Local Bodies | Law Optional Notes for UPSC PDF Download

Introduction

Abraham Lincoln famously described democracy as a government "of the people, by the people, and for the people," emphasizing the inclusion of all citizens in the democratic process, regardless of their education or background. In a democracy, every individual should have the right to vote for their representatives, who will then manage government affairs with their expertise.
In a vast country like India, the central government cannot micromanage every local area. Therefore, a key aspect of a successful representative government is the decentralization of governance to the grassroots level, leading to more efficient decision-making and greater accountability. To achieve this, India's Constitution has provisions for the establishment of panchayats, municipalities, and cooperative societies to govern villages and urban areas.
In this article, we will delve into the meanings of these three terms and explore the constitutional provisions regarding their formation, functioning, powers, and responsibilities in India as outlined in the 1950 Constitution.

Part IX - Panchayats

• The first Panchayati system, known as "Panchayati Raj," was introduced in Nagaur city, Rajasthan, in 1959 based on the recommendations of the Balwant Rai Committee, which played a pivotal role in advancing rural democracy. Balwant Rai earned the title of the "Father of Panchayati Raj" for his work. This system was subsequently adopted by other states such as Andhra Pradesh and Maharashtra.
• Initially, the Constitution did not mandate governments to establish panchayats. Article 40 merely provided a Directive Principle of State Policy suggesting that the State should organize village panchayats and empower them to function effectively, but this was not obligatory.
• Over time, the decentralized panchayat systems faced challenges, and there was a growing need for a more robust decentralized administration. In 1986, the L.M. Singhvi Committee was appointed to study these issues and made several recommendations, including constitutional recognition, promotion, and preservation of panchayats. Consequently, Article 40 was solidified in Part IX by the Constitution (Seventy-Third Amendment) Act, 1992.
• Now, let's examine Articles 243 and 243A-243O under this Part, which pertain to rural local self-government.

Gram Sabha

• The fundamental unit of the Panchayati system is the Gram Sabha, defined by Article 243(b) of the Constitution as the collective body of all individuals listed on the electoral rolls of a village.
• You might wonder, what is the role of the Gram Sabha?
• This permanent body represents the electorate and is responsible for electing all other institutions such as the Gram Panchayat and Zilla Parishad (which we will discuss later). Additionally, the Gram Sabha serves as a platform where people can discuss matters related to governance and development.
• Hence, the Gram Sabha serves as the cornerstone of the local self-government system. However, the extent of its authority varies depending on the policies of the state in which the village is situated, as mentioned in Article 243A.
• Membership in a Gram Sabha is limited to individuals aged 18 and above who reside in the village. This criterion ensures that decisions made align with the village's best interests.
• Next, we'll explore the self-governing body elected by the Gram Sabha – the Panchayat.

Constitution of Panchayats

• According to Article 243(d) of the Indian Constitution, a 'panchayat' is defined as a self-government institution in rural areas.
• Article 243B outlines the establishment of a three-tier Panchayati system:
  • At the village level - Gram Panchayat.
  • At the intermediate level - Panchayat Samiti.
  • At the district level - Zila Parishad.
• However, intermediate-level panchayats are only present in states with populations exceeding twenty lakhs.

Gram Panchayat

• The Gram Panchayat is the lowest level in the panchayat hierarchy.
• Each village is divided into smaller units known as wards, with each ward electing its representative called a Ward member or Panch. The head of the Gram Panchayat, known as the Sarpanch, is also elected by the Gram Sabha. Hence, the Gram Panchayat comprises both the Sarpanch and the Panch.
• The primary responsibilities of the Gram Panchayat include addressing social issues, managing the construction and maintenance of schools, roads, drainage facilities, and collecting local taxes.
• The Gram Panchayat is answerable to the village's general body of voters, i.e., the Gram Sabha, as well as the higher levels of authority in the hierarchy.

