Block-1 CONSTITUTIONAL FRAMEWORK

Indira Gandhi
National Open University BLE-004

School of Law
Rural Local Self
Governance
Block
1
CONSTITUTIONAL FRAMEWORK
UNIT 1
Structure and Composition 5
UNIT 2
Gram Sabha 21
UNIT 3
Powers of Panchayats 37
UNIT 4
Financial Powers 47
Expert Committee
Prof. (Dr.) N.R. Madhava Menon Ms. Vrinda Grover
Member, Commission on Centre-State Director
Relations, New Delhi Multiple Action Research Group (MARG),
Former Director, NLSIU, Bangalore and New Delhi
National Judicial Academy, Bhopal
Ms. Abha Joshi
Prof. B.B. Pande Lawyer, New Delhi
Former Professor of Criminal Law,
Dr. Manik Chakrabarty
Law Faculty, University of Delhi
Professor, Department of Law
Mr. Babu Mathew The University of Burdwan, West Bengal
Country Director Prof. Srikrishna Deva Rao
Action Aid India, New Delhi Director, School of Law, IGNOU
Prof. S. Siva Kumar Prof. K. Elumalai
Research Professor Professor, School of Law, IGNOU
Indian Law Institute
Ms. Suneet Kashyap
New Delhi
Asst. Prof., School of Law, IGNOU
Prof. M. R. K. Prasad Ms. Gurmeet Kaur
V.M. Salgaocar College of Law Asst. Prof., School of Law, IGNOU
Panaji, Goa
Mr. Anand Gupta
Ms. M. Roopa Asst. Prof., School of Law, IGNOU
Independent Scholar
Ms. Mansi Sharma
Bangalore
Asst. Prof., School of Law, IGNOU
Block Preparation Team
Programme Coordinator : Prof. Srikrishna Deva Rao and Mr. Anand Gupta
Unit Writers : Units 1, 2, 3, 4: Ms. Atreyee Majumdar (1ts draft)
Ms. Ushajee Peri (Revision)
Content Editor : Units 2, 3 and 4: Dr.s S.K.Singh (NIRD, Hyderabad)
Consultant : Ms. Jaishree Suryanarayanan
Material Production
Mr. Yashpal
Section Officer (Publication)
IGNOU, New Delhi
May, 2010
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BLE-004 RURAL LOCAL SELF
GOVERNANCE
In the first block, we will give an overview of the constitutional framework for
giving effect to rural local self governance. We will discuss the relevant changes
introduced by the 73 rd constitutional amendment pertaining to structure,
composition, powers and finances of Panchayati Raj Institutions (PRIs). We
will also analyse the critical issues that need to be addressed for translating the
constitutional mandate into reality.
In the second block, we will discuss some select themes that impact on peoples’
lives and well being in the villages, and are subjects that need to be addressed by
local governments. The topics that we have selected are Access to Justice: Gram
Nyayalayas, Microfinance and Disaster Management. For the ordinary and poor
people it is important to get quick, easy and affordable justice near their homes.
In this context, we will examine the main provisions of the Gram Nyayalayas
Act. We will discuss the role of Microfinance as one tool that is aimed at reducing
rural poverty. We will also discuss our national law and policy on disaster
management and the institutional mechanisms in place for disaster management
at the national, state and district levels.
The third block is on ‘Realisation of Social and Economic Rights’. We will

discuss the nature, content and scope of the right to food, work, health and
housing. We will examine the role of PRIs in this context.
For the fourth block on ‘Natural Resources and the Law’, we have selected land,
water and forests to explore issues of access, tenure and management. We will
provide an overview of land rights and the basic elements of land laws. We will
also examine the provisions of the Land Acquisition Act, 1894, and its effects,
criticisms and the proposed changes to this law. We will identify and understand
the various contours to water law and rights in the country. The Forest Rights
Act marks a new beginning in the recognition of traditional rights of forest
dwellers. We will discuss the forest rights under the Act and examine the role of
gram panchayats in securing tenure and access, and in the management of forests.
Constitutional Framework
BLOCK 1 CONSTITUTIONAL
FRAMEWORK
In the first block we will give an overview of the constitutional framework for
giving effect to rural local self governance. Apart from discussing the relevant
provisions, we will analyse the critical issues that need to be addressed for
translating the constitutional mandate in to reality.
The philosophy of Panchayati Raj is driven by the recognition that the critical
needs of communities, such as health, sanitation, clean water, education, and
livelihood can only be met locally through local responsibility, accountability,
and utilising local resources. In the first unit on ‘Structure and Composition’,
we will briefly trace the historical evolution of Panchayati Raj Institutions (PRIs)
before discussing the constitutional provisions pertaining to the structure and
composition of PRIs introduced by the 73rd amendment. We will also look into
the provisions that provide for elections to Panchayats and address some critical
issues in this regard. We will conclude the unit by analysing the functioning of
PRIs and look at some institutional mechanisms for ensuring accountability.
As the basic unit of direct democracy, a Gram Sabha can be a forum for
deliberative democracy. It not only elects the Gram Panchayat but also monitors
its actions. A strong and effective Gram Sabha will ensure that the concerned
Panchayat functions properly and is accountable. In the second unit on ‘Gram
Sabha’, we will discuss the constitutional status of the Gram Sabha and its
functions and analyse the functioning of Gram Sabhas and issues that need to be
addressed to make them more effective. The Panchayats (Extension to Scheduled
Areas) Act (PESA) confers significantly greater powers on Gram Sabhas in
Scheduled Areas to actively participate in governance. We will also discuss the
powers and functions of a Gram Sabha under PESA.
PRIs have to take over administrative duties and work towards the socio-economic
development of the local population. The Constitution gives a list of items that
cover almost all aspects of village life to guide the states in devolution of powers
to Panchayats. In the third unit, we will learn about the scope of the powers and
consequent responsibilities conferred on PRIs. We will examine the problems
that are encountered in devolution of effective powers to Panchayats by states
and discuss the role of activity mapping in addressing some of these issues.
For decentralised governance to become a reality, it is necessary and important

that panchayats are not only conferred powers and authority, but also need to be
given sufficient financial resources and be empowered to generate necessary
financial resources through taxes and levies. In the fourth unit, we will examine
the sources and management of finances of a Panchayat, and evaluate the powers
of Panchayats in raising their own resources through taxes and levies. We will
examine the role that State Finance Commissions can play in this regard.
4
Structure and Composition
UNIT 1 STRUCTURE AND COMPOSITION
Structure
1.1 Introduction
1.2 Objectives
1.3 Historical Evolution of Panchayati Raj Institutions (PRIs)
1.4 73rd Constitutional Amendment
1.5 Elections
1.6 Analysis of Working of PRIs
1.7 Institutional Mechanisms for Ensuring Accountability
1.8 Summary
1.9 Terminal Questions
1.10 Answers and Hints
1.11 References and Suggested Readings
1.1 INTRODUCTION
India is known as the world’s largest democracy. However, it is a sad reality that
a vast majority of Indians, particularly the millions of citizens who live in villages,
are largely dependent upon remote and unresponsive government structures,
which are characterised by corruption and lack of transparency. In many parts of
rural India, there has always existed a great chasm between the people and their
government. Rural people rarely receive information or have any say in and
about the plans and actions of the government. They lack ways to influence
policies, programmes, or resource allocations for development. Many have no
effective means of participating in shaping their future and government officials
are not always accountable to the communities they are supposed to serve. This
has been one of the major reasons for the slow or even non-existent improvement
of the conditions of life in most parts of rural India.
It is only when every individual experiences greater freedom, voice and
opportunity that each will fully bring her or his creative powers to bear on solving
the problems of the community. The challenges facing rural India can never be
solved by top-down, bureaucratic interventions. The critical needs of
communities, such as health, sanitation, clean water, education, and livelihood
can only be met locally through local responsibility, accountability and action,
utilising local resources to the greatest possible extent. The recognition of this
truth is the driving force behind the creation and sustenance of Gram Panchayat
in India.
The philosophy of Panchayati Raj is deeply steeped in the tradition and culture
of rural India and is by no means a new concept. Panchayati Raj Institutions
(PRIs) established under the 73rd amendment to the Constitution provided a
system of self-governance at the village level that had constitutional status. With
the constitutional recognition of the PRIs, independent India has begun a process
with the potential to create genuine democracy at the village level. It represents
a remarkable opportunity to transform the face of rural India and bring to fruition
Gandhiji’s vision of India being an aggregate of ‘village republics’. 5
Constitutional Framework In this unit, we will briefly trace the historical evolution of Panchayati Raj
Institutions. We will then discuss the 73rd constitutional amendment pertaining
to the structure and composition of and elections to PRIs. We will conclude by
analysing the functioning of Panchayati Raj Institutions.
1.2 OBJECTIVES
After studying this unit, you should be able to:
describe the historical evolution of PRIs;
explain the relevant constitutional provisions pertaining to PRIs; and
identify issues that need to be addressed for strengthening PRIs.
1.3 HISTORICAL EVOLUTION OF PANCHAYATI

RAJ INSTITUTIONS
Soon after achieving independence, the Planning Commission came into
existence in 1950 and began to plan for large-scale economic and social progress.
It was by then commonly understood that actual all round development could
not be achieved until it is backed by the development of rural areas. The Planning
Commission, therefore, thought of shaping the village development programme,
so as to attack the five giants of hunger, poverty, disease, squalor and ignorance
through a self-help programme of Community Development in 1952. These steps
were designed to secure the involvement of rural people in the process of rural
development.
The inadequate success registered by these, necessitated the need for reforms. In
1954, the Government of India established the Balwant Rai Mehta Committee
for suggesting reforms in this regard, which submitted its report in 1957.1 Among
others, the most important contribution of the report pertains to ‘democratic
decentralisation’ and the proposed politico-administrative system at the grass
roots. The report emphatically stated that, “so long as we do not discover or
create a representative and democratic institution which will supply the local
interest, supervision and care necessary to ensure that expenditure of money
upon local objects conforms with the needs and wishes of the locality, invest it
with adequate power and assign to it appropriate finances, we will never be able
to evoke local interest and excite local initiative in the field of development.”
Balwant Rai Mehta is widely known as the ‘Architect of Panchayati Raj’ in

India and his birthday (19th February) is observed as Panchayat Day.
Balwant Rai Mehta Committee

The report recommended the creation of a three-tier system of democratic
decentralisation (which came to be known as the Panchayati Raj system), namely,
Gram Panchayat at the village level, Panchayat Samiti at the block level and
Zilla Parishad at the district level. It recommended that the entire development
administration should be handed over to these bodies. The Committee gave details
of organisation, functions, resources and relations of one with the other.
1
http://www.solutionexchange-un. net.in/decn/comm_update/res-32-270209-01.doc.
6
In brief, the village Panchayat should be elected, with provision for the co-option Structure and Composition
of two women members and one member each from the SC and ST communities.
Panchayat Samiti should be constituted for the area included in a block by indirect
election, that is, members of the Panchayats within the block area will elect
members of the Panchayat Samiti from amongst themselves. The Committee
emphasised the importance of a block and said, “the block offers an area large
enough for functions which the village Panchayat cannot perform and yet small
enough to attract the interest and service of the residents.” The third tier was to
be occupied by the Zilla Parishad whose main function would be to achieve
necessary coordination between the Panchayat Samitis within the district. It will
consist of presidents of Panchayat Samitis, Members of Parliament and State
Legislatures and district level officers of the development departments. The Zilla
Parishad would be an advisory-cum-supervisory body, having no executive
functions.
The Committee gave a broad blue print for democratic decentralisation, and it
was left to each State to workout the structure and functional details best suited
to its local conditions. Consequently, different patterns of Panchayati Raj emerged
in different states. These recommendations were considered by the National
Development Council (NDC) in January 1958, and democratic decentralisation
became a part of the national agenda.
Panchayati Raj institutions did not take off successfully. In the 1960’s, PRIs
were portrayed as a ‘God that failed’. One of the main reasons for the failure
was sabotage by state politicians who were not enthusiastic about devolving
powers to the district level and below. State politicians were apprehensive that
PRIs with real powers may pose a threat to their power and influence. The lack
of resources, absence of coordination, dependence on district development staff,
lack of delegation of effective authority, domination by the upper castes and
better off sections of society had rendered the PRIs ineffective and purposeless
as institutions of decentralisation and development.
By the middle of the 1970’s governments both at the centre and in the states had
become indifferent to PRI’s, which had become defunct. Elections to these
institutions had not been held in most places, and the sitting councils were either
dissolved or suspended.
The mid-seventies marked a discernible shift of opinion in favour of conceding
larger political space to local communities in the governing process. Local self-
governing institutions were expected to play an important role in reordering
societal power equations. As the Janata Party Government had pledged its
commitment to the Gandhian philosophy, the overall atmosphere seemed to be
conducive for the resurgence of the Panchayati Raj Institutions.
Another plausible reason seems to be the fact that by the late 1970s the Green
Revolution had become a decade old and it had given birth to a rich peasant
class who were fully aware of the importance of direct access to decentralised
government machinery, more particularly its delivery system. The central place
of PRIs was thus restored.
Ashok Mehta Committee

In the late seventies, another Committee chaired by Ashok Mehta was given the
task of revisiting the institutions of Panchayats and making suitable
7
Constitutional Framework recommendations to renew the Gandhian vision of ‘village republics’. The Ashok
Mehta Committee report 2 refused to accept the view that Panchayati Raj was a
‘failed God’. In fact, the Committee credited these institutions with starting the
process of democratic decentralisation and making the citizens more conscious
of their rights than before. Among other positive fallouts was the bridging of the
gap between the bureaucratic elite and the people.
The Ashok Mehta Committee was innovative in many ways. It recognised the
importance of participation of political parties in Panchayati Raj elections to
make them more accountable and to link Panchayati Raj institutions with the
national political process. The Committee also proposed reservation of seats for
both women and weaker sections of society.
The decline of the Janata Government created a hostile climate for the
implementation of the Ashok Mehta Committee report. In spite of this, the Non-
Congress State Governments of Karnataka, Andhra Pradesh and West Bengal
took concrete measures to reactivate the PRIs. In Karnataka, the PRIs that came
into existence incorporated most of the recommendations made by the Mehta
report.
While Non-Congress State Governments were busy implementing the

recommendations of the Ashok Mehta Committee, the new Congress government
at the centre appointed other commissions. C.H. Hanumantharao’s working group
of 1983 and G.V.K. Rao Committee report of 1985 emphasised the need for
integration of the Panchayati Raj system with development programmes and
administration. The concept paper on Panchayati Raj prepared by the L. M.
Singhvi Committee Report of 19863 suggested that Panchayati Raj institutions
should be closely involved in the planning and implementation of the rural
development programmes. Both the Singhvi and the Ashok Mehta Committees
recommended a constitutional basis for democratic decentralisation.
1.4 73RD CONSTITUTIONAL AMENDMENT

