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Panchayats & Municipalities

Polity notes for UPSC CSE Prelims 2027 · Free

Last reviewed · Written and checked by the Prelims Lab faculty · About 35 min to read

Evolution of local government, the 73rd and 74th Amendments, PESA, and urban bodies. Free notes for UPSC CSE Prelims 2027, written around the traps UPSC sets, with the exact text of the Constitution and every past question on the topic.

Panchayats & Municipalities in short
Evolution of local government
Local government means government at the level of the village, town or city. Problems like village roads, drains, water and street lights are best solved by people who live there.
The 73rd Amendment: Panchayats
The 73rd Amendment added Part IX to the Constitution for rural local government (Panchayats).
PESA, 1996 and forest rights
Many tribal areas (called Scheduled Areas) were left out of Part IX. In 1996 Parliament passed PESA (Panchayats Extension to Scheduled Areas Act) to bring panchayats to these areas in a way that respects tribal customs.
The 74th Amendment: Municipalities
The 74th Amendment added Part IXA for urban local government (Municipalities).
Co-operative societies (Part IXB)
A co-operative society is a business owned and run by its members for their common benefit, like a milk union where farmers pool their milk. Amul is the best-known example.

How to read: each section has The idea in brief (start here if the topic is new), Exam notes (the facts UPSC tests) and Ranker’s edge (the fine points). Each section opens with the bare text of the Constitution. Open In depth for the story behind it and past questions.

1. Evolution of local government

The bare text
Bare text · Article 40Constitution of India, as on 1 May 2024

40. Organisation of village panchayats.—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.

Reading the text

  • From 1950 to 1993, panchayats had only this one line. Article 40 is a Directive Principle: “shall take steps”, not enforceable in any court. States could create panchayats, starve them of money, or not hold elections for years, and nothing in the Constitution stopped them.
  • “Units of self-government”: the drafters’ own phrase. The 73rd Amendment repeated it in Article 243G forty years later. The idea was always self-government, not just a local branch of the State administration (UPSC 2017).
The idea in brief

Local government means government at the level of the village, town or city. Problems like village roads, drains, water and street lights are best solved by people who live there. This idea is called democratic decentralisation: taking power down to the people.

Exam notes
MilestoneKey point
Madras, 1688First Municipal Corporation in India; Bombay and Calcutta followed in 1726 (PYQ 2009)
Lord Ripon, 1882Resolution on local self-government: the “Magna Carta” of local self-government; Ripon is the father of local self-government in India
Balwant Rai Mehta Committee, 1957Recommended “democratic decentralisation“: a three-tier Panchayati Raj (village, block, district) with the Zila Parishad as an advisory body
Rajasthan, 2 Oct 1959First State to adopt Panchayati Raj, at Nagaur; Andhra Pradesh followed (PYQ 1998)
Ashok Mehta Committee, 1977Two-tier system (Zila Parishad and Mandal Panchayat); official participation of political parties
G.V.K. Rao (1985), L.M. Singhvi (1986)Rao: district as the basic unit of planning. Singhvi: constitutional status for Panchayati Raj
64th Amendment Bill, 1989Rajiv Gandhi government; passed by the Lok Sabha, defeated in the Rajya Sabha
73rd and 74th Amendments, 1992In force on 24 April 1993 (National Panchayati Raj Day) and 1 June 1993
In detail: Local self-government is best explained as democratic decentralisation (PYQ 2017). Its fundamental objects are people’s participation in development and democratic decentralisation (PYQ 2015). “Local government” is Entry 5 of the State List; Article 40 (a Directive Principle) asks the State to organise village panchayats.
Earlier milestonesLord Mayo’s resolution (1870); Royal Commission on Decentralisation (1907, Hobhouse); Community Development Programme (2 Oct 1952)
G.V.K. Rao (1985)Called bureaucratised rural development ‘grass without roots’
James BryceLocal self-government is ‘the best school of democracy’
Remember itRipon 1882 → Balwant Rai Mehta 1957 (3 tiers) → Nagaur 1959 → Ashok Mehta 1977 (2 tiers) → Singhvi 1986 (constitutional status) → 73rd/74th 1992. Panchayati Raj Day: 24 April.
Beyond the basics · ranker’s edge
PointDepth
Pre-independenceRipon (1882); local self-government a transferred subject under the 1919 Act
CDP and NESCommunity Development Programme (1952) and National Extension Service (1953) failed for lack of people’s participation, leading to the Balwant Rai Mehta Committee
Balwant Rai MehtaAppointed January 1957; report November 1957; accepted by the National Development Council in January 1958
Ashok Mehta (1977)Janata government; 132 recommendations; open party participation; Karnataka, Andhra Pradesh and West Bengal revitalised panchayats on its lines
1988 committeesP.K. Thungon (constitutional recognition, district as the key tier) and V.N. Gadgil (constitutional status, five-year term, three tiers) shaped the 64th Bill
Prelims trap: “Local government” is a State List subject (Entry 5), so Parts IX and IXA set the frame and State laws fill in the details.
In depth: the story behind it and how UPSC asks it

The story behind it

Gandhi wanted India built up from self-reliant villages. Ambedkar disagreed sharply: he called the village “a sink of localism, a den of ignorance, narrow-mindedness and communalism”, and the draft Constitution left villages out entirely. Article 40 was added as a compromise, as a Directive Principle only.

