PANCHAYATI RAJ SYSTEMS IN INDIA

Submitted by

Sanjith C

Reg. No. BC0190041

Name of the Guide

Dr. S. Subba Rao

Assistant Professor

TAMIL NADU NATIONAL LAW UNIVERSITY

(A State University established by Act No. 9 of 2012) Tiruchirappalli
Tamil Nadu – 620 027

MARCH – 2021
Dr. S. SUBBA RAO
Assistant Professor of Political Science
Tamil Nadu National Law University
Tiruchirappalli
Tamil Nadu – 620 027

CERTIFICATE
This is to certify that the project work entitled “Panchayati Raj Systems In
India” is a bonafide record of the research work done by (Sanjith C), under my
supervision and guidance. It has not been submitted by any other University for
the award of any degree, diploma, associateship, fellowship or for any other
similar recognition.

Place: Tiruchirappalli
Date:

Signature of the Guide

SANJITH C
Reg. No. BC0190041
II – B.Com., LLB., (Hons.)
Tamil Nadu National Law University
Tiruchirappalli
Tamil Nadu – 620 027

DECLARATION

I (Sanjith C), Register Number (BC0190041), hereby declare that this Research
Paper work entitled “Panchayati Raj Systems In India” has been originally
carried out by me under the guidance and supervision vision of (Dr. S. Subba
Rao), Assistant professor, Tamil Nadu National Law University, Tiruchirappalli
- 620 027. This work has not been submitted either in whole or in part of any
Degree/ Diploma at any University.

Place: Tiruchirappalli Date:

Counter Signed Signature of the candidate

Project Guide
 ACKNOWLEDGEMENT

To begin, I'd like to express my sincere gratitude to my Professor (Dr. S.

Subba Rao), who has been of tremendous assistance during times of stress and
torpor as the project has taken shape.

Second, I would like to express my heartfelt gratitude to TNNLU's Vice

Chancellor, Mrs. Elizabeth V.S., and the administrative staff, who have shown
their support for the project by providing reliable information in the form of library
resources and database connections as needed.

Third, the commitment made by my parents and friends in giving up their

valuable time is immeasurable and deeply appreciated. Their invaluable guidance
and prompt oversight paved the way for the project's successful completion.

Finally, I give thanks to the Almighty for giving me the strength and stamina
to overcome all obstacles while working on this project. As I know, ‘Words are
Poor Comforters,' words are insufficient to recognise the enormous contributions of
numerous people involved in this project. I want to express my heartfelt gratitude
to everyone who was directly or indirectly involved in the development of this
project and who helped me pass with flying colours.
 CONTENT

Title Page
1. INTRODUCTION 6

i. Research Objectives 7
ii. Research Methodology 7
iii. Review of Literature 8

2. ROLE OF CUSTOM IN ESTABLISHMENT OF 8

PANCHAYATI RAJ

3. HOW THE SYSTEM GROWS INTO 11

CONSTITUTIONAL SCHEME

4. RECENT TRENDS IN PANCHAYATI RAJ 14

5. STRUCTURE AND FEATURES OF THE 16
PANCHAYATI RAJ INSTITUTION
6. PANCHAYATI RAJ SYSTEM AS A FUNCTION 18
OF LAW
7. CONCLUSION 20

8. BIBLIOGRAPHY 21

INTRODUCTION
Democratic Decentralisation

"Democracy" comes from the Greek word "demos" means the people; "grace" means "law by."
"cracy" means the rule. It's "the people's law." It is people's, people's, and people's government.
The representative democracy is an essential element of this program.

Decentralization involves the transfer of central authority between local units near the areas
served. As power is transferred to the entity of the citizens through this method, it is democracy.

Meaning - Panchayati Raj

The Panchayati Raj Institutions in are regarded as legal instruments of socio-economic transition
in rural India, the grassroots units of regional self government. The main way to achieve socio-
economic growth is through the participation of citizens at the grassroots level. Panchayati Raj is
recognised in India as a liberal democratic institutional language.

