Art 243 Debates

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Document: CONSTITUENT ASSEMBLY DEBATES
CONSTITUENT ASSEMBLY DEBATES
S Pal: India's Constitution --Origins and Evolution, 1st ed, Vol 8, Articles 227-267
Samaraditya Pal
S Pal: India's Constitution --Origins and Evolution, 1st ed, Vol 8, Articles 227-267 S Pal:
India’s Constitution –Origins and Evolution, 1st ed, Vol 8, Articles 227-267 Article
243 Articles 243A to 243O, Articles 243P to 243ZG
Article 243
Articles 243A to 243O, Articles 243P to 243ZG
CONSTITUENT ASSEMBLY DEBATES

(Debated on 16 September, 1949) 2
Mr President: It is suggested that we take up Article 215.
Shri Brajeshwar Prasad: Sir, I move:
“That for amendments Nos 2732 to 2737 of the List of Amendments, the following be
substituted:—
‘That for Article 215, the following be substituted:—
“215. (1) Any territory specified in Part IV of the First Schedule and any other territory
comprised within the territory of India but not specified in that Schedule shall be administered
by the President in his discretion either directly or acting through a Chief Commissioner or
other authority to be appointed by him.
(2) The Chief Commissioner or other authority to be appointed by the President in his
discretion shall be the delegate of the President who shall have the power in his discretion to
resume or modify such powers as he himself had conferred.
(3) The President shall have the power to take any part of the Union of India under his
immediate authority and management by placing it in Part IV of the First Schedule.
(4) No Act of Parliament shall apply to any territory in Part IV of the First Schedule unless the
President in his discretion by public notification so directs and the President in giving such a
direction with respect to any Act may direct that the Act shall in its application to the
territories in Part IV of the First Schedule or to any specified part thereof, have effect subject
to such exceptions or modifications as he thinks fit.
(5) The President may in his discretion make regulations for the peace, order and good
government of any such territory and any regulations so made may repeal or amend any Act
of the Parliament or any existing law which is for the time being applicable to such territory
and, when promulgated by the President, shall have the same force and effect as an Act of
Parliament.” ‘ “
Sir, I move without offering any comments.

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Shri T T Krishnamachari: Sir, I have only one matter to place before you, House and through the
House to be transmitted to the appropriate authorities. This Article refers to those areas which will
be enumerated in Part IV of Schedule I and which would be directly under the administration of the
Central Government. I would like one particular area which is not included in the Draft Constitution
under Part IV of Schedule I to be included in that area. The particular area I have in mind is one that
was provisionally included in Schedule V under Madras and by virtue of the amendment that the
House has now accepted to Schedule V it is left to the President to enumerate what are the areas to
be covered by Schedule V. I refer to those islands called Laccadive Islands, including Minicoy and
Amindivi which form a cluster of islands on the western side of India in the Arabian Sea. Those
islands are supposed to be scheduled areas and the administration is vested in the Government of
Madras.
In suggesting that the Centre should take over these islands under its own care I would at once
disclaim any idea of casting any reflection on the administration of these islands by the Government
of Madras. The fact really is that the islands are far away from the Madras Coast and the provincial
government has hardly got the equipment necessary to look after the administration of an area like
this, because they have not got any naval vessels or a private mercantile fleet either. What is being
done at the present moment is, I understand, that a sub-collector visits these islands once a year
along with a medical officer and that is about all the connection that the Government of Madras has
with these islands. I have no desire here to emphasise the strategic value of these islands. They may
or may not have such a value. But it seems perfectly obvious that the idea was a relic of the past by
which the administration of these islands was vested in a provincial government which is a somewhat
onerous responsibility for this administration and should no longer continue to be so. I do think that
whatever value these islands might have for the future of the Union as such, it is a responsibility that
must be taken over by the Centre and the administration of these islands must be looked after by the
Centre in the same way as they would be looking after the administration of other areas covered by
Article 215, which find mention in Part IV of Schedule VII.
I hope these remarks of mine will be transmitted to the appropriate quarter by the Secretariat of the
Constituent Assembly and when we come to consider Schedule I, Part IV appropriate amendments
will be made on the suggestion of the Ministry concerned.
The Honourable Dr B R Ambedkar: I have nothing to say, Sir.
Sardar Hukam Singh: Sir, I have no amendment to move. I have one objection to clause (2) of this
Article, to which I want to draw the attention of the President of the Drafting Committee. The
phraseology looks to me as derogatory to the sovereignty of the Parliament and I would request him,
if possible to change the words:
“The President may make regulations for the peace and good government of any such territory
and any regulation so made may repeal or amend any law made by Parliament.”
I take objection to the provision that the President may amend any law made by Parliament, which
we say is sovereign. Our purpose will be served if we say that regulation will provide that any Act of
Parliament would not be applicable to such territory or it shall be applicable to the territory with any
modifications.
I only want to bring this to the notice of the Chairman of the Drafting Committee.
Mr President: Sardar Hukam Singh has made certain suggestions with regard to paragraph 2. He
says that it is derogatory to the authority of Parliament to say that the President will repeal or amend
any law made by Parliament and that the words should be so modified as to indicate that the power
of Parliament is not in any way subordinated.
The Honourable Dr B R Ambedkar: That is so. It is a kind of adaptation. In regard to the

autonomous districts of Assam the Governor of Assam has similar power to adapt the laws made by
Parliament when he thinks fit so to do. The whole law made by Parliament cannot be applied to
certain peculiarly constituted territories unless they are adapted.
Sardar Hukam Singh: Is that a sufficient answer, Sir? My suggestion was that it is derogatory to
the sovereignty of Parliament to say that the President would repeal an Act passed by Parliament.
Mr President: The suggestion is about a word and not about the power?
The Honourable Dr B R Ambedkar: The President is part of Parliament. There is no difficulty at all.
Mr President: I will now put the amendment of Shri Brajeshwar Prasad to vote.
The question is:
“That for amendments Nos 2732 to 2737 of the List of Amendments, the following be
substituted:—
‘That for Article 215, the following be substituted’:—
“215 (1) Any territory specified in Part IV of the First Schedule and any other territory
215. (1) Any territory specified in Part IV of the First Schedule and any other territory
comprised within the territory of India but not specified in that Schedule shall be administered
by the President in his discretion either directly or acting through a Chief Commissioner or
other authority to be appointed by him.
(2) The Chief Commissioner or other authority to be appointed by the President in his
discretion shall be the delegate of the President who shall have the power in his discretion to
resume or modify such powers as he himself had conferred.
(3) The President shall have the power to take any part of the Union of India under his
immediate authority and management by placing it in Part IV of the First Schedule.
(4) No Act of Parliament shall apply to any territory in Part IV of the First Schedule unless the
President in his discretion by public notification so directs and the President in giving such a
direction with respect to any Act may direct that the Act shall in its application to the
territories in Part IV of the First Schedule, or to any specified part thereof, have effect subject
to such exceptions or modifications as he thinks fit.
(5) The President may in his discretion make regulations for the peace, order and good
government of any such territory and any regulations so made may repeal or amend any Act
of the Parliament or any existing law which is for the time being applicable to such territory
and, when promulgated by the President, shall have the same force and effect as an Act of
Parliament.’ ”
The amendment was negatived.
Mr President: The question is:
“That Article 215 stand part of the Constitution.”
The motion was adopted.
Article 215 was added to the Constitution. 3
2 Constituent Assembly Debates, volume IX, pp 1580-1582.
3 This Draft Article was adopted without any amendment in the following form:
• 243. Administration of territories in Part D of the First Schedule and other
territories not specified in that Schedule.—(1) Any territory specified in Part D of
the First Schedule and any other territory comprised within the territory of India but
not specified in that Schedule shall be administered by the President acting, to such
extent as he thinks fit, through a Chief Commissioner or other authority to be
appointed by him.
• (2) The President may make regulations for the peace and good government of any
such territory and any regulation so made may repeal or amend any law made by
Parliament or any existing law which is for the time being applicable to such territory
and, when promulgated by the President, shall have the same force and effect as an
Act of Parliament which applies to such territory.
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Vol 8, Articles 227-267
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Document: LOK SABHA DEBATES
LOK SABHA DEBATES
Samaraditya Pal
Article 243
LOK SABHA DEBATES 17
Constitution (Seventy-second Amendment) Bill, 1991 18 1

December, 1992
THE MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (DEPARTMENT OF RURAL
DEVELOPMENT) (SHRI G Venkat Swamy): Sir, I beg to move:
“That the Bill further to amend the Constitution of India, as reported by the Joint Committee be
taken into consideration.”
I would like, at the outset, to refer to the Directive Principles laid down in Article 40 of the
Constitution. This casts a duty on the Centre as well as the States to establish and nourish the
village panchayats so as to make them effective, self-governing institutions. However, even after 42
years, we have not been able to fulfill this expectation of the founding fathers of the Constitution. It
is for this reason that the Government, under the leadership of our beloved Prime Minister Shri PV
Narasimha Rao, have introduced a Constitution (Seventy-second Amendment) Bill 1991. In effect,
we are fulfilling – Gandhji’s dreams.
The Gandhian concept of Gram Swaraj has been the guiding principle of our political struggle even
before independence. Attempts have been made to give effect to this idea ever since 1947. Panditji
established institutions of Panchayati Raj as the primary instrument for bringing development to rural
India. Shrimati Indira Gandhi stressed the need for people’s participation in the process of economic
and social transformation and Shri Rajiv Gandhi emphasised the need to revitalize and strengthen
Panchayati Raj institutions in order to sustain democracy in the country. In spite of these efforts,
it cannot be denied that in many parts of the country the full potential of the institutions of
Panchayati Raj has not been realized.
This is not to deny that some efforts were made from time to time. In fact, in certain States, such as
Maharashtra, Gujarat, Panchayati Raj structure was strengthened following the recommendations of
the Balwant Rai Mehta Committee in 1957. More recently, States like West Bengal, Andhra Pradesh
and Karnataka have provided wide-ranging delegation and powers of authority down to the district
and intermediate level.
However, barring these exceptions, in most other States, the record as far as Panchayati Raj
institutions is concerned, has not been very good. On the other hand, attempts have been made
in many of the States to weaken the existing Panchayati Raj structure by imposing other
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in many of the States to weaken the existing Panchayati Raj structure by imposing other
nominated bodies at the same level. Elections have been irregular and many times
unnecessarily delayed or postponed. Elected bodies have been superseded or suspended
without adequate justification at the whims and fancies of the Government and
Governmental authorities. Even where these institutions function, they came to be dominated by
economically and socially privileged sections of the rural societies and were utilised to serve the class
and sectoral interests of the entrenched vested interests.
It has, therefore, been felt that a Constitutional sanction is as indispensable to democracy at the
grass-root level as it is to democracy at the State level or national level. Thus we intend to
inscribe in the Constitution certain core element of grass-root democracy to take them
beyond the pale of changing political expediency.
I must say that we have confined the provisions in the Bill to a very limited set of issues. We are also
aware that different States have different models of Panchayat Raj institutions. We do not intend to
bypass the States in any manner and do not want to intrude into the area constitutionally assigned to
them. In order to elicit wider public opinion and also consult the States on the various provisions, as
all of you are aware, the Bill was referred to the Joint Committee of the two Houses in December,
1991. The Joint Committee had presented its report in the previous session. We have examined the
recommendations and modifications made by the Joint Committee and also held consultations with
the representatives of various national parties in the Parliament. In the light of the views expressed
in these meetings, we have now proposed a few official amendments and I am sure that the House
will extend its full support to these. We strongly feel that genuine democracy can grow only when the
States and the Centre work together.
At a broad level, we are seeking to provide a constitutional guarantee to certain basic and essential
features including regular elections to Panchayati Raj institutions, representations in these bodies for
Scheduled Caste, Scheduled Tribes and women and devolution of financial and administrative powers
with the co-operation of the States. I would now like to dwell briefly on some of the basic features of
the Constitution Amendment Bill as reported by the Joint Committee and the rationale behind them.
The Gram Sabha, which is the foundation of our Panchayati Raj system, has been envisaged to
discharge wider duties. It shall perform such functions and exercise such powers as may be entrusted
to it by the State legislatures. There should be participatory decision making and the
structure at the village level should be the image of participatory democracy. It is in this
light that we have given a central place to the Gram Sabha. It has been our endeavour that
uniformity and rigidity is not imposed on the States. Therefore, whereas the Bill envisages a three
tier system of Panchayat Raj at the village, intermediate and district level, small States having a
population not exceeding twenty lakhs have been given the option not to constitute the panchayat at
the intermediate level. While we have agreed with the three tier structure recommended by the Joint
Committee, we have provided an option for smaller States, on the same lines as in the very first
Constitution Amendment Bill of 1969 on this subject. I hope the House will agree with our views.
As I mentioned earlier, one of the major reasons which has stood in the way of the Panchayati Raj
institutions acquiring adequate strength is the absence of regular and periodic elections within a time
frame. On the other hand, they have been rendered dormant for long periods of time without
adequate and justifiable reasons. If these bodies are to be effective, alive and vibrant the
conduct of free and fair elections at regular intervals has to be ensured. It is for this
purpose that we have proposed that all Panchayat bodies will have an assured duration of
five years and elections will be mandatory after every five years. The elected institutions will
thus have a five year term, and on the completion of the period of five years, fresh bodies will be
constituted after holding the elections. The period of five years will be a reasonable term and will
enable these bodies to carry out the mandate of the people effectively.
The Panchayat Raj institutions have faced serious threats from outside. The threat of suppression has
always been hanging above their heads. There are a number of instances where the bodies have
been superseded and no elections held thereafter for years together. The Panchayat Raj institutions
have to be properly insulated and immunised some onslaughts from outside. We, therefore, propose
to put an end to this practice by stipulating compulsory elections within six months of the
suppression of the Panchayat bodies. This will take away unrestrained and wide powers
available at present to the executive and to the political parties to keep the Panchayat
bodies in a state of suspense at their will and pleasure. This will help in imparting strength
to these bodies and enhance their image and effectiveness.
The Joint Committee has prescribed direct election for the members in a Panchayat at all the three
levels i.e. village, intermediate and district levels. We are aware of the existing diversities in this
regard in the Panchayati Raj Acts of the States, regarding the election of members in the Panchayats
at the district levels. In view of this, the mode of election for members at the district levels has been
left to the discretion of the State legislature. Since the directly elected members can function more
freely and independently as they derive strength directly from the electorate, we have agreed the
direct elections of members at the village and intermediate level.
Although in the Bill as we introduced in 1991, the voting rights were provided to only chairpersons
and directly elected members, we have agreed with the recommendations made by the Joint
Committee on the representation of MPs of both Lok Sabha and Rajya Sabha, MLAs and MLCs at the
intermediate and district level and all the other ex officio members of the Panchayat at these levels
intermediate and district level and all the other ex-officio members of the Panchayat at these levels
with full voting rights. I hope the House would welcome this provision.
The direct election of the chairperson of a Panchayat at the village level has been envisaged by the
Joint Committee. We have agreed with this recommendation of the Joint Committee although certain
Members have expressed reservations on this issue. In fact, the chairperson of a village panchayat
represents a very small electorate and it is possible for him to have direct contacts with the individual
voters. Therefore, a directly elected village panchayat chairman will have lesser dependence on the
support of the other elected members and can discharge his duties more freely and fairly. I hope the
House will welcome this provision.
We have provided for reservation for Scheduled Castes, Scheduled Tribes and women.
Whereas the reservation for Scheduled Castes and Scheduled Tribes follow the uniform
basis of their proportion in the population, in respect of women we have provided for at
least one-third of the total seats at every level. Considering the fact that women constitute
nearly half the population, even this reservation can be considered inadequate; but the
honourable Members will agree that it is significantly more than what has been attempted
so far in most of the States. Although the Joint Committee supported our earlier provisions about
allotment of reserved seats to different constituencies on compulsory rotation basis, to achieve
greater uniformity among the Panchayati Raj and municipal bodies, we have proposed to leave the
actual mechanism of rotation to be decided by the States themselves. I hope the House will support
this.
Honourable Members may reserve (sic. observe) that the Bill also provides for reservations
to the post of chairpersons for Scheduled Casts, Scheduled Tribes and women. This is a
significant innovation. It is our view that this alone will make reservations more
meaningful and bring the members of these committees, who have suffered from economic
and social oppression for a long period of history, to a position in which they would be able
to participate effectively in the functioning of these bodies. I am confident that the honourable
Members will appreciate the significance of the provisions made for these reservations in the socio-
economic and historical perspective and will whole-heartedly welcome it.
We have also agreed with the recommendations of the Joint Committee in regard to the lowering of
age for membership to 21 years as many State Panchayat Raj Acts provide for it even now. We have
also supported the Joint Committee’s modification in regard to the authority for resolving the
disputes relating to disqualification. Now the States will have to set up such an authority. I hope the
House will agree with this also.
One of the weaknesses of the existing Panchayati Raj Institutions is that they are starved of funds.
They have very little resources of their own and they usually depend on the State Governments for
their funds. The financial grants are given at the will and pleasure of political executive on
an ad hoc basis. We feel that unless the Panchayats are provided with adequate financial
strength, it will be impossible for them to grow in a stature. We have, therefore, proposed
in the Bill a system of financial transfers to the Panchayati Raj bodies on a mandatory
basis. For this purpose, we have provided for a Finance Commission to be set up every five
years in order to evolve suitable criteria and make appropriate recommendations to
strengthen the financial base of Panchayati Raj bodies. This is a vital aspect of the
Constitutional Amendment Bill. It is our hope that this will ensure to the Panchayati Raj bodies a
measure of financial strength which would enhance their autonomy and authority.
In the matter of elections to the panchayats, the Bill as introduced had provided for the Chief
Electoral Officer of the State to supervise and conduct the elections to panchayats. The Joint
Committee recommended that the State legislature may provide for a separate authority for this
purpose. To make this recommendation more specific, we have now suggested that the
superintendent, direction and control of elections to panchayats shall be vested in a State
Election Commissioner. It will be an independent Commission and will be responsible for
the conduct of the elections to local bodies freely and fairly. I hope the House will welcome
this provision.
We have provided for the application of this Constitution Amendment Bill to the Union Territories
also. However, taking note of the fact that many of the Union Territories may have varying local
situations, provisions for exceptions and modifications have also been made. We have specifically
exempted Scheduled Areas and the tribal areas under Article 244, the North Eastern States of
Nagaland, Meghalaya and Mizoram and certain hill areas. I hope that the House will support these
provisions.
We are aware that it may take some time for the State enactments to be brought in line with the
provisions of this Bill. While, by and large, most of these provisions do find place in one form or
another in many State enactments, there will be need for some modifications. We have therefore laid
down in the Bill that the existing provisions will continue to be in force for a period of year from the
commencement of the Constitution Amendment Act or until amended or repealed by competent
legislature or other competent authority whichever is earlier.
We have also provided that the Panchayat Raj bodies, existing immediately before the
commencement of Constitution Amendment Bill, shall continue till the expiration of their duration
unless dissolved by a resolution passed 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
State having a Legislative Council by each house of the Legislature of that State.
Keeping the spirit of this amendment and retaining the core items contained in it, the
State Governments are at liberty to enact their own laws to provide for a strong
Panchayati Raj set-up within their States. We will also evolve suitable guidelines in this regard to
assist the State Governments in undertaking comprehensive legislation in this regard, if they so
desire. We reiterate our commitment to genuine democratic decentralization. We reaffirm our
commitment to the emergence of democratic bodies at the grassroots level elected on the basis of
equality and justice, truly representative of people and genuinely concerned with their development.
Before concluding, I wish to emphasise that this Constitution Amendment Bill is only the beginning
and represents our earnestness in this endeavour. Gandhiji had said:
“Independence must begin at the bottom. Thus every village will be a Republic or
Panchayat having full powers.”
This must be our goal and I seek the co-operation of all sections of the House in achieving it.
Mr Chairman: Motion moved.
“That the Bill further to amend the Constitution of India, as reported by the Joint Committee be
taken into consideration.”
Shri Anil Basu (Arambagh): Sir, besides Government amendments, there are other amendments
by Members which are yet to be circulated. (Interruptions)
Shri Devendra Prasad Yadav (Jhanjharpur): Mr Chairman, Sir, I am on a Point of Order. The Bill
introduced by the honourable Minister is unconstitutional and the method adopted to introduce it is
also improper. As per the provisions contained in section 33 of the Official Languages Act, 1963, the
Bill should have been introduced in both the languages but the honourable Minister has introduced it
only in one language. Therefore, it is illegal and due cognizance should be taken of it. I have raised a
Point of Order, according to the Rules only. The honourable Minister should have made available the
copies of the Bill in Hindi also. I have my reservations.
Shri Mani Shankar Aiyar (Mayiladuturai): It is available in Hindi. You may take it from the
Publication Counter.
Shri Devendra Prasad Yadav: We did not get it. If it is not made available in Hindi, how can we
take part in the discussions? … Had we paid attention to these aspects earlier we would have been at
the top in regard to the agricultural production because maximum agriculture is done in our country.
Hence all these shortcomings which come in the way of agricultural development should be removed
and more and more agricultural scientists should be prepared. Agriculture college or university should
be opened in all the States whether big or small where experts in this field are there. This will
encourage them to work in this field and provide more and more co-operation.
Shri Rajnath Sonkar Shastri (Saidpur): Mr Chairman, Sir, I am grateful to you for giving me an
opportunity to speak. Central Agriculture University Bill 1992 has been introduced in the House, we
welcome it. I am glad that this Bill has been presented by a person who is basically a farmer, and
thus he has a considerable knowledge about the condition of the farmers and the prevailing situation
in agriculture. It would have been better if he himself had prepared the prospectus of the proposed
Agriculture University.
Mr Chairman: Sir, there is no doubt that ours is an agricultural country and about 3 out of 4 persons
depend on agriculture. Agriculture universities are already there in most of the States of the country
but it is a matter of regret that no Agriculture University is there in the eastern border regions.
Keeping in view the climate.
[English]
Mr Chairman: I am informed that copies in Hindi are also available at the counter. You can collect
them from the counter.
Now, in the Business Advisory Committee, I was told that this Bill and the Bill shown at Item No17
are to be taken together for discussion. If that is to be done, then Rule 66 will have to be suspended
because Rule 66 says:
“A Bill, which is dependent wholly or partly upon another Bill pending before the House, may be
introduced in the House in anticipation of the passing of the Bill on which it is dependent.”
Provided that the Second Bill shall be taken up for considerations and passing in the House only after
the first Bill has been passed by the Houses and assented to by the President”
Therefore, unless we suspend this Rule, we cannot take both the Bills together for discussion. So, I
call upon Smt Sheila Kaul to move her motion to suspend Rule 66.
…
Constitution (Seventy-Third Amendment) Bill (Insertion of New

Part IXA) as Reported by Joint Committee
[English]
The Minister of Urban Development (Shrimati Sheila Kaul): I beg to move:
“That the Bill further to amend the Constitution of India, as reported by the Joint Committee,
be taken into consideration.”
This House is fully aware that as early as 1989, the then Prime Minister Shri Rajiv Gandhi, committed
as he was to strengthen democracy at the grassroot level, had introduced two Constitution
Amendment Bills for according constitutional status to the Panchayats and Nagarpalikas.
Unfortunately, at that time, the Bills could not be carried through in the Rajya Sabha. When we
sought the mandate of the people in 1991, we had committed that we would re-introduce
these Bills within the first hundred days of our Government. We fulfilled that commitment
to the people and the Constitution (73rd Amendment) Bill 1991 pertaining to Nagarpalikas
was introduced in this House on the 16 September 1991.
I am happy Sir that the House had resolved to refer this Bill to a Joint Parliamentary Committee
consisting of representatives from both the Houses. I am indeed grateful to the Members of the Joint
Parliamentary Committee and in particular to its Chairman, Shri Singh Deo, for the efforts they have
taken in going through the various provisions of the Bill in detail and to make their recommendations.
The Committee has given its recommendations after hearing the views of the various experts. The
Committee also had the opportunity of visiting various Municipalities and having detailed discussions
with elected representatives and officials at municipal governments as well as State Governments.
Hence, the Bill as reported by the Joint Committee incorporates the learned experience of people who
have been closely connected with municipal government.
Certain apprehensions have been expressed from time to time that this Bill would encroach upon the
States rights. Let me assure you Sir, that we have displayed the utmost sensitivity to the basic
framework of the Constitution and the Centre-State relationship enshrined in the Constitution.
Entry 5 of the State List remains untouched. The authority of State Legislatures is, in no way, sought
to be diminished. We are only amending the Constitution and we are not interfering, in any
way, with the States in regard to drafting of municipal laws. As would be clear from reading of
the Bill, we have left important matters to be decided by the State Legislatures or the State
Governments. All we seek to do through this Constitution Amendment Bill is to lay down a
basic framework which will ensure that the urban local bodies are in a position to function
effectively as democratic units of self-Government.
Having regard to the present inadequacies and with a view to restore the rightful place in political
governance for urban local bodies, it is considered necessary that they should be provided a
Constitutional status and necessary provisions made to: (a) ensure regular and fair conduct of
elections; (b) ensure term of five years for elected urban local bodies and election within six months,
in cases of supersession; (c) provide for specific representation for women and the Scheduled Castes
and Tribes; (d) provide for devolution of functions and powers to municipalities; and (e) provide for
constitution of a State Finance Commission every five years to ensure regular devolution of
resources to local bodies.
The Constitution Amendment Bill which is before you for your consideration constitutes for the first
stage of a process. Once these Bills are enacted, we must carry this process forward by ensuring
appropriate amendments to State legislations and thereafter ensuring effective executive
implementation.
Mr Deputy Speaker: Motion moved:
“That the Bill further to amend the Constitution of India, as reported by the Joint Committee,
be taken into consideration.”
Shri Kashiram Rana
Shri Anil Basu (Arambagh): What about the amendments? There are Government amendments
which are yet to be circulated.
Shri Sharad Dighe: (Bombay North Central): This motion is for consideration.
[Translation]
Shri Devendra Prasad Yadav: So far, these are not available at the counter, nor have these been
circulated. Right now, I had raised a Point of Order on the grounds that the Bill has not been
circulated so far.
Mr Deputy Speaker: Shri Kanshiram Rana. (Interruptions)
Shri Devendra Prasad Yadav: Under Section 33 of the Official Languages Act, 1963, it is
mandatory to publicise/circulate the Bills introduced in the Parliament in two languages But it has
mandatory to publicise/circulate the Bills introduced in the Parliament in two languages. But it has
not been circulated so far, and upon my enquiry, I found that it is not available at the Publication
Counter as well.
Mr Deputy Speaker: The copies in Hindi which you wish to have are available at the counter.
Shri Devendra Prasad Yadav: It is not available till now, at the Publication Counter. You can find
out for yourself. The copies that we have received is that of the 1991 Bill, but the copies of the latest
Bill is not available even at the Publication Counter. When the copies have not been made available to
the hon’ble Members, it would be unconstitutional to take up the Bill for discussion. It has been
clearly stated in the Rules. You may refer to section 33 of the Official Languages Act, 1963. Unless
and until you circulate the Bill in both the languages and bring the contents to the knowledge of the
honourable Members, how can you pass the Bill or take up the matter for Discussion? It is mandatory
to bring the Bill to the knowledge of the honourable MPs It is a must on the part of the Government
to circulate copies of the Bill in both the languages.
[English]
Shri Mani Shankar Aiyar (Mayiladuturai): There is a fundamental misunderstanding on the part
of the honourable Member. This Bill may continue to have the date of 1991 even after it has been
reported by the Joint Parliamentary Committee, because it was first presented in 1991. The date of
1991 will continue until such time as it passes into a law. Please see what he has received. What he
has got in Hindi is the 1991 Bill as reported by the Joint Parliamentary Committee. The point that he
is making is based, as usual, on the lack of knowledge which the Janata Dal generally display in this
House.
[Translation]
Shri Nitish Kumar (Barh): With reference to what Shri Mani Shankar Aiyar has said, I would like to
tell him that the copies, which has been circulated, are that of the 1991 Bill. This is not the one
drafted, after the presentation of the Report by the Joint Select Committee. We would like to tell him
that he has very spontaneously cast the aspersion of ‘Lack of knowledge’ on the Janata Dal Members
and we are forced to give clarifications. We were the ones to invite your attention to the Rules and
yet allegations are being levelled against us. I would like you to at least go through it. We have seen
the copy of the 1991 Bill also. I would like to repeat that the copies that have been circulated are not
of the Bill, which has been drafted on the basis of the Joint Select Committee Report. This is obvious
from the fact that the provision for direct elections at the village, village Panchayat and Intermediate
levels was part of the 1991 Bill, but in the draft prepared, after the presentation of Report by the
Joint Select Committee, this provision of direct elections, was made applicable for the Primary/Gram
Panchayat level and the elections to the Intermediate/District level was left for State Legislatures to
decide. We were also thinking like you and I too got confused in the process, but what is regrettable
is that we have been accused of ‘Lack of knowledge despite our understanding of the matter. You can
see for yourself. It is a clear mistake on your part. Even now copies of the latest Bill have not been
made available to us. (Interruptions)
Shri Devendra Prasad Yadav: Mr Deputy Speaker, Sir, it would be wrong to take up the Bill for
discussion, when the copies of the same have not been made available to the honourable MPs. We
are not aware of what we are going to discuss here and how we intend to go about it.
Shri Syed Masudal Hassain (Murshidabad): Section 33 of the Official Languages Act, 1963 is
mandatory. The copies of the Bill will have to be circulated. (Interruptions)
[English]
Shri Srikanta Jena (Cuttack): I will not respond to Shri Mani Shankar Aiyar because he has
already responded that this is due to lack of knowledge on the subject.
But it is a question of legality under the rule, whether an amended Bill has to be circulated. It has not
been circulated and it is the responsibility of the Minister of Parliamentary Affairs. Since, it has not
been circulated, it cannot be under consideration. So you may adjourn the House and tomorrow we
can take it up. There is no option now.
[Translation]
Shri Nitish Kumar (Barh): Mr Deputy Speaker, Sir, it would be better if they accept this fault and
apologise. This shows their weakness and we have exposed them and therefore, this should not
happen. It could be that they have deliberately committed a technical and legal mistake, so that it is
not taken up for discussion and is not passed. As this has not been done in a democratic manner, the
speech delivered by the hon. Minister becomes irrelevant. Shri Ghulam Nabi Azad is a very senior
and intelligent Minister and that he could make any such mistake is unpalatable to me. Mr Deputy
Speaker, Sir, it could be that it has been deliberately done. (Interruptions)
Shri Mohan Singh (Deoria): Mr Deputy Speaker, Sir, it is also the responsibility of your secretariat.
Copies of all the Bills are usually circulated by your secretariat three days prior to their introduction.
If Hindi copies of the Bill have not been made available to your secretariat, three days earlier and
only English copies have been made available, then we are on a Point of Order and if the Original
draft of the Bill, in Hindi and English, has not been submitted to your Secretariat, three days prior to
its introduction in the House and if the copies have not been duly circulated, then on your part, you
p y , y p ,y
should restrain the hon. Minister from introducing the Bill in the House. My friend has raised a correct
objection in regard to violation of rule. I deliberately avoided to raise it. But an individual has
questioned the wisdom of our party as a whole. Therefore this flaw should be removed. In view of
these factors I support this objection. It should not be presented unless it is brought under the Rule.
Discussion should not be allowed over it. Sir, if you allow discussion on it then I will be compelled to
say that you are the custodian of the rules and regulations and if rules are violated in your presence
then our faith will be shattered and whom we will trust? It is your responsibility to see that rules and
regulations are followed. My submission is that some other Bill should be introduced. (Interruptions)
[English]
Shri Srikanta Jena: Since there is no other business, if you want to continue till six O’clock, then
Zero Hour can go.
The Minister of Parliamentary Affairs (Shri Ghulam Nabi Azad): My friends, I request that this
is a very very important Bill which we have all agreed upon and this has also gone through the Joint
Select Committee. We had a meeting among ourselves and with the leaders of political parties in this
regard. This has happened for the first time that all the sections of the House are of the same
opinion. So, we have started on a very good note that my friends have mentioned here. I think, my
friend on this side did not want to cast any aspertion on that part of the party. It was just in a lighter
mood. As we had a very light Zero Hour today morning so you want to make it a little heavier. I,
therefore, request that we take up this matter.
Shri Srikanta Jena: It is not the question that we are accepting this position or not. Since, it has
been raised, it is a question of your decision. It will be a bad precedence. This is the question of the
property of the House.
….
[Translation]
Shri Devendra Prasad Yadav: Mr Deputy Speaker, Sir, we want your ruling…. (Interruptions)
[English]
Shri Srikanta Jena: In the proviso under the rules you cannot proceed. You just cannot proceed.
That is the point. Not that we are very keen to proceed on this subject. If you just throw the rule
book, then we can proceed. That is the only issue. Since it has been raised, there is no other way
left. (Interruptions)
Mr Deputy Speaker: I would like to know whether the Hindi version is available in the counter.
[Translation]
Shri Devendra Prasad Yadav: As per rule it should be available three days before but it is not
available. (Interruptions)
[English]
Shri Basudeb Acharia (Bankura): There are precedents on this. The English version and the Hindi
version should also be circulated. (Interruptions)
An Honourable Member: You can take the sense of the House under Rule 333.
Shri Basudeb Acharia: You give your ruling. If the Hindi version has not been circulated, you can
give your ruling. (Interruptions)
[Translation]
Shri Nitish Kumar: You may please find out some via-media. (Interruptions)
[English]
Shri Basudeb Acharia: Allow us to raise other issues. You allow us to raise our issues. We were not
allowed to raise our issues in the Zero Hour. You take up this tomorrow. You may give your ruling.
Mr Deputy Speaker: The Bill has been already circulated in the month of August itself to all the
Members. There was a Joint Select Committee report and now the English version and the Hindi
version both are available. If there is any lacuna that can be plugged. If there are any shortcomings
they can be plugged. They will be taken care of. I will request Shri Rana to start the discussion.
[Translation]
Shri Devendra Prasad Yadav: I am on a point of information. The information was given in July
and it is not about August. It is in English and not in Hindi.
[English]
Mr Deputy Speaker: My information is that both the English and the Hindi version have been
circulated to all the Members. That is the information I have received. Therefore, I have given my
ruling.
Shri Basudeb Acharia: When was the Hindi version of the Bill circulated?
Shri Syed Masudal Hassain (Murshidabad): This is a violation of the Official Language Act.
(Interruptions)
Shri Ghulam Nabi Azad: They have already got it. If you want it to be served in your seat, I am
sorry, I cannot help to it. You may go outside and seek it.
[English]
Mr Deputy Speaker: The same issue has been raised and I have already given my ruling. I have
already given a ruling about it.
Constitution (Seventy-Second Amendment) Bill Insertion of New

