their population in each Panchayat area. Of these reserved seats, one third would be reserved for women SC/ST candidates.

One third of the total number of seats in every Panchayat is reserved for women and this includes the number of seats reserved for SC/ST women. The offices of Chairpersons will also be reserved for SC/ST and women in a manner to be prescribed by State Legislatures by law and it will be proportionate to their population out of the total. Of these reserved offices, one third would be for women. There can also be reservation in favour of backward class of citizens in the office of Chairpersons. Every Panchayat shall continue for five years from the date of first meeting. If the Panchayat is dissolved earlier by the Governor, then an election to constitute a Panchayat should be completed within six months after dissolution, and the Panchayat thus newly elected shall continue in office only for the remainder of the unexpired term of the dissolved panchayat. Election should be held for constituting a Panchayat well before the expiry of the duration of five years.

The Panchayats would be endowed with such powers to enable them to function as institutions of self- government with devolution of powers and responsibilities with respect to the preparation of plans for economic development and social justice, and the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule such as, agriculture, land reforms, minor irrigation, animal husbandry, fisheries, social forestry, small scale/food processing industries, rural housing, drinking water, roads, culverts, ferries, rural electrification, poverty alleviation programs, primary education, libraries, sanitation, maintenance of  community  assets etc.

The Legislature of a State may, by law, (a) authorize a Panchayat to levy, collect and appropriate such taxes, duties, tools and fees in accordance with such procedure and subject to such limit; (b) assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits; (c) provide for making such grants-in-aid to the Panchayats from the Consolidated Funds of the State; and  (d) provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the  Panchayats and also for the withdrawal of such moneys there from, as may be specified in the law.

The superintendence, direction and control of he preparation of electoral rolls for, and the conduct of, all elections to the Panchayats shall be vested in a State Election Commission consisting of a State Election Commission to be appointed by the Governor.

Decentralisation - Chronology of Attempts and Committee Reports

Year	Item	Ideas and Concepts
First Plan, 51-56	Community Development Blocks	To break up planning exercise into National, State, District and Local Community levels
Second Plan, 56-61	District Development Councils	Drawing up of village plans and popular participation in planning through the process of democratic decentralization
1957	Balwant Rai Mehta Committee	Village, Block, District Panchayat institutions established
1967	Administrative Reforms Commission	Resources to be given/ local variations accommodated, purposeful plan for Area.
1969	Planning Commission	Formulated guidelines; detailed the concept of the district plan and methodology of drawing up such a plan in the framework of annual plans, medium term plans and perspective plans
1978	Prof. M.L. Dantwala	Block level planning to form a link between village and district level planning
1983-84	Centrally Sponsored Scheme/ R.B.I.	Strengthen district Plan/ District Credit Plan
1984	Hanumantha Rao Committee	Decentralisation of function, powers and finances; Setting up of district planning bodies and district planning cells
1985	G V K Rao Committee	Administrative arrangements for rural development; district panchayat to manage all development programmes

Names of gram sabhas in different states

1.         Assam                          Gram Sabha

2.         Uttar Pradesh  Gram Sabha

3.         Delhi                            Gram Sabha

4.         Bihar                           Panchayat

5.         Orissa                          Pali Sabha

In other states, it is known as Gram Sabha.

Names of gram panchayats in different states

1.         Gujarat                        Gram or Nagar Panchayat

2.         Tamilnadu                   Village or Town Panchayat

3.         Kerala                          Panchayat

4.         Karnataka                    Panchayat

5.         Bihar                           Panchayat Ki Karyakari Samiti

In other states, it is known as Gram Panchayat.

Names of zila parishads in different states

1.	Gujarat	Zila Panchayat (District Panchayat)
2.	Tamilnadu	Zila Vikas Parishad District Development Council.
3.	Andhra Pradesh	Zila Parishad
4.	Maharashtra	Zila Parishad
5.	Punjab	Zila Parishad
6.	Rajasthan	Zila Parishad
7.	Uttar Pradesh	Zila Parishad
8.	West Bengal	Zila Parishad
9.	Assam	Mohkuma Council.

