73rd Amendment Act of 1992: Constitutional Recognition and Empowerment of Panchayati Raj

The Panchayati Raj system in India is a decentralized form of local governance established to promote self-governance in rural areas. Rooted in the ancient tradition of village assemblies, it was constitutionally recognized through the 73rd Amendment Act of 1992. This act aimed to empower local bodies and ensure democratic participation at the grassroots level. The following sections outline the key features, structure, and provisions of this transformative system

Comprehensive Overview of Panchayati Raj and the 73rd Amendment Act of 1992

Constitutional Recognition of Panchayati Raj

• In India, the Panchayati Raj functions as a system of local governance. This system comprises three tiers: Gram Panchayat at the village level, Mandal Parishad or Block Samiti of Panchayat Samiti at the block level, and Zila Parishad at the district level. 
• It was given constitutional status in 1992 through the 73rd amendment to the Indian Constitution.
• Presently, the Panchayati Raj system is implemented in all States except Nagaland, Meghalaya, and Mizoram, as well as in all Union Territories except Delhi, due to unique social, cultural, and economic considerations in these regions. 

Key Features of the 73rd Amendment Act of 1992

• Gram Sabha: The Gram Sabha, composed of individuals registered in the electoral rolls of the village within the Panchayat’s jurisdiction, forms the foundational element of the Panchayati Raj System.
  • Under Article 243A, a Gram Sabha may exercise such powers and  perform such functions at the village level as the Legislature of a State may provide by law.
• Three-tier System: Article 243B provides for the three-tier Panchayat structure, encompassing the village, intermediate, and district levels.
  • It was mandated in every State to ensure uniformity in Panchayati Raj institutions across the nation. 
  • However, Panchayats at the Intermediate level may not be constituted in a State having a population not exceeding twenty lakhs.
• Election of Members and Chairpersons (Article 243C): Members of Panchayats at all three levels are directly elected by the people, while the chairpersons of the intermediate and district Panchayats are elected indirectly from among the elected members. 
  • Additionally, the method of election of Chairperson at the village level is determined by the State government.
• Reservation of Seats: Article 243D provides for  the reservation of seats for people belonging to Scheduled Castes (SC) and Scheduled Tribes (ST) in proportion to their population in each Panchayat. 
  • Additionally, one-third of the total seats are reserved for women. 
  • State legislatures are empowered to enact further reservations in favor of backward classes.
• Duration of Panchayat : Article 243E mandates that Panchayats have a standard five-year term of office but can be dissolved before completing their term. 
  • If dissolved, the newly elected Panchayat continues for the remainder of the previous Panchayat’s term. 
  • However, if the remainder period (for which the dissolved panchayat would have continued) is less than six months, there is no need to hold any election for constituting the new panchayat  for such a period.
• Disqualification of Member:  Under Article 243F, A person shall be disqualified for being chosen as, and for being, a member of a Panchayat:
  • If the member faces disqualification according to any currently applicable law so enacted by the State Legislature..
  • No individual should face disqualification based on their age being below twenty-five years, as long as they have reached the age of twenty-one years.
• Powers and Functions of Panchayats:  Under Article 243G, State Legislatures may by law endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government. 
  • Such laws may contain provisions for the devolution of power and responsibilities like  Panchayats can create economic development and social justice plans, implement central and State government schemes, and have authority over employment and local development activities.
• Finances: Under Article 243H, State legislatures are authorized to allow Panchayats to levy and collect taxes, assign State-collected taxes to Panchayats, grant aid from the State’s consolidated fund, and establish funds to manage Panchayat finances.
• Finance Commission:  Article 243I provides for the  Finance Commission to be appointed by the Governor to assess the financial status of the Panchayats. 
  • It recommends principles for tax distribution between the State and Panchayats, as well as the specific taxes, duties, tolls, and fees that Panchayats can collect.  
• Audit of Accounts: Under Article 243J, State legislatures can specify the rules for maintaining and auditing Panchayat accounts.
• State Election Commission: Under Article 243K, a State Election Commission is established, responsible for overseeing the preparation of electoral rolls and conducting Panchayat elections.
• Application to Union Territories : Article 243L provides that the amendment may be  applied to Union Territories, but the President can make exceptions or modifications as required.
• Exempted States and Areas: Article 243M States that the act does not apply to Nagaland, Meghalaya, and Mizoram, as well as certain other areas, including scheduled and tribal areas. However, under specified conditions, Parliament may extend these provisions to scheduled and tribal areas.
• Continuance of Existing Laws and Panchayats: Article 243N States that the all State laws related to Panchayats remain in force for a year after the act’s enactment. 
  • Pre-existing Panchayats continue their terms unless dissolved by the State legislature.
• Bar to Interference by Courts in Electoral Matters: Article 243O restricts courts from intervening in Panchayat elections, declaring that the constitutionality of constituency delimitation or seat allocation laws cannot be challenged in court.
  • It also mandates that election challenges must be presented as election petitions according to State legislature guidelines.

Structure of Panchayati Raj

• Three-Tier System of Panchayati Raj: The 73rd Amendment Act establishes a three-tier system of Panchayati Raj in every State, which includes Panchayats at the village, intermediate, and district levels. 
• Ensuring Uniformity: This provision ensures uniformity in the structure of Panchayati Raj across the country. 
• Exception for Smaller States: However, a State with a population not exceeding 20 lakh may choose not to constitute Panchayats at the intermediate level.

