Constitution of India | LLB Entrance Notes

Panchayats, Municipalities and Co-operative Societies

Concise, updated notes on local self-government and co-operative societies under the Constitution of India, with key committees, constitutional amendments, Articles, Schedules, reservations, tenure and important legal developments.

Important Panchayati Raj Committees

1. Balwant Rai Mehta Committee, 1957

  • Examined the working of the Community Development Programme and National Extension Service.
  • Recommended democratic decentralisation through a three-tier Panchayati Raj structure: Gram Panchayat at village level, Panchayat Samiti at block/intermediate level and Zila Parishad at district level.
  • Favoured transfer of development responsibilities and resources to local bodies.
  • Rajasthan became the first State to inaugurate the Panchayati Raj system on 2 October 1959; Andhra Pradesh followed soon thereafter.

2. Ashok Mehta Committee, 1977

  • Recommended a two-tier system: Zila Parishad at district level and Mandal Panchayat below it.
  • Favoured stronger district-level planning, participation of political parties in Panchayat elections and regular elections.
  • Its recommendations were not implemented nationally in their entirety.

3. G. V. K. Rao Committee, 1985

  • Emphasised the central role of Panchayati Raj Institutions in rural development.
  • Recommended strengthening the district level and reducing excessive bureaucratic control over development administration.

4. L. M. Singhvi Committee, 1986

  • Recommended constitutional recognition for Panchayati Raj Institutions.
  • Stressed the importance of Gram Sabha, financial resources for Panchayats and mechanisms to deal with disputes concerning Panchayat elections.

5. P. K. Thungon Committee, 1988

  • Recommended constitutional status for Panchayati Raj bodies and a regular tenure.
  • Supported district planning and stronger local institutions.

6. Gadgil Committee, 1988

  • Recommended constitutional recognition, regular elections, reservation and financial strengthening of Panchayati Raj Institutions.
  • Its recommendations contributed to the constitutional reform process that culminated in the 73rd Amendment.

73rd Constitutional Amendment: Panchayats

The Constitution (Seventy-third Amendment) Act, 1992 inserted Part IX of the Constitution, containing Articles 243 to 243-O, and added the Eleventh Schedule. Part IX came into force on 24 April 1993.

Constitutional PartPart IX - The Panchayats
Articles243 to 243-O
ScheduleEleventh Schedule
Subjects29 matters listed in the Eleventh Schedule
Normal tenure5 years
Election authorityState Election Commission under Article 243K

Three levels of Panchayats

  • Village level: Gram Panchayat.
  • Intermediate level: Panchayat Samiti / Block Panchayat, where applicable. A State with a population not exceeding twenty lakhs may choose not to constitute the intermediate level.
  • District level: Zila Parishad / District Panchayat.

Reservation

  • Seats are reserved for Scheduled Castes and Scheduled Tribes in proportion to their population in the Panchayat area under Article 243D.
  • Not less than one-third of the total seats filled by direct election must be reserved for women, including women belonging to SC/ST categories.
  • Not less than one-third of the offices of Chairpersons at each level must be reserved for women.
  • State Legislatures may provide reservation for backward classes.

Duration and minimum age

  • Every Panchayat normally continues for five years from the date appointed for its first meeting unless sooner dissolved.
  • A person who has attained 21 years cannot be disqualified merely for being below 25 years, subject to other qualifications and disqualifications prescribed by law.
  • If a Panchayat is dissolved, an election is generally required before expiry of six months, subject to the constitutional exception where the remainder of the term is less than six months.

Finance and audit

  • Article 243H enables State Legislatures to authorise Panchayats to levy, collect and appropriate taxes, duties, tolls and fees and to receive assigned revenues and grants.
  • A State Finance Commission is constituted under Article 243I to review the financial position of Panchayats.
  • Article 243J enables State law to provide for maintenance and auditing of Panchayat accounts.

Where Part IX does not automatically apply

Article 243M contains specific constitutional exclusions. The position is more precise than saying that particular States simply have "no Panchayat".

