73rd Constitutional Amendment and Panchayati Raj Institutions

The 73rd Constitutional Amendment Act, 1992 made village-level local government a part of the Constitution of India. It added Part IX (Articles 243 to 243-O) and the Eleventh Schedule (29 subjects) to the Constitution. Because of it, every state must have elected panchayats at the village, block and district levels, hold their elections regularly, and reserve seats for SCs, STs and women. These elected rural bodies are called Panchayati Raj Institutions (PRIs).

Why was it needed?

Before 1992, panchayats existed only under state laws. A state government could dissolve them and simply not hold elections for years. Many panchayats had no money, no staff and no real powers. The 73rd Amendment fixed this by giving panchayats a constitutional guarantee. Now no state can wish them away. Think of it like the difference between a promise and a signed contract: earlier, panchayats were a promise; now they are written into the country's main rulebook.

Where did the idea come from?

The idea of village self-rule is old. Article 40, a Directive Principle of State Policy, asks the state to organise village panchayats. The path to the 73rd Amendment went through several committees:

• Balwant Rai Mehta Committee (1957): It studied why the Community Development Programme was not working. It recommended a three-tier system of "democratic decentralisation". Rajasthan became the first state to start Panchayati Raj, at Nagaur on 2 October 1959.
• Ashok Mehta Committee (1977-78): It recommended a two-tier system (Zila Parishad at district level and Mandal Panchayat for a group of villages) and suggested constitutional recognition.
• L.M. Singhvi Committee (1986): It recommended that panchayats get constitutional status as the third level of government.
• 64th Amendment Bill (1989): It tried to give panchayats constitutional status but was defeated in the Rajya Sabha.

Finally, Parliament passed the 73rd Amendment in 1992. It came into force on 24 April 1993. That is why 24 April is celebrated as National Panchayati Raj Day.

The three tiers (Article 243B)

• Gram Panchayat at the village level
• Panchayat Samiti (block or intermediate level)
• Zila Parishad at the district level

A state with a population of 20 lakh or less does not have to create the middle tier.

Key provisions, article by article

• Article 243A, Gram Sabha: The assembly of all registered voters of a village. It works like the "general body" of the village.
• Article 243C, composition: All seats are filled by direct election. The chairperson at the middle and district levels is elected indirectly, from among the elected members. How the village head (sarpanch) is elected is decided by the state law.
• Article 243D, reservation: Seats for SCs and STs in proportion to their population. At least one-third of all seats (including within SC/ST seats) for women. States may also reserve chairperson posts and may give reservation to backward classes. Many states now give 50% reservation to women.
• Article 243E, duration: A fixed term of five years. If a panchayat is dissolved early, a new election must be held within six months.
• Article 243F, disqualification: A person qualified to contest a state legislature election can contest, except that the minimum age is 21 years (not 25).
• Articles 243G and 243H, powers and funds: The state legislature may give panchayats powers to plan and carry out schemes on the 29 subjects of the Eleventh Schedule, and may allow them to collect taxes, duties, tolls and fees.
• Article 243I, State Finance Commission: The Governor sets one up within one year of the amendment and then every five years, to recommend how money should be shared between the state and its panchayats.
• Article 243K, State Election Commission: Conducts panchayat elections. The State Election Commissioner can be removed only in the same way as a High Court judge.
• Article 243-O: Courts cannot interfere in panchayat electoral matters except through an election petition.

Compulsory and voluntary parts

Some parts are compulsory for every state: the three tiers, direct elections, five-year term, reservation for SCs, STs and women, State Finance Commission and State Election Commission. Other parts are left to the states: how many powers and functions to give, which taxes panchayats can collect, and reservation for backward classes. This is why panchayats are strong in some states (like Kerala) and weak in others.

Where Part IX does not apply (Article 243M)

It does not apply to Nagaland, Meghalaya and Mizoram, to hill areas of Manipur with District Councils, and to Fifth and Sixth Schedule areas. Parliament extended it to Fifth Schedule areas through the PESA Act, 1996 (Panchayats (Extension to the Scheduled Areas) Act), which gives Gram Sabhas special powers over land, forest produce and local resources. District-level panchayat rules do not apply to the hill areas of Darjeeling, which have their own council.

Important court cases

• K. Krishna Murthy v. Union of India (2010): The Supreme Court upheld reservation for backward classes in local bodies. But it said total reservation for SCs, STs and OBCs together should not normally cross 50%, and OBC reservation needs a proper study of backwardness.
• Vikas Kishanrao Gawali v. State of Maharashtra (2021): The Court laid down the "triple test" for OBC reservation in local bodies: (1) set up a dedicated commission to study backwardness, (2) fix the share of seats based on its findings, (3) keep total SC/ST/OBC reservation within 50%.

Commonly confused concepts

• 73rd vs 74th Amendment: The 73rd (Part IX, Eleventh Schedule, 29 subjects) is for rural local bodies. The 74th (Part IXA, Twelfth Schedule, 18 subjects) is for urban local bodies (municipalities).
• Gram Sabha vs Gram Panchayat: The Gram Sabha is all voters of the village. The Gram Panchayat is the small elected body that runs the village day to day. The Sabha is like the shareholders; the Panchayat is like the board.
• State Election Commission vs Election Commission of India: The SEC conducts panchayat and municipal polls. The ECI conducts elections to Parliament, state legislatures, and the offices of President and Vice-President.
• State Finance Commission vs Finance Commission (Article 280): The SFC divides state money with local bodies. The Central Finance Commission divides central taxes between the Centre and the states, and also recommends grants for local bodies.

Issues, criticism and the way forward

• Weak devolution of "3Fs": Many states have not fully transferred funds, functions and functionaries (staff) to panchayats. Panchayats are often given work without the money or people to do it.
• Low own revenue: Most panchayats depend heavily on grants. They collect very little property tax or fees of their own.
• "Sarpanch pati": In many places, male relatives run the panchayat on behalf of elected women. This defeats the purpose of reservation.
• Delayed elections and weak SFCs: Some states delay panchayat elections or do not set up State Finance Commissions on time.
• Capacity gaps: Many elected members get little training in planning, accounts or digital tools.
• Way forward: Experts and official reports have suggested clear "activity mapping" (deciding which tier does what), timely SFCs, better property-tax systems, regular training, and stronger Gram Sabhas.

Concepts to Know

• Directive Principles of State Policy (DPSP): Guidelines in Part IV of the Constitution that the government should follow while making laws. Courts cannot force the government to follow them.
• Devolution: Handing over power, money and work from a higher government to a lower one, so the lower one can decide on its own.
• Eleventh Schedule: A list of 29 subjects, like agriculture, drinking water, minor irrigation, rural housing and roads, on which panchayats can be given work.
• Indirect election: When people elect members, and those members then elect the chairperson from among themselves.
• Fifth and Sixth Schedule areas: Tribal areas with special protection. Fifth Schedule areas are in states like Jharkhand and Odisha; Sixth Schedule areas are tribal areas in Assam, Meghalaya, Tripura and Mizoram run by Autonomous District Councils.