Local self-government in rural India had a long history before 1992 — but it operated entirely under State laws. The State governments could establish, modify, or abolish Panchayats at will. Local bodies suffered from political instability, financial weakness, and uncertain elections. The Constitution (Seventy-third Amendment) Act 1992 changed this fundamentally. By inserting Part IX (Articles 243-243O) and the Eleventh Schedule into the Constitution, the 73rd Amendment gave constitutional status to Panchayati Raj. Three-tier structure (village, intermediate, district) became mandatory. Five-year tenure became guaranteed. Reservations for SC/ST/women were established. The Eleventh Schedule listed 29 subjects that States could devolve to Panchayats. The 2016 Prelims tested specific propositions on Panchayat tenure; the 2015 Prelims tested the fundamental objectives of the system. Hold the architecture, the safeguards, and the fundamental ideas.
Pre-1992 — fragmented State laws
Before 1992, Panchayats operated entirely under State laws. The Constitution had only one provision touching local government — Article 40 (Directive Principle), which directed States to organise village panchayats and endow them with the powers necessary to enable them to function as units of self-government.
Article 40 was a Directive Principle — non-justiciable, aspirational. States could legislate but were not constitutionally required to maintain functional panchayats. The result:
(i) Variation across States. Some States (Maharashtra, Karnataka, Andhra Pradesh) had relatively well-developed panchayat systems; others had weak or non-existent panchayats.
(ii) Political instability. State governments could supersede or dissolve panchayats at will. Elections could be postponed indefinitely.
(iii) Financial weakness. Panchayats depended on State grants without statutory entitlement. Funds were inconsistent.
(iv) No representation safeguards. Reservations for SC/ST and women varied or were absent.
(v) No mandatory functions. States could allocate or withdraw functions at will.
Reform efforts. Several committees examined Panchayati Raj before the 73rd Amendment:
Balwantrai Mehta Committee (1957) — recommended a three-tier panchayat structure. Most States adopted some version, but the system remained fragile.
Ashok Mehta Committee (1978) — recommended a two-tier structure with district as the unit. Less widely adopted.
L.M. Singhvi Committee (1986) — recommended constitutional status for Panchayats. This was the immediate intellectual foundation for the 73rd Amendment.
P.K. Thungon Committee (1988) — concurred with Singhvi.
Rajiv Gandhi government — 64th Amendment Bill (1989). Sought to give constitutional status to Panchayats. Passed Lok Sabha but failed in Rajya Sabha. The 64th Amendment was the predecessor of the eventual 73rd Amendment.
P.V. Narasimha Rao government — 73rd and 74th Amendments (1992). Successfully enacted both amendments. The 73rd Amendment came into force on 24 April 1993; the 74th on 1 June 1993.
Core features of the 73rd Amendment
The 73rd Amendment inserted Part IX (Articles 243-243O) and the Eleventh Schedule into the Constitution. Key features:
One — Three-tier structure (Article 243B). Every State must establish Panchayats at:
(i) Village level — Gram Panchayat.
(ii) Intermediate level — Panchayat Samiti or Mandal Parishad (between village and district).
(iii) District level — Zilla Parishad or Zilla Panchayat.
States with population less than 20 lakhs may not constitute the intermediate level. Otherwise, three tiers are mandatory.
Two — Gram Sabha (Article 243A). A Gram Sabha — consisting of all persons registered in the electoral rolls of a village within the area of a Panchayat — was made a constitutional body. State Legislatures may confer such powers and functions on the Gram Sabha as they deem fit at the village level.
Three — Direct elections (Article 243C). All seats in a Panchayat (at all three tiers) are filled by direct election. Chairpersons of intermediate and district levels are elected from amongst the elected members.
Four — Reservation of seats (Article 243D).
(i) SC/ST — Seats reserved for SCs and STs in proportion to their population in the Panchayat area.
(ii) Women — Not less than one-third of the total seats reserved for women, including the seats reserved for SC/ST women. (Many States have raised this to 50%.)
(iii) OBCs — State Legislatures may make provision for reservation in favour of OBCs.
(iv) Chairpersons — Reservation also applies to Chairperson positions in proportionate numbers across panchayats.
Five — Five-year term (Article 243E). Every Panchayat shall continue for five years from the date appointed for its first meeting. The Panchayat may be dissolved earlier under State law (with reasonable opportunity to be heard).
If dissolved earlier, fresh elections must be held within six months. The reconstituted Panchayat continues only for the remainder period of the original five-year term — NOT for a fresh five years. The 2016 Prelims tested this directly.
