Cheat Sheet: Local Self-Government: 73rd & 74th Amendments

1. Constitutional Background & Objectives

1.1 Constitutional Amendments

1.2 Objectives

• Establish democratic institutions at grassroots level
• Decentralize power and authority to local bodies
• Ensure regular conduct of elections
• Provide constitutional status and protection to local self-government
• Secure participation of weaker sections through reservations
• Enable local planning for economic development and social justice

2. Panchayats (73rd Amendment)

2.1 Three-Tier Structure (Article 243B)

2.2 Composition (Article 243C)

• All seats filled by direct election from territorial constituencies
• Chairpersons of Panchayats at village and intermediate levels elected as per State Legislature provision
• Chairperson of Panchayat at district level elected by and from amongst elected members
• State Legislature may provide for representation of: (i) Chairpersons of Panchayats at lower levels; (ii) MPs/MLAs/MLCs in area; (iii) Persons with special knowledge or experience (without voting rights)

2.3 Reservation of Seats (Article 243D)

2.4 Duration and Dissolution (Article 243E)

• Term: 5 years from date of first meeting
• Election to be completed before expiry of term or within 6 months of dissolution
• If dissolved before 5 years, fresh election within 6 months
• Panchayat constituted after dissolution continues only for remainder of original term

2.5 Disqualifications (Article 243F)

• Person disqualified under any law for State Legislature elections is disqualified for Panchayat membership
• Additional disqualifications may be prescribed by State Legislature
• Disputes decided by authority designated by State Legislature
• Courts cannot entertain election petitions

2.6 Powers, Authority & Responsibilities (Article 243G)

• State Legislature may endow Panchayats with powers and authority to function as institutions of self-government
• Powers include: preparation of plans for economic development and social justice
• Implementation of schemes for economic development and social justice
• Matters listed in Eleventh Schedule (29 subjects)

2.7 Powers to Impose Taxes (Article 243H)

• State Legislature may authorize Panchayats to levy, collect and appropriate taxes, duties, tolls and fees
• May assign taxes, duties, tolls and fees collected by State Government to Panchayats
• May provide grants-in-aid from Consolidated Fund of State
• Constitution of Funds for crediting all moneys received by Panchayats

2.8 State Finance Commission (Article 243I)

2.9 Audit of Accounts (Article 243J)

• State Legislature to make provisions for maintenance of accounts by Panchayats
• Auditing of accounts as per law

2.10 Elections (Article 243K)

2.11 Application to Union Territories (Article 243L)

• President may extend provisions to Union Territories with modifications and exceptions by notification

2.12 Exemptions and Special Provisions

2.12.1 Part IX Not Applicable (Article 243M)

• Scheduled Areas under Article 244(1)
• Tribal areas in states of Assam, Meghalaya, Mizoram and Tripura under Sixth Schedule
• District of Darjeeling in West Bengal (for Darjeeling Gorkha Hill Council)
• Notified areas with existing Municipal Corporations

2.12.2 Special Provisions (Article 243M)

2.13 Continuance of Existing Laws (Article 243N)

• Pre-existing laws relating to Panchayats continue until amended or repealed by competent Legislature
• Existing Panchayats continue until dissolution or expiry under amended law

2.14 Bar to Interference by Courts (Article 243O)

• Validity of law relating to delimitation of constituencies or allotment of seats cannot be questioned in any court
• No election to any Panchayat shall be called in question except by election petition before designated authority

3. Municipalities (74th Amendment)

3.1 Types of Municipalities (Article 243Q)

3.2 Composition (Article 243R)

• All seats filled by direct election from territorial constituencies (wards)
• State Legislature may provide for representation of: (i) Persons with special knowledge or experience in municipal administration (without voting rights); (ii) MPs/MLAs/MLCs representing constituencies wholly/partly in municipal area; (iii) Chairpersons of Committees under Article 243S
• Chairperson elected as per State Legislature provision

