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The Economic & Social Planning Act, 2009
The Economic & Social Planning Act, 2009
The Economic & Social Planning Act, 2009
3. Constitution of Panchayats
(2) Where any State had not utilize the grants-in-aid of the revenues it is
eligible out of Consolidated Fund of India to the full extent in any period
during which it is eligible to receive, within a lapse of three months from the
end of such period all such sums which constitute the unutilized portions of
such grants-in-aid shall also be allocated to District Panchayats by Central
government.
(3) Where elections to Panchayats are not held in the State within 6 months
from the date this Act comes into existence and/or where the States do not
constitute Finance commissions either under provisions of Constitution of
India or as per Section 5 of this Act, the State shall forego grants-in-aid of
the revenues it is eligible out of Consolidated Fund of India to the extent of
40% till elections are held for all the District, Mandal and Village
Panchayats in the State and Finance commissions are constituted to carry out
the purposes of this Act.
(1) The Governor of a State shall, where Finance commissions are not
constituted as per the provisions of Constitution of India, as soon as may be
within one year from the commencement of this Act, and thereafter at the
expiration of every fifth year, constitute a Finance Commission to review the
financial position of the Panchayats and to make recommendations to the
Governor as to -
(a) the principles which should govern –
The amounts allocated by State governments under Section 4(1) of the Act
shall only be spent by District Panchayats on the following activities:
a) maintain all its records duly catalogued and indexed in a manner and the
form which facilitates the right to information under the Right to
Information Act, 2005 and ensure that all records that are appropriate to be
computerised are, within a reasonable time and subject to availability of
resources, computerised and connected through a network all over the
country on different systems so that access to such records is facilitated;
b) publish within one hundred and twenty days from the enactment of
this Act,—
(i) the particulars of its organisation, functions and duties;
(ii) the powers and duties of its office-bearers and employees allotted to it by
State governments under Section 10 of this Act;
(iii) the procedure followed in the decision making process, including
channels of supervision and accountability;
(iv) the norms set by it for the discharge of its functions;
(v) the rules, regulations, instructions, manuals and records, held by it or
under its control or used by its employees and office-bearers for discharging
its functions;
(vi) a statement of the categories of documents that are held by it or under its
control;
(vii) the particulars of any arrangement that exists for consultation with, or
representation by, the members of the public in relation to the formulation of
its policy or implementation thereof;
(viii) a statement of the boards, councils, committees and other bodies
consisting of two or more persons constituted as its part or for the purpose of
its advice, and as to whether meetings of those boards, councils, committees
and other bodies are open to the public, or the minutes of such meetings are
accessible for public;
(ix) a directory of its office-bearers and employees;
(x) the monthly remuneration (salary, allowances etc) received by each of its
office-bearers, members of panchayats and Chairpersons and employees,
including the system of compensation (if any) as prescribed by State
government in its rules;
(xi) the budget allocated to each of its agency, indicating the particulars of
all plans, proposed expenditures and reports on disbursements made;
(xii) the manner of execution of subsidy programmes, including the amounts
allocated and the details of beneficiaries of such programmes;
(xiii) particulars of recipients of concessions, permits or authorisations
granted by it;
(xiv) details in respect of the information, available to or held by it, reduced
in an electronic form or maintained in manual registers;
(xv) the particulars of facilities available to citizens for obtaining
information, including the working hours of a library or reading room, if
maintained for public use;
(xvi) the names, designations and other particulars of the Officers
responsible for disseminating information to Public regarding it schemes and
(xvii) any such other information as may be prescribed by State government
in its rules;
(ii) Where an office is already in existence, such office, shall maintain the
registers, records etc. as per Section 8 of this Act.
(iii) Where there is no office, the layout, space and design of the office, and
the infrastructure required, which may be uniform for all Village, Mandal
and District Panchayats shall be as may be prescribed by State government.
(iv) The State governments shall direct the District Collectors to construct
all the offices as required by all the Districts in the State and expend the
necessary sums to that effect.
(2) An Inspector appointed under sub-section (1) may, for the purpose of
ascertaining whether any of the provisions of this Act has been complied
with-
(b) at any reasonable time and with such assistance, if any, as he thinks fit,
enter any establishment or any premises connected therewith and require
anyone found in charge thereof to produce before him for examination any
accounts, books, registers and other documents relating to the manner in
which the funds allocated to Panchayats are spent.
(c) examine with respect to any matter relevant to any of the purposes
aforesaid, the Chairperson of Village Panchayat, Mandal Panchayat or
District Panchayat or any other member of any Panchayat found in charge of
any duty or work assigned to him.
(d) make copies of, or take extracts from, any book, register or other
document maintained in relation to the Village/Mandal/District Panchayat;
(e) exercise such other power as may be prescribed.
(4) Any person required to produce any accounts, books, register or other
documents or to give information sought by an Inspector under sub-section
(1) shall be legally bound to do so.
(5) The Audit shall be held so often that there shall not be lapse of more than
a year between one Audit and the other while inspection shall be on
permanent basis.
15. Penalty
(a) contravenes any of the provisions of this Act or any rule made
thereunder, or
(1) whoever being required under this Act to maintain any records or
registers or to furnish any information or return-
(a) fails to maintain such register or record; or
(b) wilfully refuses or without lawful excuse neglects to furnish such
information or return; or
(c) wilfully furnishes or causes to be furnished any information or
return which he knows to be false; or
(d) refuses to answer or wilfully gives a false answer to any question
necessary for obtaining any information required to be furnished under this
Act, or under Right to Information Act, 2005, as the case may be, shall, for
each such offence, be punishable with fine which shall not be less than two
thousand rupees but which may extend to twenty thousand rupees.
