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.
- 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
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).
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.
| Milestone | Key point |
|---|---|
| Madras, 1688 | First Municipal Corporation in India; Bombay and Calcutta followed in 1726 (PYQ 2009) |
| Lord Ripon, 1882 | Resolution 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, 1957 | Recommended “democratic decentralisation“: a three-tier Panchayati Raj (village, block, district) with the Zila Parishad as an advisory body |
| Rajasthan, 2 Oct 1959 | First State to adopt Panchayati Raj, at Nagaur; Andhra Pradesh followed (PYQ 1998) |
| Ashok Mehta Committee, 1977 | Two-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, 1989 | Rajiv Gandhi government; passed by the Lok Sabha, defeated in the Rajya Sabha |
| 73rd and 74th Amendments, 1992 | In 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 milestones | Lord 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 Bryce | Local self-government is ‘the best school of democracy’ |
| Point | Depth |
|---|---|
| Pre-independence | Ripon (1882); local self-government a transferred subject under the 1919 Act |
| CDP and NES | Community Development Programme (1952) and National Extension Service (1953) failed for lack of people’s participation, leading to the Balwant Rai Mehta Committee |
| Balwant Rai Mehta | Appointed 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 committees | P.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
- UPSC 2017 Local self-government can be best explained as an exercise in
- Federalism
- Democratic decentralisation
- Administrative delegation
- Direct democracy
Show answer
(b) Democratic decentralisation. Power is transferred to elected local bodies close to the people: democratic decentralisation. - UPSC 2015 The fundamental object of the Panchayati Raj system is to ensure which among the following?
- People's participation in development
- Political accountability
- Democratic decentralisation
- Financial mobilisation
- 1, 2 and 3 only
- 2 and 4 only
- 1 and 3 only
- 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. - UPSC 2009 In India, the first Municipal Corporation was set up in which one among the following?
- Calcutta
- Madras
- Bombay
- Delhi
Show answer
(b) Madras. Madras, 1688. Bombay and Calcutta got corporations in 1726. - 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.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- 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. - 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 —
- Andhra Pradesh
- Assam
- Mizoram
- Meghalaya
- A-2, B-1, C-4, D-3
- A-1, B-2, C-4, D-3
- A-3, B-2, C-1, D-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. - UPSC 1998 Panchayat Raj was first introduced in India in October, 1959 in:
- Rajasthan
- Tamil Nadu
- Kerala
- Karnataka
Show answer
(a) Rajasthan. Rajasthan, at Nagaur, on 2 October 1959.
2. The 73rd Amendment: Panchayats
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 73rd Amendment added Part IX to the Constitution for rural local government (Panchayats).
| Where | Part IX, Articles 243 to 243-O; Eleventh Schedule with 29 subjects |
| Gram Sabha | All registered voters of the village; powers set by State law |
| Three tiers | Village, intermediate (block) and district. A State with population not over 20 lakh need not have the intermediate tier (PYQ 2025) |
| Elections | All members directly elected. Chairpersons of intermediate and district panchayats elected indirectly; village chairperson as the State decides |
| Reservation | SC/ST in proportion to population; one-third of seats and chairpersons’ posts for women (many States give 50%). OBC reservation is optional for States |
| Term | Five years. If dissolved early, elections within six months; the new body serves only the remainder of the term (PYQ 2009, 2016) |
| Minimum age | 21 years, at every level (PYQ 2016, 2025) |
| State Election Commission | Art 243K: conducts all panchayat elections; State Election Commissioner appointed by the Governor, removed only like a High Court judge |
| State Finance Commission | Art 243-I: constituted by the Governor every five years to review panchayat finances and share of State taxes (PYQ 2011, 2025) |
| Not covered | Nagaland, 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 provisions | Voluntary (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 Commission | Giving 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). | |
| Provision | Point |
|---|---|
| Compulsory | Gram 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 |
| Voluntary | OBC reservation, MPs/MLAs voting rights, devolution of the 29 subjects |
| Exempt | Nagaland, Meghalaya, Mizoram and some hill areas; no SC reservation in Arunachal (243M(3A)) |
| OBC quota | K. Krishnamurthy (2010); ‘triple test’ in Vikas Gawali (2021) |
| Article or case | Depth |
|---|---|
| Article map | 243A 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 details | Women’s one-third includes seats within SC/ST quotas (243D(3)); chairpersons’ posts also reserved (243D(4)); backward-class reservation optional (243D(6)) |
| Arunachal Pradesh | No SC reservation in panchayats: 243M(3A), 83rd Amendment (2000) |
| OBC quota cases | K. 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 |
| Schemes | Revamped 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 Commission | Grants 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
- UPSC 2026 Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct?
- The period of its implementation is 1st April, 2021 to 31st March, 2026.
- 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.
- The share of the Central funding for the Revamped RGSA is 100% for all States and Union Territories.
- 1 and 2
- 2 only
- 1 and 3
- 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. - 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?
- I and II only
- II and III only
- I and III only
- 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. - UPSC 2016 Consider the following statements:
- The minimum age prescribed for any person to be a member of Panchayat is 25 years.
- A Panchayat reconstituted after premature dissolution continues only for the remainder period.
- 1 only
- 2 only
- Both 1 and 2
- 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). - 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?
- Constitution of District Planning Committees.
- State Election Commissions to conduct all panchayat elections.
- Establishment of State Finance Commissions.
- 1 only
- 1 and 2 only
- 2 and 3 only
- 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. - UPSC 2009 If a Panchayat is dissolved, elections are to be held within:
- 1 month
- 3 months
- 6 months
- 1 year
Show answer
(c) 6 months. Article 243E(3): within six months of dissolution. - 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?