Part (IX) as reported by Joint Committee
and
17 Introduced in Lok Sabha on 16-9-1991 and passed.
• Considered in: Lok Sabha Debates,
• 1-12-1992, Lok Sabha Debates;
• 22-12-1992, Lok Sabha Debates (Bill also passed on this date).
18 The Constitution (Seventy-third Amendment) Act, 1992.
Narrow By: Search Within Results: 243 Publication: S Pal: India's Constitution --Origins and Evolution, 1st ed,
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Constitution (Seventy-Third Amendment) Bill Insertion of New

Part IX—a as reported by Joint Committee – Contd
Samaraditya Pal
Article 243
Constitution (Seventy-Third Amendment) Bill Insertion of New

Part IX—a as reported by Joint Committee – Contd
Shri Kashiram Rana (Surat): Mr Deputy Speaker, Sir, I consider the 72 and 73 Constitution
Amendment Bill introduced by the honourable Minister as essential. These Amendment Bills have
been presented very late in the House. It appears to me that these constitution amendments are
not perfect.
The Municipal Corporation Act in force in most of the States of the country is very old and the
provisions made in it do not provide adequate rights to the representatives elected by the people.
The Municipal Corporation Act of 1888 was formulated at the time of British rule and the same is
being exercised even today in our State. It does not provide the adequate rights to the
representatives elected by the people. Neither the honourable Minister nor the Joint Committee took
this matter into consideration. The Municipal Corporation Act in force at present does not provide
adequate rights to the elected representatives, the Mayor nominated by the party, the Deputy Mayor
or the Chairperson. Only the Commissioner or the higher officers has the adequate powers. Even
when Corporation or Municipality passes resolution for the welfare of the people the commissioners
or officers try to avoid it. That is why my submission is that the amendments presented here are very
essential but their number is very less. Keeping the prevailing situation in mind, amendments at
large scale are required.
So far as Panchayat Bill is concerned, Balwant Rai Mehta Committee and many other committees
gave recommendations and these recommendations were implemented. But no amendment was
made in Municipal Corporation Act through which people could enjoy the benefits of democracy and
the public representatives could get adequate powers. I would like to submit that 72 Amendment
would also not provide adequate powers. My opinion is that Municipal Corporation Act is different in
every State. There is no uniformity in it. Moreover it does not give adequate powers to the public
representatives or the Chairperson. Amendment to give adequate powers to them should have been
presented. I would like to submit to the honourable Minister that if we take into consideration the
prevailing circumstances in the Corporation area and the provision in the Act, we find that officers
and commissioners are to be blamed for committing most of the mistakes.
I would like to raise one more point. Through this amendment, Corporation, Municipality and
Panchayats have been entrusted a number of responsibilities. I am also of the opinion that local
bodies should be given such responsibilities But at the same time we must be considerate in regard
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bodies should be given such responsibilities. But at the same time we must be considerate in regard
to the allocation of adequate funds to these local bodies. In the prevailing circumstances, the Central
Government and the State Governments shift all the responsibilities on local bodies, but give neither
grants nor funds to them.
I want to cite only one instance that the responsibility of providing primary education lies with the
Government but everywhere in the corporation areas this responsibility has been given to the
corporations. The grant provided in this regard has been stopped in Gujarat. Similarly, grants were
earlier provided by the Centre for family planning and malaria eradication programmes, but all those
grants are being stopped now under the corporation areas. I want to say that responsibilities are
fixed for the local bodies and they are empowered but neither there is any proposal in the
amendment for providing funds to these local bodies, nor any such recommendation or directive has
been given to the State Government in this regard.
Sir, the report of the Joint Committee says that these responsibilities are shouldered by the local
bodies today as small villages are turning into towns, towns are changing into big cities and big cities
are becoming metropolitan cities resulting in increase in their problems alone. These local bodies
need funds to provide civic amenities and other facilities to the people but the Government is not
providing these funds. The All India Mayor council gave several representations to the centre and the
State Government in this regard that under the Act, more powers should be given to the
representatives of the people and adequate funds should be provided to the local bodies. But even
after so many years, neither the State Government nor the Central Government has done anything in
this regard.
Sir, the members of the Joint Committee had submitted their report after touring the entire country.
In paragraph Nos 2.7 and 2.8 which are there at page no 20 of this report, they have mentioned that
the local bodies need funds more than Rs1000 crore to provide these facilities to the people and to
solve the problems which arise. But nothing has been mentioned about how the local bodies should
get these funds. The Finance Commission was constituted several times-the Eighth Finance
Commission and then the Ninth Finance Commission were constituted and several representations
were given to the Finance Commission by the Municipalities, Corporations and by the All India Mayor
Corporation that funds should also be given to them. Income-tax comes from every major city today.
The Government earns crores of rupees from customs and excise duty, but the corporation gets no
share from it. The State Government gets the share and it should give this share to the city, whether
it is under Corporation area or municipal area, but it does not do so either. I had been Mayor for
three-four years and I had full experience that whenever the State Government is approached for
share, it denies to part with it. Municipal Finance Boards are also constituted, but they are unable to
provide funds. So, I would like to draw the attention of the honourable Minister through you that
efforts have been made to fix responsibilities on the local bodies through these amendments, it is
okay, because neither the Centre nor the State Government is able to sort out these problems.
Sir, I would like to demand when all these responsibilities are being slowly given to local bodies, they
should get funds as well. The Corporation and the Municipality should get a direct share from the
income earned by the Central Government through taxes. It should not go to the State Government.
In a State where the Corporation is run by any opposition party, the State Government does not give
them any grant for any work. It should give the grant, but it does not do so. So, I would like to
demand that the Central Government should directly give the share to the city because the State
Government also recovers entertainment tax, even though all the primary civic amenities are
provided by local bodies. The State Government does not do anything in this regard. Basic civic
amenities such as sanitation and roads are very necessary for the cities today. A large number of
people are migrating to the cities today to earn their livelihood. The problem of slums are increasing
day by day in all the cities in the country. The cities can provide livelihood to the people, but neither
the State nor the Central Government cooperates with the corporations or municipalities in their
schemes made to solve the problems of slums and to provide better rehabilitation to the people. It is
said that HUDCO will provide loans at comparatively lower rates of interest but I know how much
time it takes in getting loan from HUDCO. The local bodies are facing lot of such problems, but no
provision has been made by the hon. Minister in this amendment to remove these problems. Only
new responsibilities are being entrusted to the local bodies but they need funds to discharge their
responsibilities.
Sir, I remember that many years ago, the then Prime Minister had visited Calcutta which has been
mentioned here, and had announced that a sum of Rs100 crore would be given; for the development
of Calcutta city. Similarly, during the centenary session of the Congress Party at Bombay it was
announced that a similar amount would be given to the development of Bombay city also. So, I
would like to know from the honourable Minister that according to the announcements, how much
amount has yet been paid to these cities. I am convinced that no funds are given according to such
announcement, but instead it only increases the expectations of the public.
Shri Mani Shankar Aiyar (Mayiladuturai): Just now the honourable Member has mentioned about
Bombay and said that an announcement of providing Rs100 crore was made there. I would like to tell
the honourable Member that Belapur-Mankhurd railway line was to be laid and that line has been laid
and inaugurated. There was a scheme to construct houses in place of slums in Dharavi. I had gone to
Bombay the day before yesterday. I have seen with my own eyes that scores of houses have already
been constructed there. So, it is not right to say that resources are not provided after
announcements.
Shri Kashiram Rana: Mr Deputy Speaker, Sir, Shri Iyer may not have heard. I have mentioned that
funds are not being provided to the local bodies for the mandatory responsibilities given to them. He
told about the railway line in Bombay but did not mention anything about Calcutta. He also did not
tell whether the slum problem of Bombay has been solved. I also know about the railway line. No
provision has been made in this bill to provide adequate funds to the local bodies. If this issue is not
given a serious thought it will create chaos. The local bodies constitute of the representatives elected
by the people. If the Government does not provide funds to these local bodies for discharge of their
responsibilities, the representatives will become the victims of public ire. I have doubt that if this
issue is not considered, such situation may arise in future.
Besides, people in big cities face a lot of difficulties. The representatives of the local bodies should be
given more powers to solve the problems of the people. I am happy that the jurisdiction of the Court
has been barred in the matter of elections. I have experienced that whenever a resolution is passed
against an inefficient officer, the Court comes in between and issues a stay order. Sometimes good
resolutions are brought, but the Government comes in the way. Sometimes stay orders are obtained
from the court. When the court issues stay orders the State Governments create obstruction. There
must be a provision in the Bill to avoid such a situation. Otherwise, these amendments will be of no
use and Government’s claim that they have brought forward such a good amendment – for the
Panchayats and Municipalities.
Sir, I would like to make yet another submission. There is a very good provision for women in this
Bill. The Bill provides for 1/3 representation of women in local bodies. Sir, I would like to state that if
there will be 1/3 representation for women in local bodies and election of women as Chairperson,
also it would be most welcome step. One such experiment was made by the Government of
Maharashtra when they made such provisions in their Municipal Corporation Act and implemented the
same there. We made these provisions so as to create awareness among women in the country
because the women today are not coming forward the way they are expected to. For this the
Government should conduct or chalk out a programme so as to provide 1/3 representation to women
in local bodies. In this way there will be no difficulty.
Regarding elections it has been said that elections would be held in five years. It is a very good
provision. I would like to express my thanks to the honourable Minister for this. Several local bodies
are dissolved or superseded, but no elections are held there. Elections are not held even after 10, 15
and 20 years. The Government is afraid that elections are held the opposition parties might come to
power and they would be losers. While empowering State Government to make a State Law, I would
certainly like to warn the honourable Minister that he should ask the State Government to implement
this provision. Despite adequate provisions in the Municipal Corporation Act that elections must be
held in five years, if it is not extended by one year under specific circumstances, elections are not
held. In spite of such provisions the Gujarat Government became ready to extend the date of
elections. We took up the case in the High Court and obtained its judgment. Only then the
Government was compelled to hold elections in time. Under the Municipal Corporation Act the
Municipal Commissioner is fully empowered to announce elections, but the State Government can
interfere with it and postpone the elections. This practice should be stopped. This provision is being
made by the Central Government. Therefore, I presume that elections will certainly be held in five
years. This should not be extended under any of the circumstances. If there are no elected bodies in
the villages, cities and towns the Officers posted there will not do any development work.
I say this with great distress because officers do not do any development work.
If people’s representatives are there, their presence will exert pressure on development work there.
Therefore, the decision to hold elections there within five years is most welcome. The State
Government should always implement it, because we empower the State Governments to look into
this aspect. Therefore, under this provision, elections are to be held in five years. But the election
process should start six months earlier before the completion of 5 years. It is a very good provision
and there are certain other good provisions in the Bill. But some loopholes are found at some stage
and these provisions become meaningless. Therefore, I would like to warn the honourable Minister
that the State Government should implement it properly so that this does not turn into a mere joke.
This will enable people elect their representatives and facilitate the local bodies function properly.
This amendment also provides that the accounts of local bodies which were hitherto being audited by
the Auditor Generals in the States will now be audited by the Comptroller and Auditor General of
India. This is a good provision.
Mr Deputy Speaker: We now continue with the Constitution Amendment Bills.
Shri Kashiram Rana to continue.
Shri Kashiram Rana: Sir, I was talking about as to who should audit the accounts of the local
bodies. Since such a provision is being made in the Amendment Bill, the honourable Minister should
think as to how to remove the difficulties of local bodies. This is a serious matter, because without
funds there will be no developmental work. I submit that efforts should be made to make provision
for it. So far as the deliberations made in All India Mayors’ Conference and Local Bodies Conference
and appointment of a Financial Commissioner are concerned, suitable provisions should be made in
this regard
this regard.
Mr Deputy Speaker: Sir, the intentions of the 72nd and 73rd constitutional amendments Bills for
devolving powers to Panchayats and Municipalities are good, but these are never implemented
practically. Intentions are good up to the time the Act is passed. In the same manner, arguments are
made that the Bill has been introduced for the welfare of people, but in practice, this does not
happen so. I am afraid these two amendments should not meet the same fate affecting poor people.
Some people live in slums. They need various facilities. Suppose there is a need to construct good
roads in a village or city, then power will have to be devolved to local bodies. This will make people
feel that they have their self-Governments and it is their own rule. Mahatma Gandhi also held that
common people should have a share in democracy. If it is not so, it will be a matter of joke among
the common man.
Mr Deputy Speaker: Sir, finally, I would like to say that benefits of various provisions made in the
amendment Bill will be received only after the requirements of funds is met. The State Governments
should be asked not to interfere with local bodies, if any, run by Opposition Parties, so that they may
function according to law and then only this amendment will become meaningful.
With these words, I conclude.
[English]
Mr Deputy Speaker: There was some confusion in the beginning that the English version has come
up in regard to the Constitution (Seventy-Second) Amendment Bill but the Hindi version has not
come up. That was the objection raised by the honourable Members.
The office people have confirmed that on 14 of July both the versions have been circulated. To verify
it, I have got both the books which indicate, it was circulated on 14 of July.
[Translation]
Shri Mohan Singh (Deoria): You might be having, but I do not have. The same thing is being
repeated again and again.
[English]
Mr Deputy Speaker: If you see the bundle, you will find it there. To get it verified, I have brought
both the versions here.
[Translation]
Shri Mohan Singh: It should be accepted that mistakes are committed. We have made an appeal
that it is of no use to repeat that mistake..
[English]
Shri Pawan Kumar Bansal (Chandigarh): Mr Deputy Speaker, Sir, in the history of mankind,
democracy as it is understood today, is of comparatively recent origin. But it does owe its evolution
to the concept of Panchayat enunciated and practiced in our ancient Indian society. We have always
regarded the decision of any five persons as the dictum of God and the words Panch Parmeshwar
have been engrained in our ethos since time immemorial. Our ancient ‘Village System’ was, however,
disturbed severely and democratic traditions eclipsed by a prolonged interregnum of aggression and
foreign rule prompted by commercial interests. To resurrect it and infuse life therein, Mahatma
Gandhi while leading the freedom struggle, advocated the inception of village republics in free India.
The framers of Constitution included therein a Directive Principle of State Policy under
Article 40 for organizing village panchayats as units of self-government but so far, these
have functioned only as a weak limb of our body political. These have never been taken
seriously even by a petty official, thus negating the very spirit which moved the Father of the Nation.
Today some of the States claim to have devolved power to local bodies but we find that all such
power is drawn back to the State Government through a Minister in charge of municipalities and
panchayats and with his veto power, these institutions have always remained emaciated as the
members thereof have been ignored and slighted with inversely proportionate powers vesting in the
hands of unresponsive bureaucratic and arrogant politicians. To rectify the situation, to make
democracy vibrant and meaningful to every citizen of the country and to accelerate the pace of
development, the last Congress Government, headed by Shri Rajiv Gandhi made earnest endeavours
in this regard and moved two Bills to amend the Constitution so that Constitutional sanctity could
be guaranteed to the Panchayat Raj institutions and the Nagar Palikas. (interruptions) But the
political compulsions of our friends on the other side led them to reject those Bills in Rajya Sabha.
We then missed an opportunity to come up to the aspirations and hopes of the people. The people’s
expectations of a systemic change in the administration and the delivery system were shattered. An
effort to involve people in their development suffered a set-back. But standing by the principle of
Shri Rajiv Gandhi that it was only by giving power to the people, by making them
participate in the democratic processes of the country, by making them arbiters of their
own destiny, their own future, could India prosper. The present Government under Shri PV
Narasimha Rao took upon itself as the first task to ranging undertake wide consultations
so as to arrive at a consensus. I am indeed very happy to say that when these two Bills were
f dt t S l tC itt f th t H f P li t th M b i did
referred to two Select Committees of the two Houses of Parliament, the Members once again did
cut across party lines and presented the Report to this House recommending the passing
of these two Bills.
Public opinion has impelled us all to support these measures now.
Sir, I am happy to observe again that the paranoia which gripped some of our honourable. friends
sometime back does not do so now. It was indeed very heartening again to see that the two Select
Committees went a step further than what was really before them. One very important provision of
the earlier two Bills which was, missing from the present two Bills related to the District Planning, to
setting up of the District Planning Committees and the Metropolitan Planning Committees and was
included in our Report on the basis of the consensus arrived thereat. This, I feel, was, in fact, the
spirit of the two earlier Bills. I am happy that honourable Members from the other side found merit in
that, may be, some political compulsions at that time led them to reject the Bills. But they saw the
writing on the wall. I would say that they appreciated the feelings of the people and decided to make
those recommendations to the Parliament.
Sir, Entry 5 of the Schedule Seven of the Constitution confers exclusive jurisdiction on a State
Legislature to enact law relating to local Government or village administration. In this case, this
power is left completely untouched, as it was done then. The amending power of Parliament under
Article 368 alone is invoked to introduce some minimum standard of uniformity in the system and to
strengthen the institutions of local self-Government.
These two Bills seek primarily to elaborate upon Article 40, to give constitutional mandate to the
Institution of Panchayati Raj rather than only paying lip service by treating it as a Directive Principle
of the State Policy. They seek to ensure that elections to Panchayats and Municipalities are held
regularly and to see that the whims of the local State bosses do not lead to the supersession
of the Municipalities and Panchayats for more than six months, appropriate provisions
have been made in these two Bills. They have rightly found favour with all sections of this House.
Another very important feature which we found in the earlier two Bills and has been reiterated in
these two Bills is to provide adequate representation to women and Scheduled Castes and the
Scheduled Tribes. The honourable Member from the BJP who initiated the debate rightly lamented the
lack of resources that the Municipalities and the Panchayati Raj Institutions face. It is in these two
Bills I am sure he must have gone through these as it was in the earlier two bills, that provision is
made for the setting up of the State Finance Commission which would review the financial position
of the Panchayats and the Municipalities and make appropriate recommendations about the
assignment, appropriation and distribution of resources through different means. It is here I would
again like to place on record my appreciation for the keen interest which the Chairman of the two
Select Committees took.
And since I had the opportunity to work in the Committee relating to the 73rd Amendment, I must
appreciate the efforts made by our Chairman Shri KP Singh Deo, to see that even Article 280 of the
Constitution is amended. That was not strictly in the terms of reference. We have seen that
henceforth, if you really want to ensure that the institutions of local self-government are veritable
vibrant institutions of democracy are able to deliver the goods to the people there and come up to
the expectations of the people, then financial powers have to be vested in them. And it was with that
aim in mind that we recommended amendment of Article 280 of the Constitution and a new clause
(3) has been added in this amendment Bill which says that a new sub-clause (c) would be added to
the Article 280 (3) to say that one of the functions of the Central Finance Commission will be to
recommend:
“The measures needed to augment the Consolidated Fund of State to supplement the resources
of the Municipalities in the States on the basis of the recommendations made by the Finance
Commission of the State shall be one of the functions of the Central Finance Commission.”
This is a very very important provision which I am confident would go a long in improving
the working of the municipalities, as also the panchayats in our country. (Interruptions) Our
honourable friends from the other side are very quick to rise on their feet whenever it comes to even
the slightest imaginary notions of some or infringement of or making inroads into the powers of the
States but they are always, I do not know for what reason, expecting the centre to bring money from
their air and disburse it to them so that they can indulge in all sorts of profligacies there.
The other very important aspect of these two Bills to which I made a reference just now when I was
speaking about the working of the two Select Committees is that we have recommended the setting
up of District Planning Committee, as also Metropolitan Planning Committee, to prepare a
consolidated and integrated draft development plan for whole of the district in the case of District
Planning Committee and even for two districts where the metropolitan area of about 20 lakh people
spread over to more than one district. In that case an integrated plan for even more than one
district will be prepared on the basis of the plans to be prepared by the municipalities and the
panchayats by taking a reasonable number of members on these two Committees from both the
panchayats and the municipalities falling within that area.
These are very important provisions because what we have seen from the past is that our planners
today, despite their expertise and best intentions are to be fully aware of the needs and are not
really receptive to the peculiar local problems of our remote and inaccessible villages
really receptive to the peculiar local problems of our remote and inaccessible villages.
Sir, the Congress Government headed by Shri Narasimha Rao ji, like the earlier Congress
Governments have an earnest desire to give power to the people to involve the local bodies in the
planning process and this desire finds manifestation in these two Constitutional Amendment Bills.
This measure is revolutionary and symbolises the resurgent Indian democracy. I do not
know why my friends were finding it difficult to agree with that.
Sir, with utter humility I would submit that these two Bills reflect eloquently the political will of the
Congress, the commitment of the Congress to take the decision making power out of the hands of a
few and to veritably decentralize the same and to make every citizen participate and enjoy the fruits
of democracy through the swaraj of Mahatma Gandhi’s vision. These Bills veritably reassert the
relevance of Mahatma Gandhi today. Beyond providing these few important constitutional
measures and safeguards to rejuvenate and to truly democratize the functioning of the Panchayats
and Municipalities, these two Bills leave everything else to the State Legislatures and Governments to
work upon. It is the State Legislatures which are charged with the responsibility and are assigned the
right to enact their respective laws on Panchayats and Municipalities in true spirit of the new
provisions now sought to be enshrined in the Constitution.
I saw a note of dissent to the Reports. Perhaps it is the addition of these two Schedules, that is 11
and 12 Schedules, and misconstruction of the provisions thereof which have given rise to some sort
of unfounded fears of may be, losing power in those States where some of our friends happen to
govern today. When they ask for more powers for the State, it is just enigmatic to see that our
friends fear shedding some power to the local bodies in the form of Municipalities and Panchayats.
These two Schedules do not arrogate the power to the State. That is what I want to submit. These do
not intend to take away any power of the States, but have only enumerated the matters about which
the local bodies are more concerned and can be better equipped to take upon themselves the
implementation of schemes for economic development and social justice.
There can be no denying the fact that we cannot alter the basic structure of the
Constitution and here we have not at all ventured on that. These bills in fact seek to fortify
the basic structure of the Constitution. The basic structure of the Constitution is reflected in
our Preamble. The strong edifice of our society is built on the firm foundation of democracy,
secularism and socialism. The decision of the Government, the anxiety of this Government to enact
these two Constitution amendments at the earliest is reflective of our desire to further strengthen
these principles through these institutions of local self-government in the form of Municipalities and
Panchayats.
Though the Bill relating to the Panchayats provides for a three tier system depending upon the needs
of a particular State–in a State with a population of less than 20 lakhs there need not be an inter-
mediate level Panchayat-yet it is heartening that this tier system has been introduced, as it was done
in the earlier bill relating to Nagarpalika, in the case of Municipalities also because a provision has
been made that in bigger cities there will be even ward committees. That is to ensure the
participation of the people of the grass-root level. People belonging to a particular locality
know as to what is their basic need and for that purpose they would get together to decide
as to what has to be done for them on priority and what can wait for a subsequent date.
This, I think, would ensure greater participation of the people and offer them opportunity to harness
their potential for the public wheel. Once these provisions are granted constitutional recognition, they
would eliminate any chance of, what I said earlier, whimsical supersession of Municipalities and
Panchayats. It will effectively provide an opportunity to the people of even Union Territories like
Chandigarh to involve themselves in the constitution of a corporation to manage their affairs. It is
heartening that the two joint committees have recommended to the Parliament that the provisions of
these two Bills shall apply to the Union Territories, and if the President feels that certain provisions
have to be applied with certain modifications, that alone could be done. So no person sitting
anywhere could take a decision to deprive the people of the Union Territories of these salutary
provisions as has been done in the past.
Sir, I would like to take this opportunity of congratulating the two honourable Ministers for bringing
forward these two Bills before us. I am confident that since these Bills have passed through various
stages, various stages of interaction and consultations, they will find out right approval.
Shri Mohan Singh (Deoria): Mr Deputy Speaker, Sir, I would like to thank the Government for
presenting 72nd and 73rd Constitution Amendment Bills before the House for its consideration.
The Autonomous Bodies and Local Bodies played an important role during the national movements
and all the national leaders including Pt Jawahar Lal Nehru started their political career from the
elections to the municipal committees. Pt Jawahar Lal Nehru started his political career by contesting
election to the Allahabad municipality. From Deshbandu Chitaranjan Das to Shri Vithal Bhai Patel and
to Liyakat Ali all were associated with the politics of local bodies. I very well remember that chapter
of the history when Allahabad municipal committee decided and Pt Jawahar Lal Nehru declared that
national flag would be hoisted on 26 January which was national day and the commissioner desisted
him from doing so and he was arrested. A national movement was started from there and people
used to learn the first lessons of politics through the elections to the local bodies. In British rule
elections to the local bodies were held for a fixed time and were held within that period only.
I very well remember that the elections to the local bodies were contested between the leaders
supporting Government and leaders of these National movement and those elections were generally
like a political training and a political process. In 1937 the Uttar Pradesh Legislative Assembly made
an Act in the form of Panchayat Raj Act. When for the first time the Congress Government was
formed in Uttar Pradesh with Premier as head of the State. At that time also the election to the post
of chairman of District Council was held through direct election. When India got independence, new
Constitution was framed and we left the local bodies on the mercy and grace of the State
Governments. The main reason is and with all the respect and due apology I will say that the
Chairman of the Drafting Committee of the Constituent Assembly honourable Dr Bhim Rao Ambedkar
was not committed to strengthen the local bodies, therefore he had two apprehensions in his mind.
The first was that he was not connected with the main stream of the National Movement and the
second was that he was always afraid and doubtful about the role of the backwards in the local
bodies. Had he been alive today he would himself have introduced this amendment in the
Constitution and would have tried to create the strength and awareness in the backward castes and
would see with his own eyes that how much these classes have strengthened through adult franchise
and how their leadership potentiality has developed by giving them that right at local bodies level. He
himself would have seen it that the section 40 of Directive Principles in the Constitution of India
which has been included as a compromise, probably would have been as an essential section of the
Constitution in the Constitution Drafting Committee of the Constituent Assembly itself. It would
not have been as a provision under the Directive Principles.
The Government has left the local bodies on the mercy of the State Governments. What is its
outcome. The State Governments enacted laws, constituted Municipal Committees, enacted
Panchayati Acts but even today the head of the Panchayat or Sarpanch is on the mercy of the
Government. If any complaint is there against him, a Sub-Divisional Magistrate dismisses and elected
Pradhan of a Gram Panchayat. I don’t understand what sort of democracy is this.
Balwant Rai Mehta Committee submitted its report in 1957. After that a campaign was launched
when Janata Party Governments were formed in 1977. State Government should enact laws so that
election to the local bodies be conducted after every five years and people’s representatives elected
directly on the basis of adult franchise may come in the district boards, Block Development
Committees and Gram Sabhas. For the first time the Government of Uttar Pradesh introduced this
amendment in 1977 and at that time on the basis of recommendation of Balwant Ray Mehta
Committee the Government of Uttar Pradesh had conferred right to vote to the youths of 18 years to
elect representatives for local bodies. At that time I had been a member of Uttar Pradesh Legislative
Assembly and that amendment was also given to the Select Committee. We had made a rule that the
Chairman of the district board should also be elected directly on the basis of adult franchise on the
basis of the right to vote at the age of 18 years. Shri ND Tiwari Government changed it and held the
election of the Chairman of the district board indirectly. But even today the Gram Sabhapati is
elected directly. I would like to congratulate this Government for giving constitutional status to the
office bearers of the local bodies particularly to the Gram-Pradhan and members of municipalities.
But it is true that local bodies cannot serve local people to the extent what it should have, due to lack
of resources.
Sir, through this amendment a very reasonable suggestion has been given that the Governor will
have the right to appoint a finance commission for the expansion of their financial rights and that will
be reconsidered. It is also a welcome step. But I would like to tell my colleagues that it is not
sufficient. Just now one of my friends said that through it the ideology of Gandhiji will flourish in the
country. I am not ready to agree that India of Gandhiji’s dream will become a reality merely by
making the amendments. Gandhiji had said a clear thing about the villages in Hindu Swaraj. I would
like to mention that Gandhiji said:
[English]
“My idea of village swarajya is that it is complete republic independent of its neighbouring on its
vital wants and yet interdependent for many others in which independence is a necessity. Thus
every village’s first concern will be to grow its own crop and cotton for its clothes. It should have
reserve for its cattle, recreation and play ground for adults and children. If there is more land
available, it will grow useful crops including ganja, tobacco, opium and lime. The village will
maintain a village theatre, school and public hall. It will have its own waterways ensuring clean
supply. This can be done through controlled wells and tanks. Education will be compulsory up to
the final basic course. As far as possible, every activity will be conducted on cooperative basis.
There will be no caste system as we have today with graded untouchability. Non- violence with
its techniques of Satyagraha and non-cooperation will be sanction of the village community.”
[Translation]
Gandhiji’s vision about villages was so complete that the villages would not have to depend on
others. All the essential things of its needs will be available in the village itself. Education will be
compulsory for all and there will be no untouchability. Gandhiji expressed all these things in his
concept of Gram Swaraj but if the Government want to fulfill this great objective by two
constitutional amendment, I think it will not become a reality. Therefore to make the India of
Gandhiji’s dream it will have to be expanded. I think that the Government has taken limited steps
and it should be expanded and the Government can proceed forward in fulfilling the dreams of
Gandhiji if more rights are given to the villages. When Constitution of India was being drafted in his
i l h th Ch i f th C tit tA bl D R j d P d d dh
inaugural speech the Chairman of the Constituent Assembly Dr Rajendra Prasad assured and he
wanted that the structure of the Government of India should be adopted in a form of a pyramid.
The Centre should be at the top with limited powers. But the feeder units i.e. the States should be
made more stable and strong. At the time of dedicating the Constitution of India to the people, he
had said with great anguish that the pyramid of the conception with which the foundation of the
Constitution was laid, has since reversed. The Centre came to top and the villages went to the
bottom. The Centre commands authority over the villages and all other institutions at the lower level
have been destroyed. He had said this to the architects of our Constitution and to the people of our
country at large while dedicating the Constitution.
Mr Deputy Speaker: Sir, the honourable Minister belongs to Andhra Pradesh. The honourable Prime
Minister also comes from Andhra Pradesh. The leader of Madras Presidency in the Constituent
Assembly had laid maximum stress on this provision. I remember Shri Anantha Sayanam Ayyanger,
Shri NG Ranga who is still alive, Shri K Santhanam and Shri T Prakash on whose strong request, Shri
Ambedkar had perforce to concede it and accept it as an amendment. It was K Santhanam’s
amendment. As a result of the above compromise, it was incorporated in the Directive Principles of
the Constitution. No other provision was incorporated. He had made a strong plea for this. I am
glad that the honourable Prime Minister is following that tradition and paying true homage to his
predecessors, but it should be made more broad based. With this expectation, I support both the
Constitutional Amendments and expect that the Government would present a broad model after
adopting these amendments. All local bodies, the three tier system, right from the Gram Sabha, the
Block Development Committees, Zilla Parshads, and Metropolitan Councils should be included in the
said model and it should be circulated by the Central Government to all State Governments.
I would like to make a suggestion in this regard. The Uttar Pradesh Government had prepared a
model in 1977. That should also be gone through in detail. It provides that there would be direct
election at the village level, in the block development committee and also in the Zilla Parishads. They
would enjoy separate powers. But the State Governments could dissolve them any time since they
did not enjoy statutory sanction. Some of our friends said that there should be indirect election for
the post of Gram Pradhan. I would like to request those of my friends to give it a second thought. I
would like to make it clear to the honourable Minister that if indirect election is started or encouraged
at the lower level then the same thing will happen at the village level that we come across daily. In
Uttar Pradesh direct election is held for the post of chairman of the municipalities having one lakh of
population. But at the time of the election of the Mayor in big cities, each corporator’s demand for
lending support ranges from Rs 50,000 to Rs 2 lakh. Do you want the same thing to take place at the
lower level in the election of the Gram Pradhan, so that the influential people could buy the panchs of
the Gram Sabha by money and make themselves sit on the chair. If you want participatory
democracy and true involvement of people, and want to stop payment of money at the lower level
then it can happen only when the election is held direct at the village level. In this way we will be
able to fulfill the dreams of Mahatma Gandhi which the architects of our Constitution could not
fulfill, by holding direct elections at the lower level. With this the backward classes and the poorest of
the poor can establish their leadership in the village on the strength of their single vote. It is a big
thing. Therefore, I fully support direct elections at the lower level. Sir, through you, I would like to
remind the hon. Minister that the erstwhile socialists had boycotted the Constituent Assembly.
Remembering the forefathers I admit that they had not done the right thing in this regard. Had all
the members of the Constituent Assembly been socialist leaders like Acharya Narendra Dev, Jai
Prakash ji Achut Patwardhaan and Dr. Ram Manohar Lohia, whose motto was decentralization of
power, the Constituent Assembly would have accepted the decentralization theory. Jai Prakash ji
had presented a draft Constitution on behalf of the socialists to the then Chairman of the
Constituent Assembly, Dr Sachchidananda Sinha. He had clearly pleaded in favour of local
bodies and the theory of decentralization. All the democratic, Gandhian, Sarvodayee,
Socialist forces in the country have pleaded for decentralization of power. The present
effort of the Government is a limited effort in that direction. Therefore, please provide
strength to this limited effort and give assurance to expand it. We will extend our full support to it.
With this promise and belief I support both these bills and express my thanks to you for your limited
efforts to find out a suitable solution to it.
Shri Anil Basu (Arambagh): This Bill was introduced on the 16th September, 1991. Then it was
referred to the Joint Select Committee, the Bill is before us for amending the Constitution.
I think this is a historic day of our Parliament, a red letter day of our Indian Parliament, when we
took up consideration of this Bill. The de-centralisation of the power and the devolution of the power
at the grass root level – though it was a cherished desire since our independence that had not been
given proper attention and had not been implemented properly in our country because there was no
such political will at the national level as well as to the State level to implement the long-cherished
desire of our people.
After 45 years of independence, now through this proposed Constitution amendment, we are going
to give life to the panchayatiraj institutions of our country. The main theme of these institutions is the
participation of the people in the development and administrative process of our country. During the
last 45 years, these two things were neglected and the people of our country specially millions and
millions of people in the rural areas of our country were denied proper participation in the
development and administrative process of our country.
We have completed our Seventh Five Year Plan and are entering into the Eighth Five Year Plan. The
people of our country in various regions, in various areas of our country have a feeling that the
people all over the country are not considered as a vital part of our development. The human
resources of our country, the millions and millions of people of our country are not given proper role
to play both in the development of our economy as well as process of our country. That is why, we
see that there is a feeling of alienation among different sections of our population. Communal forces,
casteist forces and divisive forces are raising their heads in various parts of our country. This is
happened because the Panchayat institutions could not grow in spite of the cherished desire of the
national leaders and the desire of our people.
The main reason for this is that the people who are opposed to the idea of decentralization, the
people who are opposed to the idea of devolution of the power, whether they are in bureaucracy or in
political power, are the main obstacles for these things. It is for that reason that the Panchayat at the
grass root level could not grow since our independence.
What we see from our experience in West Bengal, that after coming to power in West Bengal in 1977,
the Left Front Government of the West Bengal immediately announced that the power would go to
the people in the rural areas. They will decide their fate and will take part in the developmental and
administrative process through the Panchayat Raj institution. Similarly in the city areas, in the town
areas, in the metropolitan areas, etc the municipalities were given the necessary power and finances
so that the people can participate in the developmental process of the respective areas.
Since coming to the office from 1977 onwards, three Panchayat and municipal elections were held in
West Bengal and regularly it is being held there. It is for the fourth time that the West Bengal is
going to hold Panchayat elections. Now in our State, we have seen that when proper power and
finances are given to the Panchayat institutions and the municipalities, people start participating in
the developmental process. What was the lacuna during the British period? During pre-
independence period and after the independence of our country the lacuna was that people
could not think that this country belongs to them and they have a part to play in the
developmental process of this country. Through Panchayat Raj institutions and Municipalities in
West Bengal, we are able to motivate our people to participate in the process. Now, the Panchayat
bodies and the municipal bodies in West Bengal are not only a local self-Government on paper but a
local self-Government truly in spirit. People can participate in the election process, in the
developmental works, in the management of the Panchayat and municipals also.
What we see is that the consciousness of the people has grown at the grass root level and they are
able to realize as to what should be their part in the progress of their country. In West Bengal, we
have gone further. We have also given the mandatory instructions to the Panchayats. West Bengal
Act has been suitably amended so that the funds which are available with the Panchayats have to
make the expenditure account public of their respective panchayats. It has to be done in a public
meeting specially convened for that purpose. In each financial year they have to convene a public
meeting they have to place the audited accounts before the people of that respective areas so that
there is an awareness among the people that not only they are part of the developmental process but
also that they have a right to know how expenditure is incurred on various developmental activities
and whether that is correct or not.
So, the Panchayats are publishing the annual expenditure reports, though I think – not regularly but
I can say that most of them are convening meetings of the people of the respective area and they
are placing the expenditure details. So, there is scrutiny from both the sides. The people are
participating in the election process, they are participating in the administration of Panchayats. They
are participating in the developmental process, as well as their awareness is increasing. They are
thinking that they are a part and parcel of the whole developmental process and they are the men of
this country, though living in remote areas. That is why the Panchayat system in West Bengal has
grown from strength to strength.
Now the Panchayat elections are going to be held for the fourth time in West Bengal. The Panchayat
Act has been amended there and it is going to be amended further now. A Select Committee has
been appointed by the West Bengal Assembly and that Select Committee has also scrutinized every
aspect of the proposed Bill. They have also made some recommendations and they are under
consideration of the State Legislative Assembly. Some of the provisions there have also been
incorporated here, I find.
So, from the experience of West Bengal I can tell this august house that the Panchayat Raj
Institutions and the municipalities which were neglected since independence are the proper forum or
the proper local self-Government which can give an assurance to our people that they are a part and
parcel of the Government, of the developmental process that they have a role to play in the
development of the country. (Interruptions)
From our Bengal experience we see that my friends on the Treasury Benches may not mind if I use
some harsh words. We find that in the Congress ruled States these Panchayat Raj Institutions have
not come up, they could not be activated and they could not be brought up at the desired level
because the Congress people – the people who ruled the country for 42 years – have no desire to do
that.
Shri Mani Shankar Aiyar: One question. For most of these 42 years the States of Maharashtra and
Gujarat have been ruled by Congress Governments and the system of Panchayat Raj that we have
had in these two States is comparable to West Bengal. So, as I am second to none in admiring the
remarkable work done by the Communists in West Bengal, I request you to be second to none in
admiring the remarkable work done by the Congress in Maharashtra and Gujarat.
Shri Anil Basu: I am grateful to Shri Mani Shankar Aiyar for reminding me about the performance of
the Maharashtra Government. We too do not deny it. But the main thing is, who are the contributors
of major members in this House? The States of Uttar Pradesh, Madhya Pradesh and Bihar. So, I think
while Shri Mani Shankar Aiyar is praising his own people, he should also think of this. What are the
difficulties, what are the weakness which are inherited in the Congress Party? You see what is going
on there. They do not have elected bodies in the different States in the party hierarchy. Whenever
you have to select a Chief Minister, when there is a dissent in the Legislative Assembly, or when the
Members are agitating against the Chief Minister the Legislative Assembly Members have no power to
select the Chief Minister. Instruction is going from Delhi. That sorry state of affairs is still
prevailing in the Congress Party. You are talking of democracy and you are accusing the
communist and saying that Communist do not have democracy. In our party, we have regular
Conferences and conventions to elect leaders. But in your party we see that even your Legislative
Assembly Members who are voted by the people of your State do not elect leaders.
4 December, 1992
Shri Shivraj Singh Chauhan (Vidisha): Mr Deputy Speaker, Sir, I support the 72nd and 73rd
Constitution Amendment Bill. I welcome it but through you I would like to point out some of the
drawbacks in this amendment. The Panchayat system is not new in our country, it has been
continuing since ages and I understand that in ancient India, one of the major functions of
Panchayat was to make available cheap and quick justice to the villagers. The Panchas used to sit in
the Chaupal of the village and the villagers used to settle their petty disputes themselves by holding
discussions and the Panchas themselves by holding discussions and the Panch was given great
regard. At that time, Panch was called Panch Parmeshwar, i.e., equal to ‘God’ but today we can see
that petty disputes are not settled in villages but they are settled in the courts. This
concept of court has been borrowed from the West. I admit that the villagers have to visit
courts several times in connection with settlement of their petty disputes, they have to depend on
lawyers and due to it many cases which can be settled easily in village itself, linger on and the people
have to wait for the settlement of such cases throughout their lives and in many cases they don’t get
justice.
Mr Deputy Speaker: Sir, I like to submit through you that the cases which can be settled through
mutual negotiations should be settled in the way, as is in vogue in Madhya Pradesh, where
experiments have been made to settle through negotiations in Lok Adalats and so such a provision
should be made in this Bill on these lines through which petty disputes can be settled in the
Panchayats in villages. I understand that it would help in providing cheap, and quick justice to
villagers.
Sir, I would like to submit one more thing about demarcating the area to be placed under a particular
Gram Panchayat. I am saying so, on the basis of my own experience that sometimes when the areas
are demarcated to be placed under a particular Gram Panchayat, the influential people, specially
those belonging to the ruling party, keeping in view the chances of their victory placed 3-4 villages
under a single Panchayat and when they saw no chances of their victory in a particular village, they
placed that village under some other Panchayat. With the result, several villages were used to be
placed under one particular Panchayat in one year, and under the next Panchayat in the next year
and during the third year, under the third Panchayat. Therefore the demarcation of the Gram
Panchayats should be made on a clear criterion.
Sir, an experiment was made in Madhya Pradesh where the area under a Patwari has been considered
as a unit so that the people belonging both to the ruling party as well as the Opposition may not
transfer an area from one Panchayat to the other in view of their chances of victory. Therefore there
should be a clear cut provision in this Bill that no one can transfer the Panchayat area
arbitrarily keeping in view his political interests. Mr Deputy Speaker, Sir, as far as the question
of direct election to Sarpanch and Chairman of the Panchayat is concerned, I welcome it and support
it. We have observed that when the Sarpanch is elected by the Panches, every sort of tactics is
applied to become Sarpanch. At that time horse-trading takes place and both, money power and
muscle power are applied and sometimes the prospective Sarpanch arranges a tour of all the four
pilgrimages to the Panchas. So, if the Sarpanch is elected directly then all such drawbacks will be
removed.
I would like to submit one more thing, the Chairman of the Madhyavarti, which is called Janpad
Panchayat in Madhya Pradesh as also the Chairman of the Zilla Panchayat should also be elected
directly. It is not necessary to form separate districts areas and to elect members of the Zilla
Parishads separately. I do not feel it necessary that the members of the Janpad Panchayats and the
members of the Zilla Parishads may elect from amongst themselves the Chairman Since the Gram
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members of the Zilla Parishads may elect from amongst themselves the Chairman. Since the Gram
Panchayats are connected with the Janpad Panchayats and the Janpad Panchayats are connected with
Zilla Panchayats, the Chairman and Sarpanchas of Gram Panchayats should be the ex-officio
members of the Jan Panchayats and the Chairman of the Janpad Panchayats should be the ex-officio
members of the Zilla Panchayats. I do not feel any necessity for separate elections for them. The
Chairman of the Zilla Panchayats and Janpad Panchayats should be elected through direct elections.
Sir, I would like to submit one more thing regarding reservation. It has been stated in 243-D(1),
that there will be reservation for the Scheduled casts and Scheduled Tribes. I agree with that but it
has been said that the reserved seats will be provided to Panchayats serial wise. My submission is
that the wards of the Gram Panchayats are generally very small and sometimes there are such wards
also in which no Scheduled Castes and Scheduled Tribes people reside. It can be viewed on the basis
of the population. Where such people are in a large number, the reserved seats can be allotted.
Sir, I would like to say one more thing. Arrangements are being made for providing reservation for
the Chairmen of Gram Panchayats, Chairmen of Janpad Panchayats and Chairmen of Zilla
Panchayats. The reserved posts should also be allotted to them keeping in view the population;
wherever the people belonging to the Scheduled Castes and scheduled Tribes are in large number,
there these posts should be reserved.
We have experienced one more thing that the BDO get the evaluation of the work which is got done
by the Sarpanch of the Gram Panchayat by a Sub-Engineer. If the Sarpanch connives with the Sub-
Engineer, then the work of 10000 can be evaluated as of 20000 and if he does not do so, then
howsoever good work that may be, is not evaluated at all. In this way the honest Sarpanchas run
from pillar to post to get their work evaluated. Since the evaluation is not done, the Panchayat does
not get the further grants in time. Therefore such arrangements should be made through which
corruption can be controlled, which is rampant, I think, in each and every gram Panchayat.
Likewise, sometimes the Gram Panchayats get the work of poor quality done. May be they
are elected representatives but no one has the right to get the work done by eating up
public money. We have observed that from 1985 to 1988, many Gram Panchayats in Madhya
Pradesh got work of such a poor quality done that the buildings collapsed even before their
inauguration. Many schools and Panchayat buildings collapsed even before the inauguration. When
the notice of recovery was served, they came out with a Court stay and in such cases the
development of that Gram Panchayat came to a standstill since the new projects could not be
sanctioned. My submission is that stern action should be taken against Sarpanchas, Chairman of
Janpad Panchayats and Chairmen of Zilla Panchayats, who misuse the public money and provisions
should be made so that they can be punished.
I conclude and extend my thanks to you for giving me an opportunity to speak.
22 December, 1992
Mr Speaker: Before I put the clauses to vote, I would like to say that this being a Constitution
(Amendment) Bill voting has to be by division. Let the Lobbies be cleared.
Now, the Lobbies have been cleared.
May I request the Members not to leave the House before we complete the business?
Yesterday, when we were discussing and adopting the amendments to the clauses, there was
difference of opinion and two or three views were expressed. We have requested the honourable
Members to meet and sort out the differences. I hope the differences have been sorted out.
Shri Somnath Chatterjee (Bolpur): We have accepted it.
Mr Speaker: Now there is one more point. The agreement which was reached between the Members
must have been incorporated into an amendment to the clause which is to be moved. I would like to
caution the Minister to exactly let me know which is that and we will take that into consideration. The
House shall now take up further clause-by-clause consideration of the Constitution (Seventy-Second
Amendment) Bill, 1991. Sri Somnath Chatterjee has already moved his amendment No 2 yesterday. I
shall now call other Members one by one to move their amendments to clause No 2. Shri G Venkat
Swamy, are you moving your amendments?
Clause 2 – Insertion of new Part-IX – Amendments made
Page 1, in line 12, omit “revenue” (3)
Page 2, for lines 16 to 18, substitute – Gram Sabha.
“ 243A. A Gram Sabha may exercise such powers and perform such functions at the village level
as the Legislature of a State may, by law, provide” (4).
Page 2, for line 19 to 22, substitute,
“ Constitution 243B. of Panchayats.
(1) There shall be constituted in every State, Panchayats at the village, intermediate and district
levels in accordance with the provisions of this Part,
(2) Notwithstanding anything in clause (1), Panchayats in the intermediate level may not be
constituted in a State having a population not exceeding twenty lakhs.”(5)
Page 2, in line 40, after “intermediate level”
insert “or, in the case of a State not having panchayats at the intermediate level, in the Panchayats
at the district level.” (9)
Page 3, omit lines 18 to 44 (13)
Page 4, in line 7, for “shall be allotted”, substitute “may be allotted.” (14)
Page 4, in line 16, for “allotted by rotation”, substitute “such seats may be allotted by rotation.” (15)
Page 5, in line 8, after “Panchayat” add “for such period.”(16)
Page 7, for lines 1 to 5, substitute—
“243K. Elections.—(1) The superintendence, direction and control of the preparation of electoral
rolls for, and the conduct of all elections to the Panchayats shall be vested in a State Election
Commission consisting of a State Election Commissioner to be appointed by the Governor.
(2) Subject to the provisions of any law made by the Legislature of a State, the conditions of
service and tenure of office of the State Election Commissioner shall be such as the Government
may by rule determine.
Provided that the State Election Commissioner shall not be removed from his office except in like
manner and on the like grounds as a Judge of a High Court and the conditions of service of the
State Election Commissioner shall not be varied to his disadvantage after his appointment.
(3) The Governor of a State, shall, when so requested by the State Election Commission, make
available to the State Election Commission such staff as may be necessary for the discharge of
the functions conferred on the State Election Commission by clause (1)
(4) Subject to the provisions of this Constitution the Legislatures of a State, may, by law, make
provision with respect to all matters relating to, or in connection with elections to the
Panchayats.”(17)
Page 3, lines 13 and 14, substitute—
“(a) a Panchayat at the village level shall be elected in such manner as the Legislature of a State
may, by law, provide and” (32)
Page 6, line 9 – for “Seventy-second” substitute –”Seventy-third” (33)
Page 7, line 42 – for “Seventy-second” substitute – Seventy-third” (34)
Page 6, after line 24, insert—
“(b) the measures needed to improve the financial position of the Panchayats.”(35)
Page 6, line 25—
For “(b)” substitute “(c)” (36)
Page 7, - for lines 22 to 25, substitute—
“(b) the hill area in the State of Manipur for which District Councils exist under any law for the
time being in force.”
(3) Nothing in this Part—
“(a) relating to Panchayats at the district level shall apply to the hill areas of the District of
Darjeeling in the State of West Bengal for which Darjeeling Gorkha Hill Council exists under any
law for the time being in force.
(b) shall be construed to affect the functions and powers of the Darjeeling Gorkha Hill Council
constituted under such law.” (37)
Page 7, line 26 – for “(3)” substitute “(4)” (38) [Shri G. Venkat Swamy]
Mr Speaker: Somnathji, there are amendments No.18, 19 and 20 in your name.
Shri Somnath Chatterjee: They have surrendered. I am not moving.
Mr Speaker: Sudhir Giriji, not moving. Shri PG Narayanan.
Shri PG Narayanan (Gobichettipalayam): I beg to move:
Page 1, - “Omit lines 13 to 15.” (23)
Page 2, - “Omit lines 16 to 18.” (24)
Page 3, - line 15 – “Omit “or district level”. (25)
Page 5, - after line 39, insert –
“Provided that the Governor on the advice of the Council of Ministers in the State by a special
order, suspend the endowment of powers and responsibilities upon Panchayats in respect of any
matter in the Eleventh Schedule and such an order shall not be called in question in any Court.”
(26)
Mr Speaker: Shri Anil Basu, Shri Saifudden Choudhury, Shri Hardhan Roy are not moving. Shri
Somnath Chhatterjee is not moving amendments No.29 and 30. Okay, now the question is that
amendment No.2 moved by Shri Somnath Chatterjee be adopted.
Shri Somnath Chatterjee: If it has been technically moved already, I seek leave of the House to
withdraw my amendment.
Mr Speaker: Has the hon. member leave of the House to withdraw his amendment.
Several Honourable Members: Yes.
Amendment No.2 was, by Leave, Withdrawn.
Mr Speaker: I shall now put amendments No 23, 24, 25 and 26 moved by Shri PG Narayanan to the
vote of the House.
Amendments Nos. 23 to 26 were Put and Negatived.
Mr Speaker: Before I put clause 2, as amended, to the vote of the House, I would like to say that
this being a Constitution (Amendment) Bill, voting has to be by division.
The Lobbies have already been cleared.
The question is:
That clause 2, as amended, stand part of the Bill.”
The Lok Sabha Divided.
Mr Speaker: Subject to correction, the result of the division is: Ayes: 303, Noes: 1.
The motion is carried by a majority of the total membership of the House and by a majority of not
less than two thirds of the Members present and voting.
The Motion was adopted.
Clause 2, as amended, was added to the Bill.
The Minister of State in the Ministry of Rural Development [Department of Rural