The working system came from committees, not the text. The Balwant Rai Mehta Committee (1957), set up to review the Community Development Programme, recommended a three-tier structure. Rajasthan started it first, at Nagaur on 2 October 1959, and Andhra Pradesh followed (UPSC 1998). The Ashok Mehta Committee (1978) proposed two tiers and open participation of political parties. The L.M. Singhvi Committee (1986) recommended constitutional status. The 64th Amendment Bill (1989) failed in the Rajya Sabha; the 73rd and 74th Amendments were passed in 1992. India’s urban local government is older still: the first Municipal Corporation was set up in Madras in 1688 (UPSC 2009).

How UPSC asks it

  1. UPSC 2017 Local self-government can be best explained as an exercise in
    1. Federalism
    2. Democratic decentralisation
    3. Administrative delegation
    4. Direct democracy
    Show answer(b) Democratic decentralisation. Power is transferred to elected local bodies close to the people: democratic decentralisation.
  2. UPSC 2015 The fundamental object of the Panchayati Raj system is to ensure which among the following?
    1. People's participation in development
    2. Political accountability
    3. Democratic decentralisation
    4. Financial mobilisation
    1. 1, 2 and 3 only
    2. 2 and 4 only
    3. 1 and 3 only
    4. 1, 2, 3 and 4
    Show answer(c) 1 and 3 only. The core idea is democratic decentralisation with people’s participation in development; accountability and finance are by-products, not the fundamental object.
  3. UPSC 2009 In India, the first Municipal Corporation was set up in which one among the following?
    1. Calcutta
    2. Madras
    3. Bombay
    4. Delhi
    Show answer(b) Madras. Madras, 1688. Bombay and Calcutta got corporations in 1726.
  4. UPSC 2004 Assertion (A): The Central Rural Sanitation Programme was launched in 1986 to improve the quality of life of rural people in India. Reason (R): Rural sanitation is a subject in the Concurrent List in the Constitution of India.
    1. Both A and R are individually true and R is the correct explanation of A
    2. Both A and R are individually true but R is not the correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    Show answer(c) A is true but R is false. The programme began in 1986. Public health and sanitation are in the State List (Entry 6), not the Concurrent List.
  5. UPSC 2000 Match List-I (Local Bodies) with List-II (States as in 1999): A. Zila Parishads at the sub-divisional level B. Mandal Praja Parishad C. Tribal Councils D. Absence of Village Panchayats —
    1. Andhra Pradesh
    2. Assam
    3. Mizoram
    4. Meghalaya
    1. A-2, B-1, C-4, D-3
    2. A-1, B-2, C-4, D-3
    3. A-3, B-2, C-1, D-4
    4. A-2, B-1, C-3, D-4
    Show answer(a) A-2, B-1, C-4, D-3. Assam had sub-divisional Zila Parishads; Andhra Pradesh had Mandal Praja Parishads; Meghalaya has tribal councils; Mizoram had no village panchayats.
  6. UPSC 1998 Panchayat Raj was first introduced in India in October, 1959 in:
    1. Rajasthan
    2. Tamil Nadu
    3. Kerala
    4. Karnataka
    Show answer(a) Rajasthan. Rajasthan, at Nagaur, on 2 October 1959.

2. The 73rd Amendment: Panchayats

The bare text
Bare text · Article 243BConstitution of India, as on 1 May 2024

243B. Constitution of Panchayats.—(1) There shall be constituted in every State, Panchayats at the village, intermediate and district levels in accordance with the provisions of this Part.

(2) Notwithstanding anything in clause (1), Panchayats at the intermediate level may not be constituted in a State having a population not exceeding twenty lakhs.

Bare text · Article 243AConstitution of India, as on 1 May 2024

243A. Gram Sabha.—A Gram Sabha may exercise such powers and perform such functions at the village level as the Legislature of a State may, by law, provide.

Bare text · Article 243DConstitution of India, as on 1 May 2024

243D. Reservation of seats.—(1) Seats shall be reserved for—

(a) the Scheduled Castes; and

(b) the Scheduled Tribes, in every Panchayat and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Panchayat as the population of the Scheduled Castes in that Panchayat area or of the Scheduled Tribes in that Panchayat area bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Panchayat.

(2) Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes.

(3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Panchayat shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Panchayat.

(4) The offices of the Chairpersons in the Panchayats at the village or any other level shall be reserved for the Scheduled Castes, the Scheduled Tribes and women in such manner as the Legislature of a State may, by law, provide:

Provided further that not less than one-third of the total number of offices of Chairpersons in the Panchayats at each level shall be reserved for women:

(6) Nothing in this Part shall prevent the Legislature of a State from making any provision for reservation of seats in any Panchayat or offices of Chairpersons in the Panchayats at any level in favour of backward class of citizens.

Clauses not relevant here are left out.
Bare text · Article 243EConstitution of India, as on 1 May 2024

243E. Duration of Panchayats, etc.—(1) Every Panchayat, unless sooner dissolved under any law for the time being in force, shall continue for five years from the date appointed for its first meeting and no longer.

(3) An election to constitute a Panchayat shall be completed—

(a) before the expiry of its duration specified in clause (1);

(b) before the expiration of a period of six months from the date of its 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 clause for constituting the Panchayat for such period.

