Local Self Government — Contents
01Concept, Constitutional Basis & Historical Background
02Evolution of PRIs — Committees & Timeline
0373rd Constitutional Amendment Act, 1992 — Rural
04Three-Tier PRI Structure — Composition & Functions
05Gram Sabha — The Foundation of Democracy
06Reservations in PRIs — Key Facts & Jurisprudence
07Financial Powers — Art. 243G, 243H, 243I (SFC)
0811th Schedule — 29 Functions of Panchayats
09PESA Act, 1996 & Exemptions
10Forest Rights Act, 2006
1174th CAA, 1992 — Urban Local Bodies
12Types of Urban Bodies
1312th Schedule — 18 Functions of Municipalities
14DPC, MPC — Planning Committees
15Challenges — PRIs & ULBs
162nd ARC Recommendations
17Current Affairs 2024–25
18Mock Mains Questions
01 — Concept, Constitutional Basis & Historical Background
73rd
CAA, 1992 — Rural (PRIs)
74th
CAA, 1992 — Urban (ULBs)
24 Apr
Panchayati Raj Day (1993)
2.46L
Panchayats in India (2023)
29+18
Functions (11th + 12th Schedules)
Art.40
DPSP — Village Panchayats
What is Local Self Government?
Local Government is the government at the district level and below — the tier of government closest to the common people. It is based on the assumption that local knowledge and local interest are essential for efficient administration, and that local people can raise concerns and achieve solutions by participating in decision-making. It embodies the Principle of Subsidiarity — maximum power should be given to the organ of government nearest to the citizen.
Constitutional Articles
- Art. 40 (DPSP): State shall take steps to organise village panchayats and endow them with such powers as may be necessary to enable them to function as units of self-government
- Part IX (Arts. 243–243O): Added by 73rd CAA — Panchayats (Rural)
- Part IX-A (Arts. 243P–243ZG): Added by 74th CAA — Municipalities (Urban)
- 11th Schedule: 29 functional items for Panchayats
- 12th Schedule: 18 functional items for Municipalities
- Local government is a State List subject (Entry 5) — states implement through their own PRI Acts
Role in Democracy (Good Governance)
- Political consciousness: Enables large number of people to acquire leadership at local levels
- Women empowerment: Minimum 1/3 seats reserved — over 1.4 million women elected representatives
- Democratic deepening: Experience at grassroots raises quality of higher level institutions
- Planning & development: PRIs as units of planning — district and village level plans
- Voice to local demands: Connecting Parliament/State Legislatures with local bodies
- Executive functions: Sanitation, public health, drinking water, roads, primary education
- Breaking hierarchies: Caste and local interests interact, clash, compromise on common issues
Historical Background
| Era | Key Developments |
|---|---|
| Ancient India | Gramini — important village functionary in the Vedic period; Sabha — assembly for discussing agricultural matters; Samiti — assembly with judicial powers. Strong tradition of self-governing village republics (gramani, grama, sabha). |
| Medieval Period | Centralization of leadership and decline in local governance. However, administration reached only to district level — village communities continued to exist. Mughal Panchayats still functioned in some regions. |
| British Era |
1816: Regulation conferred judicial authority to village panchayats in a few provinces. 1870: Mayo’s Resolution — enlarged powers of local institutions; Bengal Village Chowkidari Act empowered DM to constitute a panchayat in any village. 1882: Lord Ripon’s Resolution — intended to build LSG on foundations of ancient India’s self-government. Called the Magna Carta of local self-government. 1907: Royal Commission on Decentralization — enlarged election process in LSG. 1909: Morley-Minto Reforms — incorporated Royal Commission’s recommendations. 1919: Montagu-Chelmsford Reforms — dyarchy system; local government transferred to ministers (Indian responsibility). 1687: First Municipal Corporation — Madras Municipal Corporation. 1726: Similar corporations in Calcutta and Bombay. |
| Post-Independence |
1938: Aundh Experiment — first democratic panchayat system in Princely State of Aundh (Maharashtra). 1952: Community Development Programme (CDP) launched with US financial assistance — aimed to transform stagnant villages into developed rural societies. 1953: National Extension Services (NES) — to catalyse/speed up CDP. CDP + NES failed due to corruption, lack of people’s participation, poor coordination. 1957: Balwant Rai Mehta Committee — appointed to examine CDP + NES. 1993: 73rd and 74th CAA came into force — constitutional status to PRIs and ULBs. |
02 — Evolution of PRIs — Key Committees & Timeline
| Committee / Event | Year | Key Recommendations / Significance |
|---|---|---|
| Balwant Rai Mehta Committee | 1957 |
Appointed to examine CDP and NES. Found: CDP + NES failed due to corruption, lack of participation, lack of education, poor coordination. Key Recommendations:
Issues after Balwant Rai Mehta: Non-uniformity of structure (Kerala/J&K: 1-tier; Haryana/Odisha/TN: 2-tier; Rajasthan/AP: 3-tier; WB: 4-tier); No elections for 10 years in some states; Powers and functions not clear. |
| Ashok Mehta Committee | 1977 |
Formed by Morarji Desai’s Janata Party government. Made 130+ recommendations. Key Recommendations:
|
| G.V.K. Rao Committee | 1985 |
Appointed by Rajiv Gandhi government.
|
| L.M. Singhvi Committee | 1986 |
Appointed to recommend revitalization of PRI for democracy and development.
|
Gandhi vs Nehru — The Ideological Debate
Gandhian View
Village should be the core unit of development. Bottom-up approach — Gram Swaraj. Village councils with real power. Article 40 (DPSP) was a Gandhian concession. Gandhi’s ideology given space in DPSP.
