(5) the reservation of seats under clauses (1) and (2) and the reservation of office of chairpersons (other than the reservation for women) under clause (4) shall cease to have effect on the expiration of the period specified in article 334, (6) nothing in this part shall prevent the legislature of a state 5 from making any provision for reservation of seats in any panchayat or office of chairpersons in the panchayats at any level in favour of backward class of citizens duration 243e (1) every panchayat, unless sooner dissolved under any naa law for the time being in force, shall continue for five years from 10 pao: the date appointed for its first meeting andno longer and the  expiration of the said period of five years shall operate as a dissolution of that panchayat (2) where a panchayat is dissolved before the expiration of its duration, an election to constitute the panchayat shall be completed, 15 as soon as may be, and in any case before the expiration of a period of six months from the date of such dissolution: provided that where the remainder of the period for which the dissolved panchayat would have continued is less than six months, it shall not be necessary to hold any election under this 20 clause for coustituting the panchayat, (3) a panchayat constituted upon the dissolution of a panchayat before the expiration of its duration shall continue only for the remainder of the pericd for which the dissolved panchayat would have continued under clause (1) had it not been so dissolved, 25 disquali- 243¥, (1) a person shall be disqualified for being chosen as, and featiom for being, a member of a panchayat— for member- (a) if he helds any office of profit under the government ship, of india or the government of any state or a panchayat, other than an office declared by the legislature of the state, by law, 30 not to disqualify its holder: of unsound mind and stands so declared by a (b) if he competent co: (c) if he is an undischarged insolvent; (@) it he is not a citizen of india, or has voluntarily ac- 35 quired the citizenship of a foreign state, or is under any acknowledgment of allegiance or adherence to a foreign state; (€) if he is so disqualified by or under any law for the time being in force for the purposes of elections to the legislature of the state concerned; ve (f) if ne is so disqualified by or under any law made by the legislature of the state (2) if any question arises as to whether a member of a panchayat has become subject to any of the disqualifications mentioned in clause (1), the question shall be referred for the decision of the 5 governor and his decision shall be finalpower authority 243g subject to the provisions of this constitution, the legislature of a state may, by law, endow the panchayats with such powers and authority as may be necessary to enable them to func- responsibilities of uw chayats tion institutions of self-government and such law may contain provisions for the devolution of powers and responsibitities upon panchayats at the appropriate level, subject to such conditions as may he specified therein, with respect to— (a) the preparation of plans for economic deveiopment and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the eleventh schedule 243h the legislature of a state may, by law,— (a) authorise a panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits; power to impose taxes by, and funds of, the panchayats (b) assign to a panchayat such taxes, duties, tolls and fees levied and collected by the state government for such purposes and subject to such conditions and limits; 20 (c) provide for making such grants-in-aid to the panchayats from the consolidated fund of the state; and (a) provide for constitution of such funds for crediting all moneys received respectively, by or on behalf of the panchayats and also for the withdrawal of such money therefrom, as may be specified in the law : 25 consti- 243-1 (1) the governor of a state shall as soon as may be within one year frem the commencement of the constitution (seventy-second amendment) act, 1991, and: thereafter at the expiration of every | of       | fin-    ||----------|---------|| ance     | com-    || mission  |         || 30       |         || fifth    | year,   || position | of      || governor | as      |(a) the principles which should govern— | to        ||-----------|| view      || financial || position |(i) the distribution between the state and the panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the state, which may be divided between them under this part and the allocation between the panchayats at all levels of their respective shares of such proceeds; 40 (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the panchayats (iii) the grants-in-aid to the panchayats from the consolidated fund of the state; 45 (b) any other matter referred to the finance commission by the governor in the interests of sound finance of the panchayats (2) the legislature of a state may, by law, provide for the composition of the commission, the qualifications which shall be requisite for appointment as members thereof and the manner in which they shall be selected (3) the commission shall determine their procedure and shall have such powers in the performance of their functions as the legislature of the state may, by law, confer on them 10 (4) the governor shall cause every recommendation made by the commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the legislature of the state 243j the legislature of a state may, by law, make provisions with respect to the maintenance of accounts by the panchayats and the auditing of such accounts audit of accounts of panchayats 2: | powers    | of    ||-----------|-------|| legisla-  |       || ture      | of    |243k subject to the provisions of this constitution, the legislature of a state may, by law, make provision with respect to all matters relating (0, or in connection with, elections to the panchayats under the superintendence, direction and control of the chief electoral officer of the state | a        | state    ||----------|----------|| to       | make     || provi-   |          || sions    |          || with     |          || respect  |          || to       | elec-    || tions    | to       || pancha-  |          || yats    |          || applica- |          || tion     | to       || union    |          || territo- |          || ries    |          |a 243l, (1) the provisions of this part shall apply to the union territories and shall, in their application to a union territory, have effect as if the references to the governor of a state were references to the administrator of the union territory appointed under article 239 and references to the legislature or the legislative assembly of a state were references, in relation to a union territory having a legislative assembly, to that legislative assembly (2) notwithstanding anything in clause (1), the president may, by public notification, direct that the provisions of this part shall not apply to any union territory or any part thereof or shall apply to any union territory or part thereof subject to such exceptions and modifications