3.3 Reservation of Seats (Article 243T)

3.4 Duration and Dissolution (Article 243U)

• Term: 5 years from date of first meeting
• Election to be completed before expiry of term or within 6 months of dissolution
• If dissolved before 5 years, fresh election within 6 months
• Municipality constituted after dissolution continues only for remainder of original term

3.5 Disqualifications (Article 243V)

• Person disqualified under any law for State Legislature elections is disqualified for Municipality membership
• Additional disqualifications may be prescribed by State Legislature
• Disputes decided by authority designated by State Legislature
• Courts cannot entertain election petitions

3.6 Ward Committees (Article 243S)

• Mandatory for Municipalities with population of 3 lakh or more
• Constitution and composition determined by State Legislature
• One or more wards may constitute area of Ward Committee

3.7 Powers, Authority & Responsibilities (Article 243W)

• State Legislature may endow Municipalities with powers and authority to function as institutions of self-government
• Powers include: preparation of plans for economic development and social justice
• Implementation of schemes for economic development and social justice
• Matters listed in Twelfth Schedule (18 subjects)
• Functions assigned with respect to planning and levying taxes

3.8 Powers to Impose Taxes (Article 243X)

• State Legislature may authorize Municipalities to levy, collect and appropriate taxes, duties, tolls and fees
• May assign taxes, duties, tolls and fees collected by State Government to Municipalities
• May provide grants-in-aid from Consolidated Fund of State
• Constitution of Funds for crediting all moneys received by Municipalities

3.9 State Finance Commission (Article 243Y)

3.10 Audit of Accounts (Article 243Z)

• State Legislature to make provisions for maintenance of accounts by Municipalities
• Auditing of accounts as per law

3.11 Elections (Article 243ZA)

3.12 Application to Union Territories (Article 243ZB)

• President may extend provisions to Union Territories with modifications and exceptions by notification

3.13 Exemptions (Article 243ZC)

• Part IXA not applicable to Scheduled Areas under Article 244(1)
• Not applicable to tribal areas in states of Assam, Meghalaya, Mizoram and Tripura under Sixth Schedule

3.14 District Planning Committee (Article 243ZD)

3.15 Metropolitan Planning Committee (Article 243ZE)

3.16 Committee for District and Metropolitan Planning

• State Legislature to make provisions for composition of District Planning Committee and Metropolitan Planning Committee
• Representation of Government of India and State Government in such Committees for planning and development
• Manner of election of Chairperson

3.17 Continuance of Existing Laws (Article 243ZF)

• Pre-existing laws relating to Municipalities continue until amended or repealed by competent Legislature
• Existing Municipalities continue until dissolution or expiry under amended law

3.18 Bar to Interference by Courts (Article 243ZG)

• Validity of law relating to delimitation of wards or allotment of seats cannot be questioned in any court
• No election to any Municipality shall be called in question except by election petition before designated authority

4. Eleventh Schedule (29 Subjects for Panchayats)

5. Twelfth Schedule (18 Subjects for Municipalities)

6. Key Comparisons

6.1 Panchayats vs Municipalities

6.2 Common Features

• Five-year term for elected bodies
• Mandatory elections within 6 months of expiry or dissolution
• Reservation for SC/ST in proportion to population
• Reservation of not less than 1/3 seats for women
• Disqualification grounds similar to State Legislature elections
• State Election Commission for superintendence, direction and control of elections
• State Finance Commission to be constituted every 5 years
• Bar to interference by courts in delimitation and election matters
• May be extended to Union Territories by President

7. Important Judicial Pronouncements

7.1 Key Cases

7.2 PESA Act, 1996

• Panchayats (Extension to Scheduled Areas) Act, 1996 extends Panchayats to Fifth Schedule areas with modifications
• Empowers Gram Sabha or Panchayats at appropriate level with powers including: management of minor water bodies, minor minerals, minor forest produce
• Mandatory consultation with Gram Sabha before land acquisition in Scheduled Areas
• State legislation on Panchayats in Scheduled Areas must be consistent with customary law, social and religious practices