(2) Whoever-
(3) An Inspector appointed under Section 11 of this Act may impose and
collect such penalties mentioned in Sub-sections (1) to (2) of this Section
either on receipt of complaint made by any person or his legal representative
or on his own on conduct of inquiry or during course of his job for reasons
to be recorded in writing and submitted to such authority as may be
prescribed by State government in its rules.
(4) Whoever –
Diverts the funds allocated for any scheme meant for activities
mentioned under Section 7 of this Act to his personal use or utilizes the
amounts allocated by State governments under Section 4(1) of the Act to
promote his self-interests or for the activities not mentioned in Section 7
shall be punishable with imprisonment for a period not less than One year.
(2) No court inferior to that of Magistrate of the First Class shall try any
offence punishable under this Act.
(3) No debates, discussions and decisions made by Panchayats in their
meetings shall come into question in any Court of law in so far as they are
not inconsistent with the provisions of this Act.
(5) The jurisdiction of Court in taking cognizance of offenses under this Act,
relates to the sums granted by State governments under Section 4 of this Act,
and the acts or wrongs done by Members of Panchayats or Office bearers or
anyone acting on behalf of such Panchayats in their Executive capacity.
(1) No penalty, prosecution or other legal proceeding shall lie against any
Office-bearer of Member of Panchayat or any officer of the government
working on behalf of Panchayat for anything which is in good faith done or
intended to be done under this Act.
(2) However during the hearings in Court proceedings, if it is found that any
officer of the government has conducted maliciously against any person,
such officer shall be punishable as per the Conduct rules laid down by the
government for his cadre if it is Officer in Panchayat Office appointed by
Government or as per the recommendations of the Court hearing the case in
case of elected members of Panchayat and Office-bearers.
Provided the punishment for mere negligence of duties shall not be more
than Compulsory retirement and punishment for criminal negligence or act
committed with criminal intent shall not be more than dismissal from service
in case of government employees working in Panchayat Offices and in case
of Members of Panchayats acting in Executive capacity, the punishment for
mere negligence shall not be more than one year imprisonment and
punishment for offenses mentioned in Section 16 (1) and/or(3) shall be
collection of damages for wrongs committed along with the imprisonment of
not less than one year as mentioned in Section 16(3).
19 Power of Central and State government to make rules
(1) The Central government and State Governments may, by notification in
the Official Gazette, make rules for carrying out the provisions of this Act to
the extent required by the provisions of this Act.
(2) Every order and every rule made by the Central Government under this
Act shall be laid, as soon as may be after it is made, before each House of
Parliament, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any
modification in the order or rule or both Houses agree that the order or rule
should not be made, the order or rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the validity of
anything previously done under that order or rule.
(3) Every order and every rule made by the State Government under this Act
shall be laid, as soon as may be after it is made, before State legislature,
while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, State legislature agree in making any
modification in the order or rule or State legislature agree that the order or
rule should not be made, the order or rule shall thereafter have effect only in
such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the
validity of anything previously done under that order or rule.
Q : If Parliament could not do anything how could you do it, how could you
make a law on Local Self government that is purely a State subject?
A : Where there is a will there is a way. I did not make a law on Local Self
Governments directly. I made a law on the subject of Economic and Social
Planning which is a subject of Concurrent list. We need the help of
institutions to carry out the purposes of any legislation. I needed the
framework of Panchayati Raj to carry out the purposes of my legislation.
States are under obligation to bring Panchayati Raj into reality way back in
1950 or at least when 73rd Constitution Amendment Act was passed by
Parliament. If they had not brought this institution into existence it becomes
difficult for my Act to carry out its purposes. So I made it compulsory for
States to bring the Panchayati Raj into existence. Hence this is not a law on
Panchayati Raj, but a law on Economic and Social Planning which is a
subject relating to Concurrent list, the aim of which is to decentralize the
Economic and Social Planning process to District level.
If you have the institutional framework to carry out the purposes of this Act,
then it is fine. Otherwise, if you don’t have the framework, under the
provisions of this Act, you have to forego 40% of the grants-in-aid you are
eligible as a State from the Consolidated Fund of India. Hence it becomes
necessary for you to bring Panchayati Raj into reality. You can’t keep silent
anymore.
(a) the distribution between the Union and the States of the net proceeds of
taxes which are to be, or may be, divided between them under this Chapter
and the allocation between the States of the respective shares of such
proceeds;
(b) the principles which should govern the grants-in-aid of the revenues of
the States out of the Consolidated Fund of India;
Article 282 gives power to the Union or a State to make any grants for any
public purpose, notwithstanding that the purpose is not one with respect to
which Parliament or the Legislature of the State may make laws.
The Union or a State may make any grants for any public purpose,
notwithstanding that the purpose is not one with respect to which
Parliament or the Legislature of the State, as the case may be, may make
laws.
But when records, files and registers are expected to be maintained by force
of law whether you are educated or not, you are supposed to maintain them.
Whether you are politician or not, when you are in public office, you are
functioning in the capacity of “Executive” not in the capacity of
“Legislator”, hence whatever you do in Executive capacity can be
questioned by anyone in the Court of Law. I made provisions in Economic
and Social Planning Act to that effect.
If they also fail in their duties, provided any case goes to Court, then if
during court proceedings anyone is found guilty the Court can punish them.
That is another check.
All this is done to ensure that there remains “accountability” to public for the
jobs performed by anyone, including the Members, Chairpersons of
Panchayat.