Development] (Shri G Venkat Swamy): Sir, I beg to move:
Page 8,—
After line 18, insert—
Amendment of Article 280:—’2A. In clause (3) of article 280 of the Constitution, after sub-clause
(b), the following sub-clause shall be inserted, namely:—
“(bb) the measures needed to augment the Consolidated Fund of a State to supplement the
resources of the Panchayats in the States on the basis of the recommendations made by the
Finance Commission of State.” (39)
Mr Speaker: The question is:
Page 8, - after line 18, insert—
Amendment of Article 280:—’2A. In clause (3) of Article 280 of the Constitution, after sub-clause
(b), the following sub-clause shall be inserted, namely:—
“(bb) the measures needed to augment the Consolidated Fund of a State to supplement the
resources of the Panchayats in the States on the basis of the recommendations made by the
Finance Commission of State.” (39)
Mr Speaker: Before I put new clause 2A to the vote of the House, I would like to say that this being
a Constitution (Amendment) Bill, voting has to be by division.
Let the Lobbies be cleared –
“That new clause 2A be added to the Bill.”
The Lok Sabha divided.
Mr Speaker: Subject to correction, the result of the division is: Ayes: 316, Noes: Nil.
New Clause 2A was added to the Bill.
Clause 3 – Addition of Eleventh Schedule.
Amendment made:
Page 8, for line 24, substitute—
“2. Land improvement, implementation of land reforms, land consolidation and soil
conservation.” (40) [G. Venkata Swamy]
Mr Speaker: Before I put Clause 3, as amended, to the vote of the House, I would like to say that
Now, the Lobbies have already been cleared.
The question is:
“That Clause 3, as amended, stand part of Bill.”
Clause 1 – Short Title and Commencement.
Amendment made:
Page 1, line 3—
‘for “Seventy-second” substitute “Seventy-third” (31) [G.Venkat Swamy]

y y ( )[ y]
The question is:
“That the Enacting Formula and the Long Title stand part of the Bill.”
The Enacting Formula and the Long Title were added to the Bill.
Shri G Venkat Swamy: I beg to move:
“That the Bill, as amended, be passed.”
Mr Speaker: Before I put the motion that the Bill, as amended, be passed, to the vote of the House,
Let the Lobbies be cleared—
The question is:
Mr Speaker: The House will now take up clause-by-clause consideration of the Bill.
Clause 2 – Insertion of new part IX-A.
Amendment made:
Page 1, in line 14, omit “revenue” (1)
Page 2, in line 4, for “Government of a State”, substitute “Governor” (2)
Page 2, in line 8, for “Government of a State”, substitute “Governor” (3)
Page 2, in lines 24-25, for “Government of State”, substitute “Governor” (4)
Page 2, in line 28, for “it may”, substitute “he may” (5)
Page 4, after line 20, insert—
“Provided that a Municipality shall be given a reasonable opportunity of being heard before its
dissolution.
(a) No amendment of any law for the time being in force shall have the effect of causing
di l ti f M i i lit t l l hi h i f ti i i di t l b f h
dissolution of a Municipality at any level, which is functioning immediately before such
amendment, till the expiration of its duration specified in clause (1)” (6)
Page 4, in line 21 for “(2)”, substitute “(3)” (7)
Page 4, for lines 25 to 38, substitute,—
“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.”(8)
Page 6, for lines 38 to 46 substitute—
“243Z. 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 audit of
such accounts.” (14)
Page 7, for lines 1 to 3, substitute, -
“243ZA. 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 the 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.” (15)
Page 7, in lines 21-22, omit “if the Legislature of a State passes a resolution to that effect.” (16)
Page 2, - after line 22, insert—
“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.”(17)
Page 6, for line 1 to 6, substitute –
“243Y. 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–”(18)
Page 6, omit lines 21 to 23, (19)
Page 6, in line 24, for “(d)”, substitute- “(c)”. (20)
Page 6, omit lines 27 to 33 (21)
Page 6, in line 34, for “(4)”, substitute-”(2)” (22)
Page 9, line 24, - for “Seventy-fourth” (24)
Page 7, -
After line 17, insert –
“(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.”(25)
Page 7 line 18,—
“for “(2)” substitute “(3)” (26) [Shrimati Sheila Kaul]
Now, the Lobbies have already been cleared.
The question is:
…
Mr Speaker: … Now the Lobbies have been cleared. The question is: “That clause 3 stand part of the
Bill.” The Lok Sabha divided.
Clause 3 was added to the Bill.
Mr Speaker: … The question is: “That clause 4 stand part of the Bill.” The Lok Sabha divided.
Clause 4 was added to the Bill.
Page 1, line 3, -
For “Seventy-third” substitute “Seventy-fourth” (23)
Clause 1 – Short Title and commencement. Amendment made. (Shrimati Sheila Kaul)
Mr Speaker: Before I put clause 1 as amended to the vote of the House, I would like to say that this
being a constitution (Amendment) Bill, voting has to be by division.
The question is: “That clause 1, as amended, stand part of the Bill.” The Lok Sabha divided.
Shrimati Sheila Kaul: I beg to move:
Mr Speaker: Before I put the motion that the Bill, as amended, be passed, to the vote of the House,
Mr Speaker: The question is: “That the Bill, as amended, be passed.” The Lok Sabha divided.
The Bill, as amended, is passed by the requisite majority, in accordance with the provisions of Article
368 of the Constitution.
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Document: OVERVIEW
OVERVIEW
Samaraditya Pal
India’s Constitution –Origins and Evolution, 1st ed, Vol 8, Articles 227-267 Articles
243ZH to 243ZT
Articles 243ZH to 243ZT
OVERVIEW
Part IX-B of the Constitution, containing Articles 243ZH to 243ZT dealing with Co-operative
societies were introduced by the Constitution (Ninety-Seventh Amendment) Act, 2011. By the same
amendment, the right of citizens to form cooperative societies was recognized as one of the Rights to
Freedom under Article 19 of the Constitution, along with a new Article 43B in the Directive
Principles of State Policy enjoining the State to endeavour to promote voluntary formation,
autonomous functioning, democratic control and professional management of cooperative societies.
The adoption of right to form cooperative societies as a fundamental right and the detailed provisions
from Articles 243ZH to 243ZT dealing with cooperative societies was essentially an acknowledgment
of the 200-year old cooperative movement all around the world and also in India, as was explained
by the Minister for Agriculture, Mr Sharad Pawar during his speech, while introducing the said
Amendment Bill. Extracts from the Lok Sabha Debates on this Amendment have been set out in
Volume 2, in the Chapter on Article 19. 1
The Court, dealing with the issue of cooperative societies in Vipulbhai M Chaudhary v Gujarat Coop
Milk Mktg Federation Ltd 2 , inter alia, held that democratic principles have been recognised as one of
the cooperative principles, even though the constitutional affirmation of those principles came only in
2012 with the adoption of the Ninety-seventh Amendment to the Constitution. It was further held
that democratic accountability, mutual trust, fairness, impartiality, unity or agreement of feeling
among the delegates, cooperativeness, etc. are some of the cardinal dimensions of the cooperative
principles. Extracts from this judgment of the court have set been set out in this chapter.
1 See Vol 2, p 257.
2 (2015) 8 SCC 1 [LNIND 2015 SC 187]. See also Thalappalam Service Cooperative Bank Ltd v
State of Kerala, (2013) 16 SCC 82 [LNIND 2013 SC 918].
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Document: ARTICLES 243A TO 243-O
ARTICLES 243A TO 243-O
Samaraditya Pal
Article 243
ARTICLES 243A TO 243-O