Six — Disqualifications (Article 243F). A person is disqualified from being a Panchayat member on similar grounds as for State Legislatures (Article 191). Plus other grounds in State law. The age threshold for Panchayat membership is 21, NOT 25.
The 2016 Prelims — tenure
The 2016 Prelims tested specific propositions about Panchayat tenure and membership.
- The minimum age prescribed for any person to be a member of Panchayat is 25 years.
- A Panchayat reconstituted after premature dissolution continues only for the remainder period.
Two important points emerge:
One — age 21, not 25. Panchayats have a deliberately lower age threshold than State Legislatures. The framers of the 73rd Amendment wanted local self-government to engage younger people. Article 243F(1)(a) makes this exception.
Two — partial term after dissolution. If a Panchayat is dissolved before completing five years, the next Panchayat continues only for the unexpired period — not for a fresh five-year term. This prevents abuse of dissolution as a way to reset terms.
The 2015 Prelims tested broader objectives:
- People's participation in development
- Political accountability
- Democratic decentralization
- Financial mobilization
Eleventh Schedule — 29 subjects
The Eleventh Schedule, added by the 73rd Amendment, lists 29 subjects that State Legislatures may devolve to Panchayats. The Schedule is in the nature of a recommendation — States may devolve all, some, or none of these subjects.
The 29 subjects (Eleventh Schedule):
1. Agriculture, including agricultural extension.
2. Land improvement, implementation of land reforms, land consolidation, soil conservation.
3. Minor irrigation, water management, watershed development.
4. Animal husbandry, dairying, poultry.
5. Fisheries.
6. Social forestry and farm forestry.
7. Minor forest produce.
8. Small scale industries, including food processing industries.
9. Khadi, village and cottage industries.
10. Rural housing.
11. Drinking water.
12. Fuel and fodder.
13. Roads, culverts, bridges, ferries, waterways, and other means of communication.
14. Rural electrification, including distribution of electricity.
15. Non-conventional energy sources.
16. Poverty alleviation programme.
17. Education, including primary and secondary schools.
18. Technical training and vocational education.
19. Adult and non-formal education.
20. Libraries.
21. Cultural activities.
22. Markets and fairs.
23. Health and sanitation, including hospitals, primary health centres, and dispensaries.
24. Family welfare.
25. Women and child development.
26. Social welfare, including welfare of the handicapped and mentally retarded.
27. Welfare of the weaker sections, in particular of the SCs and STs.
28. Public distribution system.
29. Maintenance of community assets.
Article 243G — Powers, authority, and responsibilities of Panchayats. The State Legislature may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government. Such law may contain provisions for devolution of powers and responsibilities upon Panchayats with respect to:
(i) Preparation of plans for economic development and social justice.
(ii) Implementation of schemes for economic development and social justice as may be entrusted to them — including those in the Eleventh Schedule.
Implementation has been uneven. Some States have devolved all 29 subjects with substantial powers; others have devolved nominally. Devolution Reports by Ministry of Panchayati Raj have ranked States — Karnataka, Kerala, Madhya Pradesh, and Maharashtra typically scoring high; many States with low scores.
The 2013 Prelims tested NDC and Panchayat planning (statement 3 of Q12):
"The Constitution of India prescribes that Panchayats should be assigned the task of preparation of plans for economic development and social justice." This was a true statement, reflecting Article 243G.
Finance and elections — Articles 243H to 243K
Article 243H — Powers to impose taxes and Panchayat finances. The State Legislature may, by law:
(i) Authorise a Panchayat to levy, collect, and appropriate specified taxes, duties, tolls, and fees.
(ii) Assign to a Panchayat the proceeds of specified taxes collected by the State Government.
(iii) Provide for grants-in-aid from the Consolidated Fund of the State.
(iv) Provide for constitution of separate funds for receiving moneys received by the Panchayats.
The constitutional provision authorises but does not mandate. State practice varies substantially — some States have given Panchayats meaningful taxation powers; others have kept Panchayats financially dependent.
Article 243I — State Finance Commission (SFC). Within one year of the 73rd Amendment's commencement, and thereafter every five years, the Governor must constitute a State Finance Commission to review the financial position of the Panchayats and recommend:
(i) Distribution of taxes between State and Panchayats.
(ii) Allocation of taxes among the various levels (village, intermediate, district).
(iii) Determination of taxes assigned to Panchayats.
(iv) Grants-in-aid from the Consolidated Fund of the State.
(v) Measures to improve the financial position.
