The 73rd Amendment of 1992 brought Panchayati Raj into the Constitution — but it did not automatically apply to Fifth Schedule tribal areas. Article 243M excluded Scheduled Areas from Part IX of the Constitution until Parliament made specific provisions. Parliament did so in 1996 through the Provisions of the Panchayats (Extension to the Scheduled Areas) Act 1996 — known as PESA. PESA extended Panchayati Raj to Fifth Schedule areas with substantial modifications recognising tribal customs and community-based governance. Gram Sabhas in PESA areas are empowered with specific authorities — over land, forests, water, minor minerals, money-lending, market regulation, and approval of development projects. The 2013 Prelims tested PESA's objectives. Hold the architecture, the Gram Sabha empowerment, and the implementation challenges.
Context — why PESA was needed
The 73rd Amendment of 1992 inserted Part IX (Articles 243-243O) into the Constitution, providing for Panchayati Raj. But Article 243M(1) provided: "Nothing in this Part shall apply to the Scheduled Areas referred to in clause (1), and the tribal areas referred to in clause (2), of Article 244."
This exclusion reflected two concerns:
One — Tribal autonomy concerns. Tribal communities in Fifth Schedule areas have traditionally had distinct governance structures — village councils, customary law, traditional leaders. Imposing the standard Panchayati Raj model risked disrupting these structures.
Two — Land alienation concerns. Standard Panchayati Raj might not adequately protect tribal land from non-tribal acquisition. Tribal areas required additional safeguards beyond what the 73rd Amendment provided.
Article 243M(4) — power to extend. Article 243M(4) empowered Parliament to "extend the provisions of this Part to the Scheduled Areas and the tribal areas referred to in clause (1) subject to such exceptions and modifications as may be specified in such law."
This power-to-extend mechanism allowed Parliament to design tribal-specific Panchayati Raj — adapting the general framework to tribal contexts.
Bhuria Committee Report 1995. The Government appointed Dilip Singh Bhuria Committee in 1994 to recommend the framework for extending Panchayati Raj to Scheduled Areas. The Committee submitted its report in January 1995. Key recommendations:
(i) Gram Sabhas (rather than Gram Panchayats) should be the foundational tribal self-governance institution.
(ii) Gram Sabhas should have specific powers over tribal land, forests, water, minor minerals.
(iii) Customary law and traditional dispute resolution should be respected.
(iv) Tribal communities should have control over development projects affecting their areas.
(v) Land alienation protections should be strengthened.
The Bhuria Committee's recommendations formed the basis of PESA.
PESA enactment 1996. Parliament enacted the Provisions of the Panchayats (Extension to the Scheduled Areas) Act 1996 on 24 December 1996. The Act came into force the same day. It applied to Fifth Schedule areas in 9 States (later 10, after the bifurcation of Andhra Pradesh into AP and Telangana in 2014).
The States with PESA-applicable Fifth Schedule areas: Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan.
PESA — core features
PESA modifies the standard Panchayati Raj framework for tribal areas through specific provisions:
One — State legislation must conform to PESA. Section 4 of PESA provides that the State legislation extending Panchayati Raj to Scheduled Areas must conform to PESA's mandatory provisions. State Acts that contradict PESA are unconstitutional.
Two — Compatibility with customary law. Section 4(a): Legislation should be in consonance with customary law, social and religious practices, and traditional management practices of community resources. The Panchayati Raj framework is adapted to tribal traditions, not the reverse.
Three — Village identification by Gram Sabha. Section 4(b)-(c): "A village shall ordinarily consist of a habitation or a group of habitations or a hamlet or a group of hamlets comprising a community and managing its affairs in accordance with traditions and customs." Every village shall have a Gram Sabha consisting of all persons whose names are included in the electoral rolls for the village.
This contrasts with standard Panchayati Raj, where the village unit is determined by State Government notification. In PESA areas, the Gram Sabha defines the village.
Four — Empowered Gram Sabha (Section 4(d)). The Gram Sabha is "competent to safeguard and preserve the traditions and customs of the people, their cultural identity, community resources, and the customary mode of dispute resolution."