The 73rd and 74th Amendments to the Constitution in 1992 bestowed constitutional
status on Panchayati Raj and Nagarpalika institutions. The main aim of the
Panchayati Raj system envisaged under the 73rd constitutional amendment is the
socio-economic development of rural India. Panchayati Raj has been designed
to encourage rural people to actively participate in governance, thereby inculcating
a habit of democratic living. It seeks to transform villages into self-governing
and self-sufficient units, and thus imbue a sense of self-confidence among the
villagers. It further acts as a system of education and training in the democratic
process and ensures that local needs and development are attained through local
efforts.
Some of the fundamental principles of the Panchayati Raj system as envisaged

in the amendment are as follows:
There should be a three-tier structure of local self-governing bodies at the

village level, the intermediate/block/taluka level and the district level, with
all three bodies being organically linked.
2
http://planningcommission.nic.in/reports/sereport/ser/wbm/wbm_ch6.pdf
3
8 Id.
There should be a genuine transfer of power and responsibilities to them. Structure and Composition
Adequate resources should be transferred to these bodies to enable them to

discharge their responsibilities.
All welfare and development schemes and programmes at these levels should
be channelled through these bodies alone.
These bodies being charged with various duties and functions, no higher
body should be given the opportunity to do what a lower body can do.
The three-tier system should be such that it facilitates further devolution

and dispersal of power and responsibility in the future.
The amendment added a new part IX to the Constitution consisting of 16 Articles

and the Eleventh Schedule. The Eleventh Schedule contains 29 subjects on which
the Panchayats have administrative control. We will now look at the relevant
constitutional provisions pertaining to different aspects of Panchayati Raj.
Structure of PRIs
Article 243A provides that the Gram Sabha may exercise such powers and perform
such functions at the village level as the State Legislature may by law provide.
The Gram Sabha is envisaged as the foundation of the Panchayati Raj system.
The Gram Sabha consists of all the residents of a village who are above 18 years
of age and are on the electoral rolls of the village.
Almost all the State Acts identify the functions of the Gram Sabha. The functions
include discussion on the annual statement of accounts, administration and
reports, and selection of beneficiaries of anti-poverty programmes. Drafting and
implementation of development plans have to be vetted and monitored by the
Gram Sabha. The State Acts of Haryana, Punjab and Tamil Nadu give the power
of approval of budget to the Gram Sabha.
In the Panchayati Raj system, Gram Sabha is the only permanent unit. Tenure of
a Panchayat i.e. Mukhiya and other members is for 5 years, but the villagers do
not change! All the representatives in the PRIs are answerable and accountable
to the Gram Sabha. Further, under laws like the Panchayati Raj (Extension) Act
(PESA), Gram Sabha has been endowed with extensive powers to take decisions
on all matters affecting it directly and locally. The Gram Sabha elects the Gram
Pradhan and other members of the Gram Panchayat. Success or failure of the
Panchayati Raj system depends largely upon the strength of the Gram Sabha.
We will discuss the role and powers of the Gram Sabha in detail in the next unit
of this block.
Article 243B envisages three tiers of elected Panchayats – at the village level,
the intermediate level (also known as the Block or Taluka level), and finally at
the district level, and creates an organic linkage between the three. The
constitution of intermediate Panchayats is not mandatory and is dependent on
the size of the population in that state. In states having a population of less than
twenty lakhs, the State Government may decide not to constitute intermediate
Panchayats.
The obligatory functions of the Gram Panchayat include provision of safe drinking
water, maintenance of public wells, ponds, dispensaries, primary and secondary 9
Constitutional Framework schools, etc. Now they have also been assigned developmental functions like
minor irrigation schemes, rural electrification, cottage and small industries and
poverty alleviation programmes.
The Block level PRI institution is known by different names in different parts of
the country. For example, in Gujarat they are called Taluka Panchayat; in UP
Kshetra Samiti; and in MP Janapada Panchayat. The powers of the Panchayat
Samiti include provision of improved variety of seeds and fertilizers, maintenance
of schools, hospitals, roads, and implementing anti- poverty programmes and
supervising the functioning of the Gram Panchayat.
The Zilla Parishad is the apex body of the PRIs. It approves the budgets and
coordinates the activities of the Panchayat Samitis. It maintains educational
institutions, irrigation schemes, and undertakes programmes for the weaker
sections.
Article 243C enunciates the manner in which Panchayats shall be constituted.

The State Legislatures, when identifying the territorial extents of various
Panchayats within their States, as far as may be practicable, shall ensure that all
the Panchayats are similar in size. Further, the ratio between the number of seats
and the population of the Panchayat area should be maintained as a constant.
The experience of the last 15 years shows that Panchayats covering a small area
not only function better, but are also more financially viable. At the Gram
Panchayat level, all the seats in a Panchayat shall be filled in by direct election
from the territorial jurisdiction of the Panchayat.
Reservation of Seats
The constitutional scheme seeks to redress caste and gender discrimination by
providing for mandatory reservation for women and members of the SC and ST
communities in the various tiers of the Panchayati Raj system.
Article 243D provides for 33 per cent reservation for women in Panchayat
institutions as well as for the position of chairpersons. Rural women, who for
centuries have lived in conditions of malnutrition, illiteracy and powerlessness,
are now taking leadership roles in addressing these very issues. This Article
further provides for the reservation of seats in these bodies for SCs and STs
according to their proportion in the population in that Panchayat.
For example, if citizens belonging to SC communities constitute 17 per cent of

the local population, then 17 per cent of the seats in the PRIs shall be reserved
for them. One third of the total seats reserved for SC and ST communities shall
be reserved for women belonging to these communities. Thus, in the above
mentioned example, not only will 17 per cent of the seats be reserved for SCs
and STs, 1/3rd of the 17 per cent will be reserved for women belonging to SC and
ST communities, which will be counted towards the 33 per cent reservation for
women.
Of the total number of posts of Chairpersons available in a State, there shall be

reservation of seats for SCs and STs according to their proportion in the population
in that State. Of the total number of posts of Chairpersons available in a State,
33 per cent shall be reserved for women. However, the posts reserved for women
will be identified on rotation basis, so that every Panchayat at some point of
10 time or the other is chaired by a woman.
The extent of reservation that is permissible under this provision was debated in Structure and Composition
the case of Krishna Kumar Mishra v State of Bihar,4 where the following main
issues were agitated before the Patna High Court:
i) Constitutional validity of reservation in Panchayat elections.

ii) Determination of permissible limit of reservation in Panchayat elections.
After considering these issues and interpreting various provisions of the

Constitution and the Bihar Panchayati Raj Act, the High Court held that
reservation can be made in the matter of Panchayat elections, in favour of
Scheduled Castes, Scheduled Tribes and Backward Classes. However, it was
clarified that the limit of such reservation cannot exceed 50% of the total seats.
The court further held that no reservation can be made against solitary seats like
that of Mukhiya of Gram Panchayat, Pramukh of a Panchayat Samiti or
Adhyaksha of a Zilla Parishad.
Principle of Subsidiarity
Article 243C (3) enunciates the principle of subsidiarity between the various
tiers of the Panchayati Raj system. The Article provides that the State Legislatures
may by law provide for the representation of:
a) Chairpersons of Panchayats at the village level in the Panchayats at
intermediate level
b) Chairpersons of Panchayats at the intermediate level in the Panchayats at
district level
c) Member of Legislative Assembly representing constituencies falling wholly
or partly in a Panchayat area, in intermediate or district level Panchayats,
but not in the village level Panchayats,
d) Member of Legislative Council being registered as electors within a
Panchayat area at the intermediate level, in that Panchayat at the intermediate
level, and if they are electors of a Panchayat area at the district level, then in
the district level Panchayat.
The Article while providing for subsidiarity clearly mentions that the persons so
represented, shall have equal voting rights as the other members of that Panchayat.
Self-assessment Questions
1) What are the constitutional provisions that provide for the creation of
Panchayati Raj institutions?
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4
AIR 1996 Pat 112.
11
2) What are the basic principles underlying the 73 rd constitutional
amendment?
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3) How is a Gram Panchayat elected?
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4) How has gender and caste based discrimination been addressed in the
composition of Panchayats?
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1.5 ELECTIONS
State Election Commission
Article 200 of the Constitution provides for the creation of a constitutional body
called the State Election Commission (SEC), to be constituted in each State for
the express purpose of conducting elections to all the Panchayati Raj Institutions.
They are not charged with the responsibility of conducting elections to the State
Legislatures. The SEC, which has been created on the lines of the Election
Commission of India, has been vested with similar powers and responsibilities.
Conducting regular and fair elections after the completion of the five years’ term
by the Panchayats, and within six months of their dissolution, is the responsibility
of the State Election Commission. The SEC is charged with the exclusive task
of supervision, superintendence, direction and control of the preparation of
electoral rolls and the conduct of elections, exclusively to all Panchayati Raj
Institutions. The SEC is also required to specify the symbols that may be chosen
by candidates contesting any election, issue voter identity cards, and deal with
the issues of qualifications and disqualifications of candidates.
The Governor of the concerned State has powers to appoint a State Election
12 Commissioner to head the SEC. To be qualified for such an appointment, a person
should, at the time of appointment, be holding a post of Principal Secretary to Structure and Composition
the Government or a higher post. The tenure of the State Election Commissioner
is protected by law so as to give him the necessary freedom to discharge his
functions without fear or favour. Though the appointment is a political
appointment, the method of removal of a State Election Commissioner is similar
to the removal of a High Court judge, and is a long and arduous process.
The Constitution mandates the timely conduct of elections to all PRIs every five
years at the end of the term of the PRIs. However, it has been found that in a
large number of states, elections are not being held on time or worse still, have
not been held at all since the 73rd amendment. It was in this context that an NGO
called the Rural Litigation and Entitlement Kendra filed a Writ Petition against
the State Government of Uttar Pradesh and other States, 5 for violating
constitutional norms by not conducting timely elections to PRIs. In this case,
the Supreme Court observed that holding of elections is very important in any
democratic system and Article 243K imposes an obligation on the State
Government to conduct elections within a period of five years or immediately
after the dissolution of an existing Panchayat. The Apex Court observed that
despite it being a constitutional mandate, State Governments do not hold timely
elections. The provisions relating to elections are mandatory and Article 243E
of the Constitution prescribing the duration of Panchayats is completely binding.
On the main question of irregularity of elections to the Gram Panchayat in the

various states, the Supreme Court further observed that “... It is necessary to
emphasise that various clauses of Article 243 are to be followed in letter and
spirit. The concerned states cannot be permitted to withhold elections of
Panchayats except in cases of genuine supervening difficulties to hold such
elections e.g. unforeseen natural calamities in the state like flood, earthquake
etc. or extremely urgent situation prevailing in the state for which elections of
the Panchayats cannot be held within the timeframe. It will be unfortunate if the
concerned states remain insensitive to the constitutional mandate of holding
election of Panchayats in time...”
Some Critical Issues

The most basic qualification to be eligible to contest an election to a Panchayat,
apart from being a citizen of India, is the need to be a member of the constituency
and be listed as a voter on the voters’ list of that area. Of course, one has to be a
major and be at least twenty one years old to contest these elections. While most
State Acts have not added too many other conditions, certain disqualifications
have been prescribed. The most controversial of these being the two child norm.
Let us discuss this in detail here.
Two Children Norm

In 1992, Rajasthan introduced the two children norm, thereby barring persons
having more than two children from contesting elections or holding any positions
in the PRIs. This was soon followed by the States of Haryana, Madhya Pradesh,
Andhra Pradesh and Orissa. Though the acknowledged intention behind the
introduction of this bar is population control, it is important to note that this rule
is inconsistent with the National Population Policy, 2000 that does not support
or recommend population control through any coercive actions or penalties,
5
Rural Litigation and Entitlement Kendra v Govt. of U P (1995) 1 SCC 14. 13
Constitutional Framework The constitutional validity of this norm was challenged in the cases of Javed v
State of Haryana6 and Rameshwar Singh v State of Haryana.7 Disqualification
from contesting an election on having more than two living children was the
main question raised in these appeals. The second appeal of Rameshwar Singh,
more specifically challenged the constitutional validity of Section 175 (1) (q)
and 171 (1) of Haryana Panchayati Raj Act, 1994 whereby anybody having more
than two children was disqualified from contesting elections for local bodies.
The main argument was on the ground that these norms are violative of Articles
25 and 26 of the Constitution. Dismissing the appeals, the Supreme Court held
that “... said condition is not arbitrary. No fault can be found with the State for
having enacted the legislation. The disqualification contained in the Act is neither
arbitrary nor discriminatory. Disqualification seeks to achieve socio-economic
welfare and healthcare of the masses and is consistent with national population
policy ... Disqualification on the right to contest an election by having more than
two living children does not contravene any fundamental right”
The assumption underlying these norms is that these grass-root leaders will
become the role models for the rural population, leading to a ripple effect amongst
the rest of the rural population. However, studies conducted by various NGOs8
on the effect of this norm has shown that women candidates and candidates
belonging to Scheduled Castes and Scheduled Tribes were the most affected
and accounted for a greater number of victims of this policy. The effects of this
policy can be summarised as under:
- It was found that women Panchayat leaders have been affected in
disproportionately greater numbers.
- Since action is taken under this rule on the basis of just a complaint and
without any investigation, most of the affected belong to the weaker sections
of society like women, SCs, STs and BCs.
- As this rule restricts the number of children a family can have, it adversely
affects women, as the norm tends to encourage sex selective abortion.
- The rule also violates basic human rights. It violates the right of women to
a life of dignity and the right to participate equally in the governance of
their country. It also violates their reproductive rights. There have been
instances when elected members are known to have left their wives or
abandoned the third girl child in order to continue holding their posts, thereby
adversely affecting women and girl children.
- The underlying assumption that women are in control of their fertility is
incorrect, as women, especially in rural India are still not in complete control
over their fertility, or have any say in the number of children they bear.
Though challenge to the constitutional validity of this norm was upheld by the
Supreme Court, various NGOs and social activists working together after intense
struggle and campaigning were able to convince certain State Governments of
the adverse impact of this norm. Consequently in April 2005, Himachal Pradesh
6
(2003) 8 SCC369.
7
(2003) 8 SCC 396.
8
NGOs who have studied the impact of this rule include SUTRA (Jagjit Nagar District,
Solan, HP), the Hunger Project (New Delhi), and State Institute of Rural Development
(Itanagar).
14
became one of the few States to have abolished this law. Hopefully other State Structure and Composition
Governments will follow suit.
Migrant Labour
One of the problems related to elections in rural areas is the question of high rate
of migration of the residents and their consequent inability to exercise their right
to vote and participate in the governance process. It has been observed that over
the years, the number of migrant labour has increased substantially due to the
problem of unemployment in rural areas. There have been suggestions for
remedying this problem on the lines of arrangements made for providing voting
rights to migrants from Kashmir and other parts of the country. It is only fair to
guarantee the right to vote, to workers moving out of their villages/constituencies
in search of work, for survival. While it is agreed that this would require funds
and efforts for implementation, both in terms of personnel to create voters’ lists,
protection against breach of security during transit, etc., it would be a worthwhile
exercise in the long run.
5) Who is responsible for the conduct of elections to Panchayats?
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1.6 ANALYSIS OF WORKING OF PRIs