The transfer of power to the panchayats is seen as a way to authorise and participate in decision-
making. Local governments that are beholden to the people will be more responsive to local
concerns and use services efficiently.

The framework of self-government in a nation can only be assured if the governance is

massively involved. The Panchayati Raj system is therefore calculated as the mechanism for
establishing democracy and social and economic change.

In her cities, Gandhi urged India. Indian independence must begin at the bottom to ensure the
complete power, republic, or panchayat of any village. 1 He said twenty men in the centre were
unable to achieve genuine democracy. People must function from underneath every village.

These visions lead to the inclusion of Article 40 in the Indian State Policy Directive. Almost after five
decades of independence, in the year 1993, the Government of India took a innovative step by making
Panchayati Raj Institutions a part of the Constitution.2 In the 73rd and 74th Amendments to the Indian
constitution, the structure of Panchayati raj became more significant. After a long struggle, debates,
resistance and mistrust, that had long been wrapped up by citizens and politics, the amendments have
become true.

1
Singh, H., 1994. Constitutional Base for Panchayati Raj in India: The 73rd Amendment Act. Asian Survey, 34(9),
pp.818-827.
2
Panchayati raj by Kuldeep Mathur
The 73rd and the 74th amendments gave the local governments legitimacy and power in the Indian
political system after all of those earlier setbacks. The relationship between the state and local bodies was
brought to the fore after the 73rd and 74th amendments.

The fundamental spirit behind the constitutional provisions 73 and 74 was to consolidate local authorities
through decentralisation steps. It is important that the local authorities have adequate power, autonomy
and decision-making power to work successfully at the grassroots level. Panchayati Raj's story was an ups
and downs story.

The historical account of the panchayati system in ancient India is provided by the present project. It
traces the custom's role in building the Panchayati Raj system in India. Subsequently, it evaluates briefly
how the Panchayati raj system becomes a constitutional system. This project also provides an overview of
the institutions of Panchayat raj. The Panchayati Raj system shows a balanced overview of the
institution's ideology, goal, growth, progress and failures over the last few Decades.

RESEARCH OBJECTIVES

 To understand the historical account of the village panchayati system in ancient India.
 To trace the role of the custom in establishment of Panchayati Raj system in India.
 To briefly evaluate how the system of Panchayati Raj grows into constitutional scheme of
India.
 To give an overview of the Panchayat Raj Institutions.
 To present a balanced complete picture of the philosophy, objective, evolution, success,
and failures of these institution in last decades.
 To show recent trends of the Panchayati Raj system.

RESEARCH METHODOLOGY

Doctrinal research design was adopted in accordance with the objectives of this study. The
doctrinal design was used to study the Panchayati Raj system in India. As we all know, doctrinal
research is based on previous principles or proposals. It is based more on resources such as
library books and resources gathered by access to different websites. The researcher collected
relevant material from political science books and from different websites for the purpose of the
research project. Various articles from the internet sources have also been referred.

REVIEW OF LITERATURE:

 Panchayati Raj by Kuldeep Mathur : This book outlines the Gandhian legacy, the
socio-political trajectory of the Constitutional mandate, the debates and realities of
Panchayat political and financial autonomy, and the workings of affirmative action
through Panchayats, all while contextualising Panchayats in their larger structural,
functional, and ideological structure.
 Panchayati Raj and Financial Resources by Dr S. Chandra Sekar: The book follows the
development of the Panchayati Raj System in Karnataka, Tamil Nadu, and West Bengal.. It
assesses the different methods used by the above state governments to devolve financial
services to local governments, with an emphasis on Panchayati Raj systems.
 Political Science by DR. S.R. Myneni: This book explains ‘political theory’ and ‘state’.
The whole work is quite clear to understand, and since the writer has divided the book
into topics and units, readers will have no trouble finding the subject they need.
Furthermore, the author has referenced articles and comments by some passionate
political theorists, providing us with a better understanding of the topic.