Panchayat Samiti

• The Panchayat Samiti is the next level in the hierarchy and supervises the functioning of Gram Panchayats in all villages within its jurisdictional block.
• The Pradhan heads the Panchayat Samiti and is elected by a group comprising all members of the Panchayat Samiti and the Panchs from the Gram Panchayats under its authority.

Zila Parishad

• Also known as the District Panchayat, this is the highest tier of the rural self-government hierarchy. It oversees the operations of Panchayat Samitis in all blocks within its district jurisdiction, along with all the Gram Panchayats under them. Additionally, it manages the allocation of funds among all Gram Panchayats and is responsible for formulating development plans at the district level.
• The Zila Parishad is led by a Chairman and includes a Chief Executive Officer as a member, who is appointed by the State government.

Composition of Panchayats

• All members of the three levels within the panchayat hierarchy are elected by eligible voters residing in their respective areas. However, states can also make provisions for the inclusion of Members of Legislative Assembly (MLAs) or other officials in the panchayats. Article 243C of the Constitution addresses the rules regarding the composition of panchayats.
• To ensure uniformity, it is preferred that the ratio between the population and territory under one panchayat and the number of seats in it remains consistent throughout the state. Each area with a single panchayat is divided into constituencies for election purposes, and it is desirable that the ratio between the population of each constituency and the number of seats allocated to it remains consistent throughout the panchayat area.

Disqualifications for Membership

• Certain situations can lead to the disqualification of an individual from panchayat membership. According to Article 243F of the Constitution, disqualification can occur if a person has been disqualified from the Union or State Legislature for any reason or if they have been specifically disqualified from panchayat membership by any law.
• In case a question arises regarding the disqualification of an individual, it will be resolved by the authority and process determined by the Legislature.

Bhanumati Etc. v. State of U.P. (2010)

• In this case, a no-confidence motion was passed against the Chairman of a Zila Parishad under the U.P. Panchayat Laws (Amendment) Act, 2007. The Chairman challenged it, arguing that the Constitution did not mention provisions for a no-confidence motion in the statute.
• The court dismissed the appeal, stating that the Constitution grants the State the authority to establish specific rules regarding elections and membership. Consequently, the no-confidence motion was upheld. This case illustrates the potential threat of disqualification of a person's membership in a Zila Parishad under existing State law and how the court upheld that motion.

Reservation of Seats in Panchayats

• Recognizing the prevalent discrimination in India during the time of independence, and which persists to some extent today, the drafters of the Constitution made special provisions for the representation of marginalized communities in local self-government. This was aimed at ensuring that women, individuals from oppressed castes, etc., in rural areas have a voice.
• Article 243D of the Indian Constitution outlines the reservation of seats in panchayats for specific communities, as described below:
  • Seats should be reserved for Scheduled Castes and Scheduled Tribes in the panchayat in proportion to their population in the village.
  • At least one-third of the seats reserved under Clause 1 should be allocated to women from Scheduled Castes and Scheduled Tribes.
  • At least one-third of the total seats in the panchayat should be reserved for women, including those reserved under Clause 2.

Duration of Panchayats

Article 243E of the Constitution specifies the duration of a panchayat's operation. It states that each panchayat will remain in force for five years unless dissolved earlier by law. Furthermore, elections to a panchayat must be completed before its term expires or at least six months prior to its dissolution.

Powers, Authority, and Responsibilities of Panchayats

Panchayats have the authority to develop plans and schemes for economic growth and social justice within the village. They are responsible for crafting practical plans that promote the welfare of the villagers. Article 243G indicates that the specific scope and extent of the panchayat's powers in these matters are determined by the State.
Some major functions of a panchayat include:

• Providing essential services such as sanitation, medical assistance, schools, irrigation, roads, and drinking water.
• Formulating annual development plans for the area and devising schemes for improved agriculture and employment generation.
• Creating the annual budget and managing the area's finances.
• Implementing and coordinating schemes launched by the Central and State governments, such as the Public Distribution System.