Clauses not relevant here are left out.
Bare text · Article 243FConstitution of India, as on 1 May 2024

243F. Disqualifications for membership.— (1) A person shall be disqualified for being chosen as, and for being, a member of a Panchayat—

(a) 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:

Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty- one years;

Clauses not relevant here are left out.
Bare text · Article 243KConstitution of India, as on 1 May 2024

243K. Elections to the Panchayats.—(1) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to the Panchayats shall be vested in a State Election Commission consisting of a State Election Commissioner to be appointed by the Governor.

Provided that the State Election Commissioner shall not be removed from his office except in like manner and on the like grounds as a Judge of a High Court and the conditions of service of the State Election Commissioner shall not be varied to his disadvantage after his appointment.

Clauses not relevant here are left out.

Reading the text: what is compulsory, and what is left to the State

The 73rd Amendment is a mix of firm rules and options. UPSC asks again and again which is which (UPSC 1997, 1999, 2011).

  • Compulsory: three tiers (243B), direct election to all seats (243C(2)), SC/ST seats in proportion to population and at least one-third for women (243D), a five-year term with elections within six months of dissolution (243E), a State Election Commission (243K) and a State Finance Commission every five years (243I).
  • Left to the State: Gram Sabha powers (243A says only “as the Legislature … may provide”), the subjects actually handed over from the Eleventh Schedule (243G says “may … endow”), taxing powers (243H), reservation for backward classes (243D(6)) and how the village head is elected.
  • Article 243B(2): a State with a population of 20 lakh or less need not have the middle tier. So the intermediate level does not exist in all States (UPSC 2025).
  • Article 243F: disqualifications follow the State Legislature rules, except that a person aged 21 cannot be disqualified for being under 25. The minimum age is 21, not 25 (UPSC 2016, 2025).
  • Article 243E(3): election within six months of dissolution (UPSC 2009), unless less than six months of the term were left. A Panchayat formed after early dissolution serves only the rest of the old term (243E(4)).
  • Article 243K: the State Election Commissioner is appointed by the Governor, but can be removed only like a High Court judge. This protects the Commission from the State government.
The idea in brief

The 73rd Amendment added Part IX to the Constitution for rural local government (Panchayats).

Compulsory vs optionalSome things every State must do (three tiers, elections, women’s reservation). Others are left to the State (OBC reservation, which subjects to hand over). UPSC often tests this difference.
Exam notes
WherePart IX, Articles 243 to 243-O; Eleventh Schedule with 29 subjects
Gram SabhaAll registered voters of the village; powers set by State law
Three tiersVillage, intermediate (block) and district. A State with population not over 20 lakh need not have the intermediate tier (PYQ 2025)
ElectionsAll members directly elected. Chairpersons of intermediate and district panchayats elected indirectly; village chairperson as the State decides
ReservationSC/ST in proportion to population; one-third of seats and chairpersons’ posts for women (many States give 50%). OBC reservation is optional for States
TermFive years. If dissolved early, elections within six months; the new body serves only the remainder of the term (PYQ 2009, 2016)
Minimum age21 years, at every level (PYQ 2016, 2025)
State Election CommissionArt 243K: conducts all panchayat elections; State Election Commissioner appointed by the Governor, removed only like a High Court judge
State Finance CommissionArt 243-I: constituted by the Governor every five years to review panchayat finances and share of State taxes (PYQ 2011, 2025)
Not coveredNagaland, Meghalaya, Mizoram; Fifth and Sixth Schedule areas; hill areas of Manipur with district councils; Darjeeling (Gorkha council). Parliament can extend Part IX to Scheduled Areas: done through PESA
Compulsory provisionsVoluntary (left to States)
Gram Sabha; three tiers; direct elections; indirect election of upper-tier chairpersons; minimum age 21; SC/ST and one-third women reservation; 5-year term and 6-month rule; State Election Commission; State Finance CommissionGiving MPs and MLAs a vote in panchayats; OBC reservation; financial powers and taxes; the actual functions from the Eleventh Schedule; how the village chairperson is elected
Prelims trap: The SFC and SEC are set up by the Governor, not the Chief Minister (PYQ 2025). The two-child norm and fixed salaries for members are State choices, not in the 73rd Amendment (PYQ 1997, 1999). District Planning Committees come from the 74th Amendment (Art 243ZD) (PYQ 2011).
ProvisionPoint
CompulsoryGram Sabha, three tiers (intermediate optional below 20 lakh), direct elections, SC/ST and one-third women’s reservation (incl. SC/ST women, Art 243D(3)), 5-year term, SEC, SFC
VoluntaryOBC reservation, MPs/MLAs voting rights, devolution of the 29 subjects
ExemptNagaland, Meghalaya, Mizoram and some hill areas; no SC reservation in Arunachal (243M(3A))
OBC quotaK. Krishnamurthy (2010); ‘triple test’ in Vikas Gawali (2021)
Remember itNumbers in one breath: 3 tiers, 20 lakh, 21 years, one-third women, 5 years, 6 months, 29 subjects. Structure and elections are compulsory; OBC quota, MP/MLA votes and which subjects to hand over are the State’s choice.
Beyond the basics · ranker’s edge
Article or caseDepth
Article map243A Gram Sabha · 243B tiers · 243C composition · 243D reservation · 243E term · 243F disqualification · 243G powers · 243H taxes · 243I SFC · 243J audit · 243K SEC · 243M exempt areas · 243O bar on courts in election matters
243D detailsWomen’s one-third includes seats within SC/ST quotas (243D(3)); chairpersons’ posts also reserved (243D(4)); backward-class reservation optional (243D(6))
Arunachal PradeshNo SC reservation in panchayats: 243M(3A), 83rd Amendment (2000)
OBC quota casesK. Krishnamurthy (2010): allowed, within 50%. Vikas Gawali (2021): triple test (dedicated commission, ward-wise proportion, 50% cap). Suresh Mahajan (2022): SECs must not delay polls
Proxy representation“Sarpanch pati” problem: a Ministry of Panchayati Raj advisory committee (2025) suggested exemplary penalties in proven proxy cases
SchemesRevamped RGSA (2022–26, SDG localisation; 60:40, 90:10 for NE/hill, 100% UTs) (PYQ 2026); SVAMITVA (2020, drone-based property cards); e-Gram Swaraj; Panchayat Advancement Index
15th Finance CommissionGrants to rural local bodies: 60% tied (water, sanitation) and 40% untied
Prelims trap: The new body after early dissolution serves only the remaining term; if less than six months remain, no election is needed. (PYQ 2009, 2016) SEC and SFC: Governor. (PYQ 2025)
In depth: the story behind it and how UPSC asks it