In spite of the revolutionary changes brought about by the 73rd Amendment, it
suffers from some serious limitations.
1) Ambiguity about the role and powers of Gram Sabha: The constitutional
amendment does not mention the powers and functions of the Gram Sabha.
It only says that the Gram Sabha will perform the functions which may be
assigned to it by the State Legislature. In the laws enacted by most of the
states, the Gram Sabha is reduced to a powerless body which will routinely
put a rubber stamp on the decisions taken by the Gram Panchayat. The
Chief Ministers’ Conference held in August 1997 at New Delhi ruled that it
would be necessary to vest in the Gram Sabha powers to sanction and
disburse benefits in open meetings, to decide location of drinking water
hand pumps, etc., without having to refer the matter to officials or other
authorities. This conference also held that it is necessary to vest the ownership
of natural resources in Gram Panchayat, and also the decision-making powers
concerning the management of and income from such resources in the Gram
Sabha.
2) Bureaucratic control: Another important limitation of the PRIs after the

amendment is that they still function within the grip of the state bureaucracy.
15
Constitutional Framework Under state laws, wide powers of suspension and dismissal have been vested
in the bureaucracy. This places PRIs in a position of disadvantage vis-à-vis
even middle rung functionaries of State Governments. It also takes away
the essential characteristic of PRIs as elected representative bodies. In some
States, even Gram Panchayat have been placed in a position of subordination
vis-à-vis intermediate Panchayats. Such provisions which undermine the
autonomy of PRIs adversely affect the concept of democrat ic
decentralisation. Instances have been reported where Gram Panchayat
Sarpanches have to spend extraordinary amount of time visiting Block
offices. The village Pradhan has to contact the Block office several times in
a month for technical and financial sanctions. Such a systems needs to be
changed. Village bodies should be able to spend funds on their own without
having to take approval from government officials. These interactions with
the Block staff distort the role of a Sarpanch, who is an elected representative
of the Gram Sabha, and encourages corruption.
3) Inadequate staffing: The constitutional amendment does not mention

employees of Panchayats and their administrative autonomy. Panchayats in
the past failed to deliver because they had inadequate control over people
working to implement the programmes. Even when responsibilities in the
field of health and primary education have been transferred, PRIs have no
control over the staff and the budget of these departments.
4) Lack of adequate devolution: So far, progress on fiscal and functional

decentralisation has been disappointing. The primary function of Panchayats
in all the three tiers is ‘the preparation of plans for economic development
and social justice’ (Art 243 G). Except Kerala, no other state has taken any
positive step to devolve funds, functions and functionaries to the PRIs to
enable the Panchayats to discharge this constitutionally mandated function
properly. Further, it is imperative that the PRIs have resources to match the
responsibilities placed on them. While State Finance Commissions have
submitted their recommendations, very few States have implemented these
or taken the necessary steps to ensure fiscal viability of the PRIs.
5) Connecting the three tiers: In the structure of the Panchayats at the three
levels, Gram, Taluka and Zilla, there ought to be a system of representation
of Gram Panchayat Presidents in the Taluka Panchayat, with the President
of the Taluka Panchayat being elected directly. A similar system ought to be
in place for Zilla Panchayats too. The indirect election of Zilla/Taluka
Panchayat President leads to malpractices and undesirable compromises
motivated by money, muscle and power.
6) Linkages with Member of Parliament Local Area Development (MPLAD):

Presently, moneys earmarked for MPLAD are spent solely at the discretion
of individual MPs. The implementation of MPLAD schemes is through the
Collectors and not through the network of Panchayat institutions. This must
be altered and PRIs should be made the principal agency. The MPLAD
funds should be deposited with the Zilla Parishad as untied funds. MPs
may indicate their preferences for schemes/ programmes to the Zilla
Parishad/Block Panchayats/Gram Panchayat, which should be implemented
by Panchayats as a part of the overall village / area / district plan. MPs and
MLAs declare the specific details of the work done under the MPLAD and
16
MLA Fund, at the completion of their term. S/he should declare these details Structure and Composition
at the time of filling her/his nomination forms, in the form of an affidavit.
These details should be shared in the District Planning Committee and in
Parliament with a full discussion, which should be open to questions.
7) Lack of adequate training and gender mainstreaming: Since women bear

the brunt of most day to day problems, such as, housing, security, clean
water, sanitation, education, health services and child care, they usually
display greater sensitivity about every day needs of families and work
towards addressing these problems when they are elected to power. The
introduction of quota systems for women in local governments in many
countries, including India, has changed the political landscape at the local
level. However, women representatives in Panchayats face certain
constraints, such as, illit eracy (inability to express via writ ten
communication, difficulty in familiarising with financial and statistical data);
understanding the diverse rules and technical aspects of planning, budget
making, auditing; increase in work burden; higher expectations and new
responsibilities (many roles to perform); and polarisation of opinions. The
existence of sufficient and accessible training programmes will address these
pro blems and empower wo men to meaningfully discharge their
responsibilities as Panchayat members.
8) Parallel bodies: In some development projects, the government has set up

committees that are independent of Panchayats e.g. Joint Forest Management
Committees, Village Education Committees, Water User Groups, etc.
Difficulties tend to surface in the inter-relationship between multi-purpose
elected bodies like Panchayats and single-purpose user committees. The
two types of bodies often exist at different levels – with one covering a
single village and the other a cluster of villages – which makes synergy
between them difficult. There is often confusion about which of the two
types of bodies has jurisdiction over a particular subject. Such confusion is
sometimes deliberately sown by politicians and/or bureaucrats at higher
levels, to weaken bottom-up development processes. Most or all members
of user committees are often chosen by nomination rather than by election.
The existence of parallel bodies, unless they are aligned with the work of
the Panchayats, will result in the alienation of Panchayats, which will
ultimately grow weak and inconsequential.
6) Identify three issues that impact on the effective functioning of
Panchayats.
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17
1.7 INSTITUTIONAL MECHANISMS FOR
ENSURING ACCOUNTABILITY
Two of the institutional mechanisms available to ensure accountability and
transparency of PRIs are audit by the Gram Sabha and the Right to Information
Act.
Article 243J provides for audit of the accounts of the Panchayats. Certain State
Governments have used this provision to mandate that the accounts of a Panchayat
have to be presented before the Gram Sabha, thus making the Panchayat directly
answerable to the people of the village.
Social audit has been defined as the process by which details of financial and
non-financial resources used for different development initiatives by state
agencies is shared with the citizens. This process involves gathering of
information from various sources, organising of beneficiary groups and scrutiny
of the information. The Gram Sabha is thereby not only expected to but also
empowered to play a vigilante role on PRIs.
Even though there are no formal policies to introduce social audit procedures
within the Panchayat systems, civil society organisations have carried out social
audits in various states. The Mazdoor Kisan Shakti Sangathan (MKSS), under
its programme Hamaara Paisa, Hamaara Hisaab, engages with officials in
charge of government schemes and local politicians. Their use of the ‘public
hearing’ or Jan Sunwai, where they read out government documents relating to
schools, public works and other development works of the area, is very effective.
This creates more awareness amongst people about their right to information,
and the ways and methods of using information vis-à-vis government agencies.
The Panchayats (Extension to Scheduled Areas) Act, 1996 empowers the Gram
Sabha to conduct social audits by vesting powers over minor forest produce,
powers of expressing opinion regarding land acquisitions to be undertaken,
certification of village works undertaken, etc. All these functions can be performed
more effectively if the process under the RTI Act is properly used to tackle official
apathy.
The RTI Act, 2005 and its State-equivalent statutes are meant to facilitate the
‘watchdog’ functions of citizens, to demand information from state agencies
which may throw crucial light on the way public resources have been used. The
RTI Act can be effectively used to ensure that the spirit with which the 73rd
amendment has been passed is in fact implemented and the local people have a
definite say in governance. Further, the practice of social audit conducted by the
Gram Sabha also ensures that the most significant principle of democracy, that
all the State institutions are basically answerable to the public at large, is
implemented in its true sense.
7) Name one mechanism for ensuring accountability on the part of Panchayats.
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18
1.8 SUMMARY
Let us sum up the important points discussed in this unit:
We traced the historical evolution of Panchayati Raj Institutions before

discussing the 73rd constitutional amendment pertaining to the structure and
composition of PRIs. The main aim of the Panchayati Raj system envisaged
under the 73rd constitutional amendment is the socio-economic development
of rural India. Panchayati Raj has been designed to encourage rural people
to actively participate in governance and seeks to transform villages into
self-governing and self-sufficient units.
The 73rd amendment provides for a three-tier structure of local self-governing

bodies at the village level, the intermediate/block/taluka level and the district
level, with all three bodies being organically linked. Adequate resources
should be transferred to these bodies to enable them to discharge their
responsibilities. All welfare and development schemes and programmes at
these levels should be channelled through these bodies alone.
Reservation in Panchayats is mandatory for women and members of SC

and ST communities.
We discussed some critical issues concerning disqualification of a person

from contesting Panchayat elections.
We concluded by analysing the functioning of Panchayati Raj Institutions

and identifying some important issues that need to be addressed to ensure
effective decentralised governance by Panchayats.
1.9 TERMINAL QUESTIONS

1) Discuss the constitutional provisions relevant to decentralised rural local
self governance.
2) Identify and analyse the issues that need to be addressed to ensure that
Panchayati Raj institutions perform their constitutionally designed role
effectively.
3) Write short notes on:
(i) Institutional mechanisms available to ensure accountability in rural

governance (ii) ‘Two children norm’ as the basis for disqualification from
contesting panchayat elections (iii) State Election Commission
4) What is the meaning of the principle of subsidiarity?
1.10 ANSWERS AND HINTS

1) The relevant constitutional provisions are Part IX of the Constitution
consisting of 16 Articles and the Eleventh Schedule, which contains 29
subjects on which the Panchayats have administrative control.
19
Constitutional Framework 2) Some of the fundamental principles of the Panchayati Raj system as
envisaged in the amendment are as follows:
There should be a three-tier structure of local self-governing bodies at
the village level, the intermediate/block/taluka level and the district
level, with all three bodies being organically linked.
Adequate resources should be transferred to these bodies to enable them
to discharge their responsibilities.
All welfare and development schemes and programmes at these
levels should be channelled through these bodies alone.
No higher body should be given the opportunity to do what a lower
body can do.
3) The Gram Sabha elects the Gram Panchayat.
4) Article 243D provides for 33 per cent reservation for women in Panchayat
institutions as well as for the position of chairpersons. This Article further
provides for the reservation of seats in these bodies for SCs and STs
according to their proportion in the population in that Panchayat. One third
of the total seats reserved for SC and ST communities shall be reserved for
women belonging to these communities. Of the total number of posts of
Chairpersons available in a State, there shall be reservation of seats for SCs
and STs according to their proportion in the population in that State. Of the
total number of posts of Chairpersons available in a State, 33 per cent shall
be reserved for women. However, the posts reserved for women will be
identified on rotation basis, so that every Panchayat at some point of time
or the other is chaired by a woman.
5) State Election Commission.
6) Ambiguity in the role and powers of the gram sabha, inadequate staffing
and excessive bureaucratic control.
7) Social audit.
Terminal Questions
1) Refer to Section 1.4.
3) (i) Refer to Section 1.7 (ii) Refer to Section 1.5 (iii) Refer to Section 1.5.
1.11 REFERENCES AND SUGGESTED READINGS

Mohan Rao, ‘Two child norm and Panchayats: Many steps back’, Vol 38, No.33
Economic and Political Weekly.
http://panchayat.nic.in/
http://www.gandhimanibhavan.org/gandhiphilosophy/philosophy_village_
panchayatraj.htm
www.solutionexchange-un.net.in
20
UNIT 2 GRAM SABHA
Structure
2.1 Introduction
2.2 Objectives
2.3 Definition of Gram Sabha
2.4 Powers of Gram Sabha
2.5 Analysis of the Functioning of Gram Sabhas
2.6 Empowering Gram Sabhas
2.7 Panchayats (Extension to the Scheduled Areas) Act (PESA)
2.7.1 The Context
2.7.2 Gram Sabha under PESA
2.7.3 Implementation of PESA: An Analysis
2.8 Summary
2.1 INTRODUCTION
Democracy is epitomised by the phrase ‘government for the people, by the people
and of the people’. In a country like India with its huge population, the most
significant act of assertion of our democratic right comes once in five years
when we vote for the formation of the government at the State or the Centre.
Direct democracy, wherein everyone can participate in the decision-making
process cannot be a reality, unless we have a system through which people could
be closely associated in the decision-making process at the grassroots. Democratic
decentralisation through the introduction of Panchayati Raj institutions is a step
in this direction.
Under the Indian Constitution, the village (gram) has been conceptualised as a
self-sufficient entity of rural life, and the panchayat as an elected, democratic
entity. The Gram Sabha comprises of all adult citizens residing in a village. It is
the cornerstone of the entire scheme of democratic decentralisation in India and
the Constitution gives specific importance to this institution. As the basic unit of
direct democracy, a Gram Sabha not only elects the Gram Panchayat but also
monitors its actions. The success or failure of the Panchayati Raj system largely
depends on how powerful and effective the Gram Sabha is to fulfil the desires
and aspirations of the people.
Various states through their own laws and policies have further empowered Gram
Sabhas to take on some administrative functions as well. Further, the Panchayats
(Extension to Scheduled Areas) Act (PESA) confers significantly greater powers
on Gram Sabhas in Scheduled Areas to take on responsibilities and actively
participate in governance, rather than just monitor the Panchayat. In this unit,
we will discuss the constitutional status of the Gram Sabha and its functions.
We will also analyse the functioning of Gram Sabhas and issues that need to be
21
Constitutional Framework addressed to make them more effective. We will discuss the powers and functions
of a Gram Sabha under PESA.
2.2 OBJECTIVES
explain and understand the constitutional significance of the role played by
the Gram Sabha;
analyse the functioning of Gram Sabhas; and
explain the powers and functions of a Gram Sabha under PESA.
2.3 DEFINITION OF GRAM SABHA

The Gram Sabha is the basic unit of direct democracy. In the 73rd constitutional
amendment, it was conceived as the basic forum for deliberative democracy,
where people would participate simply by dint of being citizens of India. This
institution is very important as it gives an opportunity to each and every voter of
the Gram Panchayat to take part in decision-making, planning and development.
Article 243(b) defines Gram Sabha to mean a body consisting of persons
registered in the electoral rolls relating to a village comprised within the area of
panchayat at the village level.
Article 243A states that a Gram Sabha may exercise such powers and perform
such functions at the village level as the legislature of the State may by law
provide.
Article 243(9) defines ‘village’ to mean a village specified by the Governor by
public notification to be a village for the purposes of Part IX and includes a
group of villages so specified. This definition permits the Governor to declare
any populated rural area as a village. The demarcation of a village for the purposes
of giving effect to Part IX of the Constitution may come in conflict with the
sociological/anthropological notions of ‘village’ that prevail among the people
of an area. The effective constitution of a GS will mainly depend on the definition
of a ‘village’ adopted in various state legislations. While in certain legislations,
the definition of a village is co-terminus with that of a ‘revenue’ village, in
others it is based on habitations or groups of villages.
Laying to rest the various speculations on the possible interpretations and the
extent of a state’s powers to identify an entity as a ‘village’, the Supreme Court,
in State of U.P. v Pradhan Kshetra Samiti, 1 held that among other things, the
process of defining a ‘village’ must comply with the following conditions:
i) the village has to be a habitat according to the anthropological concept;
ii) the village for the purposes of the Panchayat can be specified only in
accordance with the aspirations and wishes of the inhabitants of the village
as conveyed to the Governor who is obliged to notify it without involvement
of the State Government; and
iii) the Governor has to act independently of the State Government in the matter
of specification of a ‘village’.
1
22 1995 (2) SCALE 453.
As regards the Gram Sabha, the Court held that although the definition of Gram Gram Sabha
Sabha refers to a body of persons registered in the electoral rolls and the State
Government has no power to establish or notify a Gram Sabha. The Court re-
asserted the view of the 73rd amendment that the Gram Sabha is a constitutional
entity based on the geographical and sociological entity of a ‘village’, and it is
not within the powers of the State Government to identify or notify a ‘village’
for administrative purposes.
Delimitation of Panchayats ought to be attempted on this criterion set out by the

Supreme Court.
Self-assessment Question
1) Why is the Gram Sabha understood as the basis of direct democracy
under the Indian Constitution?
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2.4 POWERS OF GRAM SABHA