Tier-1: Gram Panchayat:

• Structure and Leadership: The Gram Panchayat is the most basic unit, with a Sarpanch serving as its  head.
• Election and Tenure: Members of the Gram Panchayat are elected for five-year terms by the members of the Gram Sabha, a general assembly of villagers.

Tier-2: Block Level Panchayat or Panchayat Samiti

• Role and Function: The Panchayat Samiti, also known as the Block Panchayat, operates at the Tehsil level and is a local government body.
• Administration and Oversight: It administers and oversees the villages within the tehsil, which collectively form a “development block.” 
• Intermediary Function: The Panchayat Samiti serves as the intermediary between the Gram Panchayat and the district administration.

Tier-3: Zila Parishad

• Governing Body: Zila Parishad is the governing body at the district level within the Panchayati Raj system.
• Chief Administrator: The chief administrator of the Zila Parishad is typically an officer from the Indian Administrative Service (IAS) cadre and is the highest-ranking Panchayati Raj official at the district level.
• Collaborative Functioning: These three tiers work together to manage local governance, with the Gram Panchayat focusing on village-level matters, the Panchayat Samiti overseeing a group of villages within a tehsil, and the Zila Parishad coordinating activities and governance at the district level.

Elections to Panchayati Raj Institutions

• Adoption of the Constitution and Committee Recommendations: Following the adoption of the Constitution and the implementation of the Balwantrai Mehta Committee’s recommendations, the formalization of Panchayat elections occurred in most states. 
• Democratic Decentralisation: The Mehta Committee proposed ‘Democratic Decentralisation,’ advocating direct elections for Gram Panchayats and indirect elections for Block Samitis and Zilla Parishads. 
• Establishment of Election Procedures: final design and procedures for Panchayat elections were established through the 73rd Constitutional Amendment Act in 1992.
  • Election Process: The election process for Panchayati Raj Institutions involves direct elections for members at all levels, while chairpersons at intermediate and district levels are indirectly elected from members. 
  • Village-Level Chairperson Elections: The election of village-level chairpersons is determined by the State Government, and Gram Panchayat Pradhans and members are elected directly through secret ballot by the Gram Sabha members.
  • Sarpanch Election: The Sarpanch, or Gram Panchayat president, is elected by ward members as per the State Act, with a five-year term. 
  • Voting Rights: All residents over 18 in the Gram Panchayat’s territory can vote. 
  • Filling Panchayat Seats: Panchayat seats are filled through direct elections from territorial constituencies in the Panchayat area.

State Election Commission

• Overview of Articles 243K and 243ZA: Articles 243K and 243ZA talk about Panchayat and Municipal elections, respectively. 
  • Both articles state that the superintendence, direction, and control of electoral roll preparation and election conduct for Panchayats/Municipalities rests with the State Election Commission mentioned in Article 243-K.
• State Election Commission (SEC): a constitutional body in India, conducts elections for municipalities and Panchayats following the 73rd and 74th amendments. 
• Establishment and Governance: Article 243K establishes the SEC, with its tenure and appointment governed by state legislation. 
  • Appointment: The Governor appoints the State Election Commissioner on the advice of the Council of Ministers. 
  • Removal Process: However, the removal from office follows the same process as for a High Court Judge.
• Recommendations of the 2nd Administrative Reforms Commission (ARC): 
  • Collegium Appointment: The 2nd ARC suggested appointing the State Election Commissioner through a collegium consisting of the Chief Minister, the Speaker, and the Leader of the Opposition. 
  • Coordination Mechanism: It also advocated for creating an institutional mechanism for coordination and resource sharing between the Election Commission of India and the State Election Commissions

Compulsory and Voluntary Provisions under 73rd Amendment Act (1992)

• Taking into consideration the level of development, population composition and socioeconomic conditions of different States, the 73rd Amendment Act segregated various provisions as Compulsory and Voluntary Provisions to suit the relative conditions of each State.

Financial Devolution to Panchayati Raj Institutions

• Importance of Financial Stability: The actual strength of Panchayati Raj institutes, in terms of both autonomy and efficiency, heavily relies on their financial stability, including their ability to generate their own resources.
• Sources of Funding for Panchayati Raj Institutions: In India, Panchayats receive funds through various means:
• Grants from the Union Government: These grants are provided based on the recommendations of the Central Finance Commission, in accordance with Article 280 of the Constitution.
• Devolution from the State Government: Panchayats receive funds allocated by the State Government as per the recommendations of the State Finance Commission, as outlined in Article 243I.

• Loans/Grants from the State Government: Panchayats may also receive financial assistance in the form of loans or grants from the State Government to support their development projects and initiatives.
• Programme-Specific Allocation: Under Centrally Sponsored Schemes and Additional Central Assistance, specific funds are allocated to Panchayats for various development programs and projects.
• Internal Resource Generation: Panchayats have the authority to generate resources internally through both tax and non-tax means. 
• Importance of Financial Resources: These resources are crucial for the financial sustainability and independence of these institutions. 
  • Example: Taxation on Local weekly market, collecting fees by allowing farmers to till the Gram Samaj Land.

Conclusion

The 73rd Amendment Act of 1992 significantly strengthened the Panchayati Raj system by formalizing its structure and functions, ensuring regular elections, and providing financial autonomy. 

• By promoting inclusive governance and reserving seats for marginalized groups and women, it has enhanced local self-governance and community involvement in rural development across India.

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