8. Implementation Issues & Challenges

8.1 Financial Devolution

• Inadequate devolution of funds by State Governments to local bodies
• State Finance Commissions constituted but recommendations not implemented effectively
• Limited own revenue sources for Panchayats and Municipalities
• Dependence on grants from State and Central Government

8.2 Functional Devolution

• Functions listed in Eleventh and Twelfth Schedules not fully transferred to local bodies
• Parallel bodies and parastatal agencies undertake functions assigned to local bodies
• Lack of clarity in division of functions between different tiers

8.3 Administrative Challenges

• Insufficient staffing and technical capacity at local body level
• Elected representatives lack training in planning and financial management
• District Planning Committees and Metropolitan Planning Committees not constituted or non-functional in several states
• Delays in conduct of elections beyond 6-month deadline

8.4 Reservation Implementation

• Rotation of reserved seats creates discontinuity in leadership
• Women representatives face social barriers in effective participation
• Proxy representation where family members control elected women representatives

9. Recent Developments & Reforms

9.1 Central Finance Commission Recommendations

• Fourteenth Finance Commission (2015-2020) recommended direct transfer of funds to local bodies
• Increased allocation from 2% to 2.9% of divisible pool for rural local bodies
• 1% of divisible pool for urban local bodies
• Conditional grants for basic services and performance-based incentives

9.2 Model Acts & Guidelines

• Model Panchayati Raj Act proposed by Ministry of Panchayati Raj
• Model Municipal Law proposed by Ministry of Housing and Urban Affairs
• Guidelines for strengthening Gram Sabhas and Ward Committees
• E-governance initiatives for transparency in local governance

9.3 Constitutional Amendments Proposed

• Proposals for strengthening autonomy of State Election Commission
• Suggestions for expanding reservation for women to 50%
• Debate on making District Planning Committees and Metropolitan Planning Committees more effective

10. Exam-Critical Points

10.1 Quick Facts

• 73rd Amendment: 24 April 1993; 74th Amendment: 1 June 1993
• Eleventh Schedule: 29 subjects for Panchayats; Twelfth Schedule: 18 subjects for Municipalities
• State Election Commissioner removal: same as High Court Judge
• State Finance Commission: every 5 years
• Women reservation: not less than 1/3; SC/ST: proportionate to population
• Ward Committee: mandatory for Municipalities with population of 3 lakh or more
• Metropolitan Planning Committee: for areas with population of 10 lakh or more
• Intermediate Panchayat: not mandatory for states with population below 20 lakh
• District Planning Committee: 4/5th elected members; Metropolitan Planning Committee: 2/3rd elected members
• Election deadline: within 6 months of expiry or dissolution

10.2 Article Numbers (High Yield)

• Article 243: Definitions for Part IX
• Article 243B: Constitution of Panchayats (three-tier structure)
• Article 243D: Reservation of seats
• Article 243G: Powers, authority and responsibilities of Panchayats
• Article 243I: State Finance Commission
• Article 243K: Elections to Panchayats
• Article 243M: Part IX exemptions
• Article 243O: Bar to interference by courts
• Article 243Q: Constitution of Municipalities
• Article 243S: Ward Committees
• Article 243T: Reservation of seats in Municipalities
• Article 243W: Powers of Municipalities
• Article 243ZA: Elections to Municipalities
• Article 243ZD: District Planning Committee
• Article 243ZE: Metropolitan Planning Committee
• Article 243ZG: Bar to interference by courts

10.3 States with Exemptions

• Scheduled Areas under Article 244(1): Part IX and IXA not applicable
• Sixth Schedule areas (Assam, Meghalaya, Mizoram, Tripura): Part IX and IXA not applicable
• Nagaland, Meghalaya, Mizoram (Hill Areas): Panchayats not mandatory
• Manipur Hill Areas: Legislature may decide extent of application
• Darjeeling (West Bengal): Part IX not applicable (for Darjeeling Gorkha Hill Council)