Powers to Impose Taxes and Funds of Panchayats

• Panchayats have numerous responsibilities, and as with any governmental body, they require financial resources to fulfill these duties. So, where do the funds for panchayats come from?
• The government collects taxes on people's incomes and expenditures, serving as a source of revenue. Some of these funds are allocated to panchayats. In addition to government grants, panchayats also collect their own taxes, tolls, and fees from the public to sustain their operations.
• Article 243H specifies that the State can take the following actions:
  • Empower panchayats to levy taxes, tolls, and fees.
  • Allocate a portion of the revenue collected through similar means to panchayats.
  • Provide grants to panchayats or establish funds for them.

Finance Commission

To streamline the process of funding panchayats, the Constitution allows for the creation of a Finance Commission by the Governor under Article 243I.
The key provisions of this article are as follows:

• The Finance Commission, appointed by the Governor, reviews the financial status of panchayats and provides recommendations on two aspects: how to distribute funds between the state and panchayats and how to enhance the financial position of panchayats.
• The composition, qualifications of members, and powers of the Commission are determined by the Legislature.
• The Governor communicates all recommendations made by the Commission to the state government along with measures to implement them.

Audit of Accounts of Panchayats

According to Article 243J of the Indian Constitution, State governments have the authority to decide who will audit the accounts of panchayats and establish the auditing procedures within their respective states.

Election to the Panchayats

Article 243K of the Constitution outlines the provision for conducting elections to panchayats. These elections are overseen and conducted by State Election Commissions, meaning election rules can vary from state to state.

Application of this Part to Union Territories

The Constitution stipulates that the provisions related to panchayats apply to Union Territories in the same manner as in the states. However, the President can make modifications through public notification.

Part IX Exemptions

• Certain areas in India are exceptions to the provisions of Part IX of the Constitution, meaning panchayats cannot be established in those areas. Article 243M lists the areas exempted from Part IX:
  • Scheduled Areas and tribal areas in the states of Assam, Meghalaya, Tripura, and Mizoram.
  • The states of Nagaland, Meghalaya, and Mizoram.
  • Hilly areas in Manipur and the district of Darjeeling.
• However, the Legislature can choose to extend Part IX to some of these exceptions. The Parliament may extend Part IX to Scheduled Areas mentioned in (1) above, and the Legislatures of Nagaland, Meghalaya, and Mizoram may extend Part IX to their states (except the Scheduled and tribal areas).
• Scheduled Areas were excluded from Part IX because these predominantly tribal areas often had their own governance customs or were provided with specific systems for their benefit. However, as tribes became vulnerable due to developmental projects impacting their resources, the need for a self-governance system became evident.
• The Panchayats (Extension to Scheduled Areas) Act, 1996, also known as PESA, relaxed the exclusion of Scheduled Areas from the 73rd Amendment. This allowed the introduction of a self-governance system in ten out of fifteen states with Scheduled Areas.

Union of India v. Rakesh Kumar (2010)

• In this case, Section 4(g) of PESA reserved seats in panchayats for Scheduled Tribes and mandated that only a member of Scheduled Tribes could be elected as Chairman in panchayats in Scheduled Areas, with reservations going up to 80% in Jharkhand. These provisions were challenged as excessive and violating Article 14.
• The court upheld these reservations, stating that they were essential to support Scheduled Tribes. While Jharkhand's obligations to Scheduled Tribes went beyond the 50% reservation cap, 80% was just an upper limit and not obligatory to fill all seats.

Continuance of Existing Laws and Panchayats: Article 243-N

Article 243-N ensures that existing state laws and provisions related to panchayats continue to be in force, even if they are inconsistent with Part IX of the Constitution, unless they are specifically repealed or amended by competent Legislatures or authorities.