There is a great deal of diversity in the provisions of State Acts with regard to
the functions of the Gram Sabha. However, there are some common features
and a synthesis of various powers and functions assigned in different states to
the Gram Sabha reveals the following broad functions:
1) Examine annual statement of accounts and audit report.
2) Discuss report on the administration of the preceding year.
3) Review programme of work for the year or any new programme.
4) Consider proposals for fresh taxation or for enhancement of existing taxes.
5) Select schemes, beneficiaries and locations.
6) Mobilise voluntary labour and contributions in kind and cash for community
welfare programmes.
7) Render assistance in the implementation of development schemes.
8) Promote unity and harmony among all sections of society.
9) Seek clarifications from the Mukhia and other members of the Gram
Panchayat about any particular activity, scheme, income and expenditure.
10) Consider the budget prepared by the Gram Panchayat and future development
programmes and plans for the Gram Sabha area.
11) Consider and scrutinise existing schemes and the activities of the Panchayat.
12) Maintain a complete register of all development works undertaken by the
Gram Panchayat or by any other government department. 23
Constitutional Framework 13) Scrutinise the completed works of the Gram Panchayat.
14) Prepare plans for local development including minimum needs, welfare and
production oriented programmes.
15) Prepare lists of all able bodied persons to whom employment is to be provided
under local wage employment schemes.
We have seen above, the broad powers available to the Gram Sabha. However,
certain states have vested the Gram Sabha with certain unique powers, thereby
giving them additional authority and control over the Panchayat. Moreover, since
Gram Panchayats may consist of one or more habitations or villages, some states
have provided for creation of smaller entities for each constituency in a Panchayat.
For example, Karnataka has created Ward Sabhas for every ward of an elected
member of a Gram Panchayat. The state has conferred several powers to Ward
and Gram Sabhas, including mandatory identification and prioritisation of
beneficiaries for all government programmes, mandatory approval of
developmental plans and proposals, and determining priority of schemes. The
list of beneficiaries so decided by the Gram Sabha cannot be changed at any
level of the government.
Similarly, in West Bengal, a Gram Sansad for each constituency in the Gram
Panchayat was established in 1992 and Gram Sabha at the level of Gram
Panchayat was introduced in 1994. The Gram Sansad has been given several
powers, including identification of schemes that are required to be taken up on
priority basis for economic development of the village. Gram Panchayat cannot
omit or refuse to act upon any recommendation of a Gram Sansad relating to
prioritisation of any list of beneficiaries or schemes or programmes so far as it
relates to the area of the Gram Sansad. The Gram Sansad can also record its
objection to any action of the Pradhan or any other member of the Gram Panchayat
for failure to implement any development scheme properly or without active
participation of the people.
The Gram Unnayan Samiti, constituted in a Gram Sansad, has been introduced
in the State Act by the West Bengal Panchayat (Amendment) Act, 2003. A Gram
Sansad will constitute an Executive Committee named Gram Unnayan Samiti
having jurisdiction over its area. This Samiti is responsible for ensuring active
participation of people in the implementation of rural development programmes
within its jurisdiction and the equitable distribution of benefits. It is accountable
for its functions and decisions to the Gram Sansad. Gram Unnayan Samiti may
also constitute such number of functional committees as may be required.
Various central legislations have seen the Gram Sabha as a body capable of
carrying forward the constitutional and policy goals of recognising and
implementing rights of people and bringing about rural development. These
legislations and policies have vested powers and responsibilities in the Gram
Sabha that will facilitate community participation in decision-making and make
it more effective in monitoring the activities of the Panchayat. For example,
under the National Rural Employment Guarantee Act (NREGA), the Gram Sabha
is mandated to monitor execution of Schemes undertaken in their area and conduct
social audits on the progress of these projects.
24
The Panchayat (Extension to Scheduled Areas) Act, 1996, (PESA), confers power Gram Sabha
and responsibility over natural resources to Gram Sabhas in Scheduled Areas,
and is applicable to nine states which have tribal areas within their territory that
are protected under the Fifth Schedule to the Constitution. The Gram Sabha in
these areas will be competent to safeguard and preserve the traditions and customs
of the tribal people, their cultural identity, community resources and customary
mode of conflict resolution. We will discuss the PESA in detail later in this unit.
Thus, various States have seen fit to vest the Gram Sabha with differing degrees
of powers. While the Constitution provides the bare minimum, States which are
committed to the idea of decentralisation have been constitutionally granted the
freedom to empower the institution with as much authority and responsibility as
they deem fit. It is however a sad reality that not many states have actually taken
this opportunity to empower people to effectively participate in the democratic
process at the grass root level. Let us in the next section look at some of the
problems that people face in the process of making the idea of direct democracy
work at the ground level.
2) Give an account of the various roles that Gram Sabhas have come to
play under various Statutes and State policies.
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2.5 ANALYSIS OF THE FUNCTIONING OF

GRAM SABHAS
As we have seen above, though all State Governments have provided for the
establishment of the institution of Gram Sabha in conformity with the provisions
of the Constitution, their framework in terms of concept, powers and functions
vary. Further, the response to the institution from the people and other village
based organisations has also been different. While in some places Gram Sabhas
have been vibrant and active, in other places they exist without much impact,
with no meetings, or thinly attended meetings. Common complaints are that
attendance at meetings is thin, agendas are not circulated in advance, and several
activities like social audit are only carried out nominally. Another common
complaint heard is that officials concerned rarely attend Gram Sabhas.
Disillusionment with Gram Sabhas tends to snowball, with office bearers of

Gram Panchayats also becoming reluctant to convene meetings as they find it
inconvenient to face people. Experiences available from different places indicate
that strengthening of Gram Sabhas calls for a wholesome approach, whereby
these institutions can be strengthened to be able to play a more effective role in
activating participatory process at the village level. For this, the following issues
require immediate attention:
25
Constitutional Framework Size and area of Gram Sabha: The membership of a Gram Sabha varies from
state to state ranging from 250 to 5000. Gram Sabhas may represent only a part
of the concerned villages or they may represent more than one village. This
results very often in practical difficulties like managing the numbers or absence
of a common venue for holding meetings. In tribal areas or other areas such as
desert areas or heavily forested areas, where density of population is very thin,
organisation of Gram Sabha meetings is likely to have its own problems because
of the vastness of the panchayat area. The size of a Gram Sabha plays an important
role in its overall functioning because of locational problems and its composition.
In order to deepen the opportunity for more participation, States could consider
establishing Ward Sabhas at the level of each Ward.
Gram Sabha meetings: Comprehensive dissimilarities exist in the provisions

regarding the number of meetings to be organised every year. Denial of due
importance to Gram Sabhas has become a common practice. Meetings of a Gram
Sabha are necessary to review and control the Panchayat’s activities, yet it is the
Panchayat that has to convene these meetings. Naturally, Panchayats are reluctant
to convene Gram Sabha meetings and subject themselves to popular review.
Provisions are not adequate enough to accord the necessary status to a Gram
Sabha which can be effective in making the Panchayat accountable.
A 1997 study conducted by Sahbhagi Shikshan Kendra, Lucknow, covering 15

Gram Sabhas concluded that only one third of them had actually conducted the
required number of meetings. Though publicity about the date and time of a
Gram Sabha meeting is given through the locally available media, adequate notice
is not given. Even when Gram Sabha meetings are well-organised, participation
of all those present in the meetings cannot be ensured for a number of reasons,
chief among them being non-awareness of statutes and regulations pertaining to
PRIs. The problem of exclusion based on class, caste and gender is also a
weakness in the present functioning. For instance, in Himachal Pradesh, one
person per family is counted for quorum, rendering the participation of women
in not so relevant.
The frequency of meetings is an index to the success of a Gram Sabha, and State
Governments can help by providing incentives to Panchayats which organise
relatively larger number of Gram Sabha meetings. For example, the Government
of Orissa has a scheme for giving rewards to outstanding Panchayats in each
district and the organisation of Gram Sabha meetings is one of the criteria for
assessment. Some States have mandated that Gram Sabha meetings shall
compulsorily be held on fixed days like Independence Day and Republic Day,
which can be an impediment as this reduces spontaneity and undermines local
initiative.
Quorum: Quorum in meetings insisting on the presence of a minimum number

of individuals is necessary so that the decisions are not prejudicial to the larger
interests of the community. The non-prescription of quorum may enable vested
interests to influence the Panchayat’s policy. Allowing a reconvened Gram Sabha
meeting to proceed, even without a quorum if the preceding meeting was
postponed due to lack of quorum goes against the very spirit of democracy.
Studies reveal that persons with vested interests, like powerful upper caste men or
persons like the village money lender are some of the most regular participants in
Gram Sabha meetings. It may not be difficult for such interests to influence the few
26
who attend the meetings. A larger number of participants will result in a greater Gram Sabha
possibility of deliberations and discussions and decisions taken will reflect the
general and uninfluenced views of the community.
Sometimes, to address the issue of insufficient quorum, a family is treated as

one unit and one person from a family is counted for quorum. However, this has
an adverse impact on the participation of women in gram sabha meetings. People,
particularly the poor, do not want to lose their daily wages for the sake of attending
the meetings. Meetings at a time of the day when women and the weaker sections
are busy at home or in earning their wages render the meetings meaningless.
Status of Gram Sabha: Is the Gram Sabha an advisory/consultative body, the

acceptance of its advice being dependent on the wisdom/discretion of the
Panchayat? There are visible inconsistencies in the way Gram Sabhas function
in different states. The list of functions indicates that a Gram Sabha has the
power only to discuss, debate, examine and scrutinise. Its decisions are not binding
on the Gram Panchayat. If a Gram Sabha has to be made functional as it ought to
be, it must be endowed with the power to implement schemes.
For example, PESA has not only extended development, planning and audit
functions to the Gram Sabha, but also endowed it with the management and
control of natural resources and the adjudication of justice in accordance with
traditions and customs. Madhya Pradesh has extended most of the powers
conferred on a Gram Sabha under PESA to all the Gram Sabhas in the State.
The standing committee of the 13th Lok Sabha on urban and rural development
(2002) has recommended that decisions of Gram Sabhas, even in the general
areas, should be treated as ‘mandatory’ rather than just as ‘recommendatory’.
Unless the role of a Gram Sabha is defined in clear terms to remove any ambiguity
about its role, the institution will not grow or function as envisioned. Keeping a
Gram Sabha merely as an advisory body will weaken it as decisions taken in
meetings of the Gram Sabha will not be binding on Panchayats. The shortcomings
which have been experienced in the working of Gram Sabhas are due to the fact
that adequate powers have not been conferred on them and the provisions of
state Acts lack specificity as far as their hold over panchayats is concerned.
In order to make the GS a powerful, vibrant and pulsating institution it is necessary

to learn from the decade long experience and incorporate the changes that will
enable the Gram Sabha to become the fulcrum of the entire scheme of democratic
decentralisation.
3) How do you think Gram Sabhas can be made more effective in carrying
out their mandates?
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27
2.6 EMPOWERING GRAM SABHAS
The following are some of the recommendations of the standing committee of
the 13th Lok Sabha on urban and rural development (2002) for empowering
Gram Sabhas. 2 While recognising that Gram Sabhas must be empowered to
ensure accountability of Gram Panchayats, emphasis was placed on conduct of
regular meetings in which open discussions could be held on structured agenda
matters. Two aspects to this issue were identified:
a) practical aspects concerned with convening a Gram Sabha so as to ensure
that interest is sustained; and
b) legally empowering the Gram Sabha.
Gram Sabha Meetings: The date, time and location for a Gram Sabha meeting
should be convenient for all to participate. There should be enough publicity for
Gram Sabha meetings through the local media and local communication methods
such as wall posters, handbills, tom-tom, etc. People who attend Gram Sabha
meetings should be encouraged to express their opinion freely, so that no single
group dominates the proceedings. NGOs may be encouraged to promote
awareness and peoples’ participation. To sustain interest in Gram Sabha meetings,
agendas must be circulated in advance. A meeting of the Gram Sabha can be
preceded by meetings of common interest groups, such as Self Help Groups etc.
Full disclosures of budgets and resources available for planning and
implementation should be provided, so that Gram Sabha meetings do not become
wrangling matches between groups with high expectations and Panchayats that
do not have the resources to meet them.
There must be a specific duty cast upon the Chairperson of the Gram Panchayat
to convene Gram Sabhas as provided in State legislations without fail, with
punitive measures of being disqualified in case of non-compliance. Similarly,
relevant officers must be directed to attend Gram Sabha meetings without fail
and stringent measures should be taken in case these are not complied with.
To ensure more effective social audit, State Governments will need to bring out
policies and rules for the conduct of social audit to evaluate the work carried out
by Panchayats. A voluntary council of experts and eminent citizens can be
constituted by Gram Sabhas themselves, or initially at higher levels to encourage
this practice.
Community Based Organisations to report to Gram Sabhas: The practice of

various community based organisations working at the village level placing their
reports before Gram Sabhas must be promoted. This will also greatly aid in their
eventual integration into Panchayats. These committees include the Watershed
Development Committees, Village Water Supply and Sanitation Committees,
Village Education Committees, Joint Forest Management Committees, etc. Even
NGOs can report to the Gram Sabha about details of their programmes.
Standardising Gram Sabha roles in CSS guidelines: All Central Ministries

must include in their CSS guidelines mandatory measures of reporting plans,
progress and social audit to Gram Sabhas convened by the Panchayat. Care should
2
solutionexchange-un.net.in/decn/.../res-07-301106-04.doc
28
be taken in these instructions to position Gram Sabhas as institutions for holding Gram Sabha
Panchayats (particularly Gram Panchayats) to account for their performance,
through approval of plans, selection of beneficiaries and review of progress.
Treating the Gram Sabha as an executive body that can be entrusted tasks by
higher levels bypassing the Panchayat should be avoided.
2.7 PANCHAYATS (EXTENSION TO THE

SCHEDULED AREAS) ACT -PESA
The Parliament passed the Panchayats (Extension to the Scheduled Areas) Act,
1996 to extend the provisions of the 73rd constitutional amendment to the areas
specified in the Fifth Schedule of the Constitution (Scheduled Areas). This Act
is quite significant as it accords statutory status to the Gram Sabhas in the
Scheduled Areas and confers them with wide ranging powers and authority. This
vital aspect was missing from the provisions of the 73rd constitutional amendment.
PESA has recognised the prevailing traditional practices and customary laws
besides providing the management and control of all the natural resources –
land, water and forest – in the hands of the people living in the Scheduled Areas.
2.7.1 The Context