Nehruvian View
Industrialisation-led economic development. Villages were backward and caste-ridden. Local bodies would reinforce caste hierarchies. Favoured centralised planning. Initially did not give constitutional space to PRIs.
03 — 73rd Constitutional Amendment Act, 1992 (Rural)
Constitutional Changes
Added Part IX (Arts. 243–243O) to Constitution. Accorded Panchayats a constitutional status as institutions of local self-governance for rural India. Added 11th Schedule with 29 functional items. Came into force 24 April 1993 (celebrated as National Panchayati Raj Day). Ratified by 17 States.
Compulsory / Binding Provisions
- Organisation of Gram Sabhas (Art. 243A)
- Three-tier system of Panchayati Raj (Art. 243B) — for states with population over 20 lakh. States <20 lakh may avoid intermediate (Block) tier.
- Direct elections to all seats in Panchayats at all three levels
- Minimum age to contest: 21 years (not 25 as for LS/SLA)
- Indirect elections to post of chairperson at intermediate and district level
- Reservation for SC/STs in proportion to their population at each level (seats + chairperson posts)
- Reservation for women — not less than 1/3rd of total seats (including SC/ST reserved seats) at every level
- State Election Commission (SEC) — Art. 243K — to superintend, direct and control elections (Governor appoints SEC; only President can remove)
- State Finance Commission (SFC) — Art. 243I — appointed by Governor every 5 years
- Panchayat elections every 5 years — if dissolved before 5 years, fresh elections within 6 months
- Newly constituted panchayat after dissolution shall serve only the remainder of the original 5-year term
Voluntary / Optional Provisions
- Voting rights to MPs and MLAs in Panchayat bodies (at intermediate/district level)
- Reservation for Backward Classes (OBCs) — left to states (Art. 243D(6)) — subject to Triple Test (K. Krishna Murthy, 2010)
- Giving PRIs financial powers — left to state legislature
- Devolution of functions under 11th Schedule — left to states
- Giving powers of taxation to PRIs
Critical Gap
The most important provisions — financial devolution and 11th Schedule functions — are voluntary (left to states). This is the core reason why PRIs remain weak in most states. Less than 20% of states have fully devolved all 29 subjects.
Key Articles in Part IX (Panchayats)
| Article | Provision |
|---|---|
| 243 | Definitions (district, Gram Sabha, intermediate level, Panchayat area, population, village) |
| 243A | Gram Sabha — body consisting of persons registered as voters in a village/panchayat area |
| 243B | Constitution of Panchayats — 3-tier for states with >20 lakh population |
| 243C | Composition of Panchayats — left to State Legislature. Head of intermediate and district panchayat is indirectly elected; mentioned in Constitution. |
| 243D | Reservation of seats for SC/ST and Women (1/3rd); OBC reservation (optional, s.6) |
| 243E | Duration — 5 years; fresh elections within 6 months of dissolution |
| 243F | Disqualification — if disqualified for State Legislature elections; age <21 years |
| 243G | Powers, authority and responsibilities — State Legislature may endow Panchayats with powers for economic development and social justice (11th Schedule) |
| 243H | Financial Powers — State Legislature may authorise Panchayat to levy/collect taxes; assign state taxes; provide grants-in-aid from Consolidated Fund of State |
| 243I | State Finance Commission — appointed by Governor every 5 years; reviews financial position of Panchayats and recommends distribution of taxes between State and local bodies |
| 243J | Audit of accounts of Panchayats |
| 243K | Elections to Panchayats — vested in State Election Commission (Governor appoints SEC; only President can remove) |
| 243L | Application to Union Territories — President may direct applicability with modifications |
| 243M | Exemptions: Nagaland, Meghalaya, Mizoram; Scheduled Areas; Hill areas of Manipur; Darjeeling district (West Bengal — Darjeeling Gorkha Hill Council) |
| 243N | Continuance of existing laws — existing state PRI Acts to continue until amended |
| 243O | Bar to court interference in electoral matters — election disputes to be heard only after election is over (election tribunals) |
04 — Three-Tier PRI Structure — Composition & Functions
| Tier | Nomenclature | Composition | Head | Functions |
|---|---|---|---|---|
| I — Village Level | Gram Panchayat (aka village panchayat) | Directly elected members. Also includes Gram Sabha (all registered voters of village/panchayat area) and Nyaya Panchayat. Members directly elected in single day / multiple elections on same date. | Gram Pradhan (aka Mukhiya, Sarpanch, President). Directly elected in some states; indirectly elected in others (Art. 243C(5) left to states). Only looking after executive functions. | Minor irrigation, sanitation works, drinking water supply, child and women development (anemia tablets), natural calamity support, primary health, primary education oversight |
| II — Block/Intermediate Level | Panchayat Samiti (aka Block Samiti, Mandal, Taluka Panchayat) | Two types of members: (1) Directly elected; (2) Ex-officio — village panchayat heads (system of rotation — say 5 seats for 15 villages = ex-officio members keep rotating). Participants: both ex-officio + directly elected members. | Block Pramukh — always indirectly elected by ex-officio and directly elected members | Vocational and technical education, agriculture, land development, irrigation projects, supervision of village panchayats |