Usha Bharati v. State of U.P. (2014)

• In this case, the appellant was the Chairperson of the Zila Parishad of Sitapur, Uttar Pradesh. A motion of no-confidence was passed against her almost two years after her election, according to Section 28 of the U.P. Kshetra Panchayat & Zila Panchayat Act, 1961. The appellant challenged this, claiming that the Constitution did not provide for a no-confidence motion in panchayat elections.
• The court ruled that as per Article 243N, existing state laws related to panchayats remain in force unless repealed or amended. Since the provision for a no-confidence motion in the U.P. Act had not been repealed and had been confirmed in previous judgments, it did not contradict Part IX of the Constitution. Additionally, the Constitution empowered the state to enact laws for panchayat elections, including provisions for a no-confidence motion.

Courts Not to Interfere in Electoral Matters

Article 243O of the Constitution prohibits courts from interfering in panchayat electoral matters, including delimitation or seat allotment. Courts lack jurisdiction in panchayat electoral issues, and disputes must be addressed through election petitions presented to the authorities prescribed by the State government.

PART IX-A: The Municipalities

• Just as there is a system of self-governance in rural areas through Panchayati Raj, a similar system has been established in urban areas. This was introduced into the Constitution through the Constitution (Seventy-Fourth Amendment) Act, 1992, also known as the "Nagarpalika Act." This amendment allows residents of urban localities to come together and address issues in their areas while working on plans for development. These self-government bodies are known as Municipalities.
• The advantage of the municipal system is that it provides residents with elected representatives whom they can approach with grievances and hold accountable for local management.
• The Municipal system is similar to the Panchayati system, with some modifications tailored to the urban environment. Let's take a brief look at municipalities as outlined in the provisions of Part IX-A of the Constitution (Article 243P to Article 243ZG).

Definition

Article 243P defines a municipality as an institution of self-government in an urban area, established under Article 243Q. It also defines a district as a district in a state and a metropolitan area as an area with a population of ten lakhs or more, comprising multiple districts and municipalities or panchayats.

Constitution of Municipalities

Article 243Q of the Constitution lays out the rules for the establishment of municipalities. It specifies three types of municipalities:

• Nagar Panchayats, for transitioning areas (areas shifting from rural to urban).
• Municipal Councils, for smaller urban areas.
• Municipal Corporations, for larger urban areas.

Most members of municipalities are elected, but there may also be some nominated members based on their expertise. The state can also provide for the representation of members of the Legislative Assembly and Legislative Council in the municipality.

Nagar Panchayats

• Nagar Panchayats, also known as Notified Area Committees, are established in areas that do not fully qualify as urban areas but are considered significant by the government. They are set up in areas with a population of more than 11,000 but less than 25,000.
• Members of a Nagar Panchayat are referred to as ward members, and they are led by a Chairman.

Municipal Councils

• Municipal Councils, or Nagar Palikas, are established in areas with a population of more than 1,00,000 but less than 10,00,000.
• Similar to Nagar Panchayats, their members are called ward members, and they elect a President to lead them. Additionally, the State appoints officers such as Chief Officers, health officers, education officers, etc., to manage municipal affairs.

Fun fact: Uttar Pradesh has the largest number of municipal councils.

Municipal Corporations

• Municipal Corporations, also known as Nagar Nigams or Mahanagar Palikas, are the highest tier of municipalities and have the most autonomy. They are established in urban areas with a population of more than 1 million.
• The largest Municipal Corporations are found in major metropolitan cities such as Delhi, Mumbai, Chennai, Kolkata, etc.

Wards Committees

For the purpose of conducting municipal elections, the jurisdiction of the municipality is divided into wards. Municipalities with a population of 3 lakh or more may have Wards Committees, each consisting of one or more wards.

Reservation of Seats in Municipalities

Special provisions have been made to ensure the representation of marginalized communities in urban local self-governments. This is done to empower women, members of disadvantaged castes, and others to participate in decision-making.