ROLE OF CUSTOM IN ESTABLISHMENT OF PANCHAYATI RAJ

In nearly every society, custom plays an important role in regulating human behaviour. It is also
one of the oldest legislative sources. Usually it has been said that what the law is for the state is
customary to society. Each one of them expresses and realises the values of rights and justice in
the measure of men's knowledge and abilities. The influence of custom on society is similar to
that of law on the state.3 Role of custom in establishment of Panchayati raj are as follows in a
chronological order.4

3
4
Dr N.V Paranjape ,Studies in Jurisprudence and Legal Theory
a) Panchayati Raj in Pre British Period

Panchayat comes from the term "pancha panchasvanusthitah," which refers to grama sanghas and
rural communities. Panchayati Raj's institution is just as old as Indian culture. It had an important
power over civil and judicial affairs in the village community since ancient times. Rigveda,
Manusamhita, Dharmashastras, Upanishads, Jatakas and others largely apply to the local
government, i.e. the administration structure.

Rigveda dates from about 200 B.C. This is described. In the Vedic era, the village was the
fundamental unit of management. The early Vedic Polity's most striking characteristic was the
establishment of populous assemblies, two of which were called 'Sabha' and the other 'Samiti.'

The Vedic People's Assembly was a Samiti, and some of them were allowed to nominate a king
during the Sabha's legal duties. Samitis as well as Sabha had the right to debate, a luxury that is
unfamiliar to many other historic people's common gatherings. The department of the village
headman (Gramani) shows that the village was formed as an administrative unit. The Samiti
dissolved as a bicameral legislature throughout the later Vedic period, whereas the Sabha
collapsed into a narrow body comparable to the Kings Privy Council.

The village was the main administrative unit during the Mouryan period. Settling conflicts and
acting as stewards for minors' goods, the villlagers used to coordinate public services and leisure
works. But permanent councils had not yet formed. In the Gupta era, the Village Council seemed
to have become daily bodies. They were known in Central India as Panchamandalas and in Bihar
as Gramajanapadas. These bodies negotiated concessions and dispute resolution with the
government. The inscription of the Chola dynasty demonstrates how the Village Assembly and
its management committees are built and functioned. The municipal governments were carried
out by elected village council members.

The village bodies were central in administration in the Moghal and Medieval times. The
villages were governed by their own panchyats in the Moghal era, particularly in the Sher Sha
regime. Each panchayat consisted of village elders who cared for the people's interests and
enforced justice and punished defaulters. The village leader, a semi-regional official, was the
coordinator of the village panchayat and the superior administrative hierarchy.
Akbar welcomed the structure and made it an important component of civil government. Every
town had its own elders' panchayat during this time. She was independent and exerted local
taxation, administration, justice and penalty powers in her own field. With a bureaucracy of
administrators, the Moghals implemented complex administrative apparatus especially in the
field of taxation. The local government system of Moghal lasted for centuries. The British
founded their dominance in India with the fall of the Moghal strangle grip.

b) Panchayati Raj in British Period

The idea of elected members in the municipalities in 1870 was initiated by Lord Mayo, then the
vice-roy of India (1,869-1872), who felt the need to decentrate powers to achieve bureaucratic
efficiencies. The rebellion of 1857 that placed colonial revenues under tremendous pressure and
made municipal tax financing important. Thus, Lord Mayo's resolution on decentralisation was
implemented out of monetary necessity.

Ripon Resolution (1882)

In 1882, the formally nominated citizens left Ripon with the current form of local government.
The regional bodies were subdivided into smaller to increase their productivity as per his
regional self-government programme. He implemented an electoral scheme for municipal boards
to ensure common engagement. Ripon Resolution principles were further worked out by the
Royal Commission on Decentralization in 1909.5 The Magna Carta of local democracy in India
is estimated to be around $1.5 billion. In urban municipalities he has introduced the principle of
self-government. In the establishment of local self-governmental organisations, Ripon's scheme
did little advance.