| III — District Level | Zila Parishad (aka Zila Panchayat, Adhyaksh) | Directly elected members + ex-officio members (heads of Block Samitis). Head is indirectly elected by directly elected + ex-officio members. | Zila Parishad Adhyaksh (aka Chairman). Indirectly elected. Administrative component: Chief Executive Officer (IAS officer) for coordination between PRI and administration; BDO (BCS officer) at Block level; Village Development Officer at village level. | Supervisory role, preparation of developmental plans, electricity, road development, secondary education oversight, coordination with state government |
Key Constitutional Notes on 3-Tier System
- States having population less than 20 lakh can avoid the intermediate (Block) tier
- Head of intermediate and district panchayat is indirectly elected — mentioned in the Constitution (Art. 243C)
- Head of village panchayat — manner of election left to state legislature to decide
- Grounds for dissolution of panchayat — corruption, failed to pass annual budget, maladministration — governed by respective State laws
Nyaya Panchayat (Village Level Judicial Body)
Composition & Nature
- Alternative Dispute Redressal mechanism at village level
- Head: Sarpanch — a judicial function (different from Gram Pradhan/Mukhiya who handles executive functions)
- Term: 3–5 years
- Handles smaller petty issues in villages or municipalities
- Sometimes 4–5 villages clustered under one Nyaya Panchayat
- Head of Nyaya Panchayat is NOT a judicial officer
- In smaller villages, member of Gram Panchayat may also be a member of Nyaya Panchayat
Jurisdiction
- Smaller civil and criminal cases
- Max penalty: ₹100
- Different from Gram Nyayalaya (constituted by State Govt in consultation with HC; headed by Nyayadhikari = Class I Judicial Magistrate; enjoys powers of civil court)
- Gram Panchayat → executive affairs (Pradhan/Mukhiya heads)
- Nyaya Panchayat → judicial affairs (Sarpanch heads)
05 — Gram Sabha — The Foundation of Democracy
What is Gram Sabha? (Art. 243A)
Gram Sabha is a body consisting of persons registered in the electoral rolls of a village/panchayat area. It is the direct democracy element of the Indian governance system — the only institution where citizens participate directly without elected intermediaries. Functions decided by State legislation. Contains three bodies: (a) Gram Sabha — all registered voters; (b) Gram Panchayat — elected body; (c) Nyaya Panchayat — judicial body.
Meetings
- Must meet at least 2 times per year (some states mandate 4 times/year)
- People’s direct participatory democracy
- Quorum provisions apply (decided by State Act)
Functions of Gram Sabha
- Discussing and approving annual accounts (financial statements)
- Discussing audit reports
- Selection of BPL beneficiaries for government schemes
- Social audit of Gram Panchayat activities
- Under PESA: Gram Sabha decides rights over natural resources in scheduled areas
- Under FRA: Gram Sabha decides recognition of forest rights
Why Gram Sabha is Important
True Democracy Argument
- Only direct democracy at grassroots — citizens participate without representatives
- Social accountability — makes Gram Panchayat accountable to citizens
- Anti-corruption tool — Sarpanch Pati culture can be checked by active Gram Sabha
- Convergence of welfare — beneficiary selection happens here, reducing leakage
- Under MGNREGA — work plans and social audit conducted through Gram Sabha
- Central Government urges: Gram Sabha must meet 4 times/year; in practice rarely done
06 — Reservations in PRIs — Key Facts & Jurisprudence
| Category | Constitutional Provision | Key Details |
|---|---|---|
| SC/ST Reservation | Art. 243D(1) — Mandatory / Binding | Seats reserved in proportion to SC/ST population at each level. Out of reserved seats, 1/3 must be reserved for women of SC/ST. Rotation of reserved seats by State law. |
| Women Reservation | Art. 243D(3) — Mandatory / Binding | Not less than 1/3rd of total seats (including SC/ST reserved seats) must be reserved for women at every level of all PRIs. Maharashtra, Bihar, Uttarakhand, Odisha, Andhra Pradesh, Karnataka have increased women’s reservation to 50%. About 1.4 million women are elected representatives in PRIs. |
| Chairperson (SC/ST/Women) | Art. 243D(4) — Mandatory | Reservation of chairperson positions for SC, ST, and women as per State law. Manner and rotation period determined by State Legislature. |
| OBC Reservation | Art. 243D(6) — Optional/Voluntary |
State legislature may provide reservation for backward classes. Subject to Triple Test (K. Krishna Murthy v. UOI, 2010):
|
The “Sarpanch Pati” Culture — A Major Issue
Despite 1/3 (now 50% in several states) women’s reservation, in practice many women elected as Sarpanch/Pradhan are represented by their husbands/male family members. PM Modi called for ending “Sarpanch Pati culture” on National Panchayati Raj Day 2015. Ministry of Panchayati Raj constituted an Advisory Committee (September 2023) under Sushil Kumar (Retd. Secretary) to examine proxy representation issues — report expected January 2025. SC order (July 2023) in WP 615/2023 directed this inquiry.