Article 243T of the Indian Constitution provides provisions for seat reservations in municipalities:

• Seats must be reserved for Scheduled Castes and Scheduled Tribes in the municipality, in proportion to their population in the locality.
• At least one-third of these reserved seats must be allocated to women from Scheduled Castes and Scheduled Tribes.
• At least one-third of all seats in the municipality, including those reserved under Clause 2, must be reserved for women.
• The office of the Chairpersons must also be reserved for Scheduled Castes, Scheduled Tribes, and women, as determined by the Legislature.

Saraswati Devi v. Smt. Shanti Devi and Ors. (1997)

• In the case of Saraswati Devi v. Smt. Shanti Devi and Ors. (1997), two women, both from the Scheduled Castes, were elected as members of the Municipal Committee in Loharu, Haryana. The dispute arose when they both sought to contest for the position of President, which was reserved for a Scheduled Caste member according to the State's provision. Saraswati Devi, elected from a Scheduled Caste seat, was allowed to run for President, while Shanti Devi, elected from an unreserved seat, also wished to contest. The court's judgment focused on whether Shanti Devi, despite her Scheduled Caste status, could be considered an eligible candidate for the reserved President's position.
• The court determined that Shanti Devi, having been elected from an unreserved seat, could not be considered an eligible Scheduled Caste candidate for the President's position, as per the reservation scheme outlined in Article 243T of the Indian Constitution. Allowing her to contest among Scheduled Caste candidates for the President's post would distort the reservation scheme. Therefore, Saraswati Devi was considered eligible to contest for the President's position, while Shanti Devi was not eligible in this specific election.

Reservation of Seats for Backward Class of Citizens

Article 243T also allows the State Legislature to make provisions for seat reservations in a municipality for citizens belonging to backward classes. This provides flexibility to extend reservation provisions to backward classes if deemed necessary.

Duration of Municipalities

Article 243U specifies the duration of operation of a municipality. It states that every municipality will continue to be in force for a period of 5 years unless dissolved earlier by law. Elections to a municipality should be completed before its term expires or at least 6 months before its dissolution.

Kishan Singh Tomar v. Municipal Corporation of the City of Ahmedabad (2007)

• In this case, the Chairman of the Standing Committee of the Ahmedabad Municipal Corporation filed a writ petition for timely elections to the Municipal Corporation before its term expired. The State Election Commission stated that it would take 6 months to complete the election process due to an increase in the number of wards in Ahmedabad.
• The court noted that Article 243U aims to prevent delays in the election process. The State Election Commission needed to work independently and expedite the elections before the current municipal corporation's term expired in Ahmedabad.

Disqualifications for Membership

A person can be disqualified from membership in a municipality under certain circumstances. Article 243V of the Constitution outlines these disqualifications, which can occur if the individual has been disqualified from the Union or State Legislature or if they have been specifically disqualified from municipal membership by any law. The resolution of such disqualification questions is determined by the authority and process established by the Legislature.

Powers, Authority, and Responsibilities of Municipalities

Municipalities have a crucial role in regulating local affairs, ensuring access to civic amenities, and formulating development plans. Article 243W of the Constitution grants State Legislatures the authority to empower municipalities to create plans for economic development and social justice in their areas and perform necessary functions for local management.

The primary functions of a municipality include:

• Construction of buildings and land use regulation.
• Management of water supply.
• Protection of natural resources and their regulation.
• Ensuring public health and sanitation.
• Construction of schools in the locality.

Power to Impose Taxes and Funds of the Municipalities

Municipalities require funds to carry out their diverse functions. Article 243X of the Constitution outlines the methods through which municipalities can mobilize funds, which is similar to the process followed by panchayats. These methods include granting the authority to municipalities to levy taxes, tolls, and fees, assigning a portion of the collected revenue to the municipality, making grants to the municipality, or creating funds for its financial support.