This is a substantial empowerment. The Gram Sabha is not just an electoral or consultative body — it is a body with constitutional/statutory powers.
Five — Reservation of seats for Scheduled Tribes (Section 4(g)). Reservation of seats in Panchayats at all levels (village, intermediate, district) shall be in proportion to the population of communities for whom reservation is sought. Provided that not less than one-half of the total number of seats shall be reserved for Scheduled Tribes.
This is stronger than the standard Panchayati Raj rule. In PESA areas:
(i) ST seats: at least 1/2 of total seats (vs proportional in non-PESA areas).
(ii) The Chairperson positions of all Panchayats shall be reserved for Scheduled Tribes.
Six — Reservation safeguards. Section 4(h): The State Government may nominate persons belonging to such Scheduled Tribes as have no representation in the Panchayat at the intermediate or district level, provided such nomination shall not exceed 1/10th of the total members elected at that level.
Gram Sabha — specific powers under PESA
Section 4 of PESA confers specific substantive powers on the Gram Sabha — making it more than a deliberative body.
One — Approval of plans, programmes, and projects (Section 4(e)). Every Gram Sabha shall approve of the plans, programmes, and projects for social and economic development before such plans, programmes, and projects are taken up for implementation by the Panchayat at the village level.
This is a substantive consent power. Government cannot impose development plans without Gram Sabha approval.
Two — Identification of beneficiaries. Every Gram Sabha shall be responsible for the identification or selection of persons as beneficiaries under the poverty alleviation and other programmes.
This prevents bureaucratic capture of welfare benefits — beneficiaries are chosen by the community, not by external officials.
Three — Certification of expenditure. Every Panchayat at the village level shall be required to obtain from the Gram Sabha a certification of utilisation of funds.
This builds in accountability — Panchayats cannot misuse funds without Gram Sabha scrutiny.
Four — Land acquisition consultation (Section 4(i)). The Gram Sabha or the Panchayats at the appropriate level shall be consulted before making the acquisition of land in the Scheduled Areas for development projects and before re-settling or rehabilitating persons affected by such projects in the Scheduled Areas.
The actual planning and implementation of the projects in the Scheduled Areas shall be coordinated at the State level.
This is one of PESA's most consequential provisions. Land acquisition for industrial/development projects requires prior consultation with the Gram Sabha. The Niyamgiri case (2013) gave this provision teeth — the Supreme Court held that Gram Sabha consent is required for mining and similar projects on tribal land.
Five — Minor water bodies management (Section 4(j)). Planning and management of minor water bodies in the Scheduled Areas shall be entrusted to Panchayats at the appropriate level.
Six — Mining (Section 4(k) and (l)). The recommendations of Gram Sabha or Panchayats at the appropriate level shall be made mandatory before:
(i) Granting prospecting licences for minor minerals.
(ii) Granting concessions for the exploitation of minor minerals by auction.
Seven — Money lending (Section 4(m)(v)). Power to exercise control over money lending to the Scheduled Tribes.
This addresses a major source of tribal exploitation — money-lenders who provide loans at exorbitant rates and acquire tribal land through default. PESA gives Gram Sabhas authority to regulate this practice.
Eight — Other powers (Section 4(m)(i)-(vii)). Power to:
(i) Prohibit or regulate sale and consumption of intoxicants.
(ii) Ownership of minor forest produce.
(iii) Prevent alienation of tribal land and restore alienated land.
(iv) Manage village markets.
(v) Control institutions and functionaries in social sectors.
(vi) Control local plans and resources for such plans (including tribal sub-plans).
The 2013 Prelims — PESA objectives
The 2013 Prelims tested the objectives of PESA:
The distinction between PESA (Fifth Schedule, regular Panchayati Raj with modifications) and Sixth Schedule (Autonomous District Councils, fundamentally different governance) is a core constitutional concept.
PESA vs Sixth Schedule comparison:
Geographic application:
PESA — 10 States (AP, Telangana, Chhattisgarh, Gujarat, HP, Jharkhand, MP, Maharashtra, Odisha, Rajasthan).
Sixth Schedule — 4 States (Assam, Meghalaya, Tripura, Mizoram).
Type of body:
PESA — Panchayats at three levels (village, intermediate, district), with empowered Gram Sabhas.