Panchayat (Extension to Scheduled Areas) Act (or PESA), 1996

• Village level democracy became a real prospect for India in 1992 with the 73^rd amendment to the Constitution, which mandated that resources, responsibility and decision making be passed on from central government to the lowest unit of the governance, the Gram Sabha or the Village Assembly. A three tier structure of local self government was envisaged under this amendment.
• Since the laws do not automatically cover the scheduled areas, the PESA Act was in acted on 24 December 1996 to enable Tribal Self Rule in these areas. The Act extended the provisions of Panchayats to the tribal areas of nine states that have Fifth Schedule Areas. Most of the North eastern states under Sixth Schedule Areas (where autonomous councils exist) are not covered by PESA, as these states have their own Autonomous councils for governance. The nine states with Fifth Schedule areas are:

Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Maharashtra, Madhya Pradesh, Orissa, Rajasthan.

State Finance Commissions

Article 243I of the Indian Constitution prescribes that 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

• The principles which should govern
• 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 divided between them under this Part and the allocation between the Panchayats at all levels of their respective shares of such proceeds;
• The determination of the taxes, duties, tolls and fees which may be assigned as, or appropriated by, the Panchayats;
• The grants-in-aid to the Panchayats from the Consolidated Fund of the State;
• The measures needed to improve the financial position of the Panchayats;
• Any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats.

Article 243Y of the Constitution further provides that the Finance Commission constituted under Article 243 I shall make similar recommendation vis-a-vis municipalities.

The Governor is required to cause every recommendation made by the State Finance Commission together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State.

The 74th amendment act 1992

The Amendment Act has introduced a new Part IX A into the Constitution, which deals with the administration of the Municipalities.

The Amendment envisages constitution of a

(i)      Nagar Panchayat in semi urban areas

(ii)     Municipal council for smaller urban areas

(iii)    Municipal Corporation for larger urban area.

All the seats in a Municipality shall be filled by direct election from territorial constituencies in a Municipality. Ward Committees consisting of one or more wards would be consisted in a Municipality having 3 lakhs or more of population.

According to the proportion of the SC/ST population, seats are to be reserved for the Scheduled Castes/Tribes in every Municipality and one third of these seats would go to SC/ST women. 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.

The officers of Chairperson 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.

Every Municipality shall have a term five years and every municipality shall be given a reasonable opportunity to be heard before its dissolution. An election to constitute a Municipality should be completed well before the expiry of the duration of five years and in case of dissolution before five years term, within six months of date of dissolution.

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 dissolved. 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 he 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 such as town planning, regulation of land use, roads, water supply, sanitation, fire services, urban forestry, slum improvement, poverty alleviation, provision of facilities such as parks, gardens and playgrounds, burial grounds, cattle ponds, registration of birth/deaths, street lighting etc.

(b)     The Committees with such powers and authority as May the necessary to enable them to carry out the responsibilities conferred upon them including those/in relation to the matters listed in the Twelfth Schedule.

The Legislature of a State may, by law, -

(a)     Authorize a Municipality to levy, collect and appropriate such taxes, duties, tools 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 purpose 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 money received, respectively, by or on behalf of the Municipalities and also for the withdrawal of such moneys there from, as any be specified in the law.

The 74th Amendment also envisages the setting up of Committees for District Planning 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.

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 organizations as the Governor may, by order, specify.

The Chairperson of every District Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State.

Part IX-A of the Constitution also envisages the setting up of Metropolitan Planning Committees in every Metropolitan area to prepare a draft development plan for the Metropolitan area as a whole.

“Metropolitan area” has been defined as an area having a population of ten lakhs or more, comprised in one or more districts and consisting of two or more Municipalities or Panchayats or other contiguous areas, specified by Governor by public notification to be Metropolitan area for the purpose of this part. 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- ordinates 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 the 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 organizations as the Governor may, by order, specify.

The Chairperson of every Metropolitan Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State.

Delegation of Power and Devolution of Power

Delegation of Power	Devolution of Power
(1) It is outside the constitutional provision. eg. Parliament delegates legislative power to executive to frame and regulation for the enforcement of law made by legislature	(1) It takes place under the provision of the Constitution. eg. 73rd& 74th amendment act devoluted the power to local bodies.
(2) The delegate authority can take back the delegated authority at will. eg. Parliament can take back delegated power at will	(2) It can be taken back through an amendment act.
(3) Delegate neither transfers his final authority nor abdicates his ultimate responsibility.	(3) Both authority and responsibility are devoluted.