07 — Financial Powers (Arts. 243G, 243H, 243I)
| Article | Provision & Details |
|---|---|
| Art. 243G | Powers, Authority and Responsibilities: State Legislature may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government. May entrust Panchayats with preparation of plans for economic development and social justice in relation to subjects in the 11th Schedule. |
| Art. 243H |
Financial Powers — State Legislature may:
|
| Art. 243I |
State Finance Commission (SFC):
|
08 — 11th Schedule — 29 Functions of Panchayats
Important Note
The 11th Schedule lists 29 subjects — but devolution of these to Panchayats is voluntary (left to states). Less than 20% of states have fully devolved all 29 subjects. This is the biggest structural failure of the 73rd Amendment.
1Agriculture, including agricultural extension
2Land improvement, implementation of land reforms, land consolidation and soil conservation
3Minor irrigation, water management and watershed development
4Animal husbandry, dairying and poultry
5Fisheries
6Social forestry and farm forestry
7Minor forest produce
8Small scale industries, including food processing industries
9Khadi, village and cottage industries
10Rural housing
11Drinking water
12Fuel and fodder
13Roads, culverts, bridges, ferries, waterways
14Rural electrification including distribution of electricity
15Non-conventional energy sources
16Poverty alleviation programmes
17Education including primary and secondary schools
18Technical training and vocational education
19Adult and non-formal education
20Libraries
21Cultural activities
22Markets and fairs
23Health and sanitation including hospitals, primary health centres and dispensaries
24Family welfare
25Women and child development
26Social welfare, including welfare of the handicapped and mentally retarded
27Welfare of the weaker sections (SCs and STs)
28Public distribution system
29Maintenance of community assets
09 — PESA Act, 1996 & Exemptions from 73rd CAA
Why PESA? Context
The 73rd Amendment provisions were NOT made applicable to Scheduled Areas (5th Schedule areas) inhabited by Adivasi/tribal populations. This excluded millions of tribal people from Panchayati Raj. To address this, Parliament enacted the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA). PESA extends Part IX with certain modifications and exceptions to Fifth Schedule Areas under Art. 244(1).
Exemptions from 73rd CAA (Art. 243M)
- States of Nagaland, Meghalaya, Mizoram — exempt from Part IX
- Scheduled Areas (5th Schedule) in various states — Parliament enacted PESA 1996 for these
- Hill areas of Manipur — for which District Councils exist
- District of Darjeeling in West Bengal — for which Darjeeling Gorkha Hill Council exists
5th Schedule Areas — PESA Currently Applies in 10 States
States with 5th Schedule Areas (PESA applicable)
Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana (10 states)
PESA — Key Powers Given to Gram Sabha / Panchayat
Powers of Gram Sabha Under PESA
- Ownership of minor forest produce
- Control over money lending to STs
- Manage village markets
- Prevent land alienation and restore alienated tribal land
- Regulate sale/consumption of intoxicants (liquor)
- Mandatory consultation in land acquisition, resettlement and rehabilitation of displaced persons
- Mandatory recommendations for prospective licences/leases for mines and minor minerals
- Planning and management of minor water bodies
- Control over institutions and functionaries in social sector; local plans including Tribal Sub Plans
Importance of PESA
- Enhances people’s participation in decision-making
- Reduces alienation in tribal areas — better control over public resources
- Reduces poverty and out-migration of tribal populations
- Minimises exploitation of tribal population (money lending, liquor, markets)
- Checks illegal land alienation and restores unlawfully alienated tribal land
- Promotes cultural heritage — preserves traditions, customs, cultural identity
- Definition of “village” under PESA: habitation or group of habitations managing affairs in accordance with traditions and customs
2nd ARC Recommendations for Rural Governance
- Gram Panchayats should be of an appropriate size (no Constitution specification on size)
- Panchayats should have power to recruit personnel and regulate their service conditions
- Abolish state act provisions regarding approval of Panchayat budget by higher tier/state authority
- State Governments should NOT have power to suspend/rescind any resolution passed by PRIs or take action against elected representatives
- States must undertake comprehensive activity mapping for all matters in 11th Schedule
- Broadening and deepening of the revenue base of local governments
- Follow Karnataka Model — created separate bureaucratic cadre for PRIs
10 — Forest Rights Act, 2006 (Scheduled Tribes & Forest Dwellers Recognition of Rights Act)
Key Facts
Enacted in 2006. Nodal Ministry: Ministry of Tribal Affairs. Objectives: (1) Undo historical injustice to forest-dwelling communities; (2) Ensure land tenure, livelihood and food security for forest-dwelling STs and OTFDs; (3) Strengthen conservation regime by including rights-holders in forest governance; (4) Ensure sustainable use and conservation of biodiversity.
Rights Granted Under FRA
- Title Rights: Ownership to land farmed by tribals + forest dwellers, up to 4 hectares (as on 13 December 2005)
- Use Rights: Minor forest produce, grazing areas, pastoralist routes
- Relief and Development Rights: Rehabilitation in case of eviction or displacement
- Forest Management Rights: To protect, regenerate, conserve, manage community forest resources
- Community Rights: Rights over common property resources in addition to individual rights
- Rights in and over disputed land
- Rights of settlement and conversion of forest villages into revenue villages
- Right to intellectual property and traditional knowledge related to biodiversity
- Rights over developmental activities
Eligibility & Role of Gram Sabha
- Must reside primarily in forests
- Must depend on forests for livelihood
- Must be member of Scheduled Tribe in that area, OR
- Residing in forest for more than 75 years (Other Traditional Forest Dwellers)
Gram Sabha — Central Role
- Gram Sabha decides whose rights to which resources should be recognised
- Done through a resolution of Gram Sabha
- Resolution screened and approved at higher levels (Sub-division → District)
- Screening Committee: 3 government officials + 3 elected members of local body at that level
11 — 74th Constitutional Amendment Act, 1992 (Urban)
Historical Background
Urban Local Governance began with Madras Municipal Corporation, 1687. Calcutta and Bombay Municipal Corporations followed in 1726. Lord Ripon’s Resolution (1882) laid democratic foundations of municipal governance. 1953: UP set up Municipal Corporations in KAVAL Towns (Kanpur, Agra, Varanasi, Allahabad, Lucknow). 1985: National Commission on Urbanization (report 1988). 74th CAA, 1992 gave constitutional status to ULBs. Added Part IX-A (Arts. 243P–243ZG) and 12th Schedule (18 functions). Came into force 1 June 1993.
