The significance of local government was recognized during the pre-independence period. Consequently, when the Indian Constitution was drafted post-independence, its creators proposed measures to promote public participation at all levels of governance, which is essential for the smooth and efficient functioning of democracy. To achieve this, the concept of the panchayat system was introduced. Article 40 of the Constitution states that the state shall take steps to organize village panchayats and endow them with the necessary powers and authority to function as units of self-government.

In 1952, India launched a community development program; however, it failed to engage the general public effectively. To enhance accessibility, a committee chaired by Balwant Rai Mehta was formed in 1957. This committee submitted its report in 1958, recommending the establishment of a three-tier panchayat system at the local level, including a gram panchayat at the village level, a panchayat committee at the block level, and a district council at the district level. All three bodies were to be interconnected through indirect elections, with direct elections proposed for the gram panchayat and indirect elections for the other two bodies.

In response to the committee's recommendations, then-Prime Minister Jawaharlal Nehru launched the panchayat system for the first time on October 2, 1959, beginning in the Nagor district of Rajasthan. Following this, several other states adopted the panchayati system. However, due to insufficient funding and internal conflicts among members of the Panchayati Raj institutions, the initiative did not achieve its intended success.

After the recommendations of the Balwant Mehta Committee were not successfully implemented, the Ashok Mehta Committee was established in 1977 to assess panchayati raj institutions and enhance their effectiveness. In its report, the committee proposed a two-tier system for the panchayat structure, with a mandal panchayat at the lowest level, comprising 10 to 15 villages, and a district council at the district level. However, these recommendations could not be realized due to the prevailing political climate.

In 1985, a committee led by GVK Rao was formed, which recommended strengthening the zilla parishads. A year later, in 1986, another committee was established under the chairmanship of LM Sindhvi to examine the panchayat system. This committee highlighted the necessity of reinforcing the gram sabha and conducting regular elections for panchayati raj, while also advocating for constitutional status for panchayat raj.

The 73rd and 74th Amendments to the Constitution of India granted constitutional status to local self-governments in rural and urban areas. Before these amendments, the Constitution recognized only states as subnational entities. Governance, policymaking, and legislative domains were outlined in three lists: the Union List, the State List, and the Concurrent List—the 73rd and 74th Amendments aimed to enhance grassroots democracy through local bodies.

The 73rd Constitutional Amendment not only facilitates public participation in local self-governments within the Panchayati Raj system but also plays a vital role in strengthening democracy. Simultaneously, it represents a step toward fulfilling Mahatma Gandhi's vision of Gram Swaraj.

The 73rd Amendment focuses on Panchayati Raj institutions, resulting in the addition of Part IX to the Constitution. With the inclusion of Schedule 11, subjects related to the jurisdiction of panchayats were incorporated into the Constitution.

To effectively implement the provisions of Article 40, the 73rd and 74th Constitutional Amendments were enacted in December 1992. These amendments introduced local self-governance in both rural and urban India. The 73rd Amendment Act took effect on April 24, 1993, followed by the 74th Amendment Act on June 1, 1993. Together, these amendments granted constitutional status to both the Panchayati Raj system and municipalities.

The 74th Amendment to the Constitution was passed by Parliament in December 1992 and came into effect on June 1, 1993. This amendment introduced Part 9A into the Constitution and added the 12th Schedule. The Municipality Amendment Act defines municipal areas and establishes rules governing the organization, powers, functions, and finances of urban local government institutions. It also includes provisions from Article 243P to Article 243ZG. The 74th Amendment aimed to revitalize urban governments, enabling them to operate effectively as local government units and enhance public participation in city development.

Article 243Q outlines the establishment of three types of municipalities in every state: Nagar panchayats for areas transitioning from rural to urban, municipal councils for smaller urban areas, and municipal corporations for larger urban areas.

Regarding the composition of municipalities, all members are to be directly elected by the residents of the municipal area. To facilitate this process, municipal areas are divided into territorial constituencies known as wards. Each ward in the urban area will have its members elected directly. The method of electing chairpersons for municipalities is to be determined by the state legislature under Article 243R.

Reservations for seats for Scheduled Castes and Scheduled Tribes in every municipal corporation must be allocated in proportion to their population relative to the total population of the municipal area. Every municipal corporation has a five-year term that begins with the date of its first meeting. Elections are held following the completion of this term. A new election to form a corporation must occur within six months of the resolution of a municipal corporation. Article 243K pertains to elections for the panchayats, while Article 243ZA addresses the state election commission. The responsibility for conducting elections lies with the state election commission, which operates independently of the Election Commission of India.

A key feature of the constitutional amendment is the establishment of a finance commission under Article 243Y, which will make recommendations on the financial distribution between the state and municipalities and suggest methods for improving finances as well as determining grants and aids. The finance commission constituted under Article 243I will also review the financial status of municipalities and provide recommendations to the governor.

Additionally, the act has introduced a 12th Schedule to the Constitution, which lists 18 functional items for municipalities under Article 243W. These items include urban planning, financial and social development (including urbanization), regulation of land use, roads and bridges, water supply, and public health, among others.

To address the economic, social, and political challenges facing society, there is a continuous need to amend the Constitution. The Constituent Assembly established a detailed procedure for this purpose, which has facilitated the inclusion of numerous amendments, ranging from the Panchayati Raj system to many others.

This is the eighth part of a series. The first part can be read here, the second part here, the third part here, the fourth here, the fifth here, the sixth part here and the seventh part here.

Author is an Advocate practicing in the High Court of Bombay.


[The opinions expressed in this article are those of the author. Verdictum does not assume any responsibility or liability for the contents of the article.]

Siddharth Desai