Montagu-Chelmsford Reforms of 1919

In this context, changes were undertaken in 1919 by Montagu Chelmsford. This reform moved
the local government topic to the provincial realm. The reform also proposed that as far as
possible, full popular regulation and freedom of external control should take place within local
authorities. Eight provinces enacted panchayat village acts in 1925. But these panchayats only
5
Johnson, C., 2003. Decentralisation in India: poverty, politics and Panchayati Raj (Vol. 199). London: Overseas
Development Institute.
covered a small number of small-scale villages. But this change could not achieve much in terms
of democratising panchayats and causing many organisational and monetary restrictions.

The Government of India Act 1935

This is seen as a further significant step in British India's creation of Panchayats. Most Villages
and their panchayats were self-containing and cease to be substantial. The agencies of the village
administration have been officially established. During British rule, the Rural Indian Republic
flourished. The villages and their Panchayat are self- containing. The village administration has
been official established. The rural areas have been given more democracy in local government
systems. Village autonomy seems to have lost in the highly centralised structure of British rule.

HOW THE SYSTEM GROWS INTO CONSTITUTIONAL

SCHEME

a).Panchayati Raj in Independent India.

After independence, the Indian government established the task of improving the Panchayati raj
system. It was evident that India had to improve village panchayats in order to enhance
democracy in a country of villages. The firm faith in Grama Swaraj, Mahatma Gandhi, argued in
favour of power transfers to the rural masses. The villages should rule themselves in becoming
self-sufficient via elected panchayati raj institutions 6. But shockingly, Panchayats had no space
for the draught Constitution prepared in 1948. Gandhi opposed this seriously and requested
critical response.7

The State Policy Directive is not legally enforceable on governments. The aims were to foster
self-help and self-confidence among farmers. In 1952 a Community Development Program was
the first concerted attempt to deal with the countryside issue of India. The aim was to create an
economically integrated, social and cultural change mechanism.8 The scheme was focused on an
integrated rural development strategy. The scheme provides for the appointment of BDOs and

6
Goel, S.L. and Shalini, R., 2003. Panchayati Raj in India: theory and practice. Deep and Deep Publications Pvt.
Ltd.
7
Ananth, P., 2014. Panchayati raj in india. Journal of Education & Social Policy, 1(1), pp.1-9.
8
Venkatesan, V., 2002. Institutionalising panchayati raj in India. Concept Publishing Company.
Village Level Worker [VLW]. The scheme included regulations for BDOs. The objective of this
program has been to carry the rural masses' socio-economic advancement through democratic
lines but did not follow the anticipated lines as an important method was lacking for the
inclusion of the populace.

b)Balwant Rai Mehta Committee(1957)

The very first panel to examine the issues of independent India's democratic decentralization was
the Balwantrai Mehta Committee formed in 1957. The Panel was obliged to assess on programs
for community development. In the field of democratic decentralization and rural rehabilitation
the commission makes much further proposals. He figured out that the community development
project did not succeed because it did not invoke a local intervention and because development
would not be feasible in the lack of a local initiative and local interest. The committee has
developed five basic principles.

1) The local government bodies should be composed of three levels from village to district
and linked together.
2) In order for these bodies to discharge their responsibilities, genuine power and
responsibility should be transferred to them.
3) These bodies should be given adequate resources to assume their responsibilities.
4) These bodies should channel all health and development systems and programmes at all
three levels;
5) Potential transfer and disposal of power and liability should be facilitated by the three-
tier structure.

The Panel envisioned three tyre panchayati raj system named Zilla Parishad, Panchayat Samiti
and Gram Panchayat, and proposed that people take part in the Community's work, that
agriculture and animal husbandry be promoted, that the vulnerable sectors and women be
promoted through the panchayats.