Key Features of 74th CAA
| Feature | Details |
|---|---|
| Levels of Municipal Bodies | 3 levels: (1) Nagar Panchayat (transitional area — rural to urban); (2) Municipal Council (smaller urban area); (3) Municipal Corporation (larger urban area) |
| Term | 5 years. If dissolved, fresh elections within 6 months. |
| Elections | Independent State Election Commission for conduct, superintendence and control of municipal elections. Same SEC as for Panchayats (Art. 243ZA). |
| Reservation — SC/ST | Seats reserved for SC/ST in proportion to their population in the municipal area |
| Reservation — Women | Mandatory 1/3rd of every elected urban body reserved for women representatives. Also reservations for chairpersons of municipalities. |
| Finance | State Finance Commission (same as for Panchayats) — reviews financial position of municipalities and makes recommendations |
| Planning | Via District Planning Committee (DPC) — Art. 243ZD; and Metropolitan Planning Committee (MPC) — Art. 243ZE |
| Impact on Urban Governance | (1) Recognition of ULBs as 3rd tier of governance; (2) Wider political representation; (3) Gender empowerment; (4) Independent Municipal Elections; (5) Introduction of ward committees; (6) Reformation of Municipal Finances |
12 — Types of Urban Local Bodies
| Body | Area / Population | Structure & Key Features |
|---|---|---|
| Municipal Corporation (Nagar Nigam) |
Larger urban areas (cities) | 3 authorities: (1) Council — deliberative body, headed by Mayor; (2) Standing Committee — created to facilitate work of Council; (3) Municipal Commissioner — for implementation, generally an IAS officer. Council members: directly elected from wards. Mayor is directly/indirectly elected (state-wise). |
| Municipal Council (Nagar Palika) |
Smaller urban areas | Same structure as Municipal Corporation but lesser financial and administrative authority. Chairperson heads the Council. |
| Nagar Panchayat (Town Council) |
Transitional areas — moving from rural to urban | For areas in transition from rural to urban character. Headed by a Chairperson/President. Least financial and administrative authority among the three. |
| Notified Area Committee | Fast-developing towns | Established by a notification of State Government. Entirely nominated (not elected). Not created under 74th CAA — created by State Acts. |
| Town Area Committee | Small towns | For administration of small towns. Entrusted with a limited number of civic functions only. |
| Cantonment Board | Cantonment (military) areas | For administration of civilian population in cantonment areas. Under Ministry of Defence. Statutory body created through Cantonments Act, 2006. |
| Township | Areas of large public enterprises | Established by large public sector enterprises to provide civic amenities to staff. Headed by Town Administrator appointed by the public enterprise. |
| Port Trust | Port areas | Established in port areas. Created by an Act of Parliament. Consists of both elected + nominated members. |
| Special Purpose Agency | Function-based (not area) | Function-based, NOT area-based. Established by Act of State Government. Autonomous bodies dealing with specific functions independently of ULBs. E.g., Development Authorities (DDA, BDA), Water Supply Boards, Housing Boards, MMRDA. |
13 — 12th Schedule — 18 Functions of Municipalities
1Urban planning including town planning
2Regulation of land-use and construction of buildings
3Planning for economic and social development
4Roads and bridges
5Water supply — domestic, industrial, commercial
6Public health, sanitation, conservancy, solid waste management
7Fire services
8Urban forestry, protection of environment, ecological aspects
9Safeguarding interests of weaker sections — SCs, STs
10Slum improvement and upgradation
11Urban poverty alleviation
12Provision of urban amenities — parks, gardens, playgrounds
13Promotion of cultural, educational, and aesthetic aspects
14Burials and burial grounds; cremations and cremation grounds
15Cattle pounds; prevention of cruelty to animals
16Vital statistics including registration of births and deaths
17Public amenities — street lighting, parking lots, bus stops, public conveniences
18Regulation of slaughterhouses and tanneries
14 — District Planning Committee (DPC) & Metropolitan Planning Committee (MPC)
DPC — Art. 243ZD
- Objective: Consolidate developmental plans prepared by Panchayats and Municipalities in the district and prepare a single draft development plan for the district as a whole
- Composition: Minimum 4/5th of all members shall be elected by and from amongst elected members of Panchayat at district level + Municipalities falling within the district
- State Legislature decides composition and manner of filling seats
- NOT constituted in 5th Schedule areas and 6th Schedule areas
- Chairperson of DPC forwards development plan to State Government
- Status in practice: Most states have NOT constituted DPCs meaningfully — a major governance gap
MPC — Art. 243ZE
- Objective: Prepare a draft development plan for the metropolitan area as a whole
- Metropolitan area: Area with population of 10 lakh or more comprised in one or more municipalities and Panchayats (specified by Governor)
- Composition: Minimum 2/3rd of members shall be elected by and from amongst elected members of municipalities and chairpersons of Panchayats falling within the metropolitan area
- State Legislature decides composition and manner of filling seats
- Chairperson of MPC forwards plan to State Government
- In practice: Mumbai, Delhi, Chennai, Kolkata, Bengaluru should have MPCs — mostly non-functional or not constituted