243A. Gram Sabha.–A Gram Sabha may exercise such powers and perform such functions at the
village level as the Legislature of a State may, by law, provide.
243B. Constitution of Panchayats.–(1) There shall be constituted in every State, Panchayats at

the village, intermediate and district levels in accordance with the provisions of this Part.
(2) Notwithstanding anything in clause (1), Panchayats at the intermediate level may not be
constituted in a State having a population not exceeding twenty lakhs.
243C. Composition of Panchayats.–(1) Subject to the provisions of this Part, the Legislature of a
State may, by law, make provisions with respect to the composition of Panchayats:
Provided that the ratio between the population of the territorial area of a Panchayat at any level and
the number of seats in such Panchayat to be filled by election shall, so far as practicable, be the
same throughout the State.
(2) All the seats in a Panchayat shall be filled by persons chosen by direct election from territorial
constituencies in the Panchayat area and, for the purpose, each Panchayat area shall be divided into
territorial constituencies in such manner that the ratio between the population of each constituency
and the number of seats allotted to it shall, so far as practicable, be the same throughout the
Panchayat area.
(3) The Legislature of a State may, by law, provide for the representation–
(a) of the Chairpersons of the Panchayats at the village level, in the Panchayats at the intermediate
level or, in the case of a State not having Panchayats at the intermediate level, in the Panchayats
at the district level;
(b) of the Chairpersons of the Panchayats at the intermediate level, in the Panchayats at the district
level;
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(c) of 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 a Panchayat area at a level
other than the village level, in such Panchayat;
(d) of the members of the Council of States and the members of the Legislative Council of the State,
where they are registered as electors within–
(i) a Panchayat area at the intermediate level, in Panchayat at the intermediate level;
(ii) a Panchayat area at the district level, in Panchayat at the district level.
(4) The Chairperson of a Panchayat and other members of a Panchayat whether or not chosen by
direct election from territorial constituencies in the Panchayat area shall have the right to vote in the
meetings of the Panchayats.
(5) The Chairperson of–
(a) a Panchayat at the village level shall be elected in such manner as the Legislature of a State may,
by law, provide; and
(b) a Panchayat at the intermediate level or district level shall be elected by, and from amongst, the
elected members thereof.
243D. Reservation of seats.–(1) Seats shall be reserved for –
(a) the Scheduled Castes; and
(b) the Scheduled Tribes,
in every Panchayat 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 Panchayat as the
population of the Scheduled Castes in that Panchayat area or of the Scheduled Tribes in that
Panchayat area bears to the total population of that area and such seats may be allotted by rotation
to different constituencies in a Panchayat.
(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 Panchayat shall be reserved for women and such seats may be allotted by rotation
to different constituencies in a Panchayat.
(4) The offices of the Chairpersons in the Panchayats at the village or any other level 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:
Provided that the number of offices of Chairpersons reserved for the Scheduled Castes and the
Scheduled Tribes in the Panchayats at each level in any State shall bear, as nearly as may be, the
same proportion to the total number of such offices in the Panchayats at each level as the population
of the Scheduled Castes in the State or of the Scheduled Tribes in the State bears to the total
population of the State:
Provided further that not less than one-third of the total number of offices of Chairpersons in the
Panchayats at each level shall be reserved for women:
Provided also that the number of offices reserved under this clause shall be allotted by rotation to
different Panchayats at each level.
(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 Panchayat or offices of Chairpersons in the Panchayats at any level in
favour of backward class of citizens.
243E. Duration of Panchayats, etc–(1) Every Panchayat, 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.
(2) No amendment of any law for the time being in force shall have the effect of causing dissolution
of a Panchayat 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 Panchayat 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 Panchayat would have
continued is less than six months, it shall not be necessary to hold any election under this clause for
constituting the Panchayat for such period.
(4) A Panchayat constituted upon the dissolution of a Panchayat before the expiration of its duration
shall continue only for the remainder of the period for which the dissolved Panchayat would have
continued under clause (1) had it not been so dissolved.
243F. Disqualification for membership.–(1) A person shall be disqualified for being chosen as,
and for being, a member of a Panchayat–
(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 Panchayat 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.
243G. Powers, authority and responsibilities of Panchayats.–Subject to the provisions of this

Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and
authority as may be necessary to enable them to function as institutions of self-government and such
law may contain provisions for the devolution of powers and responsibilities upon Panchayats, at the
appropriate level, subject to such conditions as may be specified therein, with respect to–
(a) the preparation of plans for economic development and social justice;
(b) the implementation of scheme for economic development and social justice as may be entrusted
to them including those in relation to the matters listed in the Eleventh Schedule.
243H. Powers to impose taxes by, and Funds of, the Panchayats.–The Legislature of a State
may, by law,—
(a) authorize a Panchayat 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 Panchayat 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 Panchayats from 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 Panchayats and also for the withdrawal of such moneys therefrom,
as may be specified in the law.
243-I. Constitution of Finance Commission 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 4 , 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 principle 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 divided 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.
243J. Audit of accounts of Panchayats.–The Legislature of a State may, by law, make provisions
with respect to the maintenance of accounts by the Panchayats and the auditing of such accounts.
243K. Elections to the Panchayats.–(1) The superintendence, direction and control of the
preparation of electoral rolls for, and the conduct of, all elections to the Panchayats shall be vested in
a State Election Commission consisting of a State Election Commissioner to be appointed by the
Governor.
(2) Subject to the provisions of any law made by the Legislature of a State, the conditions of service
and tenure of office of the State Election Commissioner shall be such as the Governor may by rule
determine:
Provided that the State Election Commissioner shall not be removed from his office except in like
manner and on the like grounds as a Judge of a High Court and the conditions of service of the State
Election Commissioner shall not be varied to his disadvantage after his appointment.
(3) The Governor of a State shall, when so requested by the State Election Commission, make
available to the State Election Commission such staff as may be necessary for the discharge of the
functions conferred on the State Election Commission by clause (1).
(4) 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 Panchayats.
243L. 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.
243M. 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 apply to–
(a) the States of Nagaland, Meghalaya and Mizoram;
(b) the hill areas in the State of Manipur for which District Councils exist under any law for the time
being in force.
(3) Nothing in this Part–
(a) relating to Panchayats at the district level shall apply to the hill areas of the District of Darjeeling
in the State of West Bengal for which Darjeeling Gorkha Hill Council exists under any law for the
time being in force;
constituted under such law.
5 [(3A) Nothing in article 243D, relating to reservation of seats for the Scheduled Castes, shall apply
to the State of Arunachal Pradesh.]
(4) Notwithstanding anything in this Constitution–
(a) the Legislature of a State referred to in sub-clause (a) of clause (2) may, by law, extend this Part
to that State, except the areas, if any, referred to in clause (1), if the Legislative Assembly of
that State passes a resolution to that effect by a majority of the total membership of that House
and by a majority of not less than two-thirds of the members of that House present and voting;
(b) 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

purposes of article 368.
243N. Continuance of existing laws and Panchayats.–Notwithstanding anything in this Part, any
provision of any law relating to Panchayats in force in a State immediately before commencement of
the Constitution (Seventy-third Amendment) Act, 1992, 6 which is inconsistent with the provisions
of this Part, shall continue to be in force until amended or repealed by a competent Legislature or
other competent authority or until the expiration of one year from such commencement, whichever
is earlier:
Provided that all the Panchayats existing immediately before such commencement shall continue till
the expiration of their duration, unless sooner dissolved by a resolution passed to that effect by the
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.
243-O. 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 243K, shall not be called in
question in any court;
(b) no election to any Panchayat shall be called in question except by an election petition presented
to such authority and in such manner as is provided for by or under any law made by the
Legislature of a State.
4 24 April 1993.
5 Ins. by the Constitution (Eighty-third Amendment) Act, 2000, section 2 (w.e.f. 8-9-2000).
6 24 April 1993.
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Document: OVERVIEW
OVERVIEW
Samaraditya Pal
Article 243
OVERVIEW
Part IX of the Constitution prior to the Constitution (Seventh Amendment) Act, 1956 consisted of
one Article, namely, Article 243 which read as follows:
243. Administration of territories specified in Part D of the First Schedule and other territories
not specified in that Schedule.–(1) Any territory specified in Part D of the First Schedule and any
other territory comprised within the territory of India but not specified in that Schedule shall be
administered by the President acting, to such extent as he thinks fit, through a Chief
Commissioner or other authority to be appointed by him.
(2) The President may make regulations for the peace and good government of any such territory
and any regulation so made may repeal or amend any law made by Parliament or any existing
law which is for the time being applicable to such territory and, when promulgated by the
President, shall have the same force and effect as an Act of Parliament which applies to such
territory.
The Seventh Amendment omitted Pt IX.
Though the Seventh Amendment made such omission, the Constituent Assembly Debates relating to
original Pt IX has been included for the purpose of holistic reflection as well as historical interest and
research.
The omitted space was subsequently filled up by the Constitution (Seventy-third Amendment) Act,
1992 by inserting a new Pt IX as it stands today. This amendment gave constitutional status to
Panchayats.
The Constitution (Seventy-fourth Amendment) Act, 1992 inserted Pt IXA to confer constitutional
status to the Municipalities. There was another amendment, namely, the Constitution (Eighty-third
Amendment) Act, 2000 which inserted a new clause 3A (in Article 243M) which excluded the
applicability of Article 243D which related to reservation of seats for Scheduled Castes and
Scheduled Tribes in relation to the State of Arunachal Pradesh.
The Lok Sabha Debates on the 73rd and 74th Amendments have been included as exhaustively as
required with minimal amendments.
The debates on the 83rd Amendment have been omitted as the same is not of any holistic
significance but the Statement of Objects and Reasons of this amendment have been included.
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The Supreme Court has made several pronouncements on the interpretation of the Articles included
in Pts IX and IXA.
However, those which have been considered to be of foundational significance in expounding the
purpose behind the conferring of constitutional status to local self-governing institutions i.e. the
Panchayats and Municipalities, have been included.
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Document: SUPREME COURT
SUPREME COURT
Samaraditya Pal
Article 243
SUPREME COURT
True perspective and impact of the 73rd Amendment to the

Constitution
• The Seventy-third Amendment of the Constitution has given Panchayati Raj institutions a
constitutional status as a result of which it has become permanent in the Indian political
system as a third Government.
• The Seventy-third Amendment is a very powerful “tool of social engineering”.
• The main purpose behind the 73rd Amendment is to ensure democratic decentralisation
following Gandhian principle of participatory democracy.
• The Amendment was introduced for strengthening the preambular vision of democratic
republicanism which is inherent in India’s constitutional framework.
• The Panchayati Raj institutions structured under the Amendment are meant to initiate
changes so that rural feudal oligarchies lose their ascendancy in village affairs.
• If a no-confidence motion is passed against the Chairperson of a panchayat, he/she
ceases to be a Chairperson, but continues to be a member of the panchayat which
continues with a newly-elected Chairperson.
• Any statutory provision to demonstrate that the Chairperson has lost the confidence of
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Any statutory provision to demonstrate that the Chairperson has lost the confidence of
the majority is conducive to public interest by strengthening such bodies of self-
governance, and cannot be considered as unreasonable or ultra vires Pt IX of the
Constitution.
• Constitutional validity of UP Panchayat Laws (Amendment) Act, 2007 upheld.
Bhanumati v State of UP through its Principal Secretary, (2010) 12 SCC 1 [LNIND 2010 SC
433]: AIR 2010 SC 3796 [LNIND 2010 SC 432].
[2 Judge Bench]
[AK Ganguly, J]
These appeals have been filed assailing the judgment dated 6 February2009 by the Lucknow Bench
of the Allahabad High Court whereby the High Court upheld the constitutional validity of the UP
Panchayat Laws (Amendment) Ordinance, 2007 (UP Ordinance 26 of 2007) which later on became
the UP Panchayat Laws (Amendment) Act, 2007 (UP Act 44 of 2007). As the validity of the said
amendment was in issue in all the appeals, they were heard together and are decided by this
judgment.
In the course of argument before this Court factual controversies were not very much raised. The
appeals were mostly argued on the legality of the amendment from various angles which will be
considered hereinbelow.
The administration of Kshettra Samitis and Zila Parishads in Uttar Pradesh (hereinafter UP) is
governed by the Uttar Pradesh Kshettra Panchayats and Zila Panchayats Adhiniyam, 1961
(hereinafter “the 1961 Act”). Prior to that there was the United Provinces Panchayat Raj Act, 1947.
The 1961 Act suffered several amendments in 1965, 1976, 1990, 1994, 1998 and 2007 by UP Act 16
of 1965, UP Act 37 of 1976, UP Act 20 of 1990, UP Act 9 of 1994 and UP Act 44 of 2007 respectively.
The 1994 amendment by UP Act 9 of 1994 was in respect of both the 1947 and 1961 Acts. That
amendment was made in keeping with the objectives incorporated in the Constitution (Seventy-
third Amendment) Act, 1992.
Several aspects of the Amendment Act were challenged. …
The exact provisions of the aforesaid amendments by the impugned Amendment Act are as follows:
“13. Amendment of Section 15.—In Section 15 of the principal Act,—
(a) in sub-s (11) for the words ‘not less than two-thirds’ the words ‘more than half’ shall be
substituted.
(b) In sub-s (12) and sub-section (13) for the words ‘two years’ the words ‘one year’ shall be
substituted.
***
16. Amendment of s 28.—In s 28 of the principal Act,—
(a) in sub-s (11) for the words ‘not less than two-thirds’ the words ‘more than half’ shall be
substituted.
(b) in sub-s (12) and sub-section (13) for the words ‘two years’ the words ‘one year’ shall be
substituted.”
In order to appreciate these submissions this Court may examine the genesis of the constitutional
provisions about Panchayat prior to the Seventy-third Amendment of the Constitution.
provisions about Panchayat prior to the Seventy third Amendment of the Constitution.
Prior to the Constitution (Seventy-third Amendment) Act, 1992, the constitutional provisions
relating to Panchayat were confined to Article 40. Article 40, one of our Directive Principles, runs
as under:
“40. Organisation of Village Panchayats—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 Constitution’s quest for an inclusive governance voiced in the Preamble is not consistent with
Panchayat being treated merely as a unit of self-government and only as part of Directive Principle. If
the relevant Constituent Assembly Debates are perused one finds that even that constitutional
provision about Panchayat was inducted after strenuous efforts by some of the members. From the
debates we do not fail to discern a substantial difference of opinion between one set of members
who wanted to finalize the Constitution solely on the parliamentary model by totally ignoring the
importance of panchayat principles and another group of members who wanted to mould our
Constitution on Gandhian principles of Village Panchayat.
The word “Panchayat” did not even once appear in the Draft Constitution. Granville Austin in his
treatise Indian Constitution: Cornerstone of a Nation (Oxford) noted that the Drafting Committee
did not even discuss in its meetings the alternative principles of Gandhian view of panchayat. The
Draft Constitution was published on 26 February1948. (See p 34 in Austin.)
One of the strongest critics of the Draft Constitution was Dr Rajendra Prasad and he opined that
“the village has been and will even continue to be our unit in this country”. Subsequently, other
members like MA Ayangar and NG Ranga also suggested some amendments to the Draft
Constitution and both harped on the introduction of Panchayati Raj principles. Their arguments
quoted by Granville Austin, were on the following lines:
“The State shall establish self-governing Panchayats for every village or a group of villages with
adequate powers and funds to give training to rural people in democracy and to pave the way for
effective decentralization of political and economic power.” (P 36)
Mr Ayangar expressed his views very strongly by saying “democracy is not worth anything, if once in
a blue moon individuals are brought together for one common purpose, merely electing X, Y and Z to
the Assembly and then disperse”. Somewhat similar opinion was expressed by SC Mazumdar and his
views were, “the main sources of its (India’s) strength lie in ‘revitalized’ villages but he accepted
that for real purpose a strong unifying central authority is a necessity”. The opinion expressed by SC
Mazumdar thus struck a balance between Gandhian principles and the parliamentary model of the
Constitution.
However, under the strong pressure of criticism from various members, the Assembly rather
grudgingly accepted that an article concerning the panchayat should be included in the directive
principles. On 22 November 1948, K Santhanam moved the official amendment and that is how
Article 40, in its present form, came into existence. The amendment was accepted by Dr Ambedkar.
About this article, Granville Austin commented:
“The incorporation of Art 40 in the Constitution has proved to have been less a gesture to
romantic sentiment than a bow to realistic insight. And the aim of the article has long been
generally accepted: if India is to progress, it must do so through reawakened village life.” (P 38
supra)
Participating in the debates and supporting the amendments, some of the members made comments
which are still very pertinent in appreciating the roots of our democratic policy on which is based the
edifice of our constitutional democracy: (CAD Vol. VII, p. 523)
“Sir, in my opinion the meaning of this Constitution would have been nothing so far as crores
and crores of Indian people are concerned unless there was some provision like this in our
Constitution. There is another point also viz. for thousands and thousands of years the meaning
of our life in India as it has been expressed in various activities, was this that complete freedom
for every individual was granted. It was accepted that every individual had got full and
unfettered freedom; but as to what the individual should do with that freedom there was some
direction. Individuals had freedom only to work for unity. With that freedom they are to search
for unity of our people. There was no freedom to an individual if he works for disruption of our
unity. The same principle was also accepted in our Indian Constitution from time immemorial.
Every village like the organic cells of our body was given full freedom to express itself but at the
same time with that freedom they were to work only to maintain and preserve the unity of India.
Sir, our village people are so much familiar with this system that if today there is in our
Constitution no provision like this they would not have considered this as their own
Constitution or as something known to them, as something which they could call their own
country’s Constitution. Therefore, Sir, I am glad and I congratulate both my friend the
Honourable Mr Santhanam and the Honourable Dr Ambedkar on moving this amendment as well
as for acceptance of the same. Sir, I commend this.”
(Shri Surendra Mohan Ghose: West Bengal: General)

( g )
The opinion of Seth Govind Das from the Central Provinces and Berar is equally relevant: (CAD Vol.
VII, pp. 523-24)
“Ours is an ancient, a very ancient country and the village has had always an important position
here. This has not been so with every ancient country. In Greece, for instance, towns had greater
importance than villages. The Republics of Athens and Sparta occupy a very important place in
the world history today. But no importance was attached by them to the villages. But in our
country the village occupied such an important position that even in the legends contained in
most ancient books—the Upanishads—if there are descriptions of the forest retreats, of the
sages, there are also descriptions of villages. Even in Kautilya’s Arthashastra there are to be
found references to our ancient villages. Modern historians have also admitted this fact. We find
the description of our ancient village organisation, in Ancient Law by Mr Henry Man, Indian
Village Community by Mr Baden Powell and in Fundamental Unity of India by Shri BC Pal. I would
request the members of this House to go through these books. They will come to know from
these books the great importance the villages have had in India since the remotest times. Even
during the Muslim rule villages were considered of primary importance. It was during the British
regime that the villages fell into neglect and lost their importance. There was a reason for this.
The British Raj in India was based on the support of a handful of people. During the British
regime provinces, districts, tehsils and such other units were formed and so were formed the
talukdaris, zamindaris and malguzaris. The British rule lasted here for so many years only on
account of the support of these few people.
Just as Mahatma Gandhi brought about a revolution in every other aspect of this country’s life,
so also he brought about a revolution in the village life. He started living in a village. He caused
even the annual Congress sessions to be held in villages. Now that we are about to accept this
motion I would like to recall to the memory of the members of this House a speech that he had
delivered here in Delhi, to the Asiatic Conference. He had then advised the delegates of the
various nations to go to Indian villages if they wanted to have a glimpse of the real India. He had
told them that they would not get a picture of real India from the towns. Even today 80 per cent
of our population lives in villages and it would be a great pity if we make no mention of our
villages in the Constitution.”
In other representative democracies of the world committed to a written Constitution and rule of
law, the principles of self-government are also part of the constitutional doctrine. It has been
accepted in the American Constitution that the right to local self-government is treated as inherent
in cities and towns. Such rights cannot be taken away even by the legislature. The following excerpts
from American Jurisprudence are very instructive:
“Stated differently, it has been laid down as a binding principle of law in these jurisdictions that a
statute which attempts to take away from a municipal corporation its power of self-government,
except as to matters which are of concern to the State as a whole, is in excess of the power of
the legislature and is consequently void. Under this theory, the principle of home rule, or the
right of self-government as to local affairs, is deemed to have existed before the Constitution.”
(Vol 56, American Jurisprudence, Article 125)
Under the Seventy-third Amendment of the Constitution, panchayat became an “institution of self-
governance” which was previously a mere unit, under Article 40. The Seventy-third Amendment
heralded a new era but it took nearly more than four decades for our Parliament to pass this epoch-
making Seventy-third Constitution Amendment—a turning point in the history of local self-
governance with sweeping consequences in view of decentralisation, grass-root democracy, people’s
participation, gender equality and social justice.
Decentralisation is perceived as a precondition for preservation of the basic values of a free society.
Republicanism which is the ‘sine qua non’ of this amendment is compatible both with democratic
socialism and radical liberalism. Republicanism presupposes that laws should be made by active
citizens working in concert. Price of freedom is not merely eternal vigilance but perpetual and
creative citizen’s activity.
This Seventy-third Amendment is a very powerful ‘tool of social engineering’ and has unleashed
tremendous potential of social transformation to bring about a sea change in the age-old, oppressive,
anti-human and status quoist traditions of Indian society. It may be true that this amendment will
not see a quantum jump but it will certainly initiate a thaw and pioneer a major change, may be in a
painfully slow process.
In order to understand the purport of the Seventy-third Constitutional Amendment in Part IX of the
Constitution, it is important to keep in view the Statements of Objects and Reasons behind the
amendment. Excerpts from the same are set out:
“THE CONSTITUTION (SEVENTY-THIRD AMENDMENT) ACT, 1992
Statement of Objects and Reasons appended to the Constitution (Seventy-second Amendment)

Bill, 1991 which was enacted as the Constitution (Seventy-third Amendment) Act, 1992
Though the Panchayati Raj institutions have been in existence for a long time, it has been
oug t e a c ayat aj st tut o s a e bee e ste ce o a o g t e, t as bee
observed that these institutions have not been able to acquire the status and dignity of viable
and responsive people’s bodies due to a number of reasons including absence of regular
elections, prolonged supersessions, insufficient representation of weaker sections like Scheduled
Castes, Scheduled Tribes and women, inadequate devolution of powers and lack of financial
resources.
2. Art 40 of the Constitution which enshrines one of the directive principles of State Policy lays
down that 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. In the light of the experience in the last forty years and in view of the shortcomings
which have been observed, it is considered that there is an imperative need to enshrine in the
Constitution certain basic and essential features of Panchayati Raj institutions to impart
certainty, continuity and strength to them.”
What was in a nebulous state as one of the directive principles under Article 40, through the
Seventy-third Constitutional Amendment metamorphosed to a distinct part of constitutional
dispensation with detailed provision for functioning of panchayat. The main purpose behind this is to
ensure democratic decentralisation on the Gandhian principle of participatory democracy so that the
panchayat may become viable and responsive people’s bodies as an institution of governance and
thus it may acquire the necessary status and function with dignity by inspiring respect of common
man. In our judgment, this Seventy-third Amendment of the Constitution was introduced for
strengthening the Preambular vision of democratic republicanism which is inherent in the
constitutional framework.
On a close perusal of the Seventy-third Constitutional Amendment, one would be tempted to say
that the vision of Surendra Nath Banerjee, expressed almost a century ago, about our local self-
government has been revived. From the proceeding of the Council of Governor General of India (April
1913 to March 1914) we find, Surendra Nath articulated:
“… the village is the fundamental, the indestructible unit of the Indian social system, which has
survived the overthrow of dynasties and the fall of empires. Sir, our village organisations carry
the mind back to the dawn of human civilisation and the early beginning of local self-
government. They are dead now, but the instinct is there, deep down in the national
consciousness, and under the fostering care of a wise and beneficent Government, such as we
now have, it may be revivified into a living flame. Our system of local self-government has been
built up from the top. That, perhaps, was inevitable under the circumstances. But the time has
now come when it should be strengthened from below and the foundations laid well and deep….”
Unfortunately that time came very late and as late as in 1993 when the Seventy-third Amendment of
the Constitution was brought about.
India has been and continues to be a predominantly rural country. There are 5 lakh 78 thousand 430
villages in which 74% of her people, which is about 750 million, live. Out of this village population
48% live below poverty line. Though our Constitution professes to be a democratic republic but our
rural set-up is largely feudal. The agrarian relationship of the majority of the people is very weak and
helpless compared with few landholding families which control economic interest of larger sections of
village society. Unfortunately, our independence has not been able to change our political priorities
and dynastic democratic pattern is the order of the day.
The vast majority of the rural masses still have to obey decisions taken by few people living in
metropolitan centres representing an alien culture and ethos.
Here it may not be out of context to remember what was said by Bhagat Singh and Batukeshwar
Dutta on 6-6-1929 in their joint statement in connection with the criminal trial they faced in Crown v
Bhagat Singh. In Paras 7 and 8 of their joint statement, the great martyr Bhagat Singh said:
“7. I, Bhagat Singh was asked in the lower court as to what we meant by the word ‘revolution’.
In answer to that question, I would say that revolution does not necessarily involve a sanguinary
strife, nor is there any place in it for individual vendetta. It is not the cult of the bomb and the
pistol. By revolution we mean that the present order of things which is based on manifest
injustice must change.
The producers or the labourers, in spite of being the most necessary element of society are
robbed by their exploiters of the fruits of their labour and deprived of their elementary right. On
the one hand the peasant who grows corn for all starves with his family, the weaver who
supplies world markets with textile fabrics cannot find enough to cover his own and his children’s
bodies; the masons, the smith and the carpenters who rear magnificent palaces live and perish in
slums; and on the other the capitalist exploiters, the parasites of society squander millions on
their whims. These terrible inequalities and forced disparity of chances are heading towards
chaos.
This state of affairs cannot last; and it is obvious that the present order of society is merry-
making on the brink of a volcano and the innocent children of the exploiters no less than millions
of the exploited are walking on the edge of a dangerous precipice. The whole edifice of this
civilisation, if not saved in time, shall crumble.
c sat o , ot sa ed t e, s a c u b e
A radical change, therefore, is necessary; and it is the duty of those who realise this to
reorganise the society on the socialistic basis. Unless this is done and the exploitation of man by
man and of nations by nations, which goes masquerading as imperialism, is brought to an end,
the sufferings and carnage with which humanity is threatened today cannot be prevented and all
talks of ending wars and ushering in an era of universal peace is undisguised hypocrisy. By
revolution we mean the ultimate establishment of an order of society which may not be
threatened by such a breakdown; and in which the sovereignty of the proletariat should be
recognised; and as a result of which a world federation should redeem humanity from the
bondage of capitalism and the misery of imperial wars.
8. … Revolution is the inalienable right of mankind. Freedom is the imprescriptible birth right of
all. The labourer is the real sustainers of society. The sovereignty of the people is the ultimate
destiny of the workers. For these ideals, and for these faith, we shall welcome any suffering to
which we may be condemned. To the altar of this revolution we have brought our youth as
incense; for no sacrifice is too great for so magnificent a cause. We are content; we await the
advent of the revolution, ‘Long live the revolution’.”
The ideas of Bhagat Singh, even if not wholly, but substantially have been incorporated in the
Preambular vision of our Constitution. But the dream for which he sacrificed his life has not been
fulfilled and the relevance of what he said can hardly be ignored. The ground realities, if at all,
changed only marginally. Let these momentous words of a convict in British India form part of the
judicial record in the last Court of our democratic republic, the largest democracy in the world.
The Seventy-third Amendment of the Constitution, this Court thinks, is a forward step to bring
about the radical changes in our social structure which inspired the struggle of Bhagat Singh, the
great martyr. When faced with a challenge to interpret such laws, courts have to discharge a duty.
The Judge cannot act like a phonographic recorder but he must act as an interpreter of the social
context articulated in the legal text. The Judge must be, in the words of Krishna Iyer, J “animated by
a goal-oriented approach” because the judiciary is not a “mere umpire, as some assume, but an
active catalyst in the constitutional scheme”. (See Authorised Officer v S Naganatha Ayyar, [(1979) 3
SCC 466 [LNIND 1979 SC 268]].)
The Panchayati Raj institutions structured under the said amendment are meant to initiate changes
so that the rural feudal oligarchy lose their ascendancy in village affairs and the voiceless masses,
who have been rather amorphous, may realise their growing strength. Unfortunately, effect of
these changes by way of constitutional amendment has not been fully realised in the semi-
feudal set-up of Indian politics in which still voice of reason is drowned in an uneven
conflict with the mythology of individual infallibility and omniscience. Despite high ideals
of constitutional philosophy, rationality in our polity is still subordinated to political
exhibitionism, intellectual timidity and petty manipulation. The Seventy-third Amendment
of the Constitution is addressed to remedy these evils.
The changes introduced by the Seventy-third Amendment of the Constitution have given Panchayati
Raj institutions a constitutional status as a result of which it has become permanent in the Indian
political system as a third Government.
… Article 243-C provides for composition of panchayat which contemplated the post of Chairperson.
Article 243-D provides for reservation of seats and Article 243-E provides for duration of
panchayat. Article 243-F enumerates the grounds of disqualification of membership of the
panchayat and Article 243-G prescribes the powers, authority and responsibilities of panchayat.
There are several other provisions relating to powers of the panchayat to impose taxes and for
constitution of Finance Commission in order to review financial position of the panchayat. The
accounts of the panchayat are also to be audited as per constitutional mandate under Article 243-J.
There are detailed provisions for elections of panchayat under Article 243-K. Article 243-O
imposes the bar to interference by courts in electoral matters of the panchayat.
In this connection particular reference may be made to the provision of Article 243-G of the
Constitution which is set out below:
“243-G. Powers, authority and responsibilities of panchayat.—Subject to the provisions of the