Sixth Schedule — Autonomous District Councils and Regional Councils.
Powers of governing body:
PESA — primarily executive/consultative; Gram Sabha consent required for development projects, land acquisition, etc.
Sixth Schedule — full legislative, executive, judicial, financial powers within the district.
Lawmaking authority:
PESA — Parliament and State Legislatures retain lawmaking authority; State legislation must conform to PESA.
Sixth Schedule — District Councils make laws on enumerated subjects.
Relationship with State law:
PESA — operates within State law framework with mandatory PESA provisions.
Sixth Schedule — District Council laws override State legislation on Sixth Schedule subjects.
Both mechanisms protect tribal interests, but through different structures.
Samatha and Niyamgiri — judicial enforcement
PESA's effectiveness has been substantially shaped by Supreme Court judgments interpreting its provisions in conjunction with the Fifth Schedule.
Samatha v. State of Andhra Pradesh (1997). The Supreme Court held that mining leases granted to non-tribals in Scheduled Areas are null and void. The Court relied on:
(i) Fifth Schedule (Para 5(2)(a)) — Governor's power to prohibit transfer of land.
(ii) PESA principles — though decided shortly after PESA's enactment, Samatha drew on PESA's underlying philosophy of tribal land protection.
(iii) Article 244 — constitutional protection of Scheduled Areas.
The judgment established that long-term mining leases (typically 30 years) effectively alienate tribal land. Such alienation is constitutionally prohibited, regardless of the legal form (lease vs sale).
Orissa Mining Corporation v. Ministry of Environment and Forest (2013) — the Niyamgiri case. A landmark judgment that gave PESA Gram Sabha consent provisions strong constitutional protection.
Facts. Vedanta Resources sought to mine bauxite from Niyamgiri Hills in Odisha — a forested area sacred to the Dongria Kondh tribal community. The Ministry of Environment had given preliminary clearance. The Dongria Kondh community opposed the mining.
Holding. The Supreme Court held:
(i) The Gram Sabhas of the affected villages must be consulted before forest clearance.
(ii) The Gram Sabhas have decisive say — not just advisory.
(iii) The decision must consider the community's religious, cultural, and traditional rights.
(iv) The Forest Rights Act 2006 read with PESA gives Gram Sabhas authority over the use of community resources.
(v) The Court directed the Gram Sabhas of 12 affected villages to deliberate and decide.
Outcome. All 12 Gram Sabhas voted unanimously against the mining project. The mining was halted. This was a watershed moment for tribal community consent doctrine.
Significance. The Niyamgiri judgment established several principles:
(i) Free, prior, informed consent — tribal communities must consent before development projects on their land.
(ii) Cultural and religious rights — tribal religious and cultural relationships with land are protected.
(iii) Combined operation of PESA and FRA — both Acts work together to protect tribal interests.
(iv) Gram Sabha as constitutional body — though created by PESA, the Gram Sabha's powers have constitutional roots in Article 244 and the Fifth Schedule.
The Niyamgiri precedent has been applied in subsequent cases — Vedanta's other mining projects, POSCO's steel project in Odisha, various mining projects in Chhattisgarh and Jharkhand. Gram Sabha consent has become a major requirement for development projects in tribal areas.
Implementation challenges
Despite its progressive framework, PESA implementation has been uneven across the 10 States.
One — State conformity legislation gaps. Each PESA-applicable State must enact conformity legislation adapting State Panchayati Raj law to PESA requirements. Implementation has been variable:
(i) Some States enacted conformity legislation promptly (Madhya Pradesh, Chhattisgarh, Jharkhand).
(ii) Others delayed or enacted partial conformity (some North-Eastern States — though these mostly fall outside PESA scope).
(iii) Even with conformity legislation, implementation rules have often been weak.
Two — Gram Sabha capacity gaps. Empowered Gram Sabhas require institutional capacity — meetings, record-keeping, decision-making procedures, conflict resolution. Many tribal Gram Sabhas have:
(i) Limited literacy, making written records difficult.
(ii) Limited familiarity with formal procedures.
(iii) Internal conflicts that complicate decision-making.