15 — Challenges — PRIs & Urban Local Bodies
| Challenge | For PRIs | For ULBs |
|---|---|---|
| Financial Weakness | PRIs earn only ~1% of revenue from own taxes. SFC recommendations largely rejected by states. Untied grants reduced: 85% (13th FC) → 60% (15th FC). No fiscal autonomy. | GST subsumed many local taxes (octroi, entry tax) — ULBs lost significant own revenue. GST is silent on financial share of ULBs. Heavy dependence on state grants. Property tax collection poor. |
| Incomplete Devolution | <20% states fully devolved all 29 subjects in 11th Schedule. 3Fs (Functions, Functionaries, Finances) not effectively transferred. States reluctant to cede power. | States use discretionary power excessively. Lack of devolution of power. 12th Schedule functions still with state departments. Parallel bodies (SPAs like DDA) bypass ULBs. |
| Proxy Representation | Sarpanch Pati/Pradhan Pati culture — husbands run on behalf of elected women. Proxy representation defeats purpose of women’s reservation. Advisory Committee (2023) examining this. | Relatively less; urban women more empowered but still face patriarchal barriers in some regions. |
| Accountability & Transparency | No proper monitoring mechanism; negligible RTI compliance; no citizen charters; no audit by independent authority; CAG audit of PRIs outside CAG’s normal ambit; rampant corruption; max audit at district/state level only. | SFC recommendations ignored. Act silent on status of Mayor (no clarity on Mayor’s powers — executive vs ceremonial). Lack of transparency in tax determination. |
| Political Colour | Addition of political colour — state parties use funding to ensure their candidate wins. Gram Sabha reduced to vote bank. MP/MLA elections call village pradhan/pramukh — they campaign for that MP/MLA. Budgets won’t be approved if different party controls Panchayat. | Municipal elections heavily politicised; partisan grant allocation. |
| Overlapping Functions | No clear-cut division of subjects — duplication of efforts. Who maintains village road? Village Panchayat? Block Samiti? Zila Parishad? 2nd ARC VI Report recommended clear-cut division. | Special Purpose Agencies (DDA, Housing Boards) bypass ULBs — bypasses democratic accountability. |
| Lack of Coordination | Administration-PRI coordination poor: apathetic attitude of bureaucrats; poor educational qualifications of PRI representatives; frequent transfers of IAS officers; communication gap. | Mayor and Municipal Commissioner (IAS) often in conflict — lack of clarity on who is in charge of executive functions. 2nd ARC recommends combining both in same functionary. |
| Elections & Reservations | Elections delayed by states. OBC reservation disputes (Triple Test not followed) — many states conducted elections without OBC quota after SC rulings. Bihar, Maharashtra ongoing disputes. | Same OBC reservation Triple Test issue. SCs struck down several State OBC reservations for non-compliance. |
16 — 2nd ARC Recommendations (6th Report: “Local Governance”)
For Rural Governance (PRIs)
- Gram Panchayats should be of an appropriate size
- Panchayats should have power to recruit personnel and regulate service conditions
- Abolish state provisions requiring approval of Panchayat budget by higher tier or state authority
- State Governments should NOT have power to suspend/rescind resolutions of PRIs or take action against elected representatives
- States must undertake comprehensive activity mapping for 11th Schedule subjects
- Broadening and deepening of the revenue base of local governments
- Follow Karnataka Model — create separate bureaucratic cadre for PRIs
- States should encourage outsourcing of specific functions to public/private agencies
- Networking of training institutions for comprehensive capacity building
- Right to Recall: Elected representative who has completed half of term and the people (voters) are not satisfied — they can write to Election Commission (minimum 1/4 of total registered voters). EC will conduct mid-election; if half of voters say NO, he/she will be recalled. Implemented in Bihar with challenges.
For Urban Governance (ULBs)
- Functions of municipal council and executive should be combined in the same functionary (Chairperson or Mayor)
- Capacity of municipalities to handle legal and financial requirements of responsible borrowing must be enhanced
- Land banks should be leveraged for generating resources for municipalities
- Citizens’ charters in all Urban Local Bodies
- Municipal governments should have full autonomy over functions/activities devolved to them
- Manner of determination of tax should be made totally transparent and objective
- Social audit mechanisms for ULBs
- Clear-cut division of subjects between state, ULBs and Special Purpose Agencies
17 — Current Affairs & Recent Developments (2024–25)
SVAMITVA Scheme · 2024
2.19 Crore Property Cards Prepared for 1.49 Lakh Villages
SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas) — launched by PM Modi on National Panchayati Raj Day, 24 April 2020. Duration: 2020–21 to 2025–26 (extended by one year). Aims to provide “Record of Rights” to every rural household owner through drone survey technology. Collaboration: Ministry of Panchayati Raj + State Revenue Departments + State PR Departments + Survey of India. As of 12 December 2024, drone flying completed in 3.17 lakh villages. About 2.19 crore property cards prepared for 1.49 lakh villages. Scheme saturated in Haryana, Uttarakhand, Puducherry, Goa, Tripura, Andaman & Nicobar, Dadra & NH. Benefits: facilitates property monetisation, enables bank loans, reduces property disputes, gives rural local government a source of revenue.