The tribal community comprises of more than three hundred communities, small
and big, pursuing different forms of livelihood, such as, hunting, shifting
cultivation and traditional farming. The ideal of self-governance at the micro-
level that the country sought to work towards, was already an existing reality in
the tribal tracts of the country. In fact it was a functioning system imbued with
the real spirit of an egalitarian democratic order.
The strongest challenge to the spread of the British rule came as they entered the
territories of the tribal people. The tribal people never acknowledged the authority
of the British, notwithstanding the records that they had created, as per their
perceptions in the form of promulgations, regulations, etc. These formalities
had no meaning for the tribal people and in any case, as they did not materially
interfere with their traditional systems of governance, they were irrelevant.
Hence, the British created the system of ‘non-regulation areas or excluded area’
or ‘partially-regulated areas or partially excluded areas’, depending on the local
situation and the sensitivity of the people. The degree of exclusion was dependent
on the way the local people reacted to the presence of alien elements and their
assertion of authority. This device was mainly addressed to the British officials
so that they may not treat these areas and the people living there like other areas
and other people.
Fifth Schedule
Post independence, our Constitution too adopted this two-way classification.
The Excluded Areas were mostly termed as the ‘Tribal Areas’ for whose
administration special provisions were made in a separate schedule, namely, the
Sixth Schedule of the Constitution. The other tribal tracts of the country,
corresponding broadly to the ‘Partially Excluded Areas’, were named the
‘Scheduled Areas’. Special provisions for the administration and control of
Scheduled Areas have been made under a separate Schedule, namely the Fifth
Schedule of the Constitution.
29
Constitutional Framework The Governor, under the Fifth Schedule has the most vital, central and unusual
role to play. The Governor is the sole Legislature for the Scheduled Areas. The
Governor can make regulations for peace and good government of these areas.
The items on which such regulations can be made include transfer of land,
allotment of land and money lending. In making any such regulations, the
Governor can even repeal or amend any Act of Parliament or of the Legislature
of the State or any existing law in force in these areas. However, when exercising
such power, the Governor is required to consult the Tribes Advisory Council, a
body consisting of representatives of the various tribes in the State constituted
to function as an advisory body and a direct link between the tribals and the
Governor. The Governor can direct that any state or central law will not apply to
the Scheduled Areas or will apply with such exceptions and modifications as he
may deem necessary.
The President can give directions to the States as to the drawing up and execution
of schemes for the welfare of the Scheduled Tribes in the State. The Governor of
each State having Scheduled Areas therein, is required to annually or whenever
so required by the President, make a report to the President regarding the
administration of the Scheduled Areas in that State, so as to enable the President
to give necessary directions to the State.
The tribals got caught in the whirl of modern development – industrial and mining
complexes, big irrigation and hydel projects, tourist resorts and defence
establishments. Disorganisation, displacement and destitution became the destiny
of the tribals. In many tribal areas, therefore discontent could not be contained
and confrontation became the order of the day. Open rebellions brought with it
ruthless repression, which by no means could meet the situation.
Besides open revolt, the rebellion took a new form in the late eighties in some
tribal tracts, particularly in Bastar. The people started asserting their right to
manage their affairs according to their tradition and customs. It found symbolic
expression in the simple slogan “Mava Nate Mava Raj”, or “Hamare Gaon mein
hamara raj” (Our village our rule).
The provisions of the 73rd amendment were not extended to the Scheduled Areas.
It was considered necessary to make modifications before extending them to
these areas. This was done in 1996 following the recommendation of the Bhuria
Committee through the provisions of the Panchayats (Extension to the Scheduled
Areas) Act.
The Act envisages the community at the village level in the form of Gram Sabha
as the basic building block of the new system. This provision is unique and
stands out in contrast to the general scheme of delegation and devolution of
powers by the State, including that for Panchayats under Articles 40 and 243G,
which wield the ultimate authority in all matters concerning a citizen’s life. The
acceptance of the ‘competence’ of the community as a whole in the form of a
Gram Sabha and not just of a group of elected individuals is an acknowledgment
of the fact that self-management is a natural right of the community. The Gram
Sabha has to ensure that land is not alienated and wrongfully alienated lands are
restored to the real claimants. Even the State cannot acquire land without
consulting the Gram Sabha, which virtually means seeking their consent.
30
2.7.2 Gram Sabha under PESA Gram Sabha
Definition of a village: A village in Scheduled Areas shall ordinarily consist of

a habitation or a group of habitations or a hamlet or a group of hamlets comprising
a community and managing its affairs in accordance with traditions and customs.
Constitution of Gram Sabha: A gram sabha is to be constituted for each village

consisting of persons whose names are included in the electoral rolls for the
panchayats at the village level. The Gram Sabha is recognised as being competent
to safeguard and preserve the traditions and customs of the tribal people, their
cultural identity, community resources and customary mode of conflict resolution.
It is important to note that PESA has recognised the special powers of the
traditional village community by vesting all such powers in the Gram Sabha,
thus making it a powerful institution having full powers to manage the affairs of
the local communities.
Constitution of Panchayats: A panchayat is required to be constituted for each

village in the Scheduled Areas in the following manner:
a) The reservation of seats at every Panchayat should be in proportion to the

population of communities in that Panchayat for whom the reservation is
sought to be given under Part IX of the Constitution. However, in making
such reservations, the reservation provided for scheduled tribes cannot be
less than one-half of the total number of seats,
b) All the seats of chairpersons of Panchayats at all levels will be reserved for
the Scheduled Tribes; and
c) The State Government will nominate persons belonging to such Scheduled

Tribes which have no representation in the panchayats at the intermediate
level or district level but such nomination will not exceed one-tenth of total
members to be elected in that panchayat.
The Act requires the States to endow panchayats with such powers and authority
as may be necessary to enable them to function as institutions of self governance.
It shall contain safeguards to ensure that the panchayat at the higher levels do
not encroach on the powers and authority of any panchayat at the lower level or
of the gram sabha. In the context of powers vested in the gram sabha, the gram
panchayat cannot have powers which have been expressly provided for gram
sabha. The gram panchayat shall be fully answerable to the gram sabha and thus
all scope for conflict is sought to be avoided.
Powers of Gram Sabha

Powers of a gram sabha as specified in the PESA Act, 1996 can be divided into
the following four categories:
1) Mandatory powers
2) Powers to be consulted
3) Recommendatory powers
4) Power to be devolved by the State Government
31
Constitutional Framework The details of these powers are:
1) Mandatory powers: The powers assigned to the Gram Sabha in this category are
three-fold:
a) power to approve the plans, programmes and projects for social and
economic development before they are taken up for implementation by
the village panchayat;
b) power to identify beneficiaries of poverty alleviation programmes and
c) power to give certification of utilization of funds by the panchayats for
the above programmes.
These powers make the gram sabha a powerful body in the implementation
of projects for social and economic development of tribal communities.
2) Powers to be consulted: The Act has assigned consultative power to the
Gram Sabha with regard to land acquisition. It provides that before making
acquisition of land in the Scheduled Areas by the authorities concerned for
development of projects or before resettling or rehabilitating persons affected
by such projects in Scheduled Areas, the gram sabha or panchayat at the
appropriate levels will be consulted.
3) Recommendatory powers: Prior recommendations of the gram sabha or the
panchayats at the appropriate level will be compulsory in the following
matters i.e. for grant of prospecting licence or mining lease for minor
minerals in the Scheduled Areas, and for grant of concession for the
exploitation of minor minerals by auctions.
4) Powers to be devolved by the State Government: The Act specifies that
State Governments will endow panchayats in the Scheduled Areas with
such powers and authorities as considered necessary to enable them to
function as institutions of self governance. To ensure this, the Act specifies
that a state legislature will ensure that panchayats and Gram Sabha in
Scheduled Areas are endowed specifically with powers to enforce prohibition
on or regulate the sale of intoxicants, have ownership over minor forest
produce, prevent alienation of land and take appropriate action to restore
any unlawfully alienated land of scheduled tribes, to exercise control over
institutions and functionaries in the social sector and plans such as tribal
sub-plans, to manage village markets, and exercise control over money
lending. The State Government shall also entrust to panchayats at the
appropriate level, powers in relation to planning and management of minor
water bodies.
2.7.3 Implementation of PESA: An Analysis

States were expected to bring about legislative changes within their jurisdiction
to adopt the provisions of PESA. Most states do not have such an operational
law, because of which the effect of PESA has not reached most of the Scheduled
Areas. For example, in Rajasthan, though the formal legal vesting of powers in
the Gram Sabhas of tribal areas has taken place, no rules or orders have been
issued to implement PESA. The Himachal Pradesh Panchayati Raj Act, 1994
has also made similar provisions though no rules or executive orders have been
passed to give effect to the transfer of control over minor water bodies to the
tribal Gram Sabhas.
32
A NGO, Society for Participatory Research in Asia (PRIA) did a comprehensive Gram Sabha
study in 2004 on the status of PESA in 8 States. Their finding was that PESA is
still not implemented in letter and spirit in many States. There are critical issues
concerning the provisions of the Act. Many NGOs working in the field of rural
development and on decentralisation issues have observed that the ineffective
implementation of the PESA could be attributed to the following main factors:
Non-conformity of the state laws: Most State Governments have shown

reluctance in making/amending laws and rules in conformity with the
provisions of the PESA. Many laws, such as, the law relating to forest,
land, water, mining and minerals, land acquisition, money lending etc. still
need to be amended to give proper effect to the spirit of the PESA.
Lack of awareness about the PESA: It has been found that there is an
unfortunate and complete lack of awareness among the state level officers
as regards the powers vested in the Gram Sabha and the provisions of the
Fifth Schedule. Further, the stereotypical disdain and prejudice fuelled by
their insensitivity to the traditional democratic values of the tribal society,
results in these officials becoming the biggest hindrance to the effective
implementation of the spirit of the Act.
Absence of appropriate rules: Many State Governments have either wilfully

or otherwise neglected to provide adequate and comprehensive guidance
for the proper implementation of PESA. The unresolved and unexplained
ambiguities in crucial elements of the law have rendered the implementation
of the Act difficult.
Ambiguity and lack of clarity: The ambiguity and lack of clarity over the
jurisdiction and the powers that have been vested in the gram sabha/
panchayat (at different levels) has caused great confusion. The overlap
between these institutions and the agencies with government officials, who
have in certain situations retained overriding powers, has resulted in the
weakening of these bodies.
Differing interpretation of PESA provisions: The scope for differing and

contrasting opinion by different persons, especially with regard to Minor
Forest Produce (MFP) and lack of information/assistance to the tribals in
the scientific collection, processing, value addition and marketing of MFP
is a cause for grave concern. The uncertainty over the scope of MFP and the
constant supervision of officials has been at cross purposes with the
traditional wisdom in forest conservation. This has led to a watering down
of the provisions that are in fact meant to empower the tribals.
Some of the suggestions for the effective implementation of PESA include:

A model legislation and rules for PESA for immediate adoption by the states
having Schedule V Areas will not only ensure uniformity amongst states,
but it will also discourage the dilution of the PESA. This will ensure that
powers and responsibilities as envisaged under the Act will be truly
transferred to the Gram Sabhas. Also, the Minor Forest Produce being so
important for the tribals, an explicit interpretation of the term (including
the position regarding inclusion/exclusion of nationalised MFPs) should
be incorporated under tribals’ rights over MFPs, while preparing such rules.
33
Constitutional Framework Documentation and codification of customary laws and practices in the PESA
areas would enable the protection and implementation of traditional laws,
especially when non-tribals are required to deal with these customary laws
and principles.
Coordination between different programmes/agencies such as Joint Forest

Management (JFM/CFM), Van Sanrakshan Samiti (VSS) etc. and the Gram
Sabhas and Gram Panchayats in the Scheduled Areas should be strengthened.
Greater impetus should be given to awareness generation programmes about

PESA, including capacity building of tribal communities and training of
those involved in development activities in these areas.
Certain initiatives have been taken by the Central Government to revitalise the
implementation of PESA. A process to harmonise the state laws, central laws
and centrally sponsored schemes with the provisions of PESA has been taken up
by the Ministry of Panchayati Raj.
Further, the new Forest Rights Act, which will discussed in Block 4 BLE 004,
recognises the following rights:
Tenurial security providing relief against the physical and psychological
alienation of land which the scheduled tribes and other forest dwellers belong
to.
Livelihood in terms of subsistence agriculture on ‘as is where is’ basis and
the ownership of Minor Forest Produce (MFP) including rights to collect,
trade and process the same.
Traditional and customary rights.
It is hoped that PESA along with the Forest Rights Act will result in truly
empowering people in the tribal areas. In fact, extension of the PESA to the
entire country will usher in a new phase of self governance.
2.8 SUMMARY
Let us now sum the important points discussed in this unit:
The Gram Sabha comprises of all adult citizens residing in a village. As the
basic unit of direct democracy, a Gram Sabha not only elects the Gram
Panchayat but also monitors its actions. The success or failure of the
Panchayati Raj system largely depends on how powerful and effective the
Gram Sabha is to fulfil the desires and aspirations of the people. We discussed
the constitutional status of the Gram Sabha and its functions. We also looked
at select state laws which have further empowered Gram Sabhas to take on
some administrative functions as well.
We also analysed the functioning of Gram Sabhas and identified issues that
need to be addressed to make them more effective.
The Panchayats (Extension to Scheduled Areas) Act (PESA) confers

significantly greater powers on Gram Sabhas in Scheduled Areas to take on
responsibilities and actively participate in governance, rather than just
monitor the Panchayat. We discussed the powers and functions of a Gram
34
Sabha under PESA. We also analysed the issues that need to be addressed for Gram Sabha
effective implementation of PESA.

i) Definition of ‘village’ for purposes of Part IX of the Constitution and under
PESA.
ii) Powers of the Gram Sabha under PESA.
2) Identify and analyse the issues that need to be addressed to ensure effective
implementation of PESA.

1) The population of a village that is on the electoral rolls and votes for a
Gram Panchayat constitutes the Gram Sabha. It is the only forum where
citizens participate directly in political decision-making. The decisions taken
by the Gram Sabha and the functions carried out by it are not through elected
representatives but by the citizens of the village. In this sense, the institution
of the Gram Sabha is the basis of direct democracy as the institution takes
decisions and carries out other functions through active participation of
citizens in the processes of governance and not through political
representatives.
2) Part IXA of the Constitution creates the Gram Sabha as the entity that elects
the Gram Panchayat. Many states have empowered the Gram Sabha in their
territories to carry out various functions and take a range of decisions in
furtherance of government schemes. To this effect, the role of the Gram
Sabha in these states (e.g. Karnataka, West Bengal) has expanded beyond
the constitutional role. Some of these functions are:
Selection of beneficiaries of government welfare schemes like the Indira
Awas Yojna, pension schemes and BPL schemes.
Approval of development plans of PRIs and sanctioning of budgets of
PRIs.
Conducing social audits of schemes undertaken under NREGA.
Call for information from the Panchayats.
Express opinions on merits of development projects being planned in
their area, through the consultation process in land acquisition provided
for under the Panchayats (Extension to Scheduled Areas) Act, 1996.
3) Gram Sabhas are increasingly vested with more powers and responsibilities
by law and policy. As long as a Gram Sabha is not adequately equipped to
process information and take appropriate decisions, these powers cannot
be effectively exercised. To do this, the Gram Sabha should be get adequate
support from the bureaucracy to create awareness amongst the members on
relevant policies and their implications. All administrative responsibilities
35
Constitutional Framework vested in the Gram Sabha should be accompanied by persons involved in the
execution of the government scheme (e.g. schemes under NREGA) to sit at
Gram Sabha meetings, explain the implications and assist in decision-making. It
is also important to ensure that too much bureaucratic intervention does not act
as a deterrent in collective decision-making or prevent the emergence of individual
informed opinions. A way to do this could be through governmental efforts to
empower different marginal groups in the village – SCs/ STs/women/indigenous
groups.
Terminal Questions
1) (i) Refer to Section 2.3 and Sub-section 2.7.2. (ii) Refer to Sub-section 2.7.2.
2) Refer to Sub-section 2.7.3.