- A number of added responsibilities in the area of agriculture, rural development, primary education and social forestry among others
- Elections being made mandatory for all posts at the time they are due
- A statutory representation for women in the panchayats, up to a third of the strength
- 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. - UPSC 1997 Which one of the following was not proposed by the 73rd Constitutional Amendment in the area of Panchayati Raj?
- Thirty percent seats in all elected rural local bodies will be reserved for women candidates at all levels
- The States will constitute their Finance Commissions to allocate resources to Panchayati Raj institutions
- The Panchayati Raj functionaries will be disqualified to hold their offices if they have more than two children
- 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. - UPSC 1996 What is the system of governance in the Panchayati Raj set up?
- Single tier structure of local self government at the village level
- Two tier system of local self government at village and block levels
- Three tier structure of local self government at the village, block and district levels
- 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
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.
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.
| PESA, 1996 | Panchayats (Extension to the Scheduled Areas) Act: extends Part IX to Fifth Schedule areas in 10 States, respecting customary law and traditional management |
| Objectives | Self-governance, recognition of traditional rights, freeing tribals from exploitation, participatory democracy. Not to create autonomous regions (PYQ 2013) |
| Gram Sabha powers | Prevent 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, 2006 | The Gram Sabha starts the process of deciding individual and community forest rights (PYQ 2013) |
| Point | Depth |
|---|---|
| Origin | Recommended by the Dilip Singh Bhuria Committee (1995); enacted under Article 243M(4)(b) |
| The 10 States | Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan |
| Key sections | 4(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
- 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?
- To provide self-governance
- To recognize traditional rights
- To create autonomous regions in tribal areas
- 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. - UPSC 2012 In the areas covered under the Panchayat (Extension to the Scheduled Areas) Act, 1996, what is the role/power of Gram Sabha?
- Gram Sabha has the power to prevent alienation of land in the Scheduled Areas.
- Gram Sabha has the ownership of minor forest produce.
- Recommendation of Gram Sabha is required for granting prospecting licence or mining lease for any mineral in the Scheduled Areas.
- 1 only
- 1 and 2 only
- 2 and 3 only
- 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
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 74th Amendment added Part IXA for urban local government (Municipalities).
| Where | Part 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 Committees | Compulsory where population is 3 lakh or more |
| District Planning Committee | Art 243ZD: in every district; consolidates plans of panchayats and municipalities; at least four-fifths elected from the local bodies |
| Metropolitan Planning Committee | Art 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 features | Same 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 Committees | Population 3 lakh or more (243S) |
| District / Metropolitan Planning | 243ZD / 243ZE (metro area 10 lakh+) |
| Twelfth Schedule only | Fire services, urban planning, slum improvement, vital statistics |
| Article or point | Depth |
|---|---|
| Article map | 243Q 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 township | Proviso to 243Q: the Governor may exempt an industrial township that provides municipal services |
| DPC vs MPC | DPC: 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 schemes | AMRUT 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
- 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 and 2 only
- 2 only
- 1 and 3 only
- 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. - UPSC 2005 Consider the following statements:
- Part IX of the Constitution of India provides for Panchayats and was inserted by the Constitution (Amendment) Act, 1992.
- 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.
- Only 1
- Only 2
- Both 1 and 2
- Neither 1 nor 2
Show answer
(a) Only 1. Article 243Q provides for three types: Nagar Panchayat, Municipal Council and Municipal Corporation. - UPSC 2001 In which one of the following areas does the State Government not have control over its local bodies?
- Citizens' grievances
- Financial matters
- Legislation
- 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. - 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:
- he obtains permission from the principal of his college
- he is a member of a political party
- his name figures in the voters' list
- 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
Besides municipalities, some towns are run by special bodies:
| Body | Set up for |
|---|---|
| Cantonment Board | Civil administration of a cantonment area; under the Defence Ministry (Cantonments Act, 2006) |
| Notified Area Committee | Fast-growing town or new industrial town not yet meeting municipal conditions; all members nominated |
| Town Area Committee | Small town; elected, nominated or partly both |
| Township | Amenities for staff of a large public enterprise near its plant; no elected members |
| Port Trust | Major ports; set up by an Act of Parliament |
| Special Purpose Agency | A single function, such as a housing or water board |
| Body | Depth |
|---|---|
| Cantonment Boards | Station 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 bodies | Major Port Trusts became Major Port Authorities under the Major Port Authorities Act, 2021 |
| Township | Run 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)
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.
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.
| Point | Key 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) |
| Board | At 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 elections | Board term 5 years; elections before the term ends, conducted by an authority set up by State law |
| Supersession | A board cannot be superseded or kept under suspension for more than 6 months |
| Audit and meetings | Accounts audited within six months of the financial year’s end; annual general body meeting within six months |
| Subject lists | Co-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. | |
| Point | Depth |
|---|---|
| Ministry of Co-operation | Created in July 2021 (earlier a part of the Agriculture Ministry) |
| Recent steps | Multi-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
| 29 / 18 | Subjects in the Eleventh (panchayats) / Twelfth (municipalities) Schedules |
| 21 years | Minimum age for panchayat and municipal membership |
| 20 lakh | Population below which a State may skip the intermediate tier |
| 3 lakh / 10 lakh | Wards Committees / Metropolitan area |
| Governor | Appoints the State Election Commissioner and the State Finance Commission |
| PYQ pattern | How to prepare |
|---|---|
| Compulsory vs voluntary provisions | The most repeated theme (1997–2025) |
| Numbers | 21 years, 20 lakh, 3 lakh, 10 lakh, 29 and 18, one-third, six months |
| Schemes | 2026 asked the revamped RGSA: check the period, aim and funding pattern of every Panchayati Raj scheme |
| PESA Gram Sabha powers | Learn the exact list; UPSC tests “minor minerals” and “minor forest produce” |