Panchayat Devolution Index 2024 · Ministry of Panchayati Raj + IIPA
Karnataka, Kerala, Tamil Nadu — Top States in Devolution
The Panchayat Devolution Index (PDI) — developed by Indian Institute of Public Administration (IIPA) and Union Ministry of Panchayati Raj — evaluates PRIs across 6 parameters: Framework, Functions, Finances, Functionaries, Capacity, and Accountability (the 6Fs). Top performers: Karnataka, Kerala, Tamil Nadu. Most states lag in finances and functionaries devolution. Less than 20% of states have fully devolved all 29 subjects listed in the 11th Schedule.
Proxy Representation Advisory Committee · September 2023 – January 2025
SC-Ordered Committee Examines “Pradhan Pati” Culture
Ministry of Panchayati Raj constituted an Advisory Committee (19 September 2023) under Sushil Kumar (Retd. Secretary, GoI) to examine issues of women Pradhans being represented by male family members. Constituted pursuant to SC order dated 6 July 2023 in WP(C) No. 615/2023. Report expected January 2025. Will enable policy interventions to empower women’s representation and eliminate proxy representation.
OBC Reservation in Local Bodies · SC Triple Test · 2024
Triple Test Continues to Govern OBC Reservation in Local Body Elections
SC (K. Krishna Murthy v. UOI, 2010 — 5-judge Constitution Bench) held OBC reservation in local bodies is subject to Triple Test: (1) Dedicated Commission for empirical inquiry; (2) Proportional quantum per Commission recommendation; (3) Total SC+ST+OBC reservation ≤ 50%. SC issued notice (March 2024) in Bihar municipal election matter (Sunil Kumar v. State of Bihar, SLP 5864/2024) — Bihar conducted triple test only for Extremely Backward Classes (EBCs), excluding OBCs. Maharashtra also under SC scrutiny for its Banthia Commission’s methodology. Multiple states delayed local body elections due to OBC reservation disputes — undermining democratic decentralisation.
Digital Governance of Panchayats · 2024
eGramSwaraj — All Rural Local Bodies on Digital Platform
eGramSwaraj — all rural local bodies in India function on a digital platform enabling them to plan, budget, implement and make payments seamlessly. 31,003 computers sanctioned for Gram Panchayats with established offices. Gram Panchayat Bhawans constructed in 4,604 locations — all GPs with population >3,000 to have dedicated offices. E-Financial Management System (EFMS) — enhances credibility of Panchayat through greater devolution of funds. Rashtriya Gram Swaraj Abhiyan (RGSA) — capacity building scheme; MoU with IIMs for training of Panchayat representatives. National Panchayat Awards conferred by President on National Panchayati Raj Day.
Panchayati Raj Movement in Distress · 2024–25
Less Than 20% States Devolved All 29 Subjects; PRIs Earn Only 1% Own Revenue
A recent report (The Hindu, 2024) notes the Panchayati Raj movement is “in distress” — 26 years after the 73rd Amendment, only 18 states have devolved all 29 subjects. PRIs earn only 1% of revenue through taxes — indicating weak fiscal autonomy. Untied grants reduced from 85% (13th FC) to 60% (15th FC). The 16th FC (2026–31, Arvind Panagariya) recommended strengthening fiscal devolution to local bodies — total allocation of ₹9.47 lakh crore to states for local bodies (2026–31). People’s Plan Campaign (PPC) 2024–25 “Sabki Yojana Sabka Vikas” — workshop held 30 September 2024 to prepare Panchayat Development Plans (PDPs) for 2025–26. Model Women-Friendly Gram Panchayats initiative (2024) with UNFPA to localise SDGs.
Urban Local Bodies · Smart Cities & Finance · 2024
Smart Cities Mission Concluding; GST Impact on ULB Finances
Smart Cities Mission (2015–2024, now concluded) — 100 smart cities developed with focus on area-based development, retrofitting, and technology solutions. PM SVANidhi — micro credit scheme for street vendors; over 63 lakh loans disbursed. AMRUT 2.0 (Atal Mission for Rejuvenation and Urban Transformation) — 500 cities; focus on water and wastewater management, urban greenery. GST continues to squeeze ULB finances — octroi and entry tax replaced by GST but ULBs got no direct share. Multiple states providing Women’s Reservation up to 50% in ULBs (Maharashtra, Bihar, Uttarakhand). Supreme Court ongoing case on status of Delhi Mayor’s powers under MCD Amendment Act.
18 — Mock Mains Questions
Q1. “Despite three decades of constitutional empowerment, the Panchayati Raj institutions remain weak vessels for democratic decentralisation in India.” Critically examine this statement, highlighting both achievements and structural failures.