Dr. B. D. Sharma, The Fifth Schedule, Vol 1 (New Delhi: Sahyog Pustak Kuteer
Trust).
Asha Krishnakumar, ‘The Samatha Judgment’, Frontline, Vol.21, Issue 19, Sep.
11, 2004.
Panchayats (Extension to Scheduled Areas) Act, 1996.
For State Profiles see the Ministry of Panchayati Raj, website available at
http://www.panchayat.gov.in/
www.loksabha.nic.in
36
UNIT 3 POWERS OF PANCHAYATS
Structure
3.1 Introduction
3.2 Objectives
3.3 Constitutional Provisions
3.4 State Legislations vis-à-vis Constitutional Provisions
3.5 Inter-relation of the three tiers of Panchayats and Government Agencies
3.6 Devolution of Functions and Activity Mapping
3.7 Summary
3.1 INTRODUCTION
Panchayats, as constitutional entities, play a significant role in implementing
decentralised democracy. Not only are they the seats of political representation
closest to the people, they also serve as crucial links with governments at the
state and central levels. Hence, the functioning of Panchayats in accordance
with constitutional ideals is crucial to the process of decentralisation.
After the passage of the 73rd and 74th Constitutional Amendments, local bodies
are expected to take over quite a number of governance functions. They have to
take over the administrative duties, perform planning function and work towards
the socio-economic development of the local population. To carry out their
functions effectively, PRIs need to have control over their resources, both financial
and human. They should also have the authority to raise necessary financial
resources by levying of taxes, tolls, cess, etc. For decentralised governance to
become a reality, it is necessary and important that panchayats are not only
conferred powers and authority, but also need to be given sufficient financial
resources and be empowered to generate necessary financial resources through
taxes and levies. In this unit we will learn about the scope of the powers and
consequent responsibilities conferred on PRIs. We will examine their sources of
finance in the next unit.
3.2 OBJECTIVES
describe the role of panchayats as envisaged under the Constitution;
analyse the role played by Panchayats in implementing governmental

schemes in furtherance of social justice and economic development goals;
and
explain the process of activity mapping and its role in devolution of powers.
37
3.3 CONSTITUTIONAL PROVISIONS
Article 243G of the Constitution enunciates the powers, authority and responsibilities
of the Panchayats. The powers and responsibilities of Panchayats are to be exercised
along the 29 items mentioned in Eleventh Schedule of the Constitution. Article 243G
states that States may ‘endow the Panchayats with such powers and authority’ as
they may think necessary in order for them to function as institutions of local self-
governance. Control may be retained by the State Government in the form of conditions
for formulation of social and economic plans, and implementation of schemes of
economic development and social justice. The Karnataka and West Bengal state
legislations are the few States which have the distinction of having devolved powers in
all the 29 fields mentioned in the Eleventh Schedule.
The 29 heads under which power can be devolved by States are:
o Agriculture, including agricultural extension.
o Land improvement, implementation of land reforms, land consolidation and soil
conservation.
o Minor irrigation, water management and watershed development.
o Animal husbandry, dairying and poultry.
o Fisheries.
o Social forestry and farm forestry.
o Minor forest produce.
o Small-scale industries, including food processing industries.
o Khadi, village and cottage industries.
o Rural housing.
o Drinking water.
o Fuel and fodder.
o Roads, culverts, bridges, ferries, waterways and other means of communication.
o Rural electrification, including distribution of electricity.
o Non-conventional energy sources.
o Poverty alleviation programme.
o Education, including primary and secondary schools.
o Technical training and vocational education.
o Adult and non-formal education.
o Libraries.
o Cultural activities.
o Markets and fairs.
o Health and sanitation, including hospitals, primary health centres and dispensaries.
o Family welfare.
o Women and child development.
o Social welfare, including welfare of the handicapped and mentally retarded.
38
o Welfare of the weaker sections, and in particular, of the Scheduled Cases and the Powers of Panchayats
Scheduled Tribes.
o Public distribution system.
o Maintenance of community assets.
It is important to note that the Article, while empowering Sate Governments to devolve
powers to PRIs, uses the word ‘may’ as opposed to ‘shall. The use of the
recommendatory word ‘may’ has been used for the specific purpose of giving State
Governments the freedom to decide the important issues in their States and accordingly
devolve powers and responsibilities to PRIs. However, if power is devolved under all
the 29 heads, it has the potential to ensure that people are directly involved in issues
critical to them by making PRIs closest to them responsible for the issues that confront
them.
1) How Panchayats carry out their functions in keeping with their constitutional
mandate?
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3.4 STATE LEGISLATIONS VIS-À-VIS

CONSTITUTIONAL PROVISIONS
Typically, a State would have a Panchayati Raj Department with a Secretary
from the State bureaucracy and other staff attached to it. The tasks involved in
the administration of Panchayats include demarcating newer boundaries for Gram
Sabhas, establishing new Gram Panchayats, forming a via media between other
government agencies/departments whose functions have been devolved to PRIs,
and providing infrastructure, staff and training facilities to the PRIs. However,
in the absence of effective devolution of funds and functionaries, the PRIs are
unable to take on any activity on a major scale or undertake long-term planning.
This is the situation in a number of states. However, some states have taken
steps for the effective devolution of powers to panchayats, which we will discuss
in this Section.
Many States (e.g. West Bengal and Tamil Nadu) have had localised governing
structures since the later part of the nineteenth century, under British Rule. Most
States have legislations dating back to the late 1950s, incorporating
recommendations of the Balwant Rai Mehta Committee (1957) on the need to
set up democratic decentralised governing structures, in three tiers, with universal
adult suffrage. These states brought about necessary amendments in their
Panchayat legislations in consonance with the 73rd Amendment Act, to comply
with the requirements in Part IXA with regard to representation of SCs/STs and women,
Panchayat elections and finances, etc.
39
Constitutional Framework Apart from complying with the mandatory requirements of Part IXA of the Constitution,
it is up to the States to design their legislations and policies according to the local
needs and circumstances. For example, the Himachal Pradesh Panchayati Raj Act,
1994 addresses PESA compliance of Panchayats in Scheduled Areas in the State, by
including provisions for consultation before land acquisition and grant of mining licenses,
and ownership over minor forest produce. Furthermore, State Panchayat legislations
and rules spell out the relationship between Panchayats at various levels, terms of
relationships of Panchayats with citizens under their jurisdiction and with other village/
district-level government officials. For example, the Himachal Pradesh 1994 Act spells
out some powers to impose a fine for breach of panchayat orders pertaining to
administration of its responsibilities within its jurisdiction.
The State of Karnataka has achieved the distinction of having devolved funds and
functionaries along all 29 heads of the Eleventh Schedule. The Karnataka Act of 1983
set up a strong legal framework establishing three tiers of panchayats – Grama
panchayat, Taluk Panchayat and Zilla Panchayat. This framework has been further
strengthened under the Karnataka Panchayati Raj Act, 1993. The State government
has taken special measures to empower panchayats to handle the responsibilities vested
in them by law. Freedom has been given to PRIs to form joint committees among
themselves to pursue common objectives. The state set up a Working Group on
decentralisation which examined the Activity Mapping matrix (we will discuss activity
mapping later in this unit). Broadly, the Activity Mapping positions the Zilla and Taluk
Panchayat as planners, facilitators and owners of common executive machinery, Gram
Panchayats as local providers of services and Gram and Ward Sabhas as instruments
of accountability.
Karnataka has provided for a social audit, named ‘Panchayat Jamabandi’ through
rules framed under the Act. This is expected to be conducted every year around
October. The ‘Panchayat Jamabandi’ rules now take into account the constitution
of Ward Sabhas also. However, the quality of ‘Panchayat jamabandi’ continues
to be uneven.
The example of Panchayati Raj in West Bengal is noteworthy as the State had a
strong three-tier elected local self-governing institutions with devolution of
functions along all 29 heads much before the 73rd Amendment came about. The
West Bengal Zilla Parishads Act, 1963 introduced a four-tier structure consisting
of Zilla Parishad, Anchalik Parishad, Anchal Panchayat and Gram Panchayat in
the State. The West Bengal Panchayat Act, 1973, paved the way for introducing
a three-tier system with Zilla Parishad at the district level, Panchayati Samiti at
the block level and Gram Panchayat at the anchal (cluster of villages) level. The
first Panchayat election was held under the Act in June 1978 and since then
Panchayat general elections have been held in 1983, 1988, 1993, 1998 and 2003.
Apart from devolving funds and functionaries to the panchayats at all three levels,
the State Government has also linked various categories of bureaucrats to the
functions of Panchayats.
In case of the Orissa government, a detailed order regarding devolution of

functionaries to the Panchayati Raj Institutions was issued in 2003, under which
District level officers, Block level officers and Village level functionaries of 11
Departments are made accountable to the Zilla Parishad, Panchayat Samiti and
40
Gram Panchayat respectively for implementation of the subjects/schemes transferred Powers of Panchayats
to the PRIs, although they continue as employees of the respective Departments.
2) Give an account of the performance of the Karnataka government in
empowering its PRIs.
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3.5 INTER-RELATION OF THE THREE TIERS

OF PANCHAYATS AND GOVERNMENT
AGENCIES
The Panchayats, in the discharge of a large number of their functions, seem to be
dependent for technical advice, funds and infrastructure on the State Government.
Hence, the autonomy with which a Panchayati Raj Institution can formulate its
plans will be affected by its dependence on Government agencies and officials.
We will now see the relationship of panchayats at all the three levels with other
government agencies using the illustrations of the NREGA programmes and
devolution of powers and functions to panchayats in the state of West Bengal.
Various governmental programmes (e.g. NREGA programmes of employment

generation, watershed management programmes, etc.) require the participation
and cooperation of Panchayats for their implementation. The Panchayats, at all
three levels, are in charge of planning and implementation of schemes under the
National Rural Employment Guarantee Act, 2005. They are assisted in this
function by the District Programme Coordinator for a programme being executed
under the Act. The Gram Panchayat, under the Act, has to identify projects in a
particular Gram Panchayat area to be undertaken under an NREGA scheme, as
per the recommendations of the Gram Sabhas and Ward Sabhas. It is the
responsibility of the State Government to make available necessary Programme
Coordinators and other staff to the Gram Panchayat for assistance in
implementation of the schemes under the NREGA.
The West Bengal Public Health Department uses the Gram Panchayat as the
monitoring unit for implementing the Public Health Initiative and maintaining
data and records for each Gram Panchayat. The West Bengal government has
also vested the responsibility of running Primary Education Centres (Shishu
Shiksha Kendras) on the Gram Panchayat for taking care of education needs of
at least 20 children, who do not have access to primary school. Upper Primary
Education programmes, on the same lines as the SSK, called the Madhyamik Shiksha
Karmashuchi, have also been running at the Gram Panchayat level.
In West Bengal, a cadre of functionaries have been designated for implementing the
functions devolved. The Forest Department has designated District Forest Officers at
41
Constitutional Framework the Zilla Parishad. The post of District Land and Land Reforms Officer has been
redesignated as District Land and Land Reforms Officer and ex-officio Additional
Executive Officer (Land Reforms), Zilla Parishad, to carry on select notified functions
in collaboration with Panchayats. For more effective implementation of the targeted
Public Distribution System, Poverty Alleviation Programmes and other welfare schemes
like BPL, Mid-day Meal scheme and Sampoorna Grameen Rozgar Yojna (SGRY),
officials related to these schemes have been placed at the services of the Panchayat
Samiti and the Zilla Parishad.
Increasingly, a number of States are using Panchayats as implementing bodies for

government schemes. In this context, new strategies are required to make Panchayats
capable of functioning as self-governing institutions, and not merely as grass root
implementing agencies.
3) Give examples of the nature of interaction of PRIs with other government
officers/agencies in carrying out their functions.
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3.6 DEVOLUTION OF FUNCTIONS AND

ACTIVITY MAPPING
The generally prevalent view today is that after the 73rd amendment, Panchayats
have been superimposed on the prevailing administrative system without it
undergoing any structural changes. The line departments continue to carry out
the subjects mentioned in the Eleventh Schedule and the Centrally Sponsored
Schemes (CSS) are implemented by the Central Government through their
respective departments. The Collector, the BDO and the Gram Sevak carry on at
their respective levels, many a time without any reference to the Panchayati Raj
Institutions. Hence today, Panchayats function as ‘development agencies’ and
not as institutions of local government.
Under the list of functions of Panchayats mentioned in the Eleventh Schedule it

is seen that all 29 subjects are handled by more than a dozen ministries and
departments of the Central Government. By and large, only inconsequential
functions such as monitoring and supervision are transferred to the Panchayats.
Even these functions are essentially handled by the line department functionaries,
over whom the Panchayats have no control. It has been seen that Panchayats are
merely engaged in rendering assistance to line departments in implementation
of activities and schemes, such as, awareness building, social mobilisation for
vaccination (for example, the Pulse Polio programme), beneficiary selection for welfare
programmes, or being engaged in construction work under the Jawahar Rozgar
Yojana (JRY) programme and the recently introduced National Rural Employment
Guarantee Scheme (NREGS) programme. This is far from devolution, as the
42
implementation of a programme is conceived and designed at a higher level of the
government. Powers of Panchayats
The Ministry of Panchayati Raj (MoPR) responded to this situation by introducing

activity mapping, which entails breaking each of the 29 subjects into as many
activities as possible and assigning them to the Panchayats at different levels.
The Ministry underscored the fact that the key objective of Article 243G of the
Constitution is to ensure that Panchayats at all levels function as institutions of
self-governance rather than as implementing agencies. This is to be done through
devolution of functions, funds and functionaries, which must eventually comprise
the entire range of subjects in the Eleventh Schedule.
Devolving a large number of functions does not necessarily signify a greater

extent of devolution. Though States may assign responsibilities to local
governments, they often leave the performance of key activities necessary to
deliver such devolved services with state line agencies. There is often little rational
thinking concerning which of the disaggregated activities ought to be devolved,
based on considerations of economies of scale, efficiency, capacity, enforceability
and proximity. This has led to most devolved subjects ending up in a kind of
concurrent list, with different tiers of government sharing responsibility, which
seriously undermines accountability. Consequently, the extent of devolution can
vastly differ even when a function is devolved formally.
To improve this position, MoPR found that it is essential to undertake activity

mapping relating to devolved functions, with a view to attributing each activity
to the appropriate level of Panchayat, keeping in mind the principle of
subsidiarity. This is meant to answer two specific questions:
- which level of government will be responsible for what and,
- what arrangements between governments are likely to work for better service
delivery.
These questions are relevant for a number of sectors that have been devolved to
Panchayats, especially,
a) rural education (basic, continuing and literacy);
b) rural health (curative, immunisation, nutrition, pre-natal care, etc.);
c) the primary sector (agriculture, fishery, horticulture, forestry, sericulture,
animal husbandry, watershed management);
d) water and sanitation; and
e) anti-poverty programmes (SGSY and SGRY).
Activity Mapping can become a trigger for ensuring that Panchayats are on a
sound footing. When Panchayats are assigned clear tasks with devolution of
funds and made accountable for the performance of these newly assigned
responsibilities, they have a big incentive to demand the capacity required for
effective performance. Empowered Panchayats with clear roles assigned through
activity mapping would begin to also demand the staff required for effective
performance. Therefore Activity Mapping can spur appropriate placement of
functionaries for better service delivery. The Central Government can also have
a significant influence on the devolution of functions and funds upon Panchayats,
because of the large fiscal transfers to States in the functional domain of the
43
Constitutional Framework Panchayats, mainly through Centrally Sponsored Schemes (CSSs), Central Schemes
and Additional Central Assistance (ACAs).
Capacity Building
There is an acute need to build capacities of not only the elected representatives of the
PRIs, but also of all the members of the Gram Sabha so as to enable them to fulfill the
vision of decentralised governance. This requires capacity building in areas of statutory
and legal implications, process of budgeting, resource allocation and its management,
decentralised planning, village level data management, revenue generation, general
administration, and E-Governance. There is also a need for elected members to get
exposure to the trends and developments taking place in different sectors. This could
be achieved through visits to departments and research institutions.
Apart from the fact that there exist various hindrances in terms of the devolution of
powers like lack of political will, these could be gradually overcome if the local
population is aware of its rights and responsibilities and its representatives are
empowered enough to lobby for their rights. Capacity building through workshops,
etc is an important aspect of local self governance and for the achievement of the goal
of social justice.
3.7 SUMMARY
Let us now sum up the important points discussed in this unit:
Article 243G of the Constitution enunciates the powers, authority and
responsibilities of the Panchayats. The powers and responsibilities of
Panchayats are to be exercised along the 29 items mentioned in Eleventh
Schedule of the Constitution. States may devolve such powers and authority
as they may think necessary.
Many states have not devolved funds and powers to panchayats and in the
absence of effective devolution of funds and functionaries, the PRIs are
unable to take on any activity on a major scale or undertake long-term
planning. We discussed the steps taken by some states for the effective
devolution of powers to panchayats.
We discussed the relationship of panchayats at all the three levels with other
government agencies using the illustrations of the NREGA programmes
and devolution of powers and functions to panchayats in the state of West
Bengal.
All 29 subjects in the Eleventh Schedule are handled by more than a dozen
ministries and departments of the Central Government. By and large, only
inconsequential functions such as monitoring and supervision are transferred
to the Panchayats. The MoPR has introduced activity mapping to address
this situation, which entails breaking each of the 29 subjects into as many
activities as possible and assigning them to the Panchayats at different levels.
The key objective of Article 243G of the Constitution is to ensure that

Panchayats at all levels function as institutions of self-governance rather
than as implementing agencies.