The story behind it

The Amendment came into force on 24 April 1993, now National Panchayati Raj Day. The one-third quota for women was a floor, not a ceiling: more than 20 States have since raised it to 50% by their own laws.

The courts have enforced the deadlines. In Kishansing Tomar (2006) the Supreme Court held that State Election Commissions must hold elections on time and cannot delay them by citing delimitation or other reasons. Backward-class quotas in local bodies need a “triple test” (K. Krishna Murthy, 2010; Vikas Kishanrao Gawali, 2021): a dedicated commission to study backwardness, quotas based on its data, and total reservation within 50%.

How UPSC asks it

  1. UPSC 2026 Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct?
    1. The period of its implementation is 1st April, 2021 to 31st March, 2026.
    2. The key objective of the Revamped RGSA is to develop the governance capabilities of the Panchayati Raj Institutions to deliver on the Sustainable Development Goals.
    3. The share of the Central funding for the Revamped RGSA is 100% for all States and Union Territories.
    Select the answer using the code given below:
    1. 1 and 2
    2. 2 only
    3. 1 and 3
    4. 2 and 3
    Show answer(b) 2 only. The Revamped RGSA runs from 1 April 2022 to 31 March 2026. Its aim is to build PRI governance capacity to localise the SDGs. Funding is 60:40 for States (90:10 for north-eastern and hill States and J&K) and 100% only for Union Territories.
  2. UPSC 2025 Consider the following statements: I. Panchayats at the intermediate level exist in all States. II. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years. III. The Chief Minister of a State constitutes a commission to review the financial position of Panchayats at the intermediate levels and to make recommendations regarding the distribution of net proceeds of taxes and duties, leviable by the State, between the State and Panchayats at the intermediate level. Which of the statements given above are not correct?
    1. I and II only
    2. II and III only
    3. I and III only
    4. I, II and III
    Show answer(d) I, II and III. All three are wrong: States under 20 lakh population may skip the intermediate tier; the minimum age is 21; the State Finance Commission is constituted by the Governor.
  3. UPSC 2016 Consider the following statements:
    1. The minimum age prescribed for any person to be a member of Panchayat is 25 years.
    2. A Panchayat reconstituted after premature dissolution continues only for the remainder period.
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer(b) 2 only. The minimum age is 21. A reconstituted panchayat serves only the remainder of the term (Article 243E).
  4. UPSC 2011 The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country, provides for which of the following?
    1. Constitution of District Planning Committees.
    2. State Election Commissions to conduct all panchayat elections.
    3. Establishment of State Finance Commissions.
    1. 1 only
    2. 1 and 2 only
    3. 2 and 3 only
    4. 1, 2 and 3
    Show answer(c) 2 and 3 only. District Planning Committees come from the 74th Amendment (Article 243ZD). SECs and SFCs are in the 73rd.
  5. UPSC 2009 If a Panchayat is dissolved, elections are to be held within:
    1. 1 month
    2. 3 months
    3. 6 months
    4. 1 year
    Show answer(c) 6 months. Article 243E(3): within six months of dissolution.
  6. UPSC 1999 In the new Panchayati Raj Bill enacted in 1993, there are several fresh provisions deviating from the past. Which one of the following is not one such provision?
    1. A number of added responsibilities in the area of agriculture, rural development, primary education and social forestry among others
    2. Elections being made mandatory for all posts at the time they are due
    3. A statutory representation for women in the panchayats, up to a third of the strength
    4. Regular remuneration to the panchayat members, so as to ensure their punctuality and accountability
    Show answer(d) Regular remuneration to the panchayat members, so as to ensure their punctuality and accountability. The 73rd Amendment says nothing about paying members; that is left to States.
  7. UPSC 1997 Which one of the following was not proposed by the 73rd Constitutional Amendment in the area of Panchayati Raj?
    1. Thirty percent seats in all elected rural local bodies will be reserved for women candidates at all levels
    2. The States will constitute their Finance Commissions to allocate resources to Panchayati Raj institutions
    3. The Panchayati Raj functionaries will be disqualified to hold their offices if they have more than two children
    4. The elections will be held in six months time if Panchayati Raj bodies are superseded or dissolved by the State government
    Show answer(c) The Panchayati Raj functionaries will be disqualified to hold their offices if they have more than two children. The two-child norm is a State-level rule in some States; it is not in the 73rd Amendment.
  8. UPSC 1996 What is the system of governance in the Panchayati Raj set up?
    1. Single tier structure of local self government at the village level
    2. Two tier system of local self government at village and block levels
    3. Three tier structure of local self government at the village, block and district levels
    4. Four tier system of local self government at the village, block, district and in the state levels
    Show answer(c) Three tier structure of local self government at the village, block and district levels. Village, intermediate (block) and district levels.