Approach: Achievements — 73rd CAA (Part IX), 2.46 lakh Panchayats, 1.4 million women elected reps, Art. 40 realised, political consciousness, MGNREGA implementation, social audit → Structural failures: (1) Voluntary provisions not implemented — <20% states devolved all 29 subjects; (2) PRIs earn only 1% revenue from own taxes; (3) SFC recommendations ignored; (4) Sarpanch Pati culture; (5) Political colour addition; (6) Poor coordination with bureaucracy; (7) Overlapping functions → Why? Local government is State List subject — Centre cannot compel states; 73rd CAA made key provisions voluntary; political will absent → Way forward: Activity mapping, financial autonomy, Right to Recall, digital PRI governance (eGramSwaraj), SVAMITVA for own-source revenue, 2nd ARC recommendations.
Q2. Discuss the significance of the PESA Act, 1996 in the context of tribal governance and decentralisation. What are the challenges in its implementation?
Approach: Context — 73rd CAA excluded scheduled areas; tribal communities had traditional governance systems → What PESA does: extends Part IX with modifications to 5th Schedule areas (10 states); empowers Gram Sabha with ownership of minor forest produce, land alienation prevention, control over money lending, mandatory consultation in land acquisition, management of minor water bodies → Significance: tribal autonomy, self-governance, preventing exploitation, cultural preservation, resource management → Challenges: (1) States enacted diluted PESA rules — many states took 25+ years to frame rules; (2) Conflict with Forest Department; (3) Mining company pressures overriding PESA Gram Sabha; (4) Gram Sabha capacity low; (5) FRA + PESA overlap → Way forward: Strict implementation, capacity building for Gram Sabha, convergence with FRA.
Q3. “Urban Local Bodies in India are constitutionally empowered but practically marginalised.” Examine the factors responsible for the poor state of urban governance and suggest reforms.
Approach: 74th CAA — constitutional empowerment (Part IX-A, 12th Schedule, DPC, MPC, SFC) → Achievements: democratic elections, women’s reservation, ward committees, transparent municipal finances → Poor state — causes: (1) State discretion — functions not devolved (12th Schedule voluntary); (2) Parallel bodies (DDA, MMRDA) bypass ULBs; (3) GST subsumed local taxes without giving ULBs a share; (4) Status of Mayor unclear (ceremonial vs executive?); (5) SFC recommendations ignored; (6) OBC reservation disputes delaying elections; (7) Poor property tax collection → Reforms: 2nd ARC — Mayor as executive head; independent audit; citizens’ charters; land banks; transparent tax determination; State Finance Commission recommendations binding; extend GST compensation to ULBs; strengthen ward committees for participatory planning.
Q4. What is the “Triple Test” laid down by the Supreme Court for OBC reservation in local body elections? How has it affected local democracy in India?
Approach: Constitutional basis — Art. 243D(6) for Panchayats; Art. 243T(6) for Municipalities (both voluntary/enabling provisions) → K. Krishna Murthy v. UOI (2010) — 5-judge bench: barriers to political participation ≠ barriers to education/employment → Triple Test: (1) Dedicated Commission for empirical inquiry into backwardness in local bodies; (2) Proportional reservation per Commission recommendation; (3) Total SC+ST+OBC reservation ≤ 50% → Impact: Many states violated — provided 27%+ OBC quota without empirical data; SC struck these down; States delayed elections → Maharashtra, Bihar, MP examples → Effect on local democracy: (1) Elections delayed for years — undermining 73rd/74th CAA; (2) OBC communities deprived of representation; (3) Federalism tension — Centre vs State on OBC classification → Way forward: SECC data for empirical basis; time-bound Triple Test compliance.
Q5. “Women’s reservation in Panchayati Raj institutions has been a success on paper but a failure in practice.” Critically analyse with evidence and suggest reforms.
Approach: Success on paper: 1.4 million+ women elected representatives (Art. 243D); Bihar, Odisha, Maharashtra, Karnataka have 50% women’s reservation → Evidence of success: Duflo & Chattopadhyay study (WB & Rajasthan) — women’s representation improves delivery of public goods to marginalised communities; drinking water, girl child education outcomes better where women are Pradhans → Failure in practice: (1) Sarpanch Pati culture — husbands/male relatives run on behalf; (2) Women Pradhans only look after executive functions; (3) Lack of education prevents active participation; (4) Patriarchal social structures; (5) Women reduced to token presence in Gram Sabha → SC advisory committee (2023) examining proxy representation → Reforms: minimum educational qualification (Rajasthan, Haryana model — 10th pass); leadership training; model women-friendly GPs (UNFPA initiative); RTI awareness; social audit to check proxy representation.
Q6. Distinguish between the 73rd and 74th Constitutional Amendments. What role do the District Planning Committee (DPC) and Metropolitan Planning Committee (MPC) play in integrated governance?
Approach: Key distinction table: 73rd (Part IX, Art. 243–243O, 11th Schedule, 29 subjects, Rural) vs 74th (Part IX-A, Art. 243P–243ZG, 12th Schedule, 18 subjects, Urban); both came into force 1993; both mandatory + voluntary provisions; Gram Sabha vs Ward Committees; SFC common to both; same State Election Commission → DPC (Art. 243ZD): consolidates Panchayat + Municipality plans into single district development plan; 4/5 elected members; NOT in 5th/6th Schedule areas; chair forwards plan to state → MPC (Art. 243ZE): metropolitan areas (pop ≥10 lakh); 2/3 elected members from municipalities and panchayat chairpersons within metro area; draft development plan for metro area → Both in practice: most DPCs/MPCs non-functional or not constituted; parallel state planning undermines these → Way forward: mandatory DPC/MPC activation; link central schemes to DPC approval.