Constitution, the legislature of a State may, by law, endow the panchayats with such powers
and authority and may be necessary to enable them to function as institutions of self-
government and such law may contain provisions for the devolution of powers and
responsibilities upon panchayats at the appropriate level, subject to such conditions as may be
specified therein, with respect to—
(b) 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.”
The said article is to be read in conjunction with the Eleventh Schedule of the Constitution which
came with the said Seventy-third Amendment.
To alter the planning process of the country a statutory planning body like the District Planning
Committee has been created. To ensure regular election to these bodies the Election Commission has
been created. In order to ensure people’s participation Gram Sabha, a body at the grass-root level,
has been constitutionally planned. A perusal of the constitutional provision in the Seventy-third
Amendment would show that the success of the system does not depend merely on the power
which has been conferred but on the responsibility which has been bestowed on the
people.
Under the constitutional scheme introduced by the Seventy-third Amendment, Government of the
State is no longer a service provider but is a felicitator for the people to initiate development on the
basis of equity and social justice and for the success of the system people have to be sensitised
about their role and responsibility in the system.
Thus, the composition of the panchayat, its function, its election and various other aspects of its
administration are now provided in great detail under the Constitution with provisions enabling the
State Legislature to enact laws to implement the constitutional mandate. Thus, formation of
panchayat and its functioning is now a vital part of the constitutional scheme under Part IX of the
Constitution. Obviously, such a system can only thrive on the confidence of the people, on those
who comprise the system.
In the background of these provisions, learned counsel for the appellants argued that the provision of
no-confidence, being not in Part IX of the Constitution is contrary to the constitutional scheme of
things and would run contrary to the avowed purpose of the constitutional amendment which is
meant to lend stability and dignity to Panchayati Raj institutions. It was further argued that reducing
the period from “two years” to “one year” before a no-confidence motion can be brought, further
unsettles the running of the panchayat. It was further urged that under the impugned amendment
that such a no-confidence motion can be carried on the basis of a simple majority instead of two-
thirds majority dilutes the concept of stability.
This Court is not at all persuaded to accept this argument on various grounds discussed below. A
Constitution is not to give all details of the provisions contemplated under the scheme of
amendment. In the said amendment, under various articles, like Articles 243-A, 243-C(1), (5),
243-D(4), 243-D(6), 243-F(1), (6), 243-G, 243-H, 243-I(2), 243-J, 243-K(2), (4) of the
Constitution, the legislature of the State has been empowered to make law to implement the
constitutional provisions.
Particularly Article 243-C(5), which provides for election of Chairperson, specially provides:
“243-C. Composition of panchayats.—***
(5) The Chairperson of—
(a) a panchayat at the village level shall be elected in such manner as the legislature of a State
may, by law, provide, and
(b) a panchayat at the intermediate level or district level, shall be elected by, and from amongst,
the elected members thereof.”
Therefore, the argument that the provision of no-confidence motion against the Chairman, being not
in the Constitution, cannot be provided in the statute, is wholly unacceptable when the
Constitution specifically enables the State Legislature to provide the details of election of the
Chairperson.
It may be mentioned that the statutory provision of no-confidence motion against the Chairperson is
a pre-constitutional provision and was there in section 15 of the 1961 Act. In this context, Article
243-N of the Constitution in Part IX is relevant and set out below:
“243-N. Continuance of existing laws and panchayats.—Notwithstanding anything in this Part,

any provision of any law relating to panchayats in force in a State immediately before the
commencement of the Constitution (Seventy-second 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 panchayats existing immediately before such commencement shall continue
till the expiration of their duration, unless sooner dissolved by a resolution passed to that effect
by the Legislative Assembly of that State or in the case of a State having a Legislative Council
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.”
It is clear that the provision for no-confidence motion against the Chairperson was never repealed by
any competent legislature as being inconsistent with any of the provisions of Part IX. On the other
hand by subsequent statutory provisions the said provision of no-confidence has been confirmed with
some ancillary changes but the essence of the no-confidence provision was continued. This Court is
clearly of the opinion that the provision of no-confidence is not inconsistent with Part IX of the
Constitution.
The provision of Article 243-N of the Constitution makes it clear that if the panchayat laws in force
in a State prior to constitutional amendment, contain provisions which are inconsistent with Part IX,
two consequences will follow:
(1) Those provisions will continue until amended or repealed by competent legislature or authority,
and
(2) Those provisions will continue until one year from commencement of the Constitution
amendment, if not repealed earlier.
Immediately after the Constitution amendment by way of Part IX, came the Uttar Pradesh
Panchayat Laws (Amendment) Act, 1994. This was enacted on 22 April 1994 to give effect to the
provisions of Part IX of the Constitution. But the pre-existing provision of no-confidence was not
repealed. Rather it was confirmed with minor changes in subsequent Amendment Acts of 1998 being
UP Act 20 of 1998 and which was further amended in the impugned Amendment Act of 2007 being
UP Act 44 of 2007.
As noted above, the provision of no-confidence was a pre-Seventy-third Amendment statutory

provision and that was continued even after the Seventy-third Amendment in keeping with mandate
of Article 243-N. This continuance of the no-confidence provision, as noted above was not
challenged by the appellants. This aspect has been noted by the High Court in the impugned
judgment. The High Court noted:
“The original Act of 1961 provides a block period of 12 months for initiation of no-confidence
motion in reference to kshettra samiti/panchayat, which was amended in the year 1965 by U.P.
Act 16 of 1965 and the block period was enhanced to ‘two years’ from ‘12 months’. Again in the
year 1990 the block period was reduced as the words ‘two years’ were substituted by words ‘one
year’ by UP Act 20 of 1990. In the year 1998 UP Act 20 of 1998 again amended s 15 and the
block period was again enhanced to ‘two years’. In the year 2007 again by UP Act 44 of 2007 the
term ‘two years’ was substituted by ‘one year’ by virtue of which the block period of ‘two years’
was reduced to ‘one year’.”
The amended provision for the required majority for no-confidence motion also has been noted in the
impugned judgment of the High Court:
The argument that as a result of the impugned amendment stability and dignity of the Panchayati Raj
institutions has been undermined, is also not well founded. As a result of no-confidence motion the
Chairperson of a panchayat loses his position as a Chairperson but he remains a member, and the
continuance of panchayat as an institution is not affected in the least.
It has already been pointed out that the object and the reasons of Part IX are to lend status and
dignity to Panchayati Raj institutions and to impart certainty, continuity and strength to them. The
learned counsel for the appellant unfortunately, in his argument, missed the distinction between an
individual and an institution. If a no-confidence motion is passed against the Chairperson of a
panchayat, he/she ceases to be a Chairperson, but continues to be a member of the panchayat and
the panchayat continues with a newly-elected Chairperson. Therefore, there is no institutional
setback or impediment to the continuity or stability of the Panchayati Raj institutions.
These institutions must run on democratic principles. In democracy all persons heading public bodies
can continue provided they enjoy the confidence of the persons who comprise such bodies. This is
the essence of democratic republicanism. This explains why this provision of no-confidence motion
was there in the Act of 1961 even prior to the Seventy-third Constitution Amendment and has been
continued even thereafter. Similar provisions are there in different States in India.
Such a provision is wholly compatible and consistent with the rejuvenated panchayat contemplated in
Part IX of the Constitution and is not at all inconsistent with the same
Part IX of the Constitution and is not at all inconsistent with the same.
Democracy demands accountability and transparency in the activities of the Chairperson especially in
view of the important functions entrusted with the Chairperson in the running of Panchayati Raj
institutions. Such duties can be discharged by the Chairperson only if he/she enjoys the continuous
confidence of the majority members in the panchayat. So any statutory provision to
demonstrate that the Chairperson has lost the confidence of the majority is conducive to
public interest and adds strength to such bodies of self-governance. Such a statutory
provision cannot be called either unreasonable or ultra vires Part IX of the Constitution.
Any head of a democratic institution must be prepared to face the test of confidence. Neither the
democratically elected Prime Minister of the country nor the Chief Minister of a State is immune from
such a test of confidence under the Rules of Procedure framed under Articles 118 and 208 of the
Constitution. Both the Prime Minister of India and Chief Ministers of several States heading the
Council of Ministers at the Centre and in several States respectively have to adhere to the principles
of collective responsibilities to their respective houses in accordance with Articles 75(3) and 164(2)
of the Constitution.
The learned counsel for the appellant therefore compared the position of the Chairperson of a
panchayat with that of the President of India and argued that both are elected for five years and the
President’s continuance in office is not subject to any vote of no-confidence. The post of Chairperson
should have the same immunity.
This is an argument of desperation and has been advanced, with respect, without any regard to the
vast difference in constitutional status and position between the two posts. The two posts are not
comparable at all by any standards. Even the President of India is subject to impeachment
proceedings under Article 61 of the Constitution. No one is an “imperium in imperio” in our
constitutional setup.
In this matter various judgments have been cited by the learned counsel for the appellant. Of those
judgments only the judgment in Mohan Lal Tripathi v District Magistrate, Rai Bareilly, [(1992) 4 SCC
80 [LNIND 1992 SC 420]] is on the question of the no-confidence motion against the President of the
municipality elected directly by the electorate. No-confidence motion was passed by the Board
against the said President and not by the electorate. That was challenged. This Court repelled the
challenge and upheld the no-confidence motion holding that the recall by the Board amounts to recall
by the electorate itself.
Upholding the aforesaid provision of no-confidence which is virtually a power of recall, this Court in
Mohan Lal Tripathi, [(1992) 4 SCC 80 [LNIND 1992 SC 420]] held that the recall of the elected
representative, so long it is in accordance with law, cannot be assailed on abstract laws of
democracy. (SCC p 86, para 2 of the Report)
For the reasons aforesaid this Court upholds the constitutional validity of the U.P. Panchayat Laws
(Amendment) Act, 2007 (UP Act 44 of 2007) and the appeals are dismissed. …
Concept of “village” as defined in Article 243(g)
• There cannot be any immutable social, political, economic or organisational concept of
village as a self-governing unit in the context of a developing country.
• To bring in any particular concept of “village” and to read into Article 243(g) any
preconceived notion of village is unwarranted by law.
• Size-limits per se cannot precisely distinguish villages from other types of communities.
• The said definition in Article 243(g) begs the question as to what is a village which the
Governor can specify for the purposes of constituting the “village panchayat”.
• Governor can specify the revenue villages as villages and, in addition also specify those
villages which are not so recorded in the revenue records as villages, for the purpose of
constituting village panchayats and thus avail of a documented ready-made concept of
village while acting under Article 243(g).
St t f UP P dh S h K h tt S iti 1995 S (2) SCC 305 AIR 1995 SC 1512

State of UP v Pradhan Sangh Kshettra Samiti, 1995 Supp (2) SCC 305, AIR 1995 SC 1512
[LNIND 1995 SC 417]. [2 Judge Bench]
[PB Sawant, J]
The Constitution (Seventy-third Amendment) Act, 1992 came into force on 24 April 1993 to give
effect to one of the Directive Principles of State Policy, viz., Article 40 of the Constitution of India
which directs the State to organise village panchayats as units of self-government.
On coming into force of the said Constitutional Amendment, the States were required by the Centre
to take steps to organise village panchayats on the lines of the provisions of the said Constitutional
Amendment by making law or amending the existing law suitably. The Uttar Pradesh State
Legislature amended its Panchayat Raj Act, 1947 (hereinafter referred to as the ‘Act’) by enacting the
U.P. Panchayat Raj (Amendment) Act, 1994 which came into force on 22-4-1994. As per the
provisions of the Act, several Government instructions and notifications were issued and rules were
framed between 22-4-1994 and 31-8-1994 with a view to hold elections to the panchayats. In
particular the declaration of the gram panchayat areas under section 11-F and the establishment of
the gram sabhas under section 3 were made between 2-8-1994 and 5-8-1994. The term of the gram
panchayats constituted under the unamended provisions of the Act was to expire on 23-4-1993. The
Governor extended their term till 23-4-1995 or till new panchayats were constituted, whichever was
earlier. The elections to the new panchayats were then notified on 31-8-1994. In pursuance of this
notification the election process was to commence on 29-9-1994.
The respondents approached the High Court by writ petitions between 1-9-1994 and 9-9-1994
making a grievance that the government orders were being violated in the process of reorganisation
and delimitation of the constituencies. A few of the respondent-writ petitioners also challenged the
said Constitutional Amendment as well as the vires of the Act.
***
The High Court by its impugned judgment delivered on 2-12-1994 has held, among other things, that
the definitions of ‘village’ under section 2(t), of “gram sabha” under section 2(g) and of “panchayat
area” under section 2(ll) read with section 11-F of the Act were ultra vires the respective definitions
given in Articles 243(g), 243(b), and 243(e) read with Article 243-C of the Constitution. The
High Court has further held: (i) that the village has to be a habitat according to the anthropological
concept, (ii) that the village for the purposes of the panchayat can be specified only in accordance
with the wishes of the inhabitants of the village as conveyed to the Governor who is obliged to notify
it without involvement of the State Government, (iii) that the Governor has to act independently of
the State Government in the matter of specification of the ‘village’ and (iv) further the village will
have to be fixed according to the aspirations, chauvinism and the wishes of the villagers.
It will appear from the impugned judgment that its main thrust is against the definition of ‘village’ in
section 2(t) of the Act. The other findings are directed more against the procedure laid down in the
Act to take the various steps for constituting the panchayats than against the substantial provisions.
Before we deal with the findings of the High Court, we may usefully refer to the relevant provisions of
the Constitution and the Act.
The provisions of Article 40, to give effect to which the 73rd Constitutional Amendment was effected
read as follows:
“40. Organisation of village panchayats.— The States 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 aforesaid provisions neither define ‘village’ nor give guidelines for organising village panchayats.
All that they require is that the village panchayats, howsoever organised, have to be equipped with
such powers and authority as may be necessary to enable them to function as units of self-
government. There is, however, no doubt that when the article speaks of village panchayats as units
of self-government, it has in view the organisation of the lowest level units of self-governance in the
hierarchy of self-governing, democratic, policy-making and administrative units. In other words, the
village panchayats are envisaged by the article as the base democratic institutions of a pyramid of
the democratically organised and functioning self-governing units. This being so, while organising the
village panchayats, what is necessary to be kept in mind is (a) that they are to be the self-governing
units at the lowest end of the democratic polity, (b) that being self-governing units, those who are
governed by the said units and for whose benefit they are going to operate, will have either a direct
or an elective indirect representation in them; (c) that they will have an effective say in the conduct
of their affairs including its plans, policies and programmes and their execution and (d) that thus
they will have not only a sense and satisfaction of participation but also an experience in the
governance of their own affairs. So long as the village panchayats are organised to achieve the said
objectives, the requirements of the said article will have been complied with both in their spirit and
in letter.
We may now turn to the provisions of the 73rd Constitutional Amendment by which Part IX consisting
https://advance.lexis.com/documentprint/documentprintclick/?pdmfid=1523890&crid=522050c1-4eb6-4063-8314-a7118a8e6fcf&ecomp=xg3bk… 10/41
e ay o tu to t e p o s o s o t e 3 d Co st tut o a e d e t by c a t co s st g
of Article 243 to Article 243-O has been introduced in the Constitution.
Article 243(g) defines ‘village’ to mean a village specified by the Governor by public notification to
be a village for the purposes of the said Part and includes a group of villages so specified. It will be
apparent from this definition of ‘village’ that on the one hand, it does not stick to any particular,
much less the vintage concept of village that the High Court has in mind, viz., the anthropologically
evolved and sociologically identifiable habitat and on the other, it gives the Governor power to specify
a village as he may deem fit. The village so specified by him may include a group of villages. The
Constitution permits the Governor to declare any populated rural area as a village. The village
which the Governor has to specify is a village for the purpose of carrying out the provisions of Part IX
of the Constitution and not for any other purpose. Hence to bring in any particular concept of
village and to read into the said article any preconceived notion of village is unwarranted
by law.
***
The panchayats are to be constituted at the village, intermediate and district levels and the
“panchayat area” as defined by Article 243(e) means the territorial area of the panchayat whether
at the village, intermediate or district levels. What is necessary to remember further is that while as
per Article 243(c) “intermediate level” is a level between the village and district levels, as specified
by the Governor, the ‘district’ as per Article 243(a) means a district in a State the boundaries of
which may be changed by the State Government. The district is not required to be specified by the
Governor whereas village and intermediate levels have to be specified by him for the purposes of the
said Part of the Constitution.
Article 243-A states that a gram sabha which, as stated above, is the electorate of the village
panchayat, may exercise such powers and perform such functions at the village level as the
legislature of the State may by law provide. In other words, the powers and functions of the village
panchayat are to be determined by a State enactment. Article 243-B states that there shall be
constituted panchayats at the village, intermediate and district levels in accordance with the
provisions of the said Part of the Constitution. However, in a State having a population not
exceeding 20 lakhs, it is not obligatory to constitute panchayats at the intermediate level.
***
As regards the alleged difference in the definition of ‘village’ in the Act and in the Constitution, we
have already referred to the fact that Article 40 of the Constitution does not define ‘village’ as
such. It only refers to the organisation of “village panchayats” as units of self-government.
‘Village’ has been defined in the Shorter Oxford English Dictionary (1993 Edn) to mean “a self-
contained group of houses and associated buildings, usu in a country area; an inhabited place larger
than a hamlet and smaller than a town; … a small self-contained district or community within a city
or town, regarded as having features characteristic of a village”. The Law Lexicon by P Ramanatha
Aiyar (1987 Edn) states that ‘village’ includes — (a) a village community; (b) village lands; (c) rivers
passing through or by village lands; and (d) a group of villages. The expression ‘village’ connotes
ordinarily an area occupied by a body of men mainly dependent upon agriculture or occupations
subservient thereto. When the area is occupied by persons who are engaged mainly in commercial
pursuits, rural areas in the vicinity of a town grow into a suburb of the town.
The Encyclopaedia Americana (1983 Edn, Vol 28) states that village is —
“a type of community, generally small but without exact or commonly accepted size limits.
Generally, in the United States, the village is thought to be intermediate between the hamlet (a
settlement with several families and some form of commerce but no more than 50 people) and
the town (generally over 1000 people).”
Dealing with the origin and evolution of village, it states that —
“the village is the typical form of rural settlement in most of the world — in Europe (except for
Great Britain) in Asia, in Africa, and in much of South America…. It often seems to be the result
of the settlement of lands that previously were only thinly occupied by indigenous populations,
but probably also derives from the emergence of clear-cut private proprietorship of land. In much
of Europe and in many other areas of the world, communal land ownership prevailed in the past,
and this property arrangement was one basis for the village form of rural settlement, the
community being set amid the tillage and grazing lands.
Growing awareness of the nearly universal appearance of the agricultural village prompted many
social theorists in the 19th century to suggest that such communities represented a universal
stage in human evolution. Such simplifying theories lost support as evidence of the great
diversity of human cultures and the paths of change was accumulated. The interpretation of the
village pattern is now more nearly a functional one. With settled agriculture, village orientation
provides mutual protection, sociability, a measure of economic specialisation (such as
handicrafts), and at least the rudiments of local government.
Since size-limits will not precisely distinguish villages from other types of communities, the
question arises as to whether the term has a precise meaning. All communities or settlements
called villages in popular language or technical studies cannot be brought within a common
definition… Generally, however, a village is a residential and trading centre for a predominantly
agricultural economy. Its social controls are predominantly traditional and informal; more formal
administration and government are typical of cities and towns. Its self-sufficiency may be nearly
complete, as in some parts of the Far East and Latin America, or seriously impaired by modern
transportation, communication, and agencies of central government. The population of the
village, unlike that of most cities and many towns, is self-recruited rather than immigrant. This,
and the traditional informality of social standards and controls, lends a distinct quality of
homogeneity that the more cosmopolitan centre does not have.
The collapse of the theory that the village is the basic community of all civilizations did not end
the idealisation of the village. Yet even the informal and traditional social controls of the village
can be extremely restrictive, certainly more so than the formal tolerance of difference that the
cultural heterogeneity of the city encourages or requires. And it cannot be assumed that villages
are democratic. European villages are often dominated by one or a few families, some of which
may claim descent from feudal rulers. The village in India is often ruled by a council (panchayat)
of the leading caste or by a few principal landlords. Even in the United States, with its short
history and absence of an officially recognized aristocracy, leading families are more likely to
receive deference in villages than in larger and more impersonal communities. The integration of
village life, or lack of social problems and tensions, has also been exaggerated. Conflicts may
smolder or burn brightly, all the more because the parties know each other and personalise the
antipathy.
In Europe and Asia, the village has exhibited a remarkable power of survival amidst currents of
rapid social change. Rural America has been much more profoundly affected by the
encroachments of an urban-industrial civilization. Many small towns, technically villages, have
virtually disappeared as their economic and other social functions have been absorbed by nearby
cities. Village life may endure a while longer in the United States, but the sense of continuity and
communal integrity are difficult to maintain with high rates of residential mobility and in the face
of steady inroads of an essentially urban civilization.
The village community may be defined as a group of people who live in permanent dwellings in a
defined territory which includes arable land, sometimes held in common. If cattle is kept, as is
often the case, it is pastured on non-cultivated meadow land over which the community claims
right. Further characteristics include a predominance of agricultural occupations, a close
relationship to the natural environment, strong internal cohesion, and a relative absence of
internal stratification and of occupational, territorial, and vertical social mobility. As such, the
village is a specific type of rural settlement, but not the only one.
***
The scientific study of the village community did not start until the middle of the 19th century…
Sir Henry Maine (1822-1888), one of the first English writers on this topic, held the theory that
the village community was originally founded by a group of kin related people who settled
independently in a specified spot. In time, the original households branched out into many
separate ones, clearing more land as the need arose. Occasionally they included strangers, who
were sometimes adopted but more often relegated to second-class membership, tolerated rather
than accepted. If one family became extinct, its share of land was returned to the common
stock. Only in later times, under pressure of more highly developed political structures, did the
village community become feudalistic. The land was then owned by a ruler who received tribute
in kind and promised protection in return. Often the responsibilities of supervision and collection
were transferred to other members of the aristocracy. Maine based his case for this presumed
development upon analysis of Roman law (Ancient Law, 1861) and upon practices in Russia,
south-east European countries, and specifically India, where he had carried out extensive field
research (Village communities in the East and West, 1871).
Several other scholars criticised Maine’s theoretical reconstructions — modern anthropologists