44
1) Write short notes on: Powers of Panchayats
(i) Powers of Panchayats (ii) Activity Mapping

1) Under Article 243G of the Constitution, the State Governments are
empowered to devolve functions along the lines of the 29 heads mentioned
in Schedule XI. The task of devolving functions materially takes place
through the State Panchayat legislations. Along with designating the various
tiers of Panchayats with particular functions, the State governments must
necessarily make arrangements to devolve funds and functionaries for the
purpose.
For this reason, often cadres of officials form Government Departments are
designated to positions of assistance to Panchayat members. For example,
District Land and Land Reform Officers have been redesignated in West
Bengal to be the Land Reform Officer, Zilla Parishad. Government schemes
under SGRY, NREGA, etc. are implemented through intermediate
Panchayats. Successful devolution of functions to the panchayats can take
place only with effective assistance being provided by the State Government
in terms of financial resources, training, personnel support.
2) Karnataka is significant with regard to empowerment of Panchayats, as it
has earned the distinction of being one of the few States which has devolved
powers and functions along all 29 heads mentioned in the Schedule XI. The
Karnataka government has set up a Working Group to assess activity
mapping among the three tiers of Panchayats. The Zilla and Taluk panchayats
are to function as planners, facilitators and owners of common programmes,
while Gram Panchayats are to be local providers of services. The Gram
Sabha functions as instruments of accountability.
3) The examples that illustrate the interaction between government officers
and PRIs are:
i) In the West Bengal government, the post of District Land and Land
Reforms Officer has been redesignated as District Land and Land
Reforms Officer and ex-officio Additional Executive Officer (Land
Reforms), Zilla Parishad, to carry on select notified functions in
collaboration with Panchayats. This ensures that the discharge of their
functions will be done in close coordination with PRIs, keeping in
view the issues relating to land reforms that may emerge from the
experiences of PRIs. It also ensures closer contact with persons who
might be affected by or seek benefits of land reforms being carried out.
ii) In West Bengal, officials related to the BPL schemes, Mid-day Meals,
Sampoorna Grameen Rozgar Yojna, etc. are placed at the services of
the Panchayat Samiti. In this case, the Panchayat Samiti influences
their functioning and ensures that needs of the people that they represent
are adequately addressed.
45
Constitutional Framework iii) An Orissa Government order of 2003 has made District level, Block level
and Village level functionaries of 11 Departments accountable to the Zilla
Parishad, Panchayat Samiti and Gram Panchayat respectively for
implementation of the subjects/schemes transferred to the PRIs, although
they continue as employees of the respective Departments.
Terminal Questions
1) (i) Refer to Sections 3.3, 3.4 and 3.5. (ii) Refer to Section 3.6.

State Profile compiled by the Ministry of Panchayati Raj, available at http://
panchayat.gov.in/viewFolder.do?itemid=3185&ppid=200&ptltid=357&
name=State%20 Profiles%20 2006-07&path=Home%20page>%20
Panchayati%20Raj%20in%20States> State%20of%20Panchayati%20Raj
ht t p: //planning co mmissio n.go v.in/abo ut us/commit t ee/wrkg rp11/

wg11_demo.pdf.
46
Powers of Panchayats
UNIT 4 FINANCIAL POWERS
Structure
4.1 Introduction
4.2 Objectives
4.3 Taxation and other Financial Arrangements
4.4 Management of Finances
4.5 State Finance Commissions
4.6 Audit of Panchayat Accounts
4.7 Social Audit
4.8 Summary
4.1 INTRODUCTION
In the previous unit, we studied the powers and responsibilities of Panchayats.
The constitutional mandate of devolution of powers to Panchayats will be
rendered ineffective without adequate financial resources being made available
to these local self-governing institutions. The Constitution specifies sources of
finances for Panchayats, which includes conferring taxation powers on them.
Though fiscal decentralisation has taken place in many states, resource
mobilisation through tax collection by the panchayats is not up to the mark. In
this context, it is necessary to evaluate the powers of Panchayats in raising their
own resources through taxes and levies. It is for this purpose that the Constitution
provides for State Finance Commissions to review the financial arrangements
in place and to recommend measures to empower panchayats to mobilise
resources through tax collection.
In this unit, we will discuss all the above aspects pertaining to finances of
Panchayats as well as the available mechanisms to enforce fiscal accountability.
4.2 OBJECTIVES
identify and explain the constitutional provisions for sources of finances of
Panchayats;
explain the management of finances of panchayats;
analyse the role of State Finance Commissions; and
explain the available mechanisms for ensuring fiscal accountability.
47
4.3 TAXATION AND OTHER FINANCIAL
ARRANGEMENTS
The constitutional provisions dealing with the aspect of financial resources of
the PRIs can be found in Articles 243H and 243I, which deal with the powers of
Panchayats to impose taxes and the constitution of State Finance Commissions
respectively.
Article 243H specifies three main sources of finances for the PRIs. It provides
that State Governments may, through the enactment of suitable legislation:
a) authorise Panchayats themselves to levy, collect and keep for use certain
identified taxes, duties, tolls and fees;
b) assign to the Panchayats certain taxes, tolls, duties and fees, which are levied
and collected by the state, but which are assigned to the Panchayats for
certain specific purposes;
c) provide for grants-in-aid from the state’s Consolidated Fund to the
Panchayats.
The transfer of direct taxing powers in certain situations and the transfer of the
moneys collected by the State Government as taxes, duties, tolls and fees are
both liable to be subject to conditions or limitations as imposed by the state.
Almost all State Governments have, under the powers vested in them by the 73 rd
Amendment, passed State Acts to provide PRIs with revenue opportunities. Some
of the typical sources of financial resources for PRIs are listed below:
Revenue through Taxes: There are three types of taxes available to panchayats:
a) Own taxes, which are specifically levied and collected by the Panchayat.
b) Assigned taxes, which are levied and collected by the State Government,
but moneys so collected are specifically earmarked for transfer to the
Panchayats.
c) Shared taxes, where the moneys collected are shared in a specified ratio
between the State Government and the Panchayats.
Some of the common taxes/fees levied by Panchayats, include

i) Street light and conservancy tax
ii) Water tax
iii) Drainage fee
iv) House/structure and property tax
v) Agriculture lands/crops tax
vi) Entertainment/show tax
vii) Additional stamp duty or increase in surcharge on stamp duty
viii)Toll and user charges
ix) Octroi
48
x) Tax on extraction and export of sand, stone and slates Financial Powers
xi) Land revenue

xii) Liquor cess
Not all Panchayats however, have the same powers of taxation. Under Article 243H,
as State Governments have the unrestrained power to decide which taxes to assign to
PRIs, different States on the basis of their specific state economy, have assigned
different taxes to the PRIs in their states. Thus, for example, in 13 states, Panchayats
have the power to tax houses/structures and properties as an obligatory tax, while
Panchayats in many southern states have been devolved power to raise revenue through
entertainment taxes.
Other Sources of Revenue: As discussed above, apart from taxes, PRIs have other
sources of finance generation, which include:
a) Plan allocations: Specific funds allocated to PRIs under State Plans.
b) Transfer of functions: Functions relevant to rural governance when shifted from
the state bureaucracy to the PRIs result in ensuring that the funds dedicated to
the particular scheme, programme or office are transferred to the PRI concerned.
c) Central funds dedicated to PRIs: Central Funds reserved for certain schemes
which are to be implemented by the PRIs can be maintained in banks. For example
in the State of Karnataka, within the State Treasury, separate ‘Panchayat fund
accounts” have been created to handle these funds.
1) Give a description of ways in which a State Government may seek to transfer
resources to PRIs.
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4.4 MANAGEMENT OF FINANCES

In the above Section, we have discussed the various sources of finances for the PRIs.
Different states have devised different strategies and mechanisms for managing PRI
funds, including audit of their accounts, and have provided for the same in their
respective Acts. We will use the examples of the States of Himachal Pradesh, West
Bengal and Karnataka to discuss the management of finances of PRIs.
Himachal Pradesh: In the State of Himachal Pradesh, accounts of Gram Panchayats

are maintained by the Panchayat Secretary, who is assisted by the Panchayat Sahayak.
The Panchayat Sahayak is in fact appointed on contract basis by the Gram Panchayat.
In the case of Panchayat Samiti, accounts are maintained by the Accountants, who are
appointed by the State Government. Accounts in
respect of Zilla Parishads are maintained by the Government officials of the office of
DPO-cum-Secretary. Accounts of Panchayats are audited on an annual basis and
49
Constitutional Framework audit reports are required to be placed before the Panchayat concerned in the meetings
for compliance.
West Bengal: All the Zilla Parishads and Panchayat Samitis in the State of West
Bengal maintain accounts in double entry system with effect from April 1, 2003
with the coming into force of the West Bengal Panchayat (Zilla Parishad and
Panchayat Samiti) Accounts and Financial Rules, 2003. The accounts of the
Gram Panchayat are maintained in accordance with the West Bengal Panchayat
(Gram Panchayat Miscellaneous Accounts and Audit) Rules, 1990 and a software
package, (GPMAS) for management of fund has already been developed and
introduced in 216 Gram Panchayats in 8 districts. The Panchayat and Rural
Development department has been awarded Dataquest E-Governance Award 2005
and Microsoft E-Governance Award 2006 for DRISTI (Decentralised Rural
Information Services and Technology Initiative) for e-governance in PRIs.
Funds are provided by the State Government for meeting establishment cost
including salary and pension of the employees of Panchayat bodies and
honorarium or remuneration and travelling allowance of elected functionaries.
Grant is also provided to the Panchayats to compensate for the professional tax,
cess grant and entertainment tax as per recommendation of the State Finance
Commission. The State Government also provides a share of the State revenue
to the Panchayats as untied fund.
The other major source of fund available to the Panchayats is those, which are
released by the Central and the State Government for implementation of various
programmes. Grant recommended by the Central Finance Commission as well
as other incentive grants are released to the Panchayati Raj institutions in
accordance with the formula laid down by the State Finance Commission. Grants
received from the Central Government on the recommendations of Central
Finance Commission are also devolved as untied fund to all tiers of Panchayati
Raj institutions.
The State Government has provided for direct electronic transfer of funds to the
PRIs for schemes like Indira Awas Yojna, Sampoorna Grameen Rozgar Yojna.
To ensure speedy transfer of funds to PRIs after release of funds, the State has
mandated that PRIs have to create Saving Bank Accounts with the nearest SBI
branch to be used as a Transfer Account. Funds in respect of Centrally Sponsored
Programmes are kept in bank accounts of respective PRIs opened for that purpose
and funds released from the State Budget are maintained in Local Fund Account
in Treasuries/Sub-treasuries.
Karnataka: In the State of Karnataka, Panchayat accounts are maintained at the

Gram Panchayat level by the Panchayat Secretary. In the case of the Zilla
Panchayat, there is a Chief Accounts officer on deputation from the State Accounts
Department. He also takes the responsibility of maintenance of accounts of the
Taluk Panchayat. The Panchayat members are required to disclose any pecuniary
interest that they have in any matter coming up for consideration at the Panchayat
meeting concerned.
It is mandatory for Taluk and Zilla Panchayat members to declare their assets,
and their membership will be terminated for filing false or incorrect declaration.
As per the procedures mentioned in the State Act, Taluk and Zilla Panchayat
50 members are required to maintain election expenses accounts and failure to lodge
them renders such members liable to disqualification. Further, at all levels of Financial Powers
Panchayats, the proceedings of various meetings are required to be made public
along with full details of who voted for or against the various motions within 72
hours of holding such meetings.
4.5 STATE FINANCE COMMISSIONS

Article 243I provides for the constitution of a body called the State Finance
Commission every five years to review the financial position of the Panchayati
Raj Institutions in the state. These SFCs are expected to review the finances of
PRIs and to fix the volume of funds that should be devolved to the Panchayats at
different levels so that they have adequate funds to effectively carry out their
duties as institutions of local self governance. The SFC will also suggest the
criteria of allocation funds and formulate the methodology for devolution of
finances.
The Finance Commission is required to make recommendations to the Governor

as to:
the principles which should govern distribution of tax proceeds between the
State Government agencies and PRIs, the determination of taxes, duties,
tolls which may be assigned to the Panchayats, the grants-in-aid to be given
to Panchayats in the State;
the measures needed to improve the financial position of Panchayats in the

State;
any other matter referred to the Finance Commission by the Governor in the
interests of sound finance of the Panchayats.
The SFCs are seen as just another body that has only the powers to make
recommendations and as having no other constructive and concrete effect on the
issues affecting governance the state level. However, these SFCs, through their
effective functioning and practical recommendations can in fact become effective
tools for empowering and strengthening local bodies. More than thirty SFCs
have so far submitted their reports. The highlights of their recommendations
have been referred to in a study commissioned by the Twelfth Finance
Commission for examining the performance of SFCs and the impact of their
recommendations. The conclusions of this Report are as under:
Composition: The composition of SFCs in several States, it was found, is not in

accordance with established norms. Though most States have constituted at least
two SFCs and some have formed a third Commission, not all States constituted
them by the prescribed date. For example, some States formed their first SFC on
the specified date (April 1994) as per the constitutional stipulation, but other
States delayed forming a Commission, the delay ranging from one month to 3
years. This casual attitude towards the constitution of SFCs has unfortunately
resulted in the State Governments not considering the recommendations of SFCs
seriously.
Variable tenure: The constitutional provisions stipulate that SFCs have to be

51
Constitutional Framework established within one year from the coming into force of the 73rd Amendment, and,
thereafter, at the expiry of every fifth year. Thus, every SFC ought to have a tenure of
five years. However, a considerable number of the SFCs are frequently reconstituted.
The tenure of an individual SFC also differs in different States, for example, it may
range from three months (in the States of Goa and Manipur) to three years (in the
States of Andhra Pradesh, Tamil Nadu and Pondicherry).
Relation between CFC and SFC: The lack of a fixed tenure further results in lack
of synchronisation in the working of the SFCs and the Central Finance Commission
(CFC). The CFC functions on a separate, fixed schedule, and the constitution of
SFCs does not adhere to a corresponding timetable. Correspondence and sustained
dialogue between the SFCs and CFC is necessary in order to ensure agreement
between the two Commissions. SFC reports should ideally contain an estimation and
analysis of the finances of the State government as well as the local bodies along with
an indication of the revenues that could be generated additionally by the local bodies
by adopting the measures recommended therein. Gaps that may still remain would
then constitute the basis for the measures to be recommended by the Central Finance
Commission. Thus, the SFC reports will enable the CFC to correctly assess the state’s
need and accordingly recommend the devolution of funds or other powers. This
understanding of the ground realities and the agreement between the SFC and the
CFC is necessary to make the PRIs fully financially viable. As the periodicity of
constitution of the CFC is predictable, the States should time the constitution of their
SFCs accordingly. This will be in the interests of the effective functioning of the PRIs.
Insufficient data: Due to the absence of exhaustive, systematic and up-to-date

information on internal resource management of panchayats, SFC reports are
only able to give general recommendations. Consequently, their recommendations
are inadequate in solving the real problems faced at the grass root levels and are
not accorded high priority by states.
Recommendations not binding: The recommendations of SFCs are not binding

on State Governments. Some states accept all recommendations, others adopt
them after modifications, a few reject the recommendations completely, and a
couple delay it as they are referred for further examination. Thus, there is no
convention as in the case of the CFC, where the government normally accepts
all the recommendations.
Lack of political will to implement accepted recommendations: In those few

situations where the states have accepted the recommendations, they have not
always honoured their financial commitments. Additionally, states often do not
make the necessary changes to the law/administrative procedures/rules to
implement the SFC’s recommendations.
Delay in presenting reports: Delay on the part of SFCs in presenting their reports
before the respective State Legislatures adds to the general apathy in accepting
and acting upon their recommendations.
Recommendations for improvement of PRI finances