Facts to Be Remembered

The Community Development Programme was launched on Oct. 2, 1952

The Democratic Decentralization was implemented for the first time in 1958 in some areas of Andhra Pradesh on experimental basis.

The Panchayati Raj was introduced for the first time on Oct. 2, 1959 in Nagaur District of Rajasthan by the Prime Minister, Jawaharlal Nehru.

Rajasthan is the first State in India, where Panchayati Raj was implemented in whole State.

Articles related to Municipalities at a Glance

Sr. No.	Article	Subject Matter
1.	243P	Definition
2.	243Q	Constitution of Municipalities
3.	243R	Composition of Municipalities
4.	243S	Constitution and composition of ward committees and sion
5.	243T	Reservation of seats
6.	243U	Duration of Municipalities
7.	243V	Disqualification for membership
8.	243W	Powers, authority and responsibility of municipalities
9.	243X	Powers to impose taxes
10.	243Y	Finance Commission
11.	243Z	Audit and Account
12.	243ZA	Elections
13	243ZB	Application to UT’s
14.	243ZC	Part not to apply certain areas
15.	243ZD	Committee for district planning
16.	243ZE	Committee for metropolitan planning
17.	243ZF	Continuance of existing laws and municipalities
18.	243ZG	Bar to inference by courts in electoral matters

Articles related to Panchayats at a Glance

Sr. No.	Article	Subject Matter
1.	243	Definition
2.	243A	Gram Sabha
3.	243B	Composition of Panchayat
4.	243C	Composition of Panchayat
5.	243D	Reservation of seats
6.	243E	Duration of Panchayats and soon
7.	243F	Disqualification for membership
8.	243G	Powers, authority and responsibility of Panchayats
9.	243H	Powers to impose taxes, funds etc
10.	243I	Constitution of finance commission to review financial position
11.	243J	Audit and accounts  of Panchayats
12.	243K	Election to the Panchayats
13	243L	Application to Union territories
14.	243M	Part not to apply certain areas
15.	243N	Continuance of existing laws and Panchayats
16.	243O	Bar to interference by courts in electoral matters

Key terms

Community Development Programme: A programme initiated by the Union Government in 1952 that sought to look for the first time at the democratic decentralization.

Balwant Rai Mehta Committee: Committee appointed on democratic decentralization in 1958 after reviewing the performance of community development programme under the chairmanship of Balwant Rai Mehtawhich eventually recommended for the establishment of Panchyati raj institutions in the Country.

Democratic Decentralization: Taking democracy to the grass root level; at the village or town level.

Three Tier system: A structural system of PRI’s as recommended by the Balwant Rai Committee with village Panchyat as the lowest tier, Panchyat Samitis at the intermediate block level and Zila Parishads at the apex district level to be the third tier of local self government.

Gram Sabha: The eligible electorate or eligible voters to elect the village Panchyat.

Ex-officio members: Means by virtue of their being so.

Devolution of powers: Conferment of real powers onto some body or functionary as contrasted from the delegation of powers

Eleventh Schedule: Inserted by the Constitutional 73^rd. Amendment, guarranting a Constitutional status to the PRI’s.

Grants in-aid: Funds being made available to the States by the Centre or say, to the PRI’s by the States concerned out of the consolidated funds.

Ward Committees: Created for the purposes of election to the Municipalities; constituted of one or more wards having 3 lakh or more of the population.

Twelfth Schedule: Inserted by the 74^th. Constitutional Amendment regarding the Urban local self Government thereby, clothing them with a constitutional status & mandate too.

District Planning committees: Committees constituted under the 74^th.Amendment for consolidating the plans prepared by the Panchyats as well as the Municipalities in a particular district such that a draft development plan can be prepared for the district as a whole.

Metropolitan Planning Committees: The envisaged committees to be constituted under the 74^th.Amendment for every metropolitan area.

Metropolitan Area: Areas having a population of ten lakhs or more in a state that might encompass one or more districts and two or more municipalities or other adjacent areas, as the Governor of a State may decide, specify and notify.