and sociologists take the position that both developments took place. They recognize that the
evolution and structure of human settlements in general, and of village communities in
particular, are closely connected with specific historical developments and ecological, socio-
political, economic and religious circumstances which are different from place to place. With this
recognition, questions of absolute origins have generally been replaced by an increased interest
in the structure and function of village communities, in an attempt to gain a basic understanding
of the essential nature of living arrangements therein.
***
As their characteristic features, peasant villagers show strong internal cohesion and tendencies to
restrict membership to those born within the community. Rules of local endogamy sometimes
reinforce this trend. Membership in the community is demonstrated by participation in religious
rituals, which frequently stress the power of the community to deal with the supernatural rather
than reliance upon individual piety. Economically, a peasant produces mainly for his own
household’s consumption, although he also uses part of his product to exchange in a market for
other goods and services These markets are often local and differ in structure from those in the
other goods and services. These markets are often local and differ in structure from those in the
cities. Although some city-produced goods reach the peasant level, there is a tendency to limit
the flow of city goods into the community.
Politically, peasant villages are now usually parts of national states and theoretically possess the
rights and duties involved in such membership. But the village community has frequently
retained mechanisms of internal control, whether through Government-approved local leaders or
through informal leadership and community sanctions. Emotional attachments face inward. The
individual’s first loyalty is to his family, then to his community, and only then to whatever is
beyond. The various elements of this characterization may be developed more strongly in some
villages than in others, but as a type they are recognisable and clearly distinct from tribal groups,
farming settlements, and city formations.”
It is common knowledge that the needs of the people change with the development in the economic,
scientific and technological fields as also with the developments in transport and communication.
With them, the concept of self-sufficiency and the means, mode and range of self-governance also
change. What is more, the units of self-governance at the lower level being interrelated and
integrated with those at the higher levels as parts of the whole scheme of administration and
development in the State, have to respond to and fall in line with the growth in the size and
operation of the units at the higher level to form a coordinated democratic polity and administrative
machinery. The concept of grassroot or lowest level administration must, therefore, necessarily
change with the advance and progress at other levels. The governing units at all levels have to fit in
in a pattern, and a scheme for administration both for law and order and economic growth. They
have to act as vehicles of overall stability and progress. For that purpose, their constitution and
functioning have to be in conformity with the larger social, political and economic goals.
Hence there cannot be any immutable social, political, economic or organisational concept of village
as a self-governing unit. In a developing country like ours, where the population is growing fast,
where the society is in ferment on all fronts, where divisive forces of all kinds abound, where the vast
majority of population is illiterate and is the victim of ignorance, superstition, blind faith, biases and
prejudices and is shackled by tradition, and irrational customs and practices, there is an urgent need
to evolve means to unite and integrate the society, to expose the populace to larger and higher
goals, to imbibe in them the wider perspectives and to forge a socially cohesive front for breaking the
barriers of race, caste, class, religion and region rather than to pander to the age-old, self-centred
physical and mental barriers. As stated earlier, Article 40 not only does not define ‘village’ but also
does not require that the village panchayats should be organised on the basis of any particular
concept of village much less the vintage concept which appears to have appealed to the High Court.
There is further nothing in Mahatma Gandhi’s advocacy of “village panchayat raj” from which the
High Court has taken support to suggest that the village that Mahatmaji had in mind was of a
particular description or dimension. It is amusing in this respect to note that the High Court in
support of its concept of village has even gone to the extent of observing that “it must be
remembered that in considering the aspirations of the people, more so at the first level of
democracy, the phenomena of a case of identity of the people, their sentiments, feelings and
chauvinism, cannot be forgotten” — the considerations which were, with respect, farthest from the
mind of Mahatmaji and against which he fought throughout his life. If separate identities,
chauvinism, divisible sentiments and feelings are nurtured from the grassroot level, they are bound
to erode the foundation of the unity and integrity of the country and should be the last thing on the
social and political agenda of the country. On the other hand, the need of the day is to create social,
political and economic entities crossing all barriers and wedded to the nationhood as the ultimate
goal. Anthropological and sociological entities may be natural so far as the blood and familial
relationships and attachments go and have their place in certain limited spheres. But they have no
place while shaping democratic, political and administrative units. Nor are they necessarily conducive
to social and economic progress. On the other hand, they may prove and have in the past proved a
positive hindrance to them. Although, therefore, it is true that most of the villages have developed
with the initial settlement of a family or a group of families belonging to either the same tribe or
ethnic group and in that sense have their historical and sociological identity, these identities are not
necessarily healthy or desirable for promoting wider and diverse interests and attaining larger goals.
On the other hand, they often prove insurmountable blockades to promoting the ideals enshrined in
the Preamble of our Constitution, viz., social, political and economic justice; liberty of thought and
expression, belief, faith and worship; equality of status and of opportunity; and fraternity assuring
the dignity of the individual and the unity and integrity of the Nation. Sometimes, smaller the social,
political and administrative entities, the greater the dominance of one section or the other and
deeper the prejudices. The need is to organise viable social, political, economic and administrative
units of optimum size at the lowest level on a rational basis keeping in mind the size of population,
the needs of social and economic development, availability of resources, transport and
communication facilities, convenience of administration and other relevant factors. Old is not always
gold and mere historic accidents through which the villages of the concept of High Court have
developed, cannot justify their perpetuation as political and administrative units to attain the modern
goals of social and economic progress or furnish the rationale for their survival as basic democratic
entities. What is further forgotten is that over the years, not only the population in the rural areas
has grown enormously but the complexion of the rural areas has also undergone a change. With the
increasing pressure on land, there has been a steady migration from the rural to the urban and semi-
urban areas. Some villages are almost deserted while others survive much below the poverty line. At
the same time, some have emerged as small pockets of comparative prosperity, thanks to marginal
industrial and commercial activities around them and the nearness to the urban and semi-urban
industrial and commercial activities around them and the nearness to the urban and semi-urban
areas. There is further a limit to the number of village panchayats which may be constituted with all
the overhead expenses involved in the exercise which must have a rational relation to the result
sought to be achieved. In the State of U.P., there are 1,20,000 villages. Before the present exercise
of constituting the village panchayats under the Act, there were 74,000 gram sabhas which are now
reduced to 55,000. With the nature and range of functions entrusted to the new village panchayats
under the Act, and the expenditure that may have to be incurred in constituting and running them, it
can hardly be said that their number, structure and organisation militate in any way against the
concept of democracy and the principle of self-governance. Section 11-F(1) by laying down for non-
hilly areas a norm of a village panchayat for every 1000 population as far as practicable and for hilly
areas, for every 5 kilometres radius-distance, has in fact tried to observe the principle of self-
governance as closely as possible.
The first premise of the High Court’s reasoning is, therefore, faulty and it has led it to build an
edifice which is equally defective. It is for this reason that we are unable to appreciate the portions of
the impugned judgment dealing with the sentiments, feelings, chauvinism and will of the people (pp
16-20); holding that power to specify villages vests with the people and not with the State
Government and that the villages cannot simply be a revenue village (pp 21-25); holding that the
Governor is obliged to specify a village giving due regard to the wishes of the people (pp 26-27);
holding that provisions of the Act referring to establishment of gram sabha for a group of villages are
ultra vires, and beyond the intention of the Constitution (pp 32-33); that status of gram sabha has
been compromised and belittled in the Act itself (pp 37-38); holding that the Act in explaining the
expression “gram sabha” offends the Constitution and negates the concept of local self-government
(p 40); and stating that section 11-F gives rise to misunderstanding as it has scope for overlapping
and duplication in notifying and declaring areas comprising a village or group of villages into
panchayat area (p 59).
As pointed out above, Article 243(g) of the Constitution defines village to mean “a village specified
by the Governor to be a village and includes a group of villages so specified”. In other words,
according to this definition, any existing village or a group of the existing villages may be specified by
the Governor as a village for the purposes of organising a village panchayat. The definition begs the
question as to what is a village which the Governor can specify as a village for the purposes of
constituting the “village panchayat”. It is not disputed that almost all villages in the State have been
recorded in the revenue records of the respective districts in which they are situate. No material has
been placed on record to show that villages have been recorded as such in any other record. There
may be some villages and new settlements which are not so recorded. There is, therefore, nothing
wrong if the Governor specifies the revenue villages as villages and in addition also those villages and
settlements which are not so recorded in the revenue records as villages for the purpose of
constituting village panchayats. The “revenue village” is, therefore, a documented ready-made
concept of village and the Governor while acting under Article 243(g) for specifying the village may
adopt the same as village. No restriction has been placed by Article 243(g) on the Governor for
accepting the revenue village as a village for the purposes of constituting village panchayat. In fact,
the Governor has been empowered by the said constitutional provision to declare even a group of
villages as a village. If this is so, we are unable to appreciate as to why the definition of village in
section 2(t) will fall foul of the provisions of Article 243(g). Section 2(t) not only speaks of villages
recorded in the revenue records as such but also includes in the definition, any area which the State
Government may by general or special order declare to be a village for the purposes of the Act. The
concept of village is not foreign either to the Constitution or to the State legislation. Apart from the
UP Land Revenue Act, the concept of village finds place in other State enactments such as UP Village
and Road Police Act, 1873 and UP Village Sanitation Act, 1892, UP Village Courts Act, 1892, UP
Village Panchayats Act, 1920 which was replaced by the unamended UP Panchayat Raj Act, 1947, UP
District Boards Act, 1922, UP Local Rates Act, 1914 which latter two Acts were replaced by the UP
Kshettra Samitis and Zila Parishads Adhiniyam, 1961. If, therefore, there is no restriction placed by
the Constitution on the Governor in accepting any inhabited rural area as a village, it is difficult to
appreciate how the Act is violative of the Constitution when the State Government declares any
area including a revenue village as a village. In any case, the court cannot substitute its concept of
village for that of the State Government.
***
System of Panchayats
Strong and accountable systems and equitable distribution of resources
• The Preamble, Pt IV and Pt IX of the Constitution must guide the understanding of the
Panchayati Raj institutions and the role they, as units of self government, play in
promoting social justice and economic development.
• An analysis of Article 40 and Articles 243 to 243-O shows that the Framers of the
Constitution had envisaged the village panchayat to be the foundation of the country’s
g g p y y
political democracy.
• The Seventy-third Amendment Act was enacted to remedy the defects and remove the
deficiencies of the Panchayati Raj system which failed to live up to the expectation of the
people in rural India after independence.
• Eleventh Schedule subjects focus on social and economic development of the rural
segments by conferring upon the panchayat the status of a constitutional body.
• Seventy-third amendment ensures that the panchayats would no longer perform the role
of simply executing the programs and policies evolved by the political executive of the
State.
• Part IX envisages a system of panchayats aimed at establishing strong and accountable
systems of governance that will in turn ensure equitable distribution of resources in a
manner beneficial to all.
Village Panchayat, Calangute v Director of Panchayat, (2012) 7 SCC 550 [LNIND 2012 SC
372]. (2 Judge Bench)
[GS Singhvi, J]
Leave granted. Whether a village panchayat established under section 3 of the Goa Panchayat Raj
Act, 1994 (for short “the Act”) or any other statutory dispensation existing prior to the enactment of
the Act has the locus to file a petition under Article 226 and/or Article 227 of the Constitution for
setting aside an order passed by the designated officer exercising the power of an appellate authority
qua the action/decision/resolution of the village panchayat is the question which arises for
consideration in these appeals filed against the order dated 18-8-2010 passed by the learned Single
Judge of the Bombay High Court, Goa Bench in Village Panchayat, Calangute v Director of Panchayat,
[WPs Nos. 16 and 312 of 2010, order dated 18-8-2010 (Bom)].
We have considered the respective submissions. Before Independence, a majority of the population
of the States which merged in the Union was rural. After Independence and even now India continues
to be a predominantly rural country. There are almost six lakh villages in the country and almost
75% of the population lives in the villages. Article 40 of the Constitution, which enshrines one of
the directive principles of State policy was incorporated in the Draft Constitution in the light of the
suggestions made by S/Shri MA Ayangar, NG Ranga, Surendra Mohan Ghose and Seth Govind Das, all
of whom strongly advocated that the dream of the Father of the Nation of initiating democracy at the
grass roots (rural India) be translated into reality by making panchayats as units of self-government.
This article mandates the State to take steps to organise village panchayats and endow them with
government. Notwithstanding the mandate of Article 40, the State failed to take effective steps to
make village panchayats as units of self-government. In 1977, a Committee was constituted under
the chairmanship of Shri Ashok Mehta to evaluate Panchayati Raj institutions and their functioning. In
its report, the Committee observed that the existing model of panchayats has failed to transfer the
fruits of democracy to the weaker sections of society because they are dominated mostly by socially
and economically privileged people.
In 1992, the Constitution (Seventy-third Amendment) Act was introduced in Parliament and the
existing Part IX was substituted. The background in which this amendment was introduced is evinced
from the first two paragraphs of the Statement of Objects and Reasons, which are extracted below:
“ 1. Though the Panchayati Raj institutions have been in existence for a long time, it has been
observed that these institutions have not been able to acquire the status and dignity of viable
and responsive people’s bodies due to a number of reasons including absence of regular
elections, prolonged supersessions, insufficient representation of weaker sections like Scheduled
Castes, Scheduled Tribes and women, inadequate devolution of powers and lack of financial
resources.
2. Article 40 of the Constitution which enshrines one of the directive principles of State policy
lays down that the State shall take steps to organise village panchayats and endow them with
p y y y
government. In the light of the experience in the last forty years and in view of the shortcomings
which have been observed, it is considered that there is an imperative need to enshrine in the
Constitution certain basic and essential features of Panchayati Raj institutions to impart
certainty, continuity and strength to them.”
The aforesaid amendment is a turning point in the history of local self-government. By this
amendment panchayat became an “institution of self-governance”—Article 243(d) and
comprehensive provisions came to be incorporated for democratic decentralization of governance on
the Gandhian principle of participatory democracy. The Panchayati Raj institutions structured under
the Seventy-third Amendment are meant to bring about sweeping changes in the governance at the
grass-root level. By this amendment, Parliament introduced three-tier system of Panchayati Raj
institutions at village, block and district levels. …
Article 243(d) and Article 243-G which have bearing on the issue raised in these appeals read as
under:
“ 243-Definitions.—In this Part unless the context otherwise requires—
***
(d) ‘ panchayat’ means an institution (by whatever name called) of self-government constituted
under Article 243-B, for the rural areas;
***
243-G.Powers, authority and responsibilities of panchayats.—Subject to the provisions of

this Constitution, the legislature of a State may, by law, endow the panchayats with such
powers and authority and may be necessary to enable them to function as institutions of self-
government and such law may contain provisions for the devolution of powers and
responsibilities upon panchayats, at the appropriate level, subject to such conditions as may be
specified therein, with respect to
(b) 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.”
In the light of the Constitution (Seventy-third Amendment) Act, the State Legislature enacted the
Act, as is evident from its Preamble, which reads thus:
“Whereas it is expedient to replace the present enactment by a comprehensive enactment to

establish a two-tier Panchayat Raj System in the State with elected bodies at village and district
levels, in keeping with the Constitution Amendment relating to panchayats for greater
participation of the people and more effective implementation of rural development
programmes.”
The Preamble, Part IV and Part IX of the Constitution must guide our understanding of the
Panchayati Raj institutions and the role they play in the lives of the people in rural parts of the
country. The conceptualization of the village panchayat as a unit of self-government having the
responsibility to promote social justice and economic development and as a representative of the
people within its jurisdiction must be borne in mind while interpreting the laws enacted by the State
which seek to define the ambit and scope of the powers and the functions of panchayats at various
levels.
An analysis of Article 40 and Articles 243 to 243-O shows that the Framers of the Constitution
had envisaged the village panchayat to be the foundation of the country’s political democracy—a
decentralized form of government where each village was to be responsible for its own affairs. By
enacting the Constitution (Seventy-third Amendment) Act, Parliament has attempted to remedy the
defects and remove the deficiencies of the Panchayati Raj system evolved after Independence, which
failed to live up to the expectation of the people in rural India. The provisions contained in Part IX
provide firm basis for self-governance by the people at the grass root through the institution of
Panchayats at different levels.
For achieving the objectives enshrined in Part IX of the Constitution, the State Legislatures have
enacted laws and made provision for devolution of powers upon and assigned various functions listed
in the Eleventh Schedule to the panchayats. The primary focus of the subjects enumerated in the
Eleventh Schedule is on social and economic development of the rural parts of the country by
conferring upon the panchayat the status of a constitutional body. Parliament has ensured that the
Panchayats would no longer perform the role of simply executing the programs and policies evolved
Panchayats would no longer perform the role of simply executing the programs and policies evolved
by the political executive of the State. By virtue of the provisions contained in Part IX, the Panchayats
have been empowered to formulate and implement their own programs of economic development
and social justice in tune with their status as the third tier of the Government which is mandated to
represent the interests of the people living within its jurisdiction. The system of Panchayats
envisaged in this part aims at establishing strong and accountable systems of governance
that will in turn ensure more equitable distribution of resources in a manner beneficial to
all.
In the light of the above, it is to be seen whether the appellant has the locus to challenge the orders
passed by Respondent 1 in the appeals filed by the Company. A conjoint reading of the provisions
contained in Chapter III of the Act shows that a panchayat is generally required to perform the
functions specified in Schedule I and also make provision for carrying out any other work or
measures likely to promote the health, safety, education, comfort or convenience or social or
economic well-being of the inhabitants of the panchayat area. It also has the power to do all acts
necessary for or incidental to carrying out the functions entrusted, assigned or delegated to it. The
Sarpanch is not only entrusted with the duty to implement the programme of welfare schemes and
other development works, but also stop any unauthorised construction erected in the panchayat
area. Section 66 which regulates erection of buildings within the panchayat area empowers it and/or
the Sarpanch to take action against erection of building without obtaining permission from the
competent authority or any violation of the conditions imposed at the time of grant of such
permission. The panchayat is also empowered to issue direction for upkeep and maintenance of
sources of water supply which are in private hands.
In this case, the appellant had entertained the complaint made by local residents, revoked occupancy
certificate and also cancelled the permission granted to the Company for raising construction. The
resolution cancelling the permission was recalled apparently because the rules of natural justice had
not been followed. Thereafter, the Sarpanch issued notice under section 64 and directed the
Company to stop further construction. The Company challenged the notice and succeeded in
persuading Respondent 1 to pass an ex parte interim order. The application made by the Company
for permission to use the property for running a guest house was rejected by the appellant because
the legality of the construction made by the Company was under scrutiny. In both the cases,
Respondent 1 set aside the resolutions passed by the appellant as also the notice issued by the
Sarpanch.
The orders passed by Respondent 1 do not refer to the particular provision under which the officer
concerned was exercising the appellate power. Surely, he could not have exercised the power vested
in the appellate authority under section 201 because the source of power of the resolutions passed
by the appellant and the notice issued by the Sarpanch cannot be traced in sections 76, 77, 84, 104
and 105 of the Act which relate to removal of any building or part thereof or any tree or branch of a
tree if it is in a ruinous state or is likely to fall or is otherwise dangerous to any person occupying
such building or part thereof or matters relating to sanitation, conservancy and drainage or exercise
of power by the Secretary in relation to any well, stream, channel, tank or other source of water
supply or which postulates the right to carry a drain through land or into a drain belonging to other
persons.
Similarly, Respondent 1 cannot be said to have exercised power under section 201-A because under
that provision, only the Block Development Officer is competent to entertain an appeal in a
miscellaneous matter which is dealt with by the panchayat or the village panchayat Secretary or the
Sarpanch and against which no appeal has been specifically provided under the Act. Therefore, it is
reasonable to infer that Respondent 1 had exercised power under section 178(1). However, instead
of suspending the execution of the resolutions passed by the appellant or the notice issued by the
Sarpanch and sending the matter to the State Government for confirmation, the officer concerned
suo motu annulled the resolutions and the notice by assuming that he had the power to do so.
It is thus evident that while the appellant and the Sarpanch had exercised their respective powers in
public interest, Respondent 1 nullified that exercise because he felt that the resolution/action was
contrary to law and was unjustified. While exercising the power under the Act, the panchayat was not
acting as a subordinate to Respondent 1 but as a body representing the will of the people and also a
body corporate in terms of section 8 of the Act. Therefore, it had the locus to challenge the orders
passed by Respondent 1 and the High Court was clearly in error in holding that the writ petition was
not maintainable.
Distinction between a Development Authority under Executive

orders and Statute and Municipality addressed by the Part IXA of
the Constitution
• The Constitution (Seventy-fourth Amendment) Act, 1992 seeks to strengthen the local
• The Constitution (Seventy fourth Amendment) Act, 1992 seeks to strengthen the local
self-government institutions on sound and effective footing and to provide measures for
regular and fair conduct of elections.
• It cannot be said that mere existence of the municipal corporations statutes which are
duly amended to bring them in conformity with Pt IX-A of the Constitution, will nullify or
render redundant the statutes relating to urban development schemes by urban
development authorities.
• The area in which such development authorities operate is totally different from the
areas in Pt IX-A which relate to local self-governance.
Bondu Ramaswamy v Bangalore Development Authority, (2010) 7 SCC 129 [LNIND 2010 SC
443] : (2010) 3 SCC (Civ). 23 [3 Judge Bench]
[RV Raveendran, J]
Leave granted. These appeals relate to the challenge of acquisition of lands for formation of Arkavathi
Layout on the outskirts of Bangalore by the Bangalore Development Authority (for short “BDA”)
under the Bangalore Development Authority Act, 1976 (“the BDA Act” or “the Act”, for short).
The said judgment 24 is challenged by the land-losers on several grounds. On the contentions urged,
the following questions arise for consideration:
(ii) Whether the provisions of the BDA Act, in particular section 15 read with section 2(c) dealing with
the power of the Authority to draw up schemes for development of Bangalore Metropolitan Area
became inoperative, void or was impliedly repealed, by virtue of Parts IX and IX-A of the
Constitution inserted by the 73rd and 74th Amendments to the Constitution?
Question (ii)—Re: Invalidity with reference to Parts IX and IX-A of the Constitution
Parts IX and IX-A of the Constitution, relating to panchayats and municipalities were inserted by the
Constitution (Seventy-third Amendment) Act, 1992 and Constitution (Seventy-fourth Amendment)
Act, 1992. Parts IX and IX-A came into force on 24-4-1993 and 1-6-1993 respectively. The object of
Part IX was to introduce the panchayat system at grass root level. As panchayat systems were based
on State legislations and their functioning was unsatisfactory, the amendment to the Constitution
sought to strengthen the panchayat system by giving a uniform constitutional base so that the
panchayats become vibrant units of administration in the rural area by establishing strong, effective
and democratic local administration so that there can be rapid implementation of rural development
programmes. The object of Part IX as stated in the Statement of Objects and Reasons is extracted
below:
“In many States, local bodies have become weak and ineffective on account of a variety of
reasons, including the failure to hold regular elections, prolonged supersessions and inadequate
devolution of powers and functions. As a result, urban local bodies are not able to perform
effectively as vibrant democratic units of self-government.
2. Having regard to these inadequacies, it is considered necessary that provisions relating to

urban local bodies are incorporated in the Constitution particularly for—
(i) putting on a firmer footing the relationship between the State Government and the urban
local bodies with respect to—
(a) the functions and taxation powers; and
(b) arrangements for revenue sharing;
(ii) ensuring regular conduct of elections;

( ) e su g egu a co duct o e ect o s;
(iii) ensuring timely elections in the case of supersession; and
(iv) providing adequate representation for the weaker sections like Scheduled Castes, Scheduled
Tribes and women.”
We may now extract some of the articles in Part IX-A with reference to municipalities, relevant for
our purpose: 25
In Karnataka, the Municipal Corporations for larger urban areas are constituted and governed by the
Karnataka Municipal Corporations Act, 1976 (“the KMC Act”, for short) and the Municipal Councils for
smaller urban areas are constituted and governed by the Karnataka Municipalities Act, 1964 (“the KM
Act”, for short). Regulation of planned growth of land use and development and making and
execution of town planning schemes in the State of Karnataka is governed by the Karnataka Town
and Country Planning Act, 1961 (“the Town Planning Act”, for short). 26
***
The contentions urged by the learned counsel for the appellants based on Parts IX and IX-A of the
Constitution can be summarised thus:
(i) The BDA Act is a legislation relatable to Article 243-W and some of the matters listed in the
Twelfth Schedule. Therefore the BDA Act is deemed to be a law relating to municipalities. Having
regard to Article 243-ZF, any provision inconsistent with the provisions of Part IX-A of the
Constitution, law relating to municipalities ceased to be in force on the expiry of one year from
1 June 1993—the date of commencement of the Constitution (Seventy-fourth Amendment) Act,
1992.
(ii) After the insertion of Part IX-A of the Constitution, there cannot be any “metropolitan area”
other than what is declared by the Governor as a metropolitan area, as provided under Article
243-P(c). Only an area having a population of ten lakhs or more in one or more districts and
consisting of two or more municipalities or panchayats or other contiguous areas and specified by
the Governor by a public notification to be a metropolitan area can be a “metropolitan area”.
Consequently, the “Bangalore Metropolitan Area” as defined under section 2(c) of the BDA Act
had ceased to exist and therefore BDA could not draw up any development scheme for Bangalore
Metropolitan Area.
(iii) A development scheme or an additional development scheme for Bangalore Metropolitan Area
which BDA is required to draw up under section 15 of the BDA Act are conceptually and in effect
same as the development plan with reference to a municipality referred to in Article 243-W and
a development plan for a metropolitan area referred to in Article 243-ZE. After the insertion of
Part IX-A in the Constitution, a development plan for a metropolitan area can only be drawn up
by a democratically elected representative body, that is, the Metropolitan Planning Committee by
taking into account the factors mentioned in clause (3) of Article 243-ZE. Therefore on the
expiry of one year from 1-6-1993 (the date on which Part IX-A of the Constitution was
inserted), BDA has no authority to draw up any development scheme.
Any statute or provision thereof which is inconsistent with any constitutional provision will be struck
down by the courts. Consequently, if the BDA Act or any provision of the BDA Act is found to be
inconsistent with any provision of Part IX-A of the Constitution, it will be struck down by the courts
as violative of the Constitution. In regard to any provision of any law relating to municipalities,
Article 243-ZF suspends such invalidity or postpones the invalidity for a period of one year from 1
June 1993 to enable the competent legislature to remove the inconsistency by amending or repealing
such law relating to municipalities to bring it in consonance with the provisions of Part IX-A of the
Constitution.
Article 243-ZF is a provision enabling continuance of any provision of a law relating to municipalities
in spite of such provision being inconsistent with the provisions of Part IX-A of the Constitution for a
specified period of one year. It does not extend the benefit of continuance to any law other than laws
relating to municipalities; it also does not provide for continuance of a law for one year, if the
violation is in respect of any constitutional provision other than Part IX-A; and it does not declare any
provision of a statute to be inconsistent with it nor declare any statute to be invalid. The invalidity of
a statute is declared by a court when it finds a statute or its provision to be inconsistent with a
constitutional provision.
The benefit of Article 243-ZF is available only in regard to laws relating to “municipalities”. The term
“municipality” has a specific meaning assigned to it under Part IX-A. Article 243-P(e) defines the
word as meaning an institution of self-government constituted under Article 243-Q. Article 243-Q
refers specifically to three types of municipalities, that is, a Nagar Panchayat for a transitional area, a
Municipal Council for a smaller urban area and a Municipal Corporation for a larger urban area. Thus,
neither any city improvement trust nor any Development Authority is a municipality, referred to in
Article 243-ZF. Thus Article 243-ZF has no relevance to test the validity of the BDA Act or any
provision thereof. If the BDA Act or any provision thereof is found to be inconsistent with the
provisions of Part IX-A, such inconsistent provision will be invalid even from 1-6-1993, and the
benefit of continuance for a period of one year permitted under Article 243-ZF will not be available
to such a provision of law, as the BDA Act is not a law relating to municipalities.
The Constitution (Seventy-fourth Amendment) Act, 1992 inserting Part IX-A in the
Constitution, seeks to strengthen the system of municipalities in urban areas, by placing
these local self-governments on sound and effective footing and provide measures for
regular and fair conduct of elections. Even before the insertion of the said Part IX-A,
municipalities existed all over the country but there were no uniform or strong foundations
for these local self-governments to function effectively.
Provisions relating to composition of municipalities, constitution and composition of Ward

Committees, reservation of seats for weaker sections, duration of municipalities, powers, authority,
responsibilities of municipalities, power to impose taxes, proper superintendence and centralised
control of elections to municipalities, constitution of committees for district planning and
metropolitan planning, were either not in existence or were found to be inadequate or defective in
the State laws relating to municipalities.
Part IX-A seeks to strengthen the democratic political governance at grass root level in urban areas
by providing constitutional status to municipalities, and by laying down minimum uniform norms and
by ensuring regular and fair conduct of elections. When Part IX-A came into force, the provisions of
the existing laws relating to municipalities which were inconsistent with or contrary to the provisions
of Part IX-A would have ceased to apply. To provide continuity for some time and an opportunity to
the State Governments concerned to bring the respective enactments relating to municipalities in
consonance with the provisions of Part IX-A in the meanwhile, Article 243-ZF was inserted. The
object was not to invalidate any law relating to city improvement trusts or Development Authorities
which operate with reference to specific and specialised field of planned development of cities by
forming layouts and making available plots/houses/apartments to the members of the public.
To enable the municipalities (that is Municipal Corporations, Municipal Councils and Nagar
Panchayats) to function as institutions of self-government, Article 243-W authorises the legislature
of a State to endow to the municipalities, such powers and authority as may be necessary, by law.
Such law made by the State Legislature may contain provision for the devolution of powers and
responsibilities upon municipalities, with respect to the following:
(i) The preparation of plans for economic development and social justice; and
(ii) The performance of functions and implementation of schemes as may be entrusted to them
including those in relation to the following matters (earmarked in the Twelfth Schedule):
1. Urban planning including town planning.
2. Regulation of land use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and
mentally retarded.
10. Slum improvement and upgradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facilities such as parks, gardens, playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums.
15. Cattle pounds; prevention of cruelty to animals.
16. Vital statistics including registration of births and deaths.
17. Public amenities including street lighting, parking lots, bus-stops and public conveniences.
18. Regulation of slaughterhouses and tanneries.
The aforesaid powers and authority (enumerated in the Twelfth Schedule) may also be endowed to
the Ward Committees which are required to be constituted by Article 243-S.
On the other hand, the purpose and object of BDA is to act as a Development Authority for the
development of the city of Bangalore and areas adjacent thereto. The Preamble of the BDA Act
describes it as “an Act to provide for the establishment of a Development Authority for the
development of the city of Bangalore and areas adjacent thereto and for matters connected
therewith”. The development contemplated by the BDA Act is “carrying out of building, engineering,
or other operations in or over or under land or the making of any material change in any building or
land and includes redevelopment” [vide section 2(j) of the BDA Act]. Therefore, the purpose is to
make layouts, construct buildings or carry out other operations in regard to land.
Municipalities are not concerned with nor entrusted with functions similar to those entrusted to BDA
under the BDA Act, that is, building, engineering or other operations by forming layout of plots with
all amenities, construction of houses and apartments, as a part of any scheme to develop a city.
Municipalities are concerned with the overall economic development providing social justice (urban
poverty alleviation and slum improvement) regulating land use and constructions, providing
amenities (roads, bridges, water supply, fire services, street lighting, parking, bus-stops, public
conveniences), promoting education and culture, etc. Neither urban town planning nor regulation of
land use and construction, is similar to the “development” as contemplated in the BDA Act, that is,
carrying out building, engineering operations in or over or under land. It would thus be seen that the
object and functions of a Municipal Corporation are completely different from the object and purpose
of a Development Authority like BDA. BDA is not a municipality. Therefore, it cannot be said that
mere existence of the Municipal Corporations Act, duly amended to bring it in conformity
with Part IX-A of the Constitution, will nullify or render redundant, the BDA Act.
A ti l 243 ZE d bt id th t th h ll b tit t d i t lit

Article 243-ZE no doubt provides that 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. The metropolitan area is defined in clause (c) of Article 243-P 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 the Governor by a public notification to be a

metropolitan area for the purpose of Part IX-A. The Bangalore Development Authority is constituted
inter alia to draw up a detailed scheme for the Bangalore Metropolitan Area. The Bangalore
Metropolitan Area is defined in section 2(c) of the BDA Act and the said definition need not
necessarily be the same as or equivalent to any metropolitan area declared with reference to
Bangalore under Article 243-P(c) of the Constitution.
It was submitted before the High Court that the Governor had not issued any public notification
specifying any area as metropolitan area, with reference to Bangalore City. Further the declaration of
metropolitan area by the Governor, as provided in clause (c) of Article 243-P is specifically with
reference to the law relating to municipalities.
The Bangalore Metropolitan Area as defined in the Bangalore Development Authority Act is only for
the purpose of development i.e. development by way of building or engineering operations in or over
or under land. Therefore neither the provision defining “metropolitan area” in Article 243-P(c) nor
the provision for constitution of a Metropolitan Planning Committee for preparing a draft
development plan for such metropolitan area under Article 243-ZE has any relevance or bearing to
the Bangalore Metropolitan Area with reference to which BDA has been constituted.
Next contention urged by the appellants is that in pursuance of Article 243-ZE, the KMC Act has
been amended inserting section 503-B providing for constitution of a Metropolitan Planning
Committee for preparing a draft development plan for the Bangalore Metropolitan Area and therefore
the Bangalore Development Authority can no longer function as an authority for development of
metropolitan area, nor can it draw development schemes therefor. Development scheme to be drawn
up by the BDA for development of Bangalore Metropolitan Area is specific i.e. acquisition of land,
laying out or relaying plots, formation of roads, construction of buildings, providing drainage, water
supply and electricity and allot them to members of the public.
On the other hand, the development plan for the metropolitan area as a whole, to be prepared by the
Metropolitan Planning Committee constituted under the KMC Act involves making a plan for overall
development with reference to the various functions enumerated in the Twelfth Schedule, that is,
plans for economic and social justice, planning for economic and social development, slum
improvement and upgradation, urban poverty alleviation, and providing several urban amenities and
facilities referred to in the Twelfth Schedule. It would thus be seen that the “development scheme”
formulated for Bangalore Metropolitan Area by BDA has nothing to do with a “development plan” that
has to be drawn by a municipality or by the Metropolitan Planning Committee.
The development plan to be drawn for a metropolitan area, by a Metropolitan Planning Committee
should not be confused with a development scheme to be drawn by a Development Authority like
BDA for a metropolitan area.
It should also be noticed that insofar as Bangalore is concerned, the Bangalore Metropolitan Area as
defined in section 2(c) of the BDA Act is the area comprising the City of Bangalore as defined in the
City of Bangalore Municipal Corporation Act, 1949, the area where the City of Bangalore
Improvement Act, 1945 was immediately before the commencement of the BDA Act in force, and
such other areas adjacent to the aforesaid, as the Government may from time to time by notification
specify. On the other hand, the Bangalore Metropolitan Area, referred to in section 503-B of the KMC
Act is an area to be specified by the Governor by public notification under Article 243-P(c) of the
Constitution of India. In fact the Governor had not even specified the Bangalore Metropolitan Area
for the purpose of the KMC Act. Neither the Bangalore Metropolitan Area nor a Metropolitan Planning
Committee is in existence under the KMC Act. In these circumstances, the contentions that the BDA
Act, is no longer in force and that BDA has no jurisdiction or authority to draw up a development
scheme to form layouts and acquire land to form layouts in pursuance of any development scheme
for Bangalore Metropolitan Area, is wholly untenable.
The appellants submitted that the powers, authority and responsibilities, to be endowed by the State
Legislature upon the municipalities are enumerated in Article 243-W read with Twelfth Schedule;
that Articles 234-ZD and 243-ZE require the State Government to constitute a District Planning
Committee at District Level and a Metropolitan Planning Committee for every metropolitan area; that
such Metropolitan Planning Committee is required to prepare a draft development plan for the
metropolitan area as a whole.
It was contended that the BDA Act was a legislation which related to some of the responsibilities and
functions of municipalities, enumerated in the Twelfth Schedule to the Constitution read with
Article 243-W and that its provisions, in particular, sections 15 to 19 were inconsistent with the
provisions of Part IX-A of the Constitution; that no law can entrust powers and responsibilities
referred to in Article 243-W including those relating to matters listed in Twelfth Schedule to an
authority other than an authority having popular mandate; and that therefore the BDA Act entrusting
such powers and responsibilities to a non-elected authority ceases to be in force.
While it is true that BDA is not an elected body like the municipality, it has several elected
representatives as members Section 3 relates to the constitution of the authority and provides that
representatives as members. Section 3 relates to the constitution of the authority and provides that
the authority shall consist of 22 members and made up as follows:
• Six officers of the BDA viz. the Chairman, the finance member, the engineering member, the town
planning member, the Commissioner and Secretary of the Authority. (All of them are full-time
employees, three of them are specialists in finance, engineering and town planning.)
• Four elected representatives, that is, two Members of the State Legislative Assembly and two
Counsellors of Bangalore Municipal Corporation.
• One representative of the State Government and four representatives of statutory corporations,
that is, the Commissioner of Bangalore Municipal Corporation and representatives of Bangalore
Water Supply Sewerage Board, Karnataka Electricity Board and Karnataka State Road Transport
Corporation.
• Six members of the public (with minimum of one woman, one person belonging to SC/ST and one
representing labour).
• One architect.
It would thus be seen that members of the BDA represent different interests and groups, technical
persons and elected representatives. Further, no development scheme can be finalised or put into
effect without the sanction of the State Government which in turn has to take note of any
representation by the Bangalore Municipal Corporation in regard to the development scheme.
Therefore, the mere fact that BDA is not wholly elected body as in the case of a Municipal
Corporation will make no difference. The membership pattern is more suited to fulfil the
requirements of a specialist agency executing development schemes. We therefore find no merit in
the contention that provisions of the BDA Act become inoperative, on Parts IX and IX-A of the
Constitution coming into force.
The BDA Act empowers the Bangalore Development Authority to formulate schemes for the
development of Bangalore Metropolitan Area. The word “development” refers to building, engineering
or other operations in regard to land, that is, making layouts and making available plots for allotment
to members of the public. It is authorised to acquire lands for execution of development schemes,
prepare layouts and construct buildings, provide drainage, water supply and electricity, provide
sanitary arrangements, form open spaces, lease, sell or transfer the plots/immovable properties. The
area in which the BDA Act operates is totally different from the areas in which Part IX-A of the
Constitution and the KMC Act, which relate to local self-government, operate.
Empowerment of Nagar Panchayats – Articles 243-P(e), 243-Q and