The State Finance Commission's recommendations are laid before the State Legislature. The Central Finance Commission, in turn, considers SFC reports when recommending Central support for Panchayat finance (under Article 280(3)(c) — added by the 73rd Amendment to the Central Finance Commission's mandate).
Article 243K — State Election Commission (SEC). Each State must have a State Election Commission for Panchayats:
(i) Consists of a State Election Commissioner appointed by the Governor.
(ii) Has the power of superintendence, direction, and control of elections to Panchayats.
(iii) The State Election Commissioner has security of tenure equivalent to a High Court judge — cannot be removed except in like manner and on like grounds.
(iv) The State Election Commissioner's conditions of service cannot be varied to disadvantage during tenure.
The State Election Commission is separate from the Election Commission of India. The ECI handles Lok Sabha, Rajya Sabha, State Legislatures, President, and Vice-President. The State Election Commissions handle Panchayats and (under Article 243ZA, added by 74th Amendment) Municipalities.
Article 243-O — Bar to interference by courts in electoral matters. No election to a Panchayat shall be called in question except by an election petition presented to such authority as the State Legislature may by law prescribe. The validity of laws relating to delimitation cannot be questioned in court.
The Supreme Court has held that despite this bar, judicial review under Article 226 (basic structure) remains available — courts can examine election issues for jurisdictional error or violation of fundamental rights.
PESA — extension to scheduled areas
The 73rd Amendment did not automatically apply to Fifth Schedule areas (areas with a substantial Scheduled Tribe population designated under the Fifth Schedule). Article 243M provided that Part IX of the Constitution would not apply to Fifth Schedule areas — until Parliament made specific provisions extending it.
Parliament did so through the Provisions of the Panchayats (Extension to the Scheduled Areas) Act 1996 — known as PESA.
The 2013 Prelims tested PESA:
PESA's key features:
(i) Extends Part IX (Panchayati Raj) to Fifth Schedule areas with modifications recognising tribal customs.
(ii) Empowers Gram Sabhas in tribal areas with specific powers — including approving plans, programmes, and projects for social and economic development before Panchayats take them up.
(iii) Mandates consultation with Gram Sabhas before land acquisition for development projects.
(iv) Provides Gram Sabhas with control over minor forest produce, minor water bodies, minor minerals.
(v) Gives Gram Sabhas power to prevent alienation of tribal land and to take action to restore alienated tribal land.
(vi) Empowers Gram Sabhas to manage village markets.
(vii) Gives Gram Sabhas a role in the planning of money-lending activities affecting tribal members.
PESA applies to Fifth Schedule areas in 10 States: Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan.
Implementation has been uneven. Several States have not enacted complete PESA conformity legislation. Tribal Gram Sabhas often face challenges in exercising the powers granted under PESA.
What students must hold
Six points carry the weight. One, 73rd Amendment of 1992 inserted Part IX (Articles 243-243O) and the Eleventh Schedule. Came into force 24 April 1993. Predecessor: 64th Amendment Bill 1989 (failed in Rajya Sabha).
Two, three-tier structure (Article 243B): Village (Gram Panchayat), Intermediate (Panchayat Samiti), District (Zilla Parishad). States with population < 20 lakhs may skip intermediate level. All seats filled by direct election (Article 243C).
Three, key provisions: Article 243A (Gram Sabha — constitutional body); Article 243D (reservations: SC/ST proportional, women ≥ 1/3, OBC at State discretion); Article 243E (5-year term; partial term after premature dissolution); Article 243F (disqualifications, age threshold 21); Article 243G (powers — preparation of plans, implementation of Eleventh Schedule subjects).
Four, the 2016 Prelims test: (1) Minimum age — 21, NOT 25 (statement 1 WRONG). (2) Reconstituted Panchayat continues only for remainder period (statement 2 CORRECT). The 2015 Prelims test: fundamental objectives = people's participation in development + democratic decentralization (NOT political accountability or financial mobilization).
Five, finance and elections: Article 243H (taxation powers); Article 243I (State Finance Commission every 5 years); Article 243K (State Election Commission — separate from ECI; SEC handles Panchayat elections, ECI handles Lok Sabha/Rajya Sabha/State Legislatures/President/Vice-President).
Six, PESA Act 1996 — Provisions of the Panchayats (Extension to the Scheduled Areas) Act. Extends Part IX to Fifth Schedule tribal areas with modifications. Empowers Gram Sabhas. Applies in 10 States. The 2013 Prelims tested PESA — it does NOT create autonomous regions (that is Sixth Schedule). For more, see 74th Amendment and PESA.