The Balwantrai Mehta Committee's suggestions entered into force on 1 April 1958. On October
2nd 1959 Rajasthan became the first State to do this. By the 1960s, all areas of the country were
covered by panchayat. In rural India, there was excitement and people thought they had a say in
their everyday life affairs. Such were seen by Panchayati Raj Institutions's successful moments in
India.
Many countries in the world have adopted the suggestions of the Balwantrai Mehta Committee.
Panchayati Raj's regime prospered in India till the mid-sixties. However after halfway through
the sixties, there had been a reduction in Panchayati Raj institutions especially due to centralised
trends throughout the world.

The elections did not take place routinely and people's interest in these bodies has been
weakened. Their decline was due to inefficiency, abuse, favouritism, insecurity and irregularity.
Most growth projects have been left out of the forecast. Central funded plans were launched;
simultaneous regulatory structures were set up and government funds were greatly decreased.
The government took over during the time of national emergencies and these institutions have
become meaningless.

c)Ashok Mehta Committee (1977)

Through this context, in 1977, the Janata Government appointed Ashok Mehta as the Chairman
of a Committee to investigate the roots of Panchayati Raj Institutions' poor results. It was also
proposed to mitigate steps to improve Panchayati Raj Institutions. In contrast to the 3-tier
structure that the Balwantrai Mehta committee has proposed, the comité proposed a two tyre
system Panchayati Raj consisting of the Zilla Parishads and Mandal panchayats at grass roots
level. The panel suggested constitutional safeguards and further decentralisation of power at all
levels to the Panchayati Raj institutions.

The report's remarkable aspect is that it proposed that these bodies should hold regular elections
and open political parties to take part.

The Committee of Ashok Mehta proposed:

 Reservation of seats for the weaker sections

 Two seats for women
 Adequate financial resources for the panchayats
 Requirement of Constitutional sanctions
 To extend people’s participation in developmental activities.
The Ashok Mehta Committee guidelines have not been adopted because of the collapse of the
government of Janata. On the grounds of this Committee's guidelines, couple states developed
new legislation.9 Both committees ignored the relevance of panchayats as self-government units.

Two major committees have been established to review municipal administrations in the 1980's.
The 1985 Committee for KGW Rao and the 1986 Committee for Dr. L.M. Singhvi. The
committee of GVK Rao suggested that Panchayati Raj institutions should be restored so that they
would be granted additional responsibility to design, execute and track Rural Development
programmes. L.M. Singhvi Committee suggested the constitutional recognition and protection of
Panchayati Raj Institutions. In order to establish their rights and duties and to render democratic
elections through the electoral commission, a new phase should be given in the Constitution. 10
The Panchayati Raj institutions are entrusted by revising schedule VII of the Constitution to the
Committee proposed for the appointment of the financial Commission and all projects of rural
development11.

RECENT TRENDS IN PANCHAYATI RAJ

a) 73rd Amendment Act, 1992

On 15 May 1989, the then Prime Minister of India, Rajiv Gandhi presented the 64th Local
Government Amendment Project to Parliament under these conditions, but it was not received
with the necessary support. In September 1990, a second attempt had been made to adopt the
bill. The bill was nevertheless not even considered. In September 1991, the Congress
Government launched a new bill on Panchayati Raj underneath the leadership of then P. V.
Narasimha Rao. It was passed in 1992 as the 73rd Amendment Act 1992 with minor
modifications and came into force on 24thApril 1993.12

9
Mathew, G., 1994. Panchayati Raj from legislation to movement. Concept Publishing Company.
10
Mathew, G., 2003. Panchayati raj institutions and human rights in India. Economic and Political Weekly, pp.155-
162.
11
Bates, C., 2005. The Development of Panchayati Raj in India. Crispin Bates und Subho Basu (Hg.): Rethinking
Indian political institutions. London: Anthem Press (Anthem South Asian Studies), pp.169-184.
12
Panchayati raj by Kuldeep Mathur
The Salient Features of the Act are:

1) The Act provides for the development in each village of Grama Sabha. It will consist of
all the current members of the Panchayat region enrolled as electors. The three levels of
the panchayat system shall be at the level of village, intermediate and district.
2) Smaller countries with a population below 20 Lakes are not eligible for mid-level
panchayat. Direct elections shall fill seats in panchayats at all three tiers. Furthermore, the
chairman of the panchayat village may be made an intermediary representative of the
panchayat. In the intermediate and district level, MP, MLA and MLC may also be
members of panchayat.
3) Sitting for SCs and STs in proportion to their population in all panchayats and 1/3 of the
total number of seats for women must be allocated. In favour, SCs and STs in proportion
in the Province, office of the President of panchayat at all tiers shall be reserved. One-
third of panchayats chairman's offices are also reserved for women at all levels.
4) The state's legislature shall be free to reserve seats and chairperson's position in
panchayat for backward-class citizens' gain.
5) PanchayatsPanchayats shall have five years' uniform tenure and elections shall be
concluded for new institutions prior to the end of the term.
6) Elections shall be held obligatorily within six months in the event of dissolution. Also for
remaining 5 years, the reconstituted panchayat will be used. By modification of any Act
before expiration of its term, the current panchayats cannot be dissolved.
7) An individual who is excluded from becoming a participant of a panchayat, by means of
any statute, election to a state legislature or by a state.
8) The State will create an Independent Election Commission to oversee, manage and
monitor the voting process and prepare the electoral roles.
9) The panchayats will be given specific responsibilities in planning economic development
and social justice plans in the areas specified in the 11th Schedule. The panchayats will
be responsible for the formulation of developmental projects.
10) The panchayats will obtain adequate funds to fulfil their plans. State government grants
will be a major source of funding, however, government revenue from certain taxes
should also be allocated to the panchayats. In certain circumstances, the collection and
retention of revenue may also be allowed by Panchayat.
 11) Within one year and every five years each State will establish a Finance Commission,
which establishes the guidelines upon which panchayats are assigned sufficient financial
resources.
12) Panchayats existing on the 24th April 1993 will be allowed to complete their full term
except when they are dissolved by the house by resolution13.

In the seventh amending law, the Panchayati Raj is attempted to reshape it in order to achieve its
foundation. The bill has given Panchayati Raj institutions statutory status for the first time and all
state governments have been made mandatory to enforce it.

This modification resulted in the framework, arrangement, role and responsibilities of

panchayats being standardised. Panchayati Raj was intended to support the role of law, social
and economic growth and the development of rural Indian living conditions. The key critique of
the Act is that these organisations are considered development agencies and are not recognised as
autonomous political institutions. Other than criticism, the Act satisfied Panchayati's
constitutional status dreams and legislative changes were adopted by the state governments. The
emergence of a quiet revolt has been demonstrated. This amendment gave the women in
substantial populations the opportunity to join local administration for the very first period in
recorded history of the Panchayati Raj institutions.

STRUCTURE AND FEATURES OF PANCHAYATI RAJ

INSTITUTIONS
Panchayati Raj's composition depends on the state. The main Panchayati raj institutions
framework and characteristics are as described.

i. The Three-tier System of Panchayat (Articles of 243A, B & C )

The constitutional modification establishes a three-tier panchayat structure at village, block and
district level. Smaller countries with less than 20 lakh population will have an independent

13
The Constitution (Seventy -Third Amendment) Act, 19 92, Government of India
option to maintain or not the intermediary stage. The panchayats had the right to rule themselves.
Every village consists of all adult members in the Panchayat area who are enrolled as electors.

ii. Power, Functions and Responsibilities (Articles 243 G & H)

By statute, each state legislature can provide the panchayats with the requisite authority and
power to act as institutes of autonomy. They must be empowered to prepare, plan and execute
projects for the growth of rural India and for social justice. The dissemination of subjects
mentioned in the eleventh schedule will take specific roles for various levels. The amendment
also requires that a 'fund' be created explicitly for panchayats (maybe in line with the state funds
collected), so that the inflows and the cash flows handled inside that fund can be managed.