243-W
• A Nagar Panchayat is a unit of self-government; which is a sovereign body having both
constitutional and statutory status and Articles 243-Q and 243-W( a)( i) and ( ii) read
with Entry 17, confer considerable powers on the Nagar Panchayat to carry out various
schemes for economic development and social justice.
• Article 243-W( a)( i) and ( ii) read with Entry 17 of the Twelfth Schedule confer ample
powers to the Nagar Panchayat to impose parking fee for parking the vehicles in the bus-
stand owned and maintained by it.
Nagar Panchayat, Kurwai v Mahesh Kumar Singhal, (2013) 12 SCC 342 [LNIND 2013 SC 795] :
(2014) 1 SCC (Civ) 308 [2 Judge Bench]
(2014) 1 SCC (Civ) 308. [2 Judge Bench]
[KSP Radhakrishnan, J]
…
The appellant in exercise of the powers conferred under section 357(3) read with sections 349(2),
357(5) and 358(4)(b) and (d) of the Madhya Pradesh Municipality Act, 1961, imposed parking fee on
the owners of vehicles, motors, trucks, buses, matadors, etc. Following that a notice was issued by
the appellant demanding Rs 20 per day or Rs 600 per month, imposing entry fees on motors, trucks,
buses and matadors parked in the bus-stand. Challenging the same, a writ petition was preferred by
the vehicle owners before the High Court of Madhya Pradesh at Jabalpur, seeking a writ of certiorari
to quash the abovementioned bye-law and also for a direction to the Nagar Panchayat not to collect
any fees from the petitioners. The learned Single Judge found no merit in the writ petition and the
same was dismissed on 10-7-2007. Aggrieved by the same, the writ petitioners took up the matter in
Writ Appeal No 458 of 2007, which was allowed by the Division Bench, holding that section 349 of
the 1961 Act does not confer any power to impose the licence fees for the use of bus-stand and the
same is not covered under sections 358(4)(b) and (d) or (7)(m) of the 1961 Act. The respondents
are merrily using the bus-stand owned and maintained by the Nagar Panchayat, free of cost, not
bothering about its maintenance and upkeep. The question is, can a court, on the basis of such an
interpretation sideline the larger public interest and deny the right of the Nagar Panchayat to claim
parking fees which can be utilised for the benefit of people?
We, before examining the question, shall not forget the basic fundamental principle that nobody
has a fundamental right to use the land belonging to another without the latter’s
permission or paying for it, if demanded.
The respondents are operating their vehicles with the stage carriage permits granted by the
competent authority under the Motor Vehicles Act. As per the provisions of the Motor Vehicles Act the
State Government or any other authorised authority has jurisdiction to determine a place at which a
motor vehicle be parked, either indefinitely or for a specified time for taking up and alighting
passengers. Rule 203 and rule 204 of the Motor Vehicles Rules, 1994 provide for maintenance and
management of the parking places and make the local authorities concerned responsible for the said
purpose. As per the conditions of the permit the respondents are required to commence the journey
of their vehicles from the bus-stand or a place fixed for getting and alighting passengers.
***
The Constitution (Seventy-fourth Amendment) Act, 1992, Part IX-A which deals with municipalities,
came into force on 20-4-1993. Articles 243-P(e), 243-Q and Article 243-W(a) are relevant and
hence extracted below:
“ 243-P(e) ’ Municipality’ means an institution of self-government constituted under Article

243-Q.
243-Q. 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:
243-W. 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.”
The Twelfth Schedule was inserted wef 1-6-1993. Entry 17 therein reads as follows:
“ 17. Public amenities including street lighting, parking lots, bus-stops and public conveniences.”
A Nagar Panchayat is, therefore, a unit of self-government, which is a sovereign body having both
constitutional and statutory status. Articles 243-Q and 243-W(a)(i) and (ii) read with Entry 17,
confer considerable powers on the Nagar Panchayat to carry out various schemes for economic
development and social justice. Municipalities need funds for carrying out the various welfare
activities and for the said purpose, it can always utilise its assets in a profitable manner to its
advantage so that various welfare activities entrusted to it under law could be properly addressed
and implemented. The bus-stand has been provided by the Nagar Panchayat for the benefit of all
vehicle owners and the passengers, spending public money. The Nagar Panchayat has to get a
reasonable return for its upkeep and maintenance.
We may, in this connection, refer to the decision of this Court in Municipal Board, Hapur v Jassa
Singh, [(1996) 10 SCC 377 [LNIND 1996 SC 1398]], wherein this Court while interpreting the
provisions of the UP Municipalities Act, 1916 in the light of the Constitution (Seventy-third
Amendment) Act, 1992 (actually Seventy-fourth Amendment Act) upheld the right of the municipality
in levying the bus-stand fee in respect of stage carriage. The operative portion of the same reads as
follows: (SCC p 379, para 6)
“6. … Even under the recent amendment brought by the Constitution (Seventy-third
Amendment) Act, 1992 which came into force wef 20-4-1993, it imposes the statutory
responsibilities on the municipalities. Article 243-P(d) defines ‘municipal area’ to mean the
territorial area of a municipality as is notified by the Governor. Article 243-W(a)(i) envisages
that subject to the provisions of the Constitution, the legislature of a State may, by law, endow
the municipalities with such powers and authority as may be necessary to enable them to
devolution of powers and responsibilities upon municipalities, subject to such conditions, as may
be specified therein, with respect to the preparation of plans for economic development and
social justice. Entry 17 of the Twelfth Schedule provides for public amenities including street
lighting, parking lots, bus-stops and public conveniences. Thus, the Constitution enjoins the
appropriate legislature to provide for preparation of the plans for economic development and
social justice including power to provide public amenities including street lighting, parking lots,
bus-stops and public conveniences. On such public amenities including bus-stops having been
provided by the municipalities, as is a statutory duty, it is the duty of the user thereof to pay fee
for service rendered by the municipality.”
We have already dealt with the scope of the Seventy-fourth Constitutional Amendment Act. Section
358(7)(m) has to be read in the light of the Constitutional Amendment Act. Clause 7(m) of section
358 of the Madhya Pradesh Municipalities Act, 1961 empowers the municipality to regulate or prohibit
the use of any ground under its control and it does not compel anybody to use it as halting place of
vehicles. Section 358(7)(m) of the Madhya Pradesh Municipalities Act, 1961 is extracted hereinbelow:
“ 358. (7)(m) regulating and prohibiting the stationing of carts or picketing of animals on any
ground under the control of the council or the using of such ground as halting place of vehicles or
animals or as a place for enactment or the causing or permitting of any animal to stay and
imposition of fees for such use.”
Article 243-W(a)(i) and (ii) read with Entry 17 of the Twelfth Schedule and clause (7)(m) of Section
358 and the general principle that nobody has a fundamental right to use the land belonging to
another without the latter’s permission or paying for it, if demanded, in our view, give ample powers
to the Nagar Panchayat to impose parking fee for parking the vehicles in the bus-stand owned and
maintained by it. Needless to say, if the Nagar Panchayat is demanding exorbitant or unreasonable
parking fee without any quid pro quo, the same can always be challenged in accordance with law.
…
…
Reservation in local self-government institutions
• The overarching scheme of Articles 243-D and 243-T is to ensure the fair representation
of social diversity in the composition of elected local bodies so as to contribute to the
empowerment of the traditionally weaker sections in society.
• The nature and purpose of reservations in the context of local self-government is
different from that in higher education and public employment.
• Principles that have been evolved for conferring the benefits of reservation
contemplated by Articles 15(4) and 16(4) cannot be mechanically applied in the context
of reservations enabled by Articles 243-D and 243-T.
• To create a level playing field for the purpose of elections to local bodies, backwardness
in the social and economic sense can be a criterion for conferring reservation benefits.
• Reservations in local self-governments are intended to directly benefit the community as
a whole and thereby aid in achieving democratic decentralization.
• There cannot be an exclusion of the “creamy layer” in the context of political
representation.
• Articles 243-D(6) and 243-T(6) are enabling provisions and confer discretion on State
Legislatures to design and confer reservation benefits in favour of backward classes.
• Such conferment of discretion by itself, without anything more, does not offend the
equality provisions in the Constitution.
• Excessive and disproportionate reservations contained in state legislations can be
judicially reviewed.
• The upper ceiling of 50% (quantitative limitation) with respect to vertical reservations in
favour of SCs/STs/OBCs should not be breached.
• Positions such as those of “Chairperson” should not be viewed as solitary seats by
themselves for the purpose of reservation.
• The frame of reference is the entire pool of chairperson positions in each tier of the three
levels of Panchayati Raj institutions in the entire State and such pool of seats computed
across panchayats in the whole State will be the basis for proportional reservation.
• The offices of chairpersons in panchayats and municipalities are reserved as a measure
of protective discrimination to enable the weaker sections to assert their voice against
entrenched interests at the local level.
• The test of reasonable classification is met in view of the legitimate governmental
objective of safeguarding the interests of weaker sections by ensuring their adequate
representation as well as empowerment in local self-Government institutions.
K Krishna Murthy v UOI, (2010) 7 SCC 202 [LNIND 2010 SC 491] : (2010) 2 SCC (L&S) 385. [5
Judge Bench]
[KG Balakrishnan, CJ]
In these writ petitions, we are required to examine the constitutional validity of some aspects of the
reservation policy prescribed for the composition of elected local self-government institutions. In
particular, the contentions have concentrated on the provisions that enable reservations in favour of
backward classes and those which contemplate the reservation of chairperson positions in the elected
local self-government institutions. These provisions have been challenged as being violative of the
principles such as equality and democracy, which are considered to be part of the “basic structure”
doctrine.
The Constitution (Seventy-third Amendment) Act, 1992 (hereinafter “the 73rd Amendment”) and
the Constitution (Seventy-fourth Amendment) Act, 1992 (hereinafter “the 74th Amendment”) had
inserted Part IX and Part IX-A into the constitutional text thereby contemplating the powers,
composition and functions of local self-government institutions i.e. the panchayats (for rural areas)
and municipalities (for urban areas). In pursuance of objectives such as democratic decentralisation,
greater accountability between citizens and the State apparatus as well as the empowerment of
weaker sections, these constitutional amendments contemplated a hierarchical structure of elected
local bodies.
With respect to rural areas, Part IX contemplates three tiers of panchayats, namely, those of “Gram
Panchayats” (for each village, or group of small villages), “Panchayat Samitis” (at the block level) and
the “Zila Parishads” (at the district level). For urban areas, Part IX-A prescribed the constitution of
“Nagar Panchayats” (for areas in transition from a rural area to an urban area), “Municipal Councils”
(for smaller urban areas) and “Municipal Corporations” (for a larger urban area).
… With respect to the reservation of seats in panchayats, Article 243-D reads as follows:
“ 243-D. Reservation of seats.—(1) Seats shall be reserved for—
(a) the Scheduled Castes; and
(b) the Scheduled Tribes,
in every panchayat 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 panchayat as
the population of the Scheduled Castes in that panchayat area or of the Scheduled Tribes in that
panchayat area bears to the total population of that area and such seats may be allotted by
rotation to different constituencies in a panchayat.
(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.
election in every panchayat shall be reserved for women and such seats may be allotted by
rotation to different constituencies in a panchayat.
(4) The offices of the chairpersons in the panchayats at the village or any other level 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:
Provided that the number of offices of chairpersons reserved for the Scheduled Castes and the
Scheduled Tribes in the panchayats at each level in any State shall bear, as nearly as may be,
the same proportion to the total number of such offices in the panchayats at each level as the
population of the Scheduled Castes in the State or of the Scheduled Tribes in the State bears to
the total population of the State:
Provided further that not less than one-third of the total number of offices of chairpersons in the
panchayats at each level shall be reserved for women:
different panchayats at each level.
(5) The reservation of seats under clauses (1) and (2) and the reservation of office 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
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 panchayat or offices of chairpersons in the panchayats at any level in
favour of backward class of citizens.”
(emphasis supplied)
Similarly, the composition of municipalities is guided by the reservation policy contemplated in

Article 243-T:
“ 243-T. 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.
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.”
(emphasis supplied)
The overarching scheme of Articles 243-D and 243-T is to ensure the fair representation of social
diversity in the composition of elected local bodies so as to contribute to the empowerment of the
traditionally weaker sections in society. The preferred means for pursuing this policy is the
reservation of seats and chairperson positions in favour of Scheduled Castes (SCs), Scheduled Tribes
(STs), women and backward class candidates:
• Article 243-D(1) and Article 243-T(1) are analogous since they lay down that the reservation of
seats in favour of SC and ST candidates should be based on the proportion between the population
belonging to these categories and the total population of the area in question. Needless to say, the
State Governments are empowered to determine the extent of such reservations on the basis of
empirical data such as population surveys among other methods, thereby being guided by the
principle of “proportionate representation”.
• Article 243-D(2) and Article 243-T(2) further provide that from among the pool of seats
reserved for SC and ST candidates, at least one-third of such seats should be reserved for women
belonging to those categories. Hence, there is an intersection between the reservations in favour of
women on one hand and those in favour of SCs/STs on the other hand.
• With respect to reservations in favour of women, Article 243-D(3) and Article 243-T(3) lay down
that at least one-third of the total number of seats in the local bodies should be reserved for
women. On the face of it, this is an embodiment of the principle of “adequate representation”. This
idea comes into play when it is found that a particular section is inadequately represented in a
certain domain and a specific threshold is provided to ensure that this section of the population
comes to be adequately represented with the passage of time

comes to be adequately represented with the passage of time.
• With regard to chairperson positions, Article 243-D(4) and Article 243-T(4) enable the State
Legislatures to reserve these offices in favour of SC, ST and women candidates. In the case of
panchayats, the first proviso to Article 243-D(4) states that the aggregate number of chairperson
positions reserved in favour of SC and ST candidates in an entire State should be based on the
proportion between the population belonging to these categories and the total population. With all
the chairperson positions at each level of the panchayats in an entire State as the frame of
reference, the second proviso to Article 243-D(4) states that one-third of these offices should be
reserved for women. The third proviso to Article 243-D(4) lays down that the number of
chairperson positions reserved under the said clause would be allotted by rotation to different
panchayats in each tier. This rotational policy is a safeguard against the possibility of a particular
office being reserved in perpetuity. It is pertinent to note that unlike the reservation policy for
panchayats, there are no comparable provisos to Article 243-T(4) for guiding the reservation of
chairperson positions in municipalities. This is a notable distinction between the otherwise
analogous schemes prescribed in Article 243-D and Article 243-T.
• It is also pertinent to take note of Article 243-D(5) and Article 243-T(5), both of which provide
that the reservation of seats and chairperson positions in favour of SC and ST categories would
operate for the period contemplated under Article 334. It must be stressed here that there is no
such time-limit for the reservations made in favour of women, implying that they will operate in
perpetuity.
• Article 243-D(6) and Article 243-T(6) contemplate the power of the State Legislatures to reserve
seats as well as chairperson positions in favour of a “backward class of citizens”. Unlike the
aforementioned provisions that deal with reservations in favour of SC, ST and women candidates,
Article 243-D(6) and Article 243-T(6) do not explicitly provide guidance on the quantum of
reservations. In the absence of any explicit criteria or limits, it can be assumed that reservation
policies contemplated under Article 243-D(6) will ordinarily be guided by the standard of
proportionate representation.
In light of the submissions that have been paraphrased in the subsequent paragraphs, the
contentious issues in this case can be framed in the following manner:
(i) Whether Article 243-D(6) and Article 243-T(6) are constitutionally valid since they enable
reservations in favour of backward classes for the purpose of occupying seats and chairperson
positions in panchayats and municipalities respectively?
(ii) Whether Article 243-D(4) and Article 243-T(4) are constitutionally valid since they enable the
reservation of chairperson positions in panchayats and municipalities respectively?
The nature and purpose of reservations in the context of local self-government is different
from that in higher education and public employment
Before addressing the contentious issues, it is necessary to examine the overarching considerations
g , y g
behind the provisions for reservations in elected local bodies. At the outset, we are in agreement with
Shri Rajeev Dhavan’s suggestion that the principles that have been evolved for conferring the
reservation benefits contemplated by Articles 15(4) and 16(4) cannot be mechanically applied in the
context of reservations enabled by Articles 243-D and 243-T. In this respect, we endorse the
proposition that Articles 243-D and 243-T form a distinct and independent constitutional basis for
reservations in local self-government institutions, the nature and purpose of which is different from
the reservation policies designed to improve access to higher education and public employment, as
contemplated under Articles 15(4) and 16(4) respectively.
Specifically with regard to the unviability of the analogy between Article 16(4) and Article 243-D,
we are in agreement with a decision of the Bombay High Court, reported as Vinayakrao Gangaramji
Deshmukh v PC Agrawal,. That case involved a fact situation where the chairperson position in a
panchayat was reserved in favour of a Scheduled Caste woman. In the course of upholding this
reservation, it was held as follows: (AIR p 143, para 4)
“4. … Now, after the seventy-third and seventy-fourth constitutional amendments, the
constitution of local bodies has been granted a constitutional protection and Art 243-D
mandates that a seat be reserved for the Scheduled Caste and Scheduled Tribe in every
panchayat and clause (4) of the said Art 243-D also directs that the offices of the chairpersons in
the panchayats at the village or any other level 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.
Therefore, the reservation in the local bodies like the village panchayat is not governed by Art
16(4), which speaks about the reservation in the public employment, but a separate
constitutional power which directs the reservation in such local bodies.”
We are of course aware of the fact that some decisions in the past have examined the validity of
reservations in local self-government by applying the principles evolved in relation to education and
employment.
In this respect, we are in partial agreement with one of the submissions made by Shri M Rama Jois
that the nature of disadvantages which restrict access to education and employment cannot be
readily equated with disadvantages in the realm of political representation. To be sure, backwardness
in the social and economic sense does not necessarily imply political backwardness. However, the
petitioner’s emphasis on the distinction between “selection” (in case of education and employment)
and “election” (in case of political representation) does not adequately reflect the complexities
involved. It is of course undeniable that in determining who can get access to education and
employment, due regard must be given to considerations of merit and efficiency which can be
measured in an objective manner. Hence, admissions to educational institutions and the recruitment
to government jobs is ordinarily done through methods such as examinations, interviews or
assessment of past performance. Since it is felt that the applicants belonging to the SC/ST/OBC
categories among others are at a disadvantage when they compete through these methods, a level
playing field is sought to be created by way of conferring reservation benefits.
In the domain of political participation, there can be no objective parameters to determine who is
more likely to get elected to representative institutions at any level. The choices of voters are not
guided by an objective assessment of a candidate’s merit and efficiency. Instead, they are shaped by
subjective factors such as the candidate’s ability to canvass support, past service record, professed
ideology and affiliations to organised groups among others. In this context, it is quite possible that
candidates belonging to the SC/ST/OBC categories could demonstrate these subjective qualities and
win elections against candidates from the relatively better-off groups. However, such a scenario
cannot be presumed in all circumstances. It is quite conceivable that in some localised settings,
backwardness in the social and economic sense can also act as a barrier to effective political
participation and representation. When it comes to creating a level playing field for the purpose of
elections to local bodies, backwardness in the social and economic sense can indeed be one of the
criteria for conferring reservation benefits.
It must be kept in mind that there is also an inherent difference between the nature of benefits that
accrue from access to education and employment on one hand and political representation at the
grassroots level on the other hand. While access to higher education and public employment
increases the likelihood of the socio-economic upliftment of the individual beneficiaries, participation
in local self-government is intended as a more immediate measure of empowerment for the
community that the elected representative belongs to.
The objectives of democratic decentralisation are not only to bring governance closer to the people,
but also to make it more participatory, inclusive and accountable to the weaker sections of society. In
this sense, reservations in local self-government are intended to directly benefit the community as a
whole, rather than just the elected representatives. It is for this very reason that there cannot be an
exclusion of the “creamy layer” in the context of political representation. There are bound to be
disparities in the socio-economic status of persons within the groups that are the intended
beneficiaries of reservation policies. While the exclusion of the “creamy layer” may be feasible as well
as desirable in the context of reservations for education and employment, the same principle cannot
be extended to the context of local self-government.
At the level of panchayats, the empowerment of the elected individual is only a means for pursuing
the larger end of advancing the interests of weaker sections. Hence, it would be counter-intuitive to
exclude the relatively better off persons among the intended beneficiaries from the reservation
exclude the relatively better-off persons among the intended beneficiaries from the reservation
benefits that are designed to ensure diversity in the composition of local bodies. It is quite likely that
such persons may be better equipped to represent and protect the interests of their respective
communities. We can now attempt to provide answers to the contentious issues.
Validity of reservations in favour of backward classes
With respect to the challenge against the constitutional validity of Articles 243-D(6) and 243-T(6)
which enable the reservation of seats and chairperson posts in favour of backward classes, we are in
agreement with the respondents that these are merely enabling provisions and it would be quite
improper to strike them down as violative of the equality clause. Admittedly, Articles 243-D(6) and
243-T(6) do not provide guidance on how to identify the backward classes and neither do they
specify any principle for the quantum of such reservations. Instead, discretion has been conferred on
State Legislatures to design and confer reservation benefits in favour of backward classes. It is but
natural that questions will arise in respect of the exercise of a discretionary power.
The petitioners in this case have objected to reservations in favour of OBCs to the tune of 33% in the
State of Karnataka and 27% in the State of Uttar Pradesh. Similar objections can be raised with
regard to some of the other State legislations as well. The gist of the objection is that since most of
the OBC groups are already well represented in the political space, there is no principled basis for
conferring reservation benefits on them. Based on this premise, it was contended that the
reservations in favour of OBCs do not meet the tests of “reasonable classification” and
proportionality. Furthermore, apprehensions were voiced that the reservations in favour of OBCs have
emerged as an instrument by which incumbent State Governments can engage in “vote bank” politics
by preferring one group over another. In light of these contentions, it is obvious that the petitioner’s
real concern is with overbreadth in the State legislations.
There is no doubt in our minds that excessive and disproportionate reservations provided by the
State legislations can indeed be the subject-matter of specific challenges before the courts. However,
the same does not justify the striking down of Articles 243-D(6) and 243-T(6) which are
constitutional provisions that enable reservations in favour of backward classes in the first place. As
far as the challenge against the various State legislations is concerned, we were not provided with
adequate materials or argumentation that could help us to make a decision about the same. The
identification of backward classes for the purpose of reservations is an executive function and as per
the mandate of Article 340, dedicated commissions need to be appointed to conduct a rigorous
empirical inquiry into the nature and implications of backwardness.
It is also incumbent upon the executive to ensure that reservation policies are reviewed from time to
time so as to guard against overbreadth. In respect of the objections against the Karnataka
Panchayat Raj Act, 1993, all that we can refer to is the Chinnappa Reddy Commission Report (1990)
which reflects the position as it existed twenty years ago. In the absence of updated empirical data,
it is well nigh impossible for the courts to decide whether the reservations in favour of OBC groups
are proportionate or not.
Similarly, in the case of the State of Uttar Pradesh, the claims about the extent of the OBC population
are based on the 1991 census. Reluctant as we are to leave these questions open, it goes without
saying that the petitioners are at liberty to raise specific challenges against the State legislations if
they can point out flaws in the identification of backward classes with the help of updated empirical
data.
As noted earlier, social and economic backwardness does not necessarily coincide with political
backwardness. In this respect, the State Governments are well advised to reconfigure their
reservation policies, wherein the beneficiaries under Articles 243-D(6) and 243-T(6) need not
necessarily be coterminous with the Socially and Educationally Backward Classes (SEBCs) [for the
purpose of Article 15(4)] or even the backward classes that are underrepresented in government
jobs [for the purpose of Article 16(4)]. It would be safe to say that not all of the groups which have
been given reservation benefits in the domain of education and employment need reservations in the
sphere of local self-government. This is because the barriers to political participation are not of the
same character as barriers that limit access to education and employment. This calls for some fresh
thinking and policy-making with regard to reservations in local self-government.
In the absence of explicit constitutional guidance as to the quantum of reservation in favour of