3. PESA, 1996 and forest rights

The bare text
Bare text · Article 243MConstitution of India, as on 1 May 2024

243M. Part not to apply to certain areas.—(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.

(2) Nothing in this Part shall apply to—

(a) the States of Nagaland, Meghalaya and Mizoram;

(b) the hill areas in the State of Manipur for which District Councils exist under any law for the time being in force.

[(3A) Nothing in article 243D, relating to reservation of seats for the Scheduled Castes, shall apply to the State of Arunachal Pradesh.]

(4) Notwithstanding anything in this Constitution,—

(b) Parliament may, by law, 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, and no such law shall be deemed to be an amendment of this Constitution for the purposes of article 368.

Clauses not relevant here are left out.
Amended by: 83rd (2000) Amendment

Reading the text

  • Part IX stops at the Scheduled Areas. Article 243M(1) excludes Fifth Schedule and Sixth Schedule areas, and 243M(2) excludes Nagaland, Meghalaya, Mizoram and the hill areas of Manipur, which have their own traditional or district council systems.
  • 243M(4)(b) is the door PESA came through. Parliament can extend Part IX to Scheduled Areas “with exceptions and modifications” by an ordinary law, which is not treated as a constitutional amendment. The Panchayats (Extension to the Scheduled Areas) Act, 1996 is that law.
  • Clause (3A), added in 2000, exempts Arunachal Pradesh from SC reservation in panchayats, since it has almost no Scheduled Caste population.
The idea in brief

Many tribal areas (called Scheduled Areas) were left out of Part IX. In 1996 Parliament passed PESA (Panchayats Extension to Scheduled Areas Act) to bring panchayats to these areas in a way that respects tribal customs.

Exam notes
PESA, 1996Panchayats (Extension to the Scheduled Areas) Act: extends Part IX to Fifth Schedule areas in 10 States, respecting customary law and traditional management
ObjectivesSelf-governance, recognition of traditional rights, freeing tribals from exploitation, participatory democracy. Not to create autonomous regions (PYQ 2013)
Gram Sabha powersPrevent alienation of land; ownership of minor forest produce; approve plans and identify beneficiaries; control money-lending, liquor sale, village markets. Its recommendation is needed for mining leases of minor minerals only (PYQ 2012)
Forest Rights Act, 2006The Gram Sabha starts the process of deciding individual and community forest rights (PYQ 2013)
Remember itTwo “minors”: Gram Sabha recommends on minor minerals and owns minor forest produce. 10 Fifth Schedule States; aim is self-rule, not autonomous councils.
Beyond the basics · ranker’s edge
PointDepth
OriginRecommended by the Dilip Singh Bhuria Committee (1995); enacted under Article 243M(4)(b)
The 10 StatesAndhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan
Key sections4(i) consultation before land acquisition; 4(k) recommendation for prospecting licences and mining leases for minor minerals; 4(m) ownership of minor forest produce, control over money-lending and markets
Niyamgiri (2013)Orissa Mining Corporation case: gram sabhas decided whether bauxite mining affected the Dongria Kondh’s religious and cultural rights under the FRA
Prelims trap: PESA’s aim is self-governance and preventing alienation, not creating autonomous regions. (PYQ 2013) Gram Sabha consent is needed for minor minerals, not all mining. (PYQ 2012)
In depth: the story behind it and how UPSC asks it

The story behind it

PESA followed the Dileep Singh Bhuria Committee (1995). It reversed the usual direction of power: in Scheduled Areas, the Gram Sabha, not the State, is meant to be the centre. Under PESA the Gram Sabha must be consulted before land is acquired, approves development plans, identifies beneficiaries, and controls minor forest produce, minor water bodies, money-lending and the sale of liquor (UPSC 2012, 2013). It applies in the ten States with Fifth Schedule areas.

The weakness is the same as in Part IX: PESA works only through State laws and rules. Some States took years to frame PESA rules; others have still not given the Gram Sabha the full powers. The Forest Rights Act, 2006 extended the same Gram Sabha-first approach to forests (Chapter 18).

How UPSC asks it

  1. UPSC 2013 The Government enacted the Panchayat Extension to Scheduled Areas (PESA) Act in 1996. Which one of the following is not identified as its objective?
    1. To provide self-governance
    2. To recognize traditional rights
    3. To create autonomous regions in tribal areas
    4. To free tribal people from exploitation
    Show answer(c) To create autonomous regions in tribal areas. Autonomous regions are a Sixth Schedule feature. PESA aims at self-governance through Gram Sabhas within the existing structure.
  2. UPSC 2012 In the areas covered under the Panchayat (Extension to the Scheduled Areas) Act, 1996, what is the role/power of Gram Sabha?
    1. Gram Sabha has the power to prevent alienation of land in the Scheduled Areas.
    2. Gram Sabha has the ownership of minor forest produce.
    3. Recommendation of Gram Sabha is required for granting prospecting licence or mining lease for any mineral in the Scheduled Areas.
    1. 1 only
    2. 1 and 2 only
    3. 2 and 3 only
    4. 1, 2 and 3
    Show answer(b) 1 and 2 only. Its recommendation is mandatory only for minor minerals, not ‘any mineral’. 1 and 2 are correct.