Finance Commission

Similar to panchayats, Article 243Y of the Constitution provides for the establishment of a Finance Commission for municipalities by the Governor.
The main provisions of this article are:

• The Finance Commission appointed by the Governor reviews the financial position of the municipality and makes recommendations on how to allocate funds between the state and the municipality and how to improve the municipality's financial position.
• The composition, qualifications of members, and powers of the Finance Commission are decided by the Legislature.
• The Governor communicates all recommendations made by the Commission to the state and specifies the measures to implement them.

Audit of Accounts of the Municipalities

Article 243Z of the Constitution grants State governments the authority to determine who will audit the accounts of municipalities and the audit procedure within their respective states.

Election to the Municipalities

Elections to municipalities are conducted under the guidance and control of the State Election Commission, as stipulated in Article 243ZA. The rules for municipal elections depend on the state government's policies in which the municipality is located.

Application to Union Territories

The Constitution states that the provisions related to municipalities apply to Union Territories similarly to states, but the President can make modifications through public notification.

Part IX-A Does Not Apply to Certain Areas

Certain areas in India are exceptions to Part IX-A of the Constitution, meaning that municipalities cannot be established there.
These exceptions, specified in Article 243ZC, include:

• Scheduled Areas and tribal areas in the states of Assam, Meghalaya, Tripura, and Mizoram.
• The Darjeeling Gorkha Hill Council.

However, the Parliament can extend the provisions of Part IX to the mentioned Scheduled Areas, subject to specific exceptions and modifications specified by law.

Committee for District Planning

Article 243ZD provides for the establishment of a District Planning Committee in every district. This committee consolidates plans made by panchayats and municipalities in the district and prepares development plans for the district, considering the interests of both rural and urban areas. The Chairperson of the Committee communicates these plans to the State government.

Committee for Metropolitan Planning

Similar to the District Planning Committee, Article 243ZE provides for the creation of a Committee for Metropolitan Planning in metropolitan areas. This committee develops plans for the metropolitan area, addressing the needs of both rural and urban areas within it. It also implements plans and makes investments in the metropolitan area.

Continuance of Existing Laws and Municipalities

Article 243ZF states that existing laws and provisions related to municipalities in various states continue to be in force unless specifically repealed or amended by a competent Legislature or authority. Municipalities existing before the enactment of new laws will continue until their term expires, unless dissolved by the Legislative Assembly (and Legislative Council, if applicable) of the state.

Courts Not to Interfere in Electoral Matters

Article 243ZG of the Constitution prohibits courts from intervening in municipal electoral matters, including delimitation or seat allocation. Courts lack jurisdiction in municipal electoral matters, and disputes must be addressed through election petitions before the authority prescribed by the State government.

Amendment of Article 280

The Constitution's 97th Amendment Act in 2011 facilitated the creation and functioning of cooperative societies in states. Cooperative societies are organizations formed by individuals with shared interests (e.g., occupation) to manage their community's economic, social, or cultural activities. This amendment empowered state governments to support cooperative societies within their territories.

PART IX-B: The Co-operative Societies 

• Part IX-B of the Indian Constitution deals with co-operative societies. While panchayats and municipalities are government entities established by state governments to manage local affairs, co-operative societies represent a different type of organization. These societies are formed by individuals who share common interests or characteristics, such as a similar occupation, and they voluntarily come together to promote their economic, social, or cultural goals. Members of co-operative societies invest their time, efforts, and personal resources to advance these shared interests.
• Co-operative societies can take various forms, such as housing societies or business societies that sell products produced by their members. A well-known example of a co-operative society in India is Amul, which originated as a small group of dairy farmers in Gujarat and has grown into a major supplier of dairy products nationwide.
• To facilitate the establishment and functioning of co-operative societies, the Indian Constitution was amended with the Ninety-Seventh Amendment Act in 2011. This amendment introduced provisions related to co-operative societies, which are outlined in Article 243ZH to Article 243ZT under Part IX-B of the Constitution.