  • Part IX does not apply to the Scheduled Areas and tribal areas referred to in Article 244, subject to Parliamentary extension.
  • It does not apply to the States of Nagaland, Meghalaya and Mizoram.
  • It does not apply to hill areas in the State of Manipur for which District Councils exist under law.
  • Special protection is also provided for certain hill areas of the Darjeeling district in West Bengal in relation to the functions and powers of the Darjeeling Gorkha Hill Council framework.
PESA, 1996: Parliament enacted the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 to extend Part IX to Fifth Schedule areas with important exceptions and modifications safeguarding customary law, community resources and Gram Sabha powers.

74th Constitutional Amendment: Municipalities

The Constitution (Seventy-fourth Amendment) Act, 1992 inserted Part IXA, containing Articles 243P to 243ZG, and added the Twelfth Schedule. Part IXA came into force on 1 June 1993.

Types of Municipalities under Article 243Q

  • Nagar Panchayat for a transitional area moving from rural to urban character.
  • Municipal Council for a smaller urban area.
  • Municipal Corporation for a larger urban area.
Constitutional PartPart IXA - The Municipalities
Articles243P to 243ZG
ScheduleTwelfth Schedule
Functions18 matters listed in the Twelfth Schedule
Normal tenure5 years
Election authorityState Election Commission under Article 243ZA read with Article 243K

Reservation in Municipalities

  • Seats are reserved for SCs and STs in proportion to their population in the municipal area under Article 243T.
  • Not less than one-third of the total directly elected seats are reserved for women, including seats reserved for SC/ST women.
  • State law may provide reservation for backward classes and reservation of offices of Chairpersons.

The first municipal corporation in India is generally traced to Madras (Chennai), established in 1688. The 74th Amendment gave constitutional status to urban local bodies during the tenure of Prime Minister P. V. Narasimha Rao.

Co-operative Societies and the 97th Constitutional Amendment

The Constitution (Ninety-seventh Amendment) Act, 2011 strengthened the constitutional framework for co-operative societies. It inserted the words relating to the right to form co-operative societies in Article 19(1)(c), added Article 43B to the Directive Principles of State Policy and introduced Part IXB (Articles 243ZH to 243ZT).

Important current legal position: In Union of India v. Rajendra N. Shah (2021), the Supreme Court held that Part IXB could not operate in relation to co-operative societies confined to a single State because the constitutional amendment had not received the ratification required under Article 368(2). Part IXB remains operative in relation to multi-State co-operative societies and co-operative societies in Union Territories.

Key examination points

  • Article 43B: the State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.
  • Part IXB: Articles 243ZH to 243ZT, subject to the Supreme Court ruling noted above.
  • Article 243ZJ contemplates a board with a maximum of 21 directors, with specified reservation provisions, where Part IXB validly applies.
  • For societies whose objects are confined to one State, the applicable State co-operative law remains central to governance.
  • Multi-State co-operative societies are governed by the Multi-State Co-operative Societies Act, 2002, which was substantially amended by the Multi-State Co-operative Societies (Amendment) Act, 2023.

Quick Revision for LLB Entrance

  • 73rd Amendment: Panchayats - Part IX - Articles 243 to 243-O - Eleventh Schedule - 29 subjects.
  • 74th Amendment: Municipalities - Part IXA - Articles 243P to 243ZG - Twelfth Schedule - 18 subjects.
  • 97th Amendment: Co-operative societies - Article 19(1)(c), Article 43B and Part IXB, subject to the 2021 Supreme Court ruling.
  • Tenure: Panchayats and Municipalities ordinarily have a five-year term.
  • Women: Constitution guarantees not less than one-third reservation in directly elected seats in Panchayats and Municipalities; many States provide a higher percentage under State law.
  • PESA, 1996: extends Panchayat provisions to Fifth Schedule areas with statutory modifications.

Updated for constitutional and statutory position as reviewed on 5 September 2026. This page is intended as an examination-oriented study note; State-specific local-government and co-operative laws may contain additional provisions.