Panchayats, it has been seen are not making full or effective use of the revenue generation
52
powers available to them. The reason why the SFCs may not be actively endowing Financial Powers
the panchayats with additional revenue-raising powers could be that there are no
statutory provisions defining the conditions for transfer of funds from the state
government to local bodies. This obstructs an adequate and guaranteed flow of funds.
Panchayats have so far been incapable of raising sufficient resources from their available
revenue powers to cover their commitments. Panchayats therefore, are forced to
heavily depend on devolutions from the State and Central Governments and grants-
in-aid from higher-level governments.
In view of this ground reality, the Planning Commission along with the Ministry of
Panchayati Raj constituted a Working Group on Democratic Decentralisation and
PRIs. This Group submitted its report along with recommendations in November
2006. Some of the relevant recommendations made by this Group are as under:
a) The convention established at the national level of accepting the principal
recommendations of the Finance Commission without modification should
be followed at the State level in respect of SFC reports.
b) States should avoid delays in SFC constitution, frequent reconstitution, delay
in submission of reports and tabling of Action Taken Reports in the
legislature.
c) A permanent SFC cell may be created in the finance departments of State
Governments to collect data constantly and make them available to the SFC
as and when constituted.
d) States should identify subjects within the powers of the PRIs alone and
allow them full administrative and taxation powers as regards all such
subjects.
e) States must refrain from giving exemptions from local taxes imposed by
Panchayats, without consulting them.
f) Incentives for taxation must be given to Panchayats, if required in novel
ways, such as prize schemes and matching funds.
g) Ensuring transfers to Panchayats without delay or diversion through direct
transfer of funds, thereby reducing the number of layers through which
funds pass. While funds to District and Intermediate Panchayats may be
transferred through treasuries, considering their small numbers, direct
transfer of funds from State Governments through bank or post office
accounts to Village Panchayats are desirable for speed and efficiency.
h) As local governments require functionaries to undertake transferred
functions, one of the problems most frequently encountered is the absence
of adequate staff to effectively perform all the functions assigned to PRIs.
The formula for fiscal transfers should include the costs of adequate, and if
necessary, additional staffing.
4.6 AUDIT OF PANCHAYAT ACCOUNTS

Article 243J provides for the auditing of Panchayat accounts. The Article provides
53
Constitutional Framework that State Legislatures may make and decide upon such procedures for the maintenance
and audit of accounts by Panchayats.
The purpose of making audit mandatory in the Constitution is one way of making
panchayats accountable. There are, in certain cases, institutional mechanisms
available for audit of accounts of panchayats in the states in the form of the local
fund examiner who audits the accounts of panchayats. The reports of such audits
are also required to be presented in the State Legislature. The presentation of
audit reports in the Gram Sabha along with the provision for reply thereon, is a
healthy procedure as it makes the Panchayats accountable to the people through
this mechanism.
Pursuant to the recommendations of the Eleventh Finance Commission, the

Ministry of Finance issued guidelines that the Comptroller and Accountant
General (CAG) shall be responsible for exercising control and supervision over
the proper maintenance of accounts of all the three tiers of Panchayati Raj
Institutions (PRIs).
Standardised financial audit procedures will bring about a level of efficiency

and professionalism in maintenance of accounts and other financial aspects of
PRIs. A step in this direction is the formulation of formats for maintaining
database. 20 States have entrusted Technical and Guidance Supervision (TGS)
over accounts and audit of PRIs to the CAG. As of now, 10 states have responded
for adoption of the draft formats that were circulated and 7 states have initiated
action to set up the infrastructure for collection, transmission and maintenance
of the database. For the central level also draft database formats for PRIs have
been made and sent to Ministry of Panchayati Raj (MoPR) and National Institute
of Rural Development (NIRD) for their views before the formats are finalised.
West Bengal is one state which has completed the audit of all 3357 Gram
Panchayats.
2) What are the new developments that have taken place in the field of
financial accountability of PRIs?
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
4.7 SOCIAL AUDIT

The Gram Sabha is expected to play a vigilante role on PRIs. The institution of
the Gram Sabha has been given ‘watchdog’ powers and responsibilities under
various State Acts. A social audit is useful to understand the qualitative impact
of the work undertaken by PRIs. Social audit can be defined as the process by which
details of financial and non-financial resource used for different development initiatives
by state agencies, is shared with the citizens. This process involves gathering of
54
information from various sources, organising of beneficiary groups and scrutiny of the Financial Powers
information.
The RTI Act, 2005 and its State equivalent statutes are meant to facilitate the
‘watchdog’ functions of citizens, to demand information from state agencies
which may throw crucial light on the way public resources have been used. The
Panchayats (Extension to Scheduled Areas) Act, 1996 empowers the Gram Sabha
to conduct social audits by vesting powers over minor forest produce, powers of
expressing opinion of land acquisitions to be undertaken, certification of village
works undertaken, etc.
Case studies of non-formal audits involving Panchayats

Even though there are no formal policies to introduce social audit procedures
within the Panchayat systems, civil society organisations have carried out social
audits in various states. The Mazdoor Kisaan Shakti Sangathan (MKSS), under
its programme, ‘Hamaara Paisa, Hamaara Hisaab’ engages with officials in
charge of government schemes and local politicians. Their use of a public hearing
or Jan Sunwai, where they read out government documents relating to schools,
public works and other development works of the area, is very effective. This
creates more awareness amongst people about their right to information, and the
ways and methods of using information vis-à-vis government agencies.
In Orissa, in October 2001, the Gram Sabha members of Jharnipalli Panchayat,

Adaipur Block conducted a one-day social audit on development works being
undertaken in the area, with the participation of government officers, citizens,
Action Aid India and MKSS. The issues that were taken up involved various
infrastructure works, PDS system, Anganwadi, and Panchayat accounts of the
previous three years. The audit found that:
Although the works were not carried out, the sanctioned funds were shown
in the records as having been utilised.
Contractors were banned under government guidelines, but 31 contractors

were working on the project.
The contractors did not maintain muster rolls.
Instead of the target of 100 man-days of employment for families below the
poverty line (BPL), only 12 half days’ work were generated.
The BPL families could not buy subsidised food from the public distribution
system (PDS) shops as partial wages because they did not possess the needed
ration cards.
The local bureaucracy had failed to monitor and check the possibilities of
corruption. There were many instances when they were in collusion. For
instance, the junior engineer had certified many ghost works through his
measurement books, with the BDO certifying them too.
After the audit, people submitted a memorandum of demands asking for an

Enquiry Committee to be set up by the District Collector and various records to
55
Constitutional Framework be made open to public scrutiny.
Parivartan, an NGO in Delhi working on the realisation of the right to information,

has facilitated social audits relating to transparency in PDS systems.
Though social audits are gaining in popularity, they are yet to become effective modes
of monitoring the Panchayat system. A more widespread and regular practice of social
audits at the Gram Sabha level will ensure greater transparency and accountability in
service delivery under government schemes, and imbibe greater efficiency in political
representatives and bureaucrats at all levels.
To conclude, the financial viability of PRIs in a state depend on the efforts made by the
particular State Government, in law and policy, to empower these institutions to levy
taxes and administer their own activities with autonomy. However, only some states
have taken concrete steps to devolve taxes to PRIs, to empower them with banking
and other facilities so that funds are made available at the right time, and training of
functionaries in use of funds. While the Central and State governments have enhanced
funding (devolution of funds) to Panchayats, many states have not carried out
concomitant transfer of functionaries. The broad financial position of PRIs as per the
report of 12th Finance Commission shows that their own revenue as a percentage of
total revenue was below 5 per cent. Assignment plus devolution of funds hovered
around 24 per cent. The grants-in-aid which have been the major source of funds to
PRIs remained below 55 per cent during the period considered by 12th Finance
Commission. Thus, unless there is a sea-change in the pattern of resources
mobilisation of the PRIs in the country, their effectiveness would be adversely
affected.
3) What is the significance of social audit? How do you think they can be
made more effective in ensuring transparency from government officials?
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
4.8 SUMMARY
Let us now sum up the important points discussed in this unit:
We discussed the sources of finances for Panchayats under the Constitution.

These include powers to raise their own revenues by levying taxes, fees etc,
taxes assigned by the State Government and grants-in-aid. We also discussed
the management of finances of Panchayats.
The financial viability of PRIs in a state depends on the efforts made by the
particular State Government to empower these institutions to levy taxes and
administer their own activities with autonomy. We discussed the role of
State Finance Commissions in this context. We also looked at ways of making
56 SFCs more effective.
We discussed the procedure of audit of Panchayat accounts and the process Financial Powers
of social audit for ensuring fiscal accountability.

(i) Sources of finances of Panchayats (ii) Management of a Panchayat’s finances
(iii) Audit of Panchayat Accounts (iv) State Finance Commissions

1) States can help PRIs generate their own resources by devolving some taxes,
duties which can be locally levied by the PRIs without assistance from the
government. Some of these taxes are property taxes, taxes of businesses,
shops, commercial enterprises, land revenue, liquor cess, cesses on
construction of roads and other infrastructure.
Apart from this, transfers take place along plan allocations from the State
government. Central schematic funds can be maintained in banks. Within
the treasury separate ‘Panchayat fund accounts’ have been created to handle
these funds. Central schemes like the Indira Awas Yojna, Total Sanitation
Campaign, National Family Benefit Scheme, etc. which use PRIs for local
implementation, directly transfer funds to the PRIs. States like West Bengal
have made arrangements for direct transfer by creating saving accounts for
PRIs and electronic fund transfers.
2) Under the Eleventh Finance Commission, the Ministry of Finance, issued
guidelines that the Comptroller and Accountant General (CAG) shall be
responsible for exercising control and supervision over the proper
maintenance of accounts of all the three tiers/levels of Panchayati Raj
Institutions (PRIs) and Urban Local Bodies (ULBs) and their audit.
20 States have entrusted Technical and Guidance Supervision (TGS) over
accounts and audit of PRIs and ULBs to the CAG. As of now, 10 states have
responded for adoption of the draft formats that were circulated and 7 states
have initiated action to set up the infrastructure for collection, transmission
and maintenance of the database. For the central level also draft database
formats for PRIs have been made and sent to Ministry of Panchayati Raj
(MoPR) and National Institute of Rural Development (NIRD) for their views.
After taking into consideraton the views of the MoPR and NIRD, the
database formats for the central level shall be finalised.
3) Social audits can be useful means of referring question, issues, grievances
arising out of government activities that beneficiaries or persons concerned
can place before relevant government officials. Social audits would
necessarily require a range of accurate and relevant information in the hands
of the persons conducting the audit, without which the process will not be
fruitful. Avenues of procuring information, like the Right to Information Act, 2005
can be useful in making social audits successful.
Organisations like the Mazdoor Kisan Shakti Sangathan (MKSS) and Parivartan
57
Constitutional Framework have conducted successful audits concerning service delivery in the fields of primary
education, Public Distribution System, health and sanitation. For a Gram Sabha to
undertake social audit of PRIs to assess their effectiveness, it will have to create a high
level of awareness amongst citizens of the village. There have to be members of the
Gram Sabha actively involved in procuring and analysing information about the issues
being raised. Social audits will make a significant difference in the way government
officials implement policies/schemes at the local level only if Gram Sabhas are in a
position to routinely take on the preparation involved in conducting social audits. So
far, successful social audits have taken place only sporadically.
Terminal Questions
1) i) Refer to Section 4.3.
ii) Refer to Section 4.4.
iii) Refer to Section 4.6.
iv) Refer to Section 4.5.

a) State Profile compiled by the Ministry of Panchayati Raj, available at http://
panchayat.gov.in/viewFolder.do?itemid=3185&ppid=200&ptltid=357& name=
St at e%20Pr o files%202006-07&pat h=Ho me%20page&gt ;%20
Panchayati%20Raj%20in%20States>State%20of%20Panchayati%20Raj
b) Vision Foundation report submitted to the Planning Commission on Social

Audit, available at http://planningcommission.nic.in/reports/sereport/ser/
stdy_sagspr.pdf.
58

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Block-1 CONSTITUTIONAL FRAMEWORK

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Indira Gandhi

National Open University BLE-004

The third block is on ‘Realisation of Social and Economic Rights’. We will

For decentralised governance to become a reality, it is necessary and important

1.3 HISTORICAL EVOLUTION OF PANCHAYATI

Balwant Rai Mehta is widely known as the ‘Architect of Panchayati Raj’ in

Balwant Rai Mehta Committee

Ashok Mehta Committee

While Non-Congress State Governments were busy implementing the

1.4 73RD CONSTITUTIONAL AMENDMENT

Some of the fundamental principles of the Panchayati Raj system as envisaged

There should be a three-tier structure of local self-governing bodies at the

Adequate resources should be transferred to these bodies to enable them to

The three-tier system should be such that it facilitates further devolution

The amendment added a new part IX to the Constitution consisting of 16 Articles

Article 243C enunciates the manner in which Panchayats shall be constituted.

For example, if citizens belonging to SC communities constitute 17 per cent of

Of the total number of posts of Chairpersons available in a State, there shall be

i) Constitutional validity of reservation in Panchayat elections.

After considering these issues and interpreting various provisions of the

On the main question of irregularity of elections to the Gram Panchayat in the

Some Critical Issues

Two Children Norm

1.6 ANALYSIS OF WORKING OF PRIs

2) Bureaucratic control: Another important limitation of the PRIs after the

3) Inadequate staffing: The constitutional amendment does not mention

4) Lack of adequate devolution: So far, progress on fiscal and functional

6) Linkages with Member of Parliament Local Area Development (MPLAD):

7) Lack of adequate training and gender mainstreaming: Since women bear

8) Parallel bodies: In some development projects, the government has set up

We traced the historical evolution of Panchayati Raj Institutions before

The 73rd amendment provides for a three-tier structure of local self-governing

Reservation in Panchayats is mandatory for women and members of SC

We discussed some critical issues concerning disqualification of a person

We concluded by analysing the functioning of Panchayati Raj Institutions

1.9 TERMINAL QUESTIONS

3) Write short notes on:

(i) Institutional mechanisms available to ensure accountability in rural

4) What is the meaning of the principle of subsidiarity?

1.10 ANSWERS AND HINTS

5) State Election Commission.

1.11 REFERENCES AND SUGGESTED READINGS

2.3 DEFINITION OF GRAM SABHA

Delimitation of Panchayats ought to be attempted on this criterion set out by the

2.4 POWERS OF GRAM SABHA

2.5 ANALYSIS OF THE FUNCTIONING OF

Disillusionment with Gram Sabhas tends to snowball, with office bearers of

Gram Sabha meetings: Comprehensive dissimilarities exist in the provisions

A 1997 study conducted by Sahbhagi Shikshan Kendra, Lucknow, covering 15

Quorum: Quorum in meetings insisting on the presence of a minimum number

Sometimes, to address the issue of insufficient quorum, a family is treated as

Status of Gram Sabha: Is the Gram Sabha an advisory/consultative body, the

In order to make the GS a powerful, vibrant and pulsating institution it is necessary

Community Based Organisations to report to Gram Sabhas: The practice of

Standardising Gram Sabha roles in CSS guidelines: All Central Ministries

2.7 PANCHAYATS (EXTENSION TO THE

2.7.1 The Context

Definition of a village: A village in Scheduled Areas shall ordinarily consist of

Constitution of Gram Sabha: A gram sabha is to be constituted for each village

Constitution of Panchayats: A panchayat is required to be constituted for each

a) The reservation of seats at every Panchayat should be in proportion to the

c) The State Government will nominate persons belonging to such Scheduled

Powers of Gram Sabha

2.7.3 Implementation of PESA: An Analysis