4. The 74th Amendment: Municipalities

The bare text
Bare text · Article 243QConstitution of India, as on 1 May 2024

243Q. Constitution of Municipalities.—(1) There shall be constituted in every State,—

(a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area;

(b) a Municipal Council for a smaller urban area; and

(c) a Municipal Corporation for a larger urban area, in accordance with the provisions of this Part:

Provided that a Municipality under this clause may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit, by public notification, specify to be an industrial township.

Clauses not relevant here are left out.
Bare text · Article 243PConstitution of India, as on 1 May 2024

243P. Definitions.—In this Part, unless the context otherwise requires,—

(c) “Metropolitan area” means an area having a population of ten lakhs or more, comprised in one or more districts and consisting of two or more Municipalities or Panchayats or other contiguous areas, specified by the Governor by public notification to be a Metropolitan area for the purposes of this Part;

Clauses not relevant here are left out.
Bare text · Article 243SConstitution of India, as on 1 May 2024

243S. Constitution and composition of Wards Committees, etc.—(1) There shall be constituted Wards Committees, consisting of one or more wards, within the territorial area of a Municipality having a population of three lakhs or more.

Clauses not relevant here are left out.
Bare text · Article 243ZDConstitution of India, as on 1 May 2024

243ZD. Committee for district planning.—(1) There shall be constituted in every State at the district level a District Planning Committee to consolidate the plans prepared by the Panchayats and the Municipalities in the district and to prepare a draft development plan for the district as a whole.

(a) the composition of the District Planning Committees;

(b) the manner in which the seats in such Committees shall be filled:

Provided that not less than four-fifths of the total number of members of such Committee shall be elected by, and from amongst, the elected members of the Panchayat at the district level and of the Municipalities in the district in proportion to the ratio between the population of the rural areas and of the urban areas in the district;

Clauses not relevant here are left out.
Bare text · Article 243ZEConstitution of India, as on 1 May 2024

243ZE. Committee for Metropolitan planning.—(1) There shall be constituted in every Metropolitan area a Metropolitan Planning Committee to prepare a draft development plan for the Metropolitan area as a whole.

(2) The Legislature of a State may, by law, make provision with respect to—

(a) the composition of the Metropolitan Planning Committees;

(b) the manner in which the seats in such Committees shall be filled:

Provided that not less than two-thirds of the members of such Committee shall be elected by, and from amongst, the elected members of the Municipalities and Chairpersons of the Panchayats in the Metropolitan area in proportion to the ratio between the population of the Municipalities and of the Panchayats in that area;

Clauses not relevant here are left out.

Reading the text

  • Three kinds of Municipality, decided by the Governor on population, density, revenue and so on, not by fixed numbers in the text.
  • The industrial township proviso: where an industrial establishment provides the civic services, the Governor may declare a township and not form a Municipality at all. Jamshedpur is the classic example.
  • Population numbers in the text: Wards Committees for a Municipality of 3 lakh or more (243S), and a Metropolitan area means 10 lakh or more (243P(c)).
  • Two planning committees, two fractions. District Planning Committee: at least four-fifths elected from district panchayat and municipal members, in proportion to rural and urban population. Metropolitan Planning Committee: at least two-thirds elected. Both are constitutional bodies, created by Article 243ZD and 243ZE (UPSC 2011).
  • Article 243U(1)’s proviso, which Part IX does not have for panchayats: a Municipality must be given a reasonable opportunity of being heard before it is dissolved.
The idea in brief

The 74th Amendment added Part IXA for urban local government (Municipalities).

Exam notes
WherePart IXA, Articles 243-P to 243-ZG; Twelfth Schedule with 18 subjects
Three types (Art 243Q)Nagar Panchayat (area moving from rural to urban), Municipal Council (smaller urban area), Municipal Corporation (larger urban area). Not two types (PYQ 2005)
Wards CommitteesCompulsory where population is 3 lakh or more
District Planning CommitteeArt 243ZD: in every district; consolidates plans of panchayats and municipalities; at least four-fifths elected from the local bodies
Metropolitan Planning CommitteeArt 243ZE: for each metropolitan area (population 10 lakh+); prepares the draft development plan; two-thirds elected. It plans; it does not implement schemes (PYQ 2011)
Common featuresSame rules as panchayats on reservation, five-year term, six-month election rule, State Election Commission and State Finance Commission
In detail: To contest a municipal election, a candidate’s name must be on the voters’ list of the area; party membership is not needed (PYQ 2000). State control over urban bodies covers finance, legislation and personnel; citizens’ grievances are handled by the bodies themselves (PYQ 2001).
Ward CommitteesPopulation 3 lakh or more (243S)
District / Metropolitan Planning243ZD / 243ZE (metro area 10 lakh+)
Twelfth Schedule onlyFire services, urban planning, slum improvement, vital statistics
Remember it3 types, 3 lakh, 10 lakh, 18 subjects: Nagar Panchayat, Council, Corporation; Wards Committees above 3 lakh; Metropolitan Planning Committee above 10 lakh; 18 subjects in the Twelfth Schedule. The DPC (243ZD) sits in the 74th though it plans for villages too.
Beyond the basics · ranker’s edge
Article or pointDepth
Article map243Q types · 243R composition (non-voting nominees with special knowledge) · 243S wards committees · 243T reservation · 243W powers · 243X taxes · 243Y SFC · 243ZA SEC · 243ZC exempt areas · 243ZD DPC · 243ZE MPC
Industrial townshipProviso to 243Q: the Governor may exempt an industrial township that provides municipal services
DPC vs MPCDPC: at least four-fifths elected by members of district panchayat and municipalities, in proportion to rural and urban population. MPC: at least two-thirds elected
Urban schemesAMRUT 2.0 (2021), Swachh Bharat Mission (Urban) 2.0, Smart Cities Mission (closed March 2025)
Prelims trap: The MPC prepares a draft plan; DPC Article 243ZD is from the 74th, though it covers panchayats too.
In depth: the story behind it and how UPSC asks it