iii. State Finance commission (Article 243 I)

For each and every five years, each State Government should establish a finance commission to
examine panchayats' financial status, and to propose codes of conduct to state governments that
would allow the development activities allocated to them to be carried out using adequate
financial resources from the panchayats. The Commission also has to propose steps to boost the
panchayats' financial status.

iv. Election to Panchayats ( Articles 243 E, F & K )

All panchayats' three- tiers are elected directly. Moreover, the chairs of the panchayats village
may become members of panchayats at intermediate/block level, and the chairs of the panchayats
at intermediate/block level can be members of panchayats of district. MEPs, legislative
assemblies, and councillors can become intermediate and district panchayat participants. The
corresponding legislatures of States, however, determine their functional status in panchayat
proceedings, voting etc.

Each panchayat state shall have a standardized terms in office of five year and a new body shall
be elected before the end of the current tenure. If panchayat is dissolved, elections will be
obligatory within six months of dissolving. For the pending five years, the reconstituted
panchayat will be used.
For supervision, leadership and supervision of the election process and the compilation of
electoral rolls, the state government shall designate an autonomous Election Commission.

v. Reservation of Seats in Panchayats (Article 243 D)

In all panchayats seats are reserved in proportion to their population for planned castes and
planned tribes. Similarly, they are reserved for the offices of the chairmen of the different levels
of panchayat. Women from SCs and STs will be provided not less than one-third of the total
number of reserved seats. One third of the overall number of seats for women will also be
reserved and one third will be reserved for women in the same way.

THE SYSTEM OF PANCHAYATI RAJ AS A FUNCTION OF

LAW

The adoption of the 73rd Constitution Amendments Act, 1992 marks the beginning of a new
period in the country's federal democratic establishment. This act became important because it
afforded the PRIs constitutional status and, consequently, legitimacy. In order for the state
governments to be better able to enforce the various provisions of the Act, it will be necessary to
analyse the status of PRIs after the 73rd Constitutional Amendment, 1992. The constitutional
amendment provided for the performance of certain mandatory roles, like:

a. Devolution of Powers and Functions to PRIs

Under Article 258(G), the state government must transfer to PRIs sufficient powers,
duties, and institutions of self-government, in accordance with Article 243(G) of the 72nd
Constitutional Amendment Act. The responsibility for developing growth plans and
social justice has been entrusted to the PRIs. The Constitution reads, “….the Legislature
of the State 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 and such law
may contain provisions for the devolution of powers and responsibilities upon panchayats
at the appropriate level, subject to such conditions as may be specified therein.” The
 above clause did not explicitly outline the role and authority to transfer to PRIs and,
according to their own convenience, State governments have passed legislation.

b. Devolution of Financial Resources and Powers

The financial return to the PRIs is provided for in Article 243(h) and Article (I) of the
Constitution. The State legislatures under Article 243H: (a) to authorize, by law, to levy,
collect and appropriate specified taxes, duties, fees and tolls on panchayats; (b) to assign
state taxes duties, fees and toll to panchayats for specific purposes; (c) to provide for
making grants-in-aid to the panchayats from the consolidated fund of the state; and (d) to
constitute specified funds for creating all moneys received by or on behalf of the
panchayats and for their withdrawal. The provisions above give state governments the
discretion to improve panchayats' finances by accumulating certain income powers for
panchayats and sharing state income with panchayats. Article 243(I) stipulates that,
within one year of the start of the 73rd amendment law and at the expiration of the 5th
year thereafter, state governments shall establish state finance commissions to review the
panchayats' financial status and make suitable recommendations to strengthen their
finances.