(iv) Pressure from outside actors (companies, government officials, political parties).
Three — Bureaucratic resistance. Forest Departments, Mining Departments, and other bureaucratic agencies have sometimes resisted Gram Sabha empowerment. Examples:
(i) Forest officials marginalising Gram Sabha decisions.
(ii) Mining clearances given without proper Gram Sabha consultation.
(iii) Land acquisitions proceeding despite Gram Sabha objections.
The Niyamgiri judgment's strict interpretation has reduced this, but implementation challenges persist.
Four — Conflict with corporate interests. Tribal areas often contain valuable minerals — coal, iron ore, bauxite, copper, etc. Mining and industrial interests have substantial political weight. Tensions:
(i) State governments seek mineral revenue.
(ii) Companies seek mining concessions.
(iii) Tribal communities seek protection of traditional lands.
(iv) PESA mandates Gram Sabha consultation/consent.
The conflicts have produced significant litigation, protests, and in some cases violence (Maoist movement in tribal areas is partly fueled by these tensions).
Five — Money-lending control. Section 4(m)(v) gives Gram Sabhas power over money-lending. Implementation has been weak:
(i) Informal money-lenders are often relatives or village elites; community pressure to act is limited.
(ii) Alternative credit sources (banks, microfinance) have not adequately filled the gap.
(iii) Tribal indebtedness remains substantial.
Six — Coordination between PESA and other laws. Multiple laws apply in tribal areas:
(i) PESA — Panchayati Raj framework.
(ii) Forest Rights Act 2006 — individual and community forest rights.
(iii) Wild Life Protection Act 1972 — Community Reserves and Conservation Reserves.
(iv) Forest Conservation Act 1980 — restrictions on diversion of forest land.
(v) Mines and Minerals (Development and Regulation) Act 1957 — mining law.
(vi) Land Acquisition Act 2013 — compensation and rehabilitation.
Coordination across these laws is challenging. Conflicts and overlaps create implementation complexities.
Reform proposals. Various reform proposals have been discussed:
(i) Stronger PESA enforcement — central audit of State conformity legislation.
(ii) Capacity building — dedicated funding for Gram Sabha capacity development.
(iii) Constitutional protection — moving PESA principles into the Constitution itself.
(iv) Better coordination — single-window for tribal area development decisions.
Implementation remains the central challenge. PESA's formal architecture is progressive; the practical reality varies substantially.
What students must hold
Six points carry the weight. One, PESA — Provisions of the Panchayats (Extension to the Scheduled Areas) Act 1996. Enacted under Article 243M(4) of the Constitution. Bhuria Committee 1995 was the intellectual foundation. Came into force 24 December 1996.
Two, scope: extends Part IX (Panchayati Raj) to Fifth Schedule areas with modifications. Applies in 10 States: Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan.
Three, key provisions: Section 4(a) — consonance with customary law; Section 4(b)-(c) — village identification by Gram Sabha (community-defined); Section 4(d) — empowered Gram Sabha; Section 4(g) — at least 1/2 seats reserved for STs, all Chairperson positions for STs; Section 4(h) — nomination of unrepresented STs at intermediate/district level (max 1/10).
Four, Gram Sabha powers: Section 4(e) approval of development plans, programmes, projects; Section 4(f) identification of beneficiaries; Section 4(i) consultation before land acquisition; Section 4(j) management of minor water bodies; Section 4(k)-(l) recommendations on minor mineral leases; Section 4(m) land alienation prevention, ownership of minor forest produce, money-lending control, market regulation.
Five, the 2013 Prelims tested: PESA does NOT create "autonomous regions" — answer (c). That is the Sixth Schedule's function. PESA extends regular Panchayati Raj with modifications; Sixth Schedule creates substantially different governance structure.
Six, judicial enforcement: Samatha v. State of AP (1997) — mining leases to non-tribals in Scheduled Areas null and void. Niyamgiri / Orissa Mining Corporation v. MoEF (2013) — Gram Sabha consent required for mining and development projects affecting tribal land. Implementation challenges remain — bureaucratic resistance, capacity gaps, coordination across multiple laws. For more, see Fifth and Sixth Schedules and Community Reserve.