The story behind it

The 74th Amendment came into force on 1 June 1993. Its Twelfth Schedule lists 18 functions, from urban planning to fire services. As with panchayats, the Constitution offers the list but leaves the transfer to States, and few States have handed over all 18. Elections are often delayed: many big cities have gone years without an elected council. The Second Administrative Reforms Commission and successive Finance Commissions have pointed to the same gaps: few functions, little own revenue and weak mayors.

How UPSC asks it

  1. UPSC 2011 Consider the following statements: In India, a Metropolitan Planning Committee 1. is constituted under the provisions of the Constitution of India. 2. prepares the draft development plans for the metropolitan area. 3. has the sole responsibility for implementing Government sponsored schemes in the metropolitan area.
    1. 1 and 2 only
    2. 2 only
    3. 1 and 3 only
    4. 1, 2 and 3
    Show answer(a) 1 and 2 only. Article 243ZE provides for it and it prepares draft plans. It does not implement schemes.
  2. UPSC 2005 Consider the following statements:
    1. Part IX of the Constitution of India provides for Panchayats and was inserted by the Constitution (Amendment) Act, 1992.
    2. Part IX A of the Constitution of India contains provisions for Municipalities and the Article 243Q envisages two types of Municipalities: a Municipal Council and a Municipal Corporation for every State.
    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer(a) Only 1. Article 243Q provides for three types: Nagar Panchayat, Municipal Council and Municipal Corporation.
  3. UPSC 2001 In which one of the following areas does the State Government not have control over its local bodies?
    1. Citizens' grievances
    2. Financial matters
    3. Legislation
    4. Personnel matters
    Show answer(a) Citizens' grievances. States control local bodies through laws, finances and staff. Redressing citizens’ day-to-day grievances is the local body’s own job.
  4. UPSC 2000 A college student desires to get elected to the Municipal Council of his city. The validity of his nomination would depend on the important condition, among others, that:
    1. he obtains permission from the principal of his college
    2. he is a member of a political party
    3. his name figures in the voters' list
    4. he files a declaration owing allegiance to the Constitution of India
    Show answer(c) his name figures in the voters' list. A candidate must be a registered voter of the area (and meet the age requirement).

5. Other urban bodies

The idea in brief

Besides municipalities, some towns are run by special bodies:

Exam notes
BodySet up for
Cantonment BoardCivil administration of a cantonment area; under the Defence Ministry (Cantonments Act, 2006)
Notified Area CommitteeFast-growing town or new industrial town not yet meeting municipal conditions; all members nominated
Town Area CommitteeSmall town; elected, nominated or partly both
TownshipAmenities for staff of a large public enterprise near its plant; no elected members
Port TrustMajor ports; set up by an Act of Parliament
Special Purpose AgencyA single function, such as a housing or water board
Remember itCantonment = Defence Ministry; Township = the company; Notified Area = all nominated; Port Trust = Act of Parliament.
Beyond the basics · ranker’s edge
BodyDepth
Cantonment BoardsStation Commander presides; mix of elected and ex officio members. Civil areas of cantonments are being excised and merged with municipalities; Yol (Himachal Pradesh) was among the first, in 2024
Port bodiesMajor Port Trusts became Major Port Authorities under the Major Port Authorities Act, 2021
TownshipRun by a town administrator appointed by the enterprise; no elected members
In depth: the story behind it and how UPSC asks it

Reading the text: bodies outside Part IXA

Part IXA covers only Nagar Panchayats, Municipal Councils and Municipal Corporations. The other urban bodies are created by ordinary laws or executive orders, so the constitutional rules on elections, reservation and terms do not apply to them.

  • Cantonment Boards are set up under the Cantonments Act, 2006 and work under the Ministry of Defence. Part of the board is elected and part is nominated; the station commander is president. Since 2023 the government has begun moving the civil areas of several cantonments into nearby municipalities.
  • Industrial townships are the only one with a constitutional base, in the proviso to Article 243Q(1).
  • Notified area committees, town area committees, port trusts and special purpose agencies, such as development authorities and water boards, are statutory bodies. They often take over functions listed in the Twelfth Schedule, which is one reason elected municipalities remain weak.