backward classes in local self-government, the rule of thumb is that of proportionate reservation.
However, we must lay stress on the fact that the upper ceiling of 50% (quantitative limitation) with
respect to vertical reservations in favour of SCs/STs/OBCs should not be breached. On the question
of breaching this upper ceiling, the arguments made by the petitioners were a little misconceived
since they had accounted for vertical reservations in favour of SCs/STs/OBCs as well as horizontal
reservations in favour of women to assert that the 50% ceiling had been breached in some of the
States. This was clearly a misunderstanding of the position since the horizontal reservations in favour
of women are meant to intersect with the vertical reservations in favour of SCs/STs/OBCs, since one-
third of the seats reserved for the latter categories are to be reserved for women belonging to the
same. This means that seats earmarked for women belonging to the general category are not
accounted for if one has to gauge whether the upper ceiling of 50% has been breached.
Admittedly reservations in excess of 50% do exist in some exceptional cases when it comes to the
Admittedly, reservations in excess of 50% do exist in some exceptional cases, when it comes to the
domain of political representation. For instance, the Legislative Assemblies of the States of Arunachal
Pradesh, Nagaland, Meghalaya, Mizoram and Sikkim have reservations that are far in excess of the
50% limit. However, such a position is the outcome of exceptional considerations in relation to these
areas. Similarly, vertical reservations in excess of 50% are permissible in the composition of local
self-government institutions located in the Fifth Schedule Areas.
Validity of reserving chairperson positions
The main criticism against the reservation of chairperson positions in local self-government is that
the same amounts to cent per cent reservation since they are akin to solitary posts. As mentioned
earlier, the petitioners have relied upon some High Court decisions (see Janardan Paswan v State of
Bihar, and Krishna Kumar Mishra v State of Bihar,), wherein it had been held that reservations of
chairperson posts in panchayats would not be permissible since the same was tantamount to the
reservation of solitary seats. However, Article 243-D(4) provides a clear constitutional basis for
reserving the chairperson positions in favour of SCs and STs (in a proportionate manner) while also
providing that one-third of all chairperson positions in each tier of the Panchayati Raj institutions
would be reserved in favour of women.
As described earlier, the considerations behind the provisions of Article 243-D cannot be readily
compared with those of Article 16(4) which is the basis for reservations in public employment. It is a
settled principle in the domain of service law that single posts cannot be reserved under the scheme
of Article 16(4) and the petitioners have rightly pointed out to some precedents in support of their
contention. However, the same proposition cannot be readily extended to strike down reservations for
chairperson positions in panchayats. This is because chairperson positions should not be viewed as
solitary seats by themselves for the purpose of reservation. Instead, the frame of reference is the
entire pool of chairperson positions in each tier of the three levels of Panchayati Raj institutions in the
entire State. Out of this pool of seats which is computed across panchayats in the whole State, the
number of offices that are to be reserved in favour of the Scheduled Castes and Scheduled Tribes is
to be determined on the basis of the proportion between the population belonging to these categories
and the total population of the State.
This interpretation is clearly supported by a bare reading of the first proviso to Article 243-D(4). It
would be worthwhile to re-examine the language of the said provision:
“243-D. (4) The offices of the chairpersons in the panchayats at the village or any other level
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:
Provided that the number of offices of chairpersons reserved for the Scheduled Castes and the
Scheduled Tribes in the panchayats at each level in any State shall bear, as nearly as may be,
the same proportion to the total number of such offices in the panchayats at each level as the
population of the Scheduled Castes in the State or of the Scheduled Tribes in the State bears to
the total population of the State:
Provided further that not less than one-third of the total number of offices of chairpersons in the
panchayats at each level shall be reserved for women:
different panchayats at each level.”
As may be evident from the abovementioned provision, when the frame of reference is the entire
pool of chairperson positions computed across each tier of the Panchayati Raj institutions in the
entire State, the possibility of cent per cent reservation does not arise. For this purpose, a loose
analogy can be drawn with reservations in favour of the Scheduled Castes and Scheduled Tribes for
the purpose of elections to the Lok Sabha and the respective Vidhan Sabhas. Before elections to
these bodies, the Election Commission earmarks some electoral constituencies as those which are
reserved for candidates belonging to the SC/ST categories. For the purpose of these reservations, the
frame of reference is the total number of Lok Sabha or Vidhan Sabha seats in a State and not the
single position of an MP or MLA respectively. Coming back to the context of chairperson positions in
panchayats, it is therefore permissible to reserve a certain number of these offices in favour of the
Scheduled Castes, Scheduled Tribes and women, provided that the same is done in accordance with
the provisos to Article 243-D(4).
In the case of urban local bodies, Article 243-T(4) also enables reservation of chairperson posts in
favour of the Scheduled Castes, Scheduled Tribes and women. However, there are no further
specifications to guide the reservation of chairperson positions in urban areas. While it is not possible
for us to ascertain the legislative intent behind the same, one can perhaps theorise that there was an
assumption that the intended beneficiaries are in a relatively better-off position to overcome barriers
to political participation in urban local bodies, when compared with rural local bodies.
It was also contended that since chairpersons of panchayats and municipalities are entrusted with
executive powers, reserving these posts could prove to be the precursor for reservations of executive
offices at higher levels of government. It was even suggested that the reservation of chairperson
g g gg p
posts was akin to reserving the posts of Chief Minister and Prime Minister at the State and national
level, respectively. In our opinion, this analogy with the higher levels of government is misplaced.
The offices of chairpersons in panchayats and municipalities are reserved as a measure of protective
discrimination, so as to enable the weaker sections to assert their voice against entrenched interests
at the local level. The patterns of disadvantage and discrimination faced by persons belonging to the
weaker sections are more pervasive at the local level. Unlike elected representatives in the Lok
Sabha and the Vidhan Sabha who can fall back on the support of mainstream political parties as well
as media scrutiny as a safeguard against marginalisation and unjust discrimination, elected
representatives from the disadvantaged sections may have no such support structures at the local
level. In this respect, the Union Parliament thought it fit to enable reservations of chairperson
positions in order to ensure that not only are the weaker sections adequately represented in the
domain of local self-government, but that they also get a chance to play leadership roles.
The petitioners have asked us to reconsider the precedents wherein the rights of political
participation have been characterised as statutory rights. It has been argued that in view of the
standard of reasonableness, fairness and non-discrimination required of governmental action under
Article 21 of the Constitution, there is a case for invalidating the restrictions that have been placed
on these rights as a consequence of reservations in local self-government. We do not agree with this
contention.
In this case, we are dealing with an affirmative action measure and hence the test of proportionality
is a far more appropriate standard for exercising judicial review. It cannot be denied that the
reservation of chairperson posts in favour of candidates belonging to the Scheduled Castes,
Scheduled Tribes and women does restrict the rights of political participation of persons from the
unreserved categories to a certain extent. However, we feel that the test of reasonable classification
is met in view of the legitimate governmental objective of safeguarding the interests of weaker
sections by ensuring their adequate representation as well as empowerment in local self-government
institutions. The position has been eloquently explained in the respondents’ submissions, wherein it
has been stated that “the asymmetries of power require that the chairperson should belong to the
disadvantaged community so that the agenda of such panchayats is not hijacked for majoritarian
reasons”. (Cited from the submissions on behalf of the State of Bihar, p 49.)
There have of course been some arguments doubting the efficacy of reserving chairperson posts,
mostly on the premise that this does not lead to the actual empowerment of the intended
beneficiaries, since they are still dominated by the traditionally powerful sections. Especially in the
case of elected women representatives at the local level, it is often argued that the real power is
exercised by the male members of their families. We are also alert to the frequent reports of
instances where women representatives have asserted themselves, thereby inviting the wrath of the
retrograde patriarchal society. However, there are also increasing reports about success stories which
show that enhancing women’s participation in local self-government has expanded social welfare.
Irrespective of such concerns about the efficacy of reservations in local self-government, it is not
proper for the judiciary to second-guess a social welfare measure that has been incorporated by way
of a constitutional amendment. In the light of these considerations, we reject the challenge in respect
of the constitutional validity of Article 243-D(4) and 243-T(4).
Conclusion
In view of the above, our conclusions are:
(i) The nature and purpose of reservations in the context of local self-government is considerably
different from that of higher education and public employment. In this sense, Article 243-D and
Article 243-T form a distinct and independent constitutional basis for affirmative action and the
principles that have been evolved in relation to the reservation policies enabled by Articles 15(4)
and 16(4) cannot be readily applied in the context of local self-government. Even when made,
they need not be for a period corresponding to the period of reservation for the purposes of
Articles 15(4) and 16(4), but can be much shorter.
(ii) Article 243-D(6) and Article 243-T(6) are constitutionally valid since they are in the nature of
provisions which merely enable the State Legislatures to reserve seats and chairperson posts in
favour of backward classes. Concerns about disproportionate reservations should be raised by
way of specific challenges against the State legislations.
(iii) We are not in a position to examine the claims about overbreadth in the quantum of reservations
provided for OBCs under the impugned State legislations since there is no contemporaneous
empirical data. The onus is on the executive to conduct a rigorous investigation into the patterns
of backwardness that act as barriers to political participation which are indeed quite different
from the patterns of disadvantages in the matter of access to education and employment. As we
have considered and decided only the constitutional validity of Articles 243-D(6) and 243-T(6),
it will be open to the petitioners or any aggrieved party to challenge any State legislation
enacted in pursuance of the said constitutional provisions before the High Court. We are of the
view that the identification of “backward classes” under Article 243-D(6) and Article 243-T(6)
should be distinct from the identification of SEBCs for the purpose of Article 15(4) and that of
backward classes for the purpose of Article 16(4).
(iv) The upper ceiling of 50% vertical reservations in favour of SCs/STs/OBCs should not be breached
in the context of local self-government. Exceptions can only be made in order to safeguard the
interests of the Scheduled Tribes in the matter of their representation in panchayats located in
the Scheduled Areas.
(v) The reservation of chairperson posts in the manner contemplated by Articles 243-D(4) and
243-T(4) is constitutionally valid. These chairperson posts cannot be equated with solitary posts
in the context of public employment.
Constitutional Bar on Judicial Interference in the election process
• Once an election process has been set in motion, the High Courts would not be justified
in interfering with the process.
Boddula Krishnaiah v State Election Commissioner, AP, (1996) 3 SCC 416 [LNIND 1996 SC
636], AIR 1996 SC 1595 [LNIND 1996 SC 636]. [3 Judge Bench]
ORDER
Article 243-O of the Constitution envisages bar on interference by courts in election matters.
Notwithstanding anything contained in the Constitution, under sub-clause (b) “no election to any
Panchayat shall be called in question except by an election petition presented to such authority and
in such manner as is provided for by or under any law made by the Legislature of a State”. Thus
there is a constitutional bar on interference with the election process except by an election petition,
presented to an Election Tribunal as may be made by or under law by the competent legislature and
in the manner provided thereunder. Power of the court granting stay of the election process is no
longer res integra. 27
Thus, it would be clear that once an election process has been set in motion, though the High Court
may entertain or may have already entertained a writ petition, it would not be justified in interfering
with the election process giving direction to the election officer to stall the proceedings or to conduct
the election process afresh, in particular when election has already been held in which the voters
were allegedly prevented from exercising their franchise. As seen, that dispute is covered by an
election dispute and remedy is thus available at law for redressal.
Under these circumstances, we hold that the order passed by the High Court is not correct in law in
giving direction not to declare the result of the election or to conduct fresh poll for 20 persons,
though the writ petition is maintainable. The High Court, pending writ petition, would not be justified
in issuing direction to stall the election process. It is made clear that though we have held that the
respondents are not entitled to the relief by interim order, this order does not preclude any candidate
including defeated candidate from canvassing the correctness of the election. They are free, as held
earlier, to seek remedy by way of an election petition as provided in the Act and the Rules.
Elections to Panchayats and Municipalities
• Once an election process has been set in motion, the High Courts would not be justified
in interfering with the election process.
• It is necessary for all the State Governments to recognise the significance of the State
Election Commission, which is a constitutional body and they shall abide by the
directions of the Commission in the same manner in which it follows the directions of the
Election Commission of India during the elections for Parliament and the State
Legislatures.
• In the domain of elections to the panchayats and the municipal bodies under Pt IX and
Pt IX-A for the conduct of the elections to these bodies they enjoy the same status as
the Election Commission of India.
• In terms of Article 243-K and Article 243-ZA(1) the same powers are vested in the State
Election Commission as the Election Commission of India under Article 324.
• In the matter of their powers of superintendence, direction and control of all elections
and preparation of electoral rolls for, and the conduct of, all elections to the panchayats
and municipalities, State Election Commissions have to function independently and the
State Governments cannot interfere with such independent functioning.
• In the matter of conduct of elections, the State governments concerned shall have to
render full assistance and cooperation to the State Election Commission and respect the
latter’s assessment of the needs in order to ensure that free and fair elections are
conducted.
• State Election Commission, where it feels that it is not receiving the cooperation of the
State Government concerned in discharging its constitutional obligations of holding the
elections to the panchayats or municipalities within the time mandated in the
Constitution, it will be open to the State Election Commission to approach the High
Courts, in the first instance, and thereafter the Supreme Court for a writ of mandamus or
such other appropriate writ directing the State Government concerned to provide all
necessary cooperation and assistance to the State Election Commission to enable the
latter to fulfill the constitutional mandate.
• It is incumbent upon the Election Commission and other authorities to carry out the
mandate of the Constitution and ensure that a new municipality is constituted in time
and elections to the municipality are conducted before the expiry of duration of five
years as specified in clause (1) of Article 243-U.
• State Election Commission shall not put forward any excuse based on unreasonable
grounds that the election could not be completed in time.
• Any revision of electoral rolls shall be carried out in time and if it cannot be carried out
within a reasonable time, the election has to be conducted on the basis of the then
existing electoral rolls.
• The Election Commission shall complete the election before the expiration of the
duration of five years’ period as stipulated in clause (5) and not yield to situations that
may be created by vested interests to postpone elections from being held within the
stipulated time.
• Certain man-made calamities, such as rioting or breakdown of law and order, or natural
calamities which could distract the authorities from holding elections and these will be
exceptional circumstances and not be a regular feature.
Kishansing Tomar v Municipal Corpn., Ahmedabad, (2006) 8 SCC 352 [LNIND 2006 SC 847]. [5
Judge Bench]
[KG Balakrishnan, J]
This appeal is directed against the judgment of the Division Bench of the High Court of Gujarat. The
appellant filed Special Civil Application No 9847 of 2005 praying for a writ of mandamus or any other
appropriate writ or direction to the respondents in the writ petition, namely, the Municipal
Corporation of the City of Ahmedabad, the State of Gujarat and the Gujarat State Election
Commission, to take all steps necessary for the purpose of holding elections for constituting the
Municipal Corporation of the City of Ahmedabad before the expiry of the duration of the municipal
corporation constituted pursuant to the elections held in October 2000. The appellant, who was the
writ petitioner before the High Court, was the Chairman of the Standing Committee of the
Ahmedabad Municipal Corporation (hereinafter referred to as “AMC”). The elected body of AMC was
constituted for the relevant period pursuant to an election held in October 2000 and its term was due
to expire on 15 October 2005. The appellant apprehended that the authorities may delay the process
of election to constitute the new municipal body and therefore filed the aforesaid writ petition on 23
August 2005. …
We heard the appellant’s counsel as also the counsel for the respondents. The main thrust of the
arguments of the appellant’s counsel was that in view of the various provisions contained in Part IX-A
of the Constitution of India, it was incumbent on the part of the authorities to complete the process
of election before the expiry of the period of five years from the date appointed for first meeting of
the municipality. The counsel for the respondents, especially the counsel for the State Election
Commission contended that every effort was made by the Election Commission to conduct the
elections before the stipulated time, but due to unavoidable reasons, the elections could not be held
and the preparation of the electoral rolls and the increase in the number of wards had caused delay
in the process of election and under such circumstances the delay was justified in conducting the
elections.
The question that arises for consideration is whether Article 243-U of the Constitution, by which
the duration of the municipality is fixed is mandatory in nature and any violation could be justified in
the circumstances stated by the respondents. Article 243-U of the Constitution reads as follows:
“243-U. 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,—
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 243-ZA provides that 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 a State
Election Commission referred to in Article 243-K.
Article 243-S states that 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 and
that the State Legislature may by law make provision with respect to (a) the composition and the
territorial area of a Wards Committee; and (b) the manner in which the seats in a Wards Committee
shall be filled.
Under Article 243-T, it is provided that the 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. Further, clause (2) of Article 243-T says that
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. Clause (3)
of this article further provides that 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. Clause (6) empowers the State
Legislature to make any provision for reservation of seats in any municipality or offices of
Chairpersons in the municipalities in favour of Backward Class of citizens.
The provisions contained in the Bombay Provincial Municipal Corporations Act, 1949 also are relevant
to be noted here. Section 6 of this Act deals with the duration of a corporation. It reads as under:
“6. Duration of corporation.—(1) Every corporation, unless sooner dissolved, shall continue for a
period of five years from the date appointed for its first meeting and no longer.
(2) A corporation constituted upon the dissolution of a corporation before the expiration of its
duration, shall continue for the remainder of the period for which the dissolved corporation would
have continued under sub-section (1) had it not been so dissolved.”
Section 6-A reads as under:
“6-A. Term of office of Councillors.—The term of office of the Councillors shall be co-terminus
with the duration of the corporation.”
Section 6-B is to the following effect:
“6-B. Election to constitute a corporation.—An election to constitute a corporation shall be

completed—
(a) before the expiration of its duration specified in sub-section (1) of Section 6; or
Provided that where the remainder of the period for which the dissolved corporation would have
continued is less than six months, it shall not be necessary to hold any election under this section
for constituting the corporation for such period.”
It may be noted that Part IX-A was inserted in the Constitution by virtue of the Constitution
(Seventy-fourth) Amendment Act, 1992. The object of introducing these provisions was that in
many States the local bodies were not working properly and the timely elections were not
b i h ld d th i t d b di ti i f l i d El ti h db
being held and the nominated bodies were continuing for long periods. Elections had been
irregular and many times unnecessarily delayed or postponed and the elected bodies had
been superseded or suspended without adequate justification at the whims and fancies of
the State authorities. These views were expressed by the then Minister of State for Urban
Development while introducing the Constitution Amendment Bill before Parliament and thus the
new provisions were added in the Constitution with a view to restore the rightful place in political
governance for local bodies. It was considered necessary to provide a constitutional status to such
bodies and to ensure regular and fair conduct of elections. …
The effect of Article 243-U of the Constitution is to be appreciated in the above background. Under
this art, the duration of the municipality is fixed for a term of five years and it is stated that every
municipality shall continue for five years from the date appointed for its first meeting and no longer.
Clause (3) of Article 243-U states that election to constitute a municipality shall be completed—(a)
before the expiry of its duration specified in clause (1), or (b) before the expiration of a period of six
months from the date of its dissolution. Therefore, the constitutional mandate is that election to a
municipality shall be completed before the expiry of the five years’ period stipulated in clause (1) of
Article 243-U and in case of dissolution, the new body shall be constituted before the expiration of a
period of six months and elections have to be conducted in such a manner. A proviso is added to sub-
clause (3) of Article 243-U that in case of dissolution, 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. It is also specified in
clause (4) of Arte 243-U that 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.
So, in any case, the duration of the municipality is fixed as five years from the date of its
first meeting and no longer. It is incumbent upon the Election Commission and other
authorities to carry out the mandate of the Constitution and to see that a new municipality
is constituted in time and elections to the municipality are conducted before the expiry of
its duration of five years as specified in clause (1) of Article 243-U.
The counsel for the respondents contended that due to multifarious reasons, the State Election
Commission may not be in a position to conduct the elections in time and under such circumstances
the provisions of Article 243-U could not be complied with stricto sensu.
A similar question came up before the Constitution Bench of this Court in Special Reference No 1 of
2002 [Re Special Reference No 1 of 2002, (2002) 8 SCC 237 [LNIND 2002 SC 1378]] with reference
to the Gujarat Assembly Elections matter. The Legislative Assembly of the State of Gujarat was
dissolved before the expiration of its normal duration. Article 174(1) of the Constitution provides
that six months shall not intervene between the last sitting of the Legislative Assembly in one
session and the date appointed for its first sitting in the next session and the Election Commission
had also noted that the mandate of Article 174 would require that the Assembly should meet every
six months even after dissolution of the House and that the Election Commission had all along been
consistent that normally a Legislative Assembly should meet at least every six months as
contemplated by Article 174 even where it has been dissolved. As the last sitting of the Legislative
Assembly of the State of Gujarat was held on 3 April 2002, the Election Commission, by its order
dated 16 August 2002, had not recommended any date for holding general election for constituting a
new Legislative Assembly for the State of Gujarat and observed that the Commission will consider
framing a suitable schedule for the general election to the State Assembly in November-December
2002, and therefore, the mandate of Article 174(1) of the Constitution of India to constitute a new
Legislative Assembly cannot be carried out. The reference, thus, came up before this Court.
Speaking for the Bench, Khare, J as he then was, in para 79 of the answer to the reference, held:
(SCC p 288)
“79. However, we are of the view that the employment of the words ‘on an expiration’ occurring
in ss 14 and 15 of the Representation of the People Act, 1951 respectively show that the Election
Commission is required to take steps for holding election immediately on expiration of the term
of the Assembly or its dissolution, although no period has been provided for. Yet, there is another
indication in ss 14 and 15 of the Representation of the People Act that the election process can
be set in motion by issuing of notification prior to the expiry of six months of the normal term of
the House of the People or Legislative Assembly. Clause (1) of Art 172 provides that while
promulgation of emergency is in operation, Parliament by law can extend the duration of the
Legislative Assembly not exceeding one year at a time and this period shall not, in any case,
extend beyond a period of six months after promulgation has ceased to operate. … The aforesaid
provisions do indicate that on the premature dissolution of the Legislative Assembly, the Election
Commission is required to initiate immediate steps for holding election for constituting Legislative
Assembly on the first occasion and in any case within six months from the date of premature
dissolution of the Legislative Assembly.”
Concurring with the foregoing opinion, Pasayat, J in para 151, stated as follows: (SCC p 322)
“151. The impossibility of holding the election is not a factor against the Election Commission.
The maxim of law impotentia excusat legem is intimately connected with another maxim of law
The maxim of law impotentia excusat legem is intimately connected with another maxim of law
lex non cogit ad impossibilia. Impotentia excusat legem is that when there is a necessary or
invincible disability to perform the mandatory part of the law that impotentia excuses. The law
does not compel one to do that which one cannot possibly perform. ‘Where the law creates a
duty or charge, and the party is disabled to perform it, without any default in him, and has no
remedy over it, there the law will in general excuse him.’ Therefore, when it appears that the
performance of the formalities prescribed by a statute has been rendered impossible by
circumstances over which the persons interested had no control, like an act of God, the
circumstances will be taken as a valid excuse. Where the act of God prevents the compliance
with the words of a statute, the statutory provision is not denuded of its mandatory character
because of supervening impossibility caused by the act of God. (See Broom’s Legal Maxims, 10th
Edn, at pp 1962-63 and Craies on Statute Law, 6th Edn, p 268.) These aspects were highlighted
by this Court in Special Reference No 1 of 1974 [Presidential Poll, In re, (1974) 2 SCC 33 [LNIND
2002 SC 665]]. Situations may be created by interested persons to see that elections do not take
place and the caretaker Government continues in office. This certainly would be against the
scheme of the Constitution and the basic structure to that extent shall be corroded.”
From the opinion thus expressed by this Court, it is clear that the State Election Commission shall not
put forward any excuse based on unreasonable grounds that the election could not be completed in
time. The Election Commission shall try to complete the election before the expiration of the duration
of five years’ period as stipulated in clause (5). Any revision of electoral rolls shall be carried
out in time and if it cannot be carried out within a reasonable time, the election has to be
conducted on the basis of the then existing electoral rolls. In other words, the Election
Commission shall complete the election before the expiration of the duration of five years’
period as stipulated in clause (5) and not yield to situations that may be created by vested
interests to postpone elections from being held within the stipulated time.
The majority opinion in Lakshmi Charan Sen v AKM Hassan Uzzaman, [(1985) 4 SCC 689 [LNIND
1985 SC 182]] held that the fact that certain claims and objections are not finally disposed of while
preparing the electoral rolls or even assuming that they are not filed in accordance with law cannot
arrest the process of election to the legislature. The election has to be held on the basis of the
electoral rolls which are in force on the last date for making nomination. It is true that the Election
Commission shall take steps to prepare the electoral rolls by following due process of law, but that
too, should be done timely and in no circumstances, it shall be delayed so as to cause gross violation
of the mandatory provisions contained in Article 243-U of the Constitution.
It is true that there may be certain man-made calamities, such as rioting or breakdown of law and
order, or natural calamities which could distract the authorities from holding elections to the
municipality, but they are exceptional circumstances and under no (sic other) circumstance would the
Election Commission be justified in delaying the process of election after consulting the State
Government and other authorities. But that should be an exceptional circumstance and shall not
be a regular feature to extend the duration of the municipality. Going by the provisions contained
in Article 243-U, it is clear that the period of five years fixed thereunder to constitute the
municipality is mandatory in nature and has to be followed in all respects. It is only when the
municipality is dissolved for any other reason and 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
elections for constituting the municipality for such period.
In our opinion, the entire provision in the Constitution was inserted to see that there should not be
any delay in the constitution of the new municipality every five years and in order to avoid the
mischief of delaying the process of election and allowing the nominated bodies to continue, the
provisions have been suitably added to the Constitution. In this direction, it is necessary for all the
State Governments to recognise the significance of the State Election Commission, which is a
constitutional body and it shall abide by the directions of the Commission in the same
manner in which it follows the directions of the Election Commission of India during the
elections for Parliament and the State Legislatures. In fact, in the domain of elections to the
panchayats and the municipal bodies under Part IX and Part IX-A for the conduct of the elections to
these bodies they enjoy the same status as the Election Commission of India.
In terms of Article 243-K and Article 243-ZA(1) the same powers are vested in the State Election
Commission as the Election Commission of India under Article 324. The words in the former
provisions are in pari materia with the latter provision.
The words, “superintendence, direction and control” as well as “conduct of elections” have been held
in the “broadest of terms” by this Court in several decisions including Special Reference No 1 of
2002, Re [Re Special Reference No 1 of 2002, (2002) 8 SCC 237 [LNIND 2002 SC 1378]] and
Mohinder Singh Gill case [Mohinder Singh Gill v Chief Election Commr, (1978) 1 SCC 405 [LNIND
1977 SC 332]] and the question is whether this is equally relevant in respect of the powers of the
State Election Commission as well.
From a reading of the said provisions it is clear that the powers of the State Election
Commission in respect of conduct of elections is no less than that of the Election
Commission of India in their respective domains. These powers are, of course, subject to the
law made by Parliament or by the State Legislatures, provided the same do not encroach upon the
plenary powers of the said Election Commissions.
The State Election Commissions are to function independent of the State Governments
The State Election Commissions are to function independent of the State Governments
concerned in the matter of their powers of superintendence, direction and control of all
elections and preparation of electoral rolls for, and the conduct of, all elections to the
panchayats and municipalities.
Article 243-K(3) also recognises the independent status of the State Election Commission. It states
that upon a request made in that behalf the Governor shall make available to the State Election
Commission “such staff as may be necessary for the discharge of the functions conferred on the
State Election Commission by clause (1)”. It is accordingly to be noted that in the matter of the
conduct of elections, the Government concerned shall have to render full assistance and
cooperation to the State Election Commission and respect the latter’s assessment of the
needs in order to ensure that free and fair elections are conducted.
Also, for the independent and effective functioning of the State Election Commission, where it feels
that it is not receiving the cooperation of the State Government concerned in discharging its
constitutional obligation of holding the elections to the panchayats or municipalities within the time
mandated in the Constitution, it will be open to the State Election Commission to approach
the High Courts, in the first instance, and thereafter the Supreme Court for a writ of
mandamus or such other appropriate writ directing the State Government concerned to
provide all necessary cooperation and assistance to the State Election Commission to
enable the latter to fulfil the constitutional mandate.
Taking into account these factors and applying the principles of golden rule of interpretation, the
object and purpose of Article 243-U is to be carried out.
***
23 See also Sundargarh Zilla Adivasi Advocates Association v State of Odisha, (2013) 14 SCC 217
[LNIND 2013 SC 494].
24 Judgment of Division Bench of the Karnataka High Court.
25 The Court extracted Articles 243Q, 243W, 243ZD, 243ZE, 243ZF and proceeded.
26 The Court thereafter identified the relevant provisions of the 3 Acts of the Karnataka Legislature
and then proceeded.
27 Thereafter the court referred to NP Ponnuswamy v Returning Officer, Namakkal Constituency,

(AIR 1952 SC 64 [LNIND 1952 SC 2]), Lakshmi Charan Sen v AKM Hasssan Uzzaman, (1985) 4
SCC 689 [LNIND 1985 SC 182], State of UP v Pradhan Sangh Kshettra Samiti, (1995) Supp (2)
SCC 305 and proceeded.
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Document: ARTICLES 243P to 243-Z, 243ZA to 243ZG
ARTICLES 243P to 243-Z, 243ZA to 243ZG
Samaraditya Pal
Article 243
ARTICLES 243P to 243-Z, 243ZA to 243ZG

7 [PART IXA 8 THE MUNICIPALITIES
243P. Definitions.–In this Part, unless the context otherwise requires, -
(a) “Committee” means a Committee constituted under article 243S;
(b) “district” means a district in a State;
(c) “Metropolitan area” means 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 the Governor by public notification to be a Metropolitan area for the purposes
of this Part;
(d) “Municipal area” means the territorial area of a Municipality as is notified by the Governor;
(e) “Municipality” means an institution of self-government constituted under article 243Q;
(f) “Panchayat” means a Panchayat constituted under article 243B;
(g) “population” means the population as ascertained at the last preceding census of which the
relevant figures have been published.
243Q. Constitution of Municipalities.–(1) There shall be constituted in every State,-
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(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.
243R. 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.
243S. 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
( ) p y p g
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.
243T. 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 Casts 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 Casts or, as the case may be, the Scheduled Tribes.
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.
243U. 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--
(b) before the expiration of a period of six months from the date of the 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.
243V. 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 purpose 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.
243W. 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
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 responsibility conferred upon them including those in relation to the matters listed in the
Twelfth Schedule.
243X. Power to impose taxes by, and Funds of, the Municipalities.–The Legislature of a State may, by
law—
(a) authorize 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.

9 243Y. 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 Par
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.
243Z. 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.
243ZA. 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 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.
243ZB. 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.
243ZC. Part not to apply to certain areas.–(1) Nothing in this Part shall apply to the Scheduled
Areas referred to in clause (1) and 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.
10 243ZD. 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.
11 243ZE. 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 total number of 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 Panchayat in that area;
(c) the representation, in such Committees of the Government of India and the Government of the
State and of such organizations and institutions as may be deemed necessary for carrying out
the functions assigned to such Committees;
(d) the functions relating to planning and co-ordination 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 organizations 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.
243ZF. 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 12 , 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.
243ZG. 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.
7 Part IXA (containing Articles 243P to 243Z, 243ZA to 243ZG) instituted by the Constitution
(Seventy-fourth Amendment) Act, 1992, section 2 (w.e.f. 1-6-1993).
8 In exercise of the powers conferred by the proviso to Article 243ZB of the Constitution, the
President, hereby, directs that the provisions of Pt IXA of the Constitution shall apply to the Union
Territory of Dadra and Nagar Haveli subject to the following exceptions and modifications namely:
—
In Article 243Y of the Constitution in clause (1) for the word “Governor” at both the places
In Article 243Y of the Constitution, in clause (1), for the word Governor , at both the places,
the word “President” shall be substituted. [Vide SO 615(E), dated 21-5-2004, published in the
Gazette of India, Extra, Pt II, section 3(ii), dated 21-5-2004].
9 In its application to the Union Territory of Dadra and Nagar Haveli, in clause (1) of Article 243Y, for
the word “Governor”, at both the places the word “President” shall be substituted. [Vide SO 615(E),
dated 21-5-2004, published in the Gazette of India, Extra, Pt II, section 3(ii), dated 21-5-2004].
10 The provisions of Article 243ZD shall not apply to the National Capital Territory of Delhi, vide SO
1125(E), dated 12-11-2001.
11 The provisions of Article 243ZE shall not apply to the National Capital Territory of Delhi, vide SO
1125(E), dated 12-11-2001.
12 1 June 1993.
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CONSTITUENT ASSEMBLY DEBATES

243 Articles 243A to 243O, Articles 243P to 243ZG

CONSTITUENT ASSEMBLY DEBATES

Mr President: It is suggested that we take up Article 215.

Shri Brajeshwar Prasad: Sir, I move:

‘That for Article 215, the following be substituted:—

Sir, I move without offering any comments.

The Honourable Dr B R Ambedkar: I have nothing to say, Sir.

The Honourable Dr B R Ambedkar: That is so. It is a kind of adaptation. In regard to the

The question is:

‘That for Article 215, the following be substituted’:—

The amendment was negatived.

Mr President: The question is:

“That Article 215 stand part of the Constitution.”

The motion was adopted.

Article 215 was added to the Constitution. 3

2 Constituent Assembly Debates, volume IX, pp 1580-1582.

• 243. Administration of territories in Part D of the First Schedule and other

territories not specified in that Schedule.—(1) Any territory specified in Part D of

extent as he thinks fit, through a Chief Commissioner or other authority to be

Act of Parliament which applies to such territory.

Content Type: IN Analytical Materials

Date and Time: 05/Jan/2021 11:39:28 p.m. IST

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LOK SABHA DEBATES

243 Articles 243A to 243O, Articles 243P to 243ZG

LOK SABHA DEBATES 17

Constitution (Seventy-second Amendment) Bill, 1991 18 1

Mr Chairman: Motion moved.

Constitution (Seventy-Third Amendment) Bill (Insertion of New

The Minister of Urban Development (Shrimati Sheila Kaul): I beg to move:

Mr Deputy Speaker: Motion moved:

Shri Kashiram Rana

Mr Deputy Speaker: Shri Kanshiram Rana. (Interruptions)

Constitution (Seventy-Second Amendment) Bill Insertion of New

17 Introduced in Lok Sabha on 16-9-1991 and passed.

• Considered in: Lok Sabha Debates,

• 1-12-1992, Lok Sabha Debates;

• 2-12-1992, Lok Sabha Debates;

• 4-12-1992, Lok Sabha Debates;

• 21-12-1992, Lok Sabha Debates;

• 22-12-1992, Lok Sabha Debates (Bill also passed on this date).

18 The Constitution (Seventy-third Amendment) Act, 1992.

Content Type: IN Analytical Materials

Date and Time: 06/Jan/2021 12:58:10 a.m. IST

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Constitution (Seventy-Third Amendment) Bill Insertion of New

243 Articles 243A to 243O, Articles 243P to 243ZG

Constitution (Seventy-Third Amendment) Bill Insertion of New

Mr Deputy Speaker: We now continue with the Constitution Amendment Bills.

Shri Kashiram Rana to continue.

With these words, I conclude.

Public opinion has impelled us all to support these measures now.

I conclude and extend my thanks to you for giving me an opportunity to speak.

Now, the Lobbies have been cleared.

Shri Somnath Chatterjee (Bolpur): We have accepted it.

Clause 2 – Insertion of new Part-IX – Amendments made

Page 1, in line 12, omit “revenue” (3)

Page 2, for lines 16 to 18, substitute – Gram Sabha.

Page 2, for line 19 to 22, substitute,

“ Constitution 243B. of Panchayats.

levels in accordance with the provisions of this Part,

constituted in a State having a population not exceeding twenty lakhs.”(5)