as he may specify in the notification, part not to apply 243m (1) 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, to certain areas, (2) nothing in this part shall apply to— (@) the states of nagaland, meghalaya and mizoram: (b) the hill areas in the state of manipur for which district councils exist, and the hill areas of the district of darjeeling in the state of west bengal for which the darjeeling gorkha hill council exists, under any law for the time being in force | (3)               | notwithstanding    ||-------------------|--------------------|| (a)               |                    || the               |                    || legislature       |                    || of                |                    || a                 |                    || state             |                    || referred          |                    || to                |                    || in                |                    || sub-clause        |                    || (a)               |                    || of                |                    || clause            |                    || (2)               |                    || may,              |                    || by                |                    || law,              |                    || extend            |                    || this              |                    || part              |                    || to                |                    || that              |                    || state,            |                    || except            |                    || the               |                    || areas,            |                    || if                |                    || any,              |                    || referred          |                    || to in             |                    || clause            |                    || (1),              |                    || if                |                    || the               |                    || legis-            |                    || 5                 |                    || lative            |                    || assembly          |                    || of                |                    || that              |                    || state             |                    || passes            |                    || a                 |                    || resolution        |                    || to                |                    || that              |                    || effect            |                    || by                |                    || a                 |                    || majority          |                    || of                |                    || the               |                    || total             |                    || membership        |                    || of                |                    || that              |                    || house             |                    || and               |                    || by                |                    || a                 |                    || majority          |                    || of                |                    || not               |                    || less              |                    || than              |                    || two-thirds        |                    || of                |                    || the               |                    || members           |                    || of                |                    || that              |                    || house             |                    || present and       |                    || voting;           |                    || (b)               |                    || parliament        |                    || may,              |                    || by                |                    || law,              |                    || extend            |                    || the               |                    || provisions        |                    || of                |                    || this              |                    || 10                |                    || 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,              |                    || and               |                    || no                |                    || such              |                    || jaw               |                    || shall             |                    || be                |                    || deemed            |                    || to                |                    || be                |                    || an                |                    || amendment         |                    || of                |                    || this              |                    || constitution      |                    || for               |                    || the               |                    || purposes          |                    || of                |                    || article           |                    || 368,              |                    || continu-          |                    || ance              |                    || of                | exist-             || ing               | laws               || and               | pan-               || chayats          |                    || is                |                    || 243n             |                    || notwithstanding   |                    || anything          |                    || in                |                    || this              |                    || part,             |                    || any               |                    || provision         |                    || of                |                    || any               |                    || law               |                    || relating          |                    || to                |                    || panchayats        |                    || in                |                    || force             |                    || in                |                    || a                 |                    || state             |                    || immediately       |                    || be-               |                    || fore              |                    || the               |                    || commencement      |                    || of                |                    || the               |                    || constitution      |                    || (seventy-second   |                    || amend-            |                    || ment)             |                    || act,              |                    || 1991,             |                    || which             |                    || is                |                    || inconsistent      |                    || with              |                    || the               |                    || provisions        |                    || of                |                    || this              |                    || part,             |                    || shall             |                    || continue          |                    || to                |                    || be                |                    || in                |                    || force             |                    || until             |                    || amended           |                    || or                |                    || repealed          |                    || by                |                    || a                 |                    || 20                |                    || competent         |                    || legislature       |                    || or                |                    || other             |                    || competent         |                    || authority         |                    || or                |                    || until             |                    || the               |                    || expiration        |                    || of                |                    || one               |                    || year              |                    || from              |                    || such              |                    || commencement      |                    || or                |                    || until             |                    || the               |                    || expir-            |                    || ation             |                    || of                |                    || the               |                    || longest           |                    || duration          |                    || of                |                    || the               |                    || panchayats,       |                    || at                |                    || any               |                    || level,            |                    || exist-            |                    || ing               |                    || in                |                    || that              |                    || state             |                    || immediately       |                    || before            |                    || such              |                    || commencement,     |                    || which-            |                    || ever              |                    || is                |                    || later:            |                    || 25                |                    || provided          |                    || that              |                    || all               |                    || the               |                    || panchayats        |                    || existing          |                    || immediately       |                    || before            |                    || such              |                    || commencement      |                    || shall             |                    || continue          |                    || till              |                    || the               |                    || expiration        |                    || of                |                    || their             |                    || du-               |                    || ration,           |                    || unless            |                    || sooner            |                    || dissolved         |                    || by                |                    || a                 |                    || resolution        |                    || passed            |                    || to                |                    || that              |                    || effect            |                    || by                |                    || the               |                    || legislative       |                    || assembly          |                    || of                |                    || that              |                    || state             |                    || or               |                    || in                |                    || the               |                    || case              |                    || of                |                    || a                 |                    || state             |                    || having            |                    || a                 |                    || legislative       |                    || council,          |                    || by                |                    || each              |                    || house             |                    || of                |                    || the               |                    || legislature       |                    || of                |                    || that              |                    || 30                |                    || state            |                    || 243-0,            |                    || notwithstanding   |                    || anything          |                    || in                |                    || this              |                    || constitution,—    |                    || bar               | to                 || interfe-          |                    || rence             |                    || by                | courts             || (a)               |                    || the               |                    || validity          |                    || of                |                    || any               |                    || law               |                    || relating          |                    || to                |                    || the               |                    || delimitation      |                    || of                |                    || constituencies    |                    || or                |                    || the               |                    || allotment         |                    || of                |                    || seats             |                    || to                |                    || such              |                    || constituencies,   |                    || made              |                    || or                |                    || purporting        |                    || to                |                    || be                |                    || made              |                    || under             |                    || article           |                    || 243k,             |                    || shall             |                    || not               |                    || be                |                    || 35                |                    || called            |                    || in                |                    || question          |                    || in                |                    || any               |                    || court;            |                    || 'in               | electo-            || ral               | mat-               || ters             |                    || (b)               |                    || no                |                    || election          |                    || to                |                    || any               |                    || panchayat         |                    || shall             |                    || be                |                    || called            |                    || in                |                    || question          |                    || except            |                    || by                |                    || an                |                    || election petition |                    || presented         |                    || to                |                    || such              |                    || authority         |                    || and               |                    || in                |                    || such              |                    || manner            |                    || as                |                    || may               |                    || be                |                    || provided          |                    || for               |                    || by                |                    || or                |                    || under             |                    || any               |                    || law               |                    || made              |                    || by                |                    || the               |                    || legislature       |                    || of                |                    || a                 |                    || state'           |                    |40 3 after the tenth schedule to the constitution, the following schedule shall be added, namely:—  "eleventh schedule (article 243g)1, agriculture, including agricultural extension 45 2 land improvement and soil conservation 3 minor irrigation, water management and watershed development | 4 animal husbandry, dairying and poultry 5 fisheries 6 social forestry and farm forestry 7 minor forest produce 8 small scale industries, including food processing industries 5 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 10 communication of 14, rural electrification, including distribution of electricity 5 non-conyentional energy sources 16 poverty alleviation programmes 17 education, including primary and secondary schools 1s 18 technical training and vocational education 19, adult and non-formal education 20, libraries 21, cultural activities, - 22 markets and fairs 20 28, health and sanitation, including hospitals, primary health centres and dispensaries 24, family welfare ~ 25 women and chi!d development 26 social welfare, including welfare of the handicapped and 25 mentally retarded 27 welfare of the weaker sections, and in particular, of the scheduled castes and the scheduled tribes 28 public distribution system, 29 maintenance of community assets"  30 the conshton (sever second amdt, qms if statement of objects and reasonsthough the panchayati raj institutions have been in existence for a long time, it has been observed that these institutions have not been able to acquire the status and dignity of viable and responsive people's bodies due to a number of reasons including absence of regular elections, prolonged supersessions, insufficient representation of weaker sections like scheduled castes, scheduled tribes and women, inadequate devolution of powers and lack of financial resources, 2 article 40 of the constitution which enshrines one of the directive principles of state policy lays down that the state shall take steps to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government in the light of the experience in the last forty years and in view of the short-comings which have been observed, it is considered that there is an imperative need to enshrine in the constitution certain basic and essential features of panchayati raj institutions to impart certainty, continuity and strength to them, 3 accordingly, it is proposed to add a new part relating to panchayats in the constitution to provide for among other things, gram sabha in a village or group of villages; constitution of panchayats at village and other level or levels; direct elections to all seats in panchayats at the village and intermediate level, if any, and to the offices of chairpersons of panchayats at such levels; reservation of seats for the scheduled castes and scheduled tribes in proportion to their population for membership of panchayats and office of chairpersons in panchayats at each level; reservation of not less than one-third of the seats for women; fixing tenure of 5 years for panchayats and holding élections within a period of 6 months in the event of supersession of any panchayat; disqualifications for membership of panchayats; devolution by the state legislature of powers and responsibilities upon the panchayats with tespect to the preparation of plans for economic development and social justice and for the implementation of development schemes; sound finance of the panchayats by securing authorisation from state legislatures for grants-in-aid to the panchayats from the consolidated fund of the state, as also assignment to, or appropriation by, the panchayats of the revenues of designated taxes, duties, tolls and fees; setting up of a finance commission within ene year of the proposed amendment and thereafter every 5 years to review the financial position of panchayats; auditing of accounts of the panchayats; powers of state legislaures to make provisions with respect to elections to panchayats under the superintendence, direction and control of the chief electoral officer of the state; application of the provisions of the said part to union territories; excluding certain states and areas from the application of the provisions of the said part; continuance of existing laws and panchayats until one year from the commencement of the proposed amendment and barring interference by courts in electoral matters relating to panchayats | \ 4 the bill seeks to achieve the aforesaid objectives new detuz; g venkat swamy the 10th september, 1991; financial memorandumclause 2 of the bill seeks to insert a new part ix in the constitution consisting of articles 243 to 243-o 2 articles 243g and 243h of the bill envisage that the legislature of a state may confer such powers and authority (including the power to levy, collect and appropriate taxes, duties, tolls and fees on the panchayats as may be required to enable them to function as institutions of self-government, article 243-i requires the constitution of the finance commission by the states to review the financial position of panchayats and recommend principles governing distribution of taxes and grants-inaid the strengthening of panchayats as envisaged may call for the strengthening of their administrative capabilities and training requirements as article 243l of the bill makes its provisions applicable to the union territories, the expenditure which may have to be incurred in relation to the union territories, will have to be met by the government of india out of its consolidated fund it is, however, difficult to estimate the annual recurring expenditure as it will depend on the powers and authority conferred on these institutions 3 the bill, when enacted, will not involve any other recurring or non-recurring expenditure 