6. Co-operative societies (Part IXB)

The bare text
Bare text · Article 19Constitution of India, as on 1 May 2024

19. Protection of certain rights regarding freedom of speech, etc.—

(1) All citizens shall have the right—

(c) to form associations or unions [or co-operative societies];

Clauses not relevant here are left out.
Amended by: 1st (1951), 16th (1963), 44th (1978), 97th (2011) Amendments
Bare text · Article 43BConstitution of India, as on 1 May 2024

[43B. Promotion of co-operative societies.—The State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.]

Amended by: 97th (2011) Amendment
Bare text · Article 243ZJConstitution of India, as on 1 May 2024

243ZJ. Number and term of members of board and its office bearers.—(1) The board shall consist of such number of directors as may be provided by the Legislature of a State, by law:

Provided that the maximum number of directors of a co-operative society shall not exceed twenty-one:

Provided further that the Legislature of a State shall, by law, provide for the reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on board of every co-operative society consisting of individuals as members and having members from such class of category of persons.

(2) The term of office of elected members of the board and its office bearers shall be five years from the date of election and the term of office bearers shall be conterminous with the term of the board:

Clauses not relevant here are left out.
Bare text · Article 243ZLConstitution of India, as on 1 May 2024

243ZL. Supersession and suspension of board and interim management.—(1) Notwithstanding anything contained in any law for the time being in force, no board shall be superseded or kept under suspension for a period exceeding six months:

Clauses not relevant here are left out.

Reading the text

  • One amendment, three places. The 97th Amendment (2011) added “co-operative societies” to the Fundamental Right in Article 19(1)(c), a new Directive Principle in Article 43B, and a whole new Part IXB (Articles 243ZH to 243ZT).
  • The numbers in Part IXB: a maximum of 21 directors; one SC/ST seat and two women’s seats on boards with members from those groups; a five-year term; and no supersession of the board beyond six months (one year for co-operative banks).
  • The four values in Article 43B, voluntary, autonomous, democratic and professional, describe the co-operative principles the Amendment wanted to protect from government control.
The idea in brief

A co-operative society is a business owned and run by its members for their common benefit, like a milk union where farmers pool their milk. Amul is the best-known example. In 2011 the Constitution was amended to make forming co-operatives a Fundamental Right and to set rules for their elections and accounts.

Exam notes
PointKey facts
97th Amendment (2011)Three changes: “co-operative societies” in Article 19(1)(c) (Fundamental Right); Article 43B (DPSP: promote voluntary formation, autonomy, democratic control); Part IXB (Articles 243ZH–243ZT)
BoardAt most 21 directors; one seat for SC/ST and two for women in societies with such members; up to two co-opted experts without voting rights
Term and electionsBoard term 5 years; elections before the term ends, conducted by an authority set up by State law
SupersessionA board cannot be superseded or kept under suspension for more than 6 months
Audit and meetingsAccounts audited within six months of the financial year’s end; annual general body meeting within six months
Subject listsCo-operative societies: State List (Entry 32). Multi-State co-operatives: Union List (Entry 44)
Rajendra N. Shah (2021)Part IXB struck down for State co-operatives (no ratification by States); it survives for multi-State co-operatives
Prelims trap: The right to form co-operative societies is a Fundamental Right (19(1)(c)); promoting them is a Directive Principle (43B). Both came from the 97th Amendment.
Remember itOne amendment, three homes: the 97th (2011) put co-operatives in 19(1)(c) (right), 43B (Directive) and Part IXB (rules). Part IXB now applies only to multi-State co-operatives (Rajendra N. Shah, 2021).
Beyond the basics · ranker’s edge
PointDepth
Ministry of Co-operationCreated in July 2021 (earlier a part of the Agriculture Ministry)
Recent stepsMulti-State Co-operative Societies (Amendment) Act, 2023; National Co-operative Policy, 2025; Tribhuvan Sahkari University Act, 2025 (Anand, Gujarat). The UN declared 2025 the International Year of Co-operatives
In depth: the story behind it and how UPSC asks it

The story behind it

“Co-operative societies” is a State subject (Entry 32, State List). Part IXB, made by Parliament, told State legislatures how to run them, but the 97th Amendment was never ratified by half the States, as Article 368(2) requires for changes that affect State powers. In Union of India v Rajendra N. Shah (July 2021) the Supreme Court struck down Part IXB as far as it applies to co-operatives within one State. It survives only for multi-State co-operative societies, which are a Union subject. The same month, the Union government created a separate Ministry of Cooperation.

7. Quick revision and traps

Exam notes
29 / 18Subjects in the Eleventh (panchayats) / Twelfth (municipalities) Schedules
21 yearsMinimum age for panchayat and municipal membership
20 lakhPopulation below which a State may skip the intermediate tier
3 lakh / 10 lakhWards Committees / Metropolitan area
GovernorAppoints the State Election Commissioner and the State Finance Commission
Beyond the basics · ranker’s edge
PYQ patternHow to prepare
Compulsory vs voluntary provisionsThe most repeated theme (1997–2025)
Numbers21 years, 20 lakh, 3 lakh, 10 lakh, 29 and 18, one-third, six months
Schemes2026 asked the revamped RGSA: check the period, aim and funding pattern of every Panchayati Raj scheme
PESA Gram Sabha powersLearn the exact list; UPSC tests “minor minerals” and “minor forest produce”