Definitions

Article 243ZH of the Constitution defines a co-operative society as a society registered or considered registered under any law related to co-operative societies. It also defines some key terms related to co-operative societies, such as the "Board" referring to the Board of Directors governing the society, and "office bearers" are members elected by the board, like the President, Chairman, and Treasurer. Additionally, it defines a "multi-state co-operative society" as one operating across multiple states.

Incorporation of Co-operative Societies

The process for incorporating co-operative societies varies from state to state. Article 243ZI allows State Legislatures to determine the procedures for incorporation, regulation, and dissolution of co-operative societies within their jurisdiction, while adhering to cooperative principles like democratic setup, member participation, and autonomy.

Number and Term of Board Members and Office Bearers

Article 243ZJ specifies the maximum number of directors on a co-operative society's board, which can be up to 21, with the exact number decided by the State. It also mandates one seat for a person from Scheduled Castes or Scheduled Tribes and two seats for women among the directors. The term for board and office members is set at 5 years, with provisions for appointing up to 2 experts who cannot vote or contest elections.

Removal by No-Confidence Motion

Co-operative society members can pass a no-confidence motion to remove a member found to engage in unfair practices, corruption, or neglecting duties. The rules and procedures for such motions vary between states due to separate co-operative society laws.

Election of Board Members

Article 243ZK empowers State Legislatures to establish rules and procedures for co-operative society elections. These elections must be held before the term of the existing board expires to ensure a smooth transition between boards.

Supersession and Suspension of Board and Interim Management

Under certain circumstances, the government can supersede or suspend a co-operative society's board, provided the government has some financial involvement with the society. Such circumstances include persistent defaults, neglect of duties, acts against the society's interests, a board's functional deadlock, or failure to conduct elections as prescribed by the State Act. In case of supersession, an administrator appointed by the state conducts board elections.

Audit of Accounts of Co-operative Societies

Co-operative societies undergo periodic audits to ensure proper management. Article 243ZM allows State Legislatures to mandate the maintenance of regular accounts and their annual audit. It also permits the Legislature to set minimum qualifications for auditors and requires audits to be completed within 6 months of the financial year's end, with reports submitted to the State Legislature as prescribed.

Convening of General Body Meeting

Article 243ZN permits State Legislatures to establish provisions for co-operative societies to hold general body meetings within 6 months of the financial year's end.

Right of a Member to Get Information

State Legislatures can define provisions regarding the Right to Information for co-operative society members, ensuring access to society records, minimum member participation, and cooperative education and training.

Filing of Returns

Co-operative societies must file returns with the authority specified by the State government. These returns should include an annual report, audited financial statements, plans for surplus utilization approved by members, details of bylaw amendments, general body meeting dates, and any other information required by the State.

Offences and Penalties

Article 243ZQ allows State Legislatures to define offenses related to co-operative societies and prescribe penalties. Offenses may include intentionally filing false returns, ignoring summonses or orders, failing to pay employee deductions, withholding society records, or engaging in corrupt practices during elections.

Application to Multi-State Co-operative Societies

All provisions under Part IX-B of the Constitution apply to multi-state co-operative societies in a manner similar to single-state societies. The terminology used for the central level changes to "Parliament," "Central Act," and "Central government."

Application to Union Territories

Provisions related to co-operative societies apply to Union Territories like states, with the President having the authority to make modifications through public notification.

Continuance of Existing Laws

Article 243ZT ensures that existing laws and provisions related to co-operative societies in various states remain in force, even if they are inconsistent with Part IX of the Constitution, unless specifically repealed or amended by a competent Legislature or authority.

Conclusion

The Constitution provides detailed and comprehensive provisions for local self-government and management bodies, including panchayats, municipalities, and co-operative societies. These provisions promote decentralization, better decision-making, and faster development, enhancing the quality of life for citizens in rural and urban areas.