c. District Planning Committee

Under Article 243 (ZO) of the 74th 1992 constitutional amendment act, in order to
promote the decentralised planning process, the state government is mandated to appoint
the District Planning Committee. Composite plans for urban and rural areas are to be
generated by the DPCs.

d. Gram Sabha
The centre of democratic influence in the village is Gram Sabha. According to Article
243(b) of the Constitution Gram Sabha is described as an organ comprising, on the level
of the village, all persons registered as voting persons in the electoral roll. Article 243(a)
states that Gram Sabha can, as the law provides, exercise certain powers and functions at
the level of the village. "Gram Sabha is not just an institution which articulates the needs
and expectations of Community involvement," the working group for decentralisation
 and Panchayati Raj Institutions said. Gram Sabha, genuinely motivated, will prevent
panchayat power misuse. They can also support the development programmes of
panchayats. They might serve as a guard for protecting the rights of the community and
maintaining law and order.

e. Conduct of Elections
Through the 73rd amendments act, citizens at each level of the Panchayati raj system had
the right to elect their own representatives. Panchayats at village, block and district level
are provided under the Constitution. Purpose elections have to be held annually every
five years, according to Article 243(1) of the Constitution. Nearly all of the States
covered under Part IX of the Constitution established panchayats under the new
provisions with the exception of a few countries. In the States of Jammu & Kashmir,
Manipuri Hill, Meghalaya, Part IX of the Constitution relating auxiliary forming is not
applicable.

CONCLUSION

Over the years, all Panchayati Raj bodies have changed their structure and functions. It
encouraged a few of the rural people's self-help spirit and widespread support. The decision-
making process has approached the rural population. It has also contributed to developing new
urban political leadership. However, democratic elections politized every village's environment.
This nature is also in the family circles. Panthagia elections, along with community politics and
groupism and partialism in the villages are allegedly born of caste politics.

Research on the Panchayati Raj system showed increasing operational pressures during elections
and panchayat meetings. The ties between the so-called harmo and the towns almost
disappeared. Uneducated and uneducated officials (Panch or Sarpanch) could not use their
authority. The deprived segments of society were ignored. The coordia of the three-thirds was
very bad. The transfer of power to the people without the necessity of characteristic growth,
education and capacity had proved to be a heresy in the working of democratic institutions in our
nation. Structural reform is a sine qua non for all other reforms in the country. The move in
strengthening democratic roots was faced with serious risks and deceptions in the conventional
process, despite the great possibilities offered by it. The author is a former member of the
Communist Party of India.

The key goal behind the Panchayati Raj is to make people in the village responsible for
governing and preserving the law and order. 'Panchayati Raj is a legitimate democratic political
instrument that would put masses of poorer poor rural India in active political control from
below.’

People in the villages should be involved in the areas of social justice, agriculture, irrigation,
animal husbandry, public health and education. In short, the whole concept of the scheme is
founded on the declaration that 'rural development is for rural populations and rural communities
themselves.' It is founded on self-help as an ancient saying, "God helps the helpers.” This rural
development scheme gives rural people the control of development decision-making. That's
grassroots democracy. It is going to "decentralise" democracy. In the social, economic and
cultural life of the Indian village society, this device has a very important role to play.

BIBLIOGRAPHY

Primary Sources
 Panchayati Raj by Kuldeep Mathur
 Panchayati Raj and Financial Resources by Dr S. Chandra Sekar.
 Studies In Jurisprudence and Legal Theory by Dr N.V. Paranjape

Secondary Sources
 The Constitution (Seventy -Third Amendment) Act, 19 92, Government of
India
 The Constitution of India by P.M. Bakshi.
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 http://www.rajpanchayat.rajasthan.gov.in/en-

us/aboutus/history.aspx

 https://www.google.com/amp/s/m.jagranjosh.c

om/general-knowledge/amp/panchayati-raj-

system-in-india-1438141804-1

 https://www.drishtiias.com/important-

institutions/drishti-specials-important-

institutions-national-institutions/panchayati-

raj-institution-pri