Panchayat Raj : Constitutional Provisions
The Constitution (Seventy-Third Amendment) Act, 1992
   Part IX
   Eleventh Schedule
The Constitution (Seventy-Fourth Amendment) Act, 1992
   Part IXA
   Twelfth Schedule

An Act further to amend the Constitution of India.

BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:-

1.   Short  title  and commencement.-(1) This Act may be  called  the Constitution (Seventy-third Amendment) Act, 1992.

(2)  It  shall  come  into  force on  such  date_680  as  the  Central Government may, by notification in the Official Gazette, appoint. 2.   Insertion  of new Part IX.- After Part VIII of the  Constitution, the following Part shall be inserted, namely:-

PART IX
THE PANCHAYATS

243.   Definitions.-  In  this  Part,  unless  the   context  otherwise requires,- (a) "district" means a district in a State;

(b)  "Gram  Sabha" means a body consisting of persons registered  in the electoral rolls relating to a village comprised within the area of Panchayat at the village level;

(c)  "Intermediate  level"  means   a level  between  the  village  and district  levels  specified  by  the Governor of  a  State   by  public notification  to  be the intermediate level for the purposes  of  this Part;

(d)  "Panchayat"  means  an institution (by whatever name  called)  of self-government constituted under article 243B, for the rural areas;

(e) "Panchayat area" means the territorial area of a Panchayat;

(f)  "population"  means  the population as ascertained  at  the  last preceding census of which the relevant figures have been published;

(g)  "village"  means  a village specified by the Governor  by  public notification  to  be  a  village for the purposes  of  this   Part  and includes a group of villages so specified.

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.

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  in-termediate level may not be constituted in a State having a population not exceeding twenty lakhs.

243C.   Composition  of Panchayats.- (1) Subject to the provisions  of this  Part,  the Legislature of a State may, by law,  make  provisions with respect to the composition of Pancayats:

Provided that the ratio between the population of the territorial area of  a Panchayat at any level and the number of seats in such Panchayat to  be  filled by election shall, so far as practicable, be  the  same throughout the State.

(2)  All the seats in a Panchayat shall be filled by persons chosen by direct  election from territorial constituencies in the Panchayat area and;   for  this  purpose, each Panchayat area shall be  divided   into territorial  constituencies in such manner that the ratio between  the population of each constituency and the number of seats allotted to it shall,  so  far as practicable, be the same throughout  the  Panchayat area.

(3)  The  Legislature  of  a State may, by law, provide  for  the  re- presentation-

(a) of the Chairpersons of the Panchayats at the village level, in the Panchayats  at  the intermediate level or, in the case of a State  not having  Panchayats at the intermediate level, in the Pancayats at the district level;

(b)  of the Chairpersons of the Panchayats at the intermediate  level, in the Panchayats at the district level;

(c)  of the members of the House of the People and the members of  the Legislative  Assembly  of the State representing constituencies  which comprise  wholly or partly a Panchayat area at a level other than  the village level, in such Panchayat;

(d)  of  the members of the Council of States and the members  of  the Legislative  Council  of  the  State, where  they  are   registered  as electors within-

(i)  a  Panchayat area at the intermediate level, in Panchayat at  the intermediate level;

(ii)  a  Panchayat  area at the district level, in  Panchayat  at  the district level.

(4)  The  Chairperson of a Panchayat and other members of a  Panchayat whether   or   not  chosen  by   direct   election   from   territorial constituencies  in the Panchayat area shall have the right to vote  in the meetings of the Panchayats.

(5) The Chairperson of -

(a)  a Panchayat at the village level shall be elected in such  manner as the Legislature of a State may, by law, provide; and

(b)  a Panchayat at the intermediate level or district level shall  be elected by, and from amongst, the elected members thereof.

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 of 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  that the number of offices of Chairpersons reserved for  the Scheduled  Castes  and the Scheduled Tribes in the Panchayats at  each level  in  any  State  shall  bear, as nearly  as  may   be,  the  same proportion  to  the total number of such offices in the Panchayats  at each  level as the population of the Scheduled Castes in the State  or of  the Scheduled Tribes in the State bears to the total population of the State:

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:

Provided  also  that the number of offices reserved under this  clause shall be allotted by rotation to different Panchayats at each level.

(5)  The  reservation  of  seats under clauses (1)  and  (2)  and  the reservation of offices of Chairpersons (other than the reservation for women)  under clause (4) shall cease to have effect on the  expiration of the period specified in article 334.

(6) Nothing in this Part shall prevent the Legislature of a State 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.

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.

(2) No amendment of any law for the time being in force shall have the effect  of  causing dissolution of a Panchayat at any level, which  is functioning  immediately before such amendment, till the expiration of its duration specified in clause (1).

(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.

(4) A Panchayat constituted upon the dissolution of a Panchayat before the  expiration of its duration shall continue only for the  remainder of  the period for which the dissolved Panchayat would have  continued under clause (1) had it not been so dissolved.

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;

(b)  if  he  is  so  disqualified by or under  any  law  made  by  the Legislature of the State.

(2)  If any question arises as to whether a member of a Panchayat  has become  subject  to any of the disqualifications mentioned  in  clause (1), the question shall be referred for the decision of such authority and in such manner as the Legislature of a State may, by law, provide.

243G.   Powers, authority and responsibilities of Panchayats.- Subject to  the  provisions of this Constitution, the Legislature of  a  State may,  by  law, endow the Panchayats with such powers and authority  as may  be  necessary  to  enable them to  function  as   institutions  of self-government and such law may contain provisions for the devolution of  powers  and  responsibilities upon Panchayats at  the   appropriate level,  subject  to such conditions as may be specified therein,  with respect to-

(a)  the  preparation  of plans for economic  development  and  social justice;

(b)  the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule.

243H.   Powers  to impose taxes by, and Funds of, the  Panchayats.-The Legislature of a State may, by law,-

(a) authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;

(b)  assign  to a Panchayat such taxes, duties, tolls and fees  levied and collected by the State Government for such purposes and subject to such conditions and limits;

(c)  provide for making such grants-in-aid to the Panchayats from  the Consolidated Fund of the State;  and

(d)  provide  for Constitution of such Funds for crediting all  moneys received, respectively, by or on behalf of the Panchayats and also for the withdrawal of such moneys therefrom, as may be specified in the law.

243-I.   Constitution  of  Finance    Commission  to  review  financial position.-(1)  The Governor of a State shall, as soon as may be within one  year  from  the commencement of the  Constitution   (Seventy-third Amendment)  Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor as to-

(a) the principles which should govern-

(i)  the distribution between the State and the Panchayats of the  net proceeds  of the taxes, duties, tolls and fees leviable by the  State, which  may be divided between them under this Part and the  allocation between  the  Panchayats at all levels of their respective  shares  of such proceeds;

(ii)  the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Panchayat;

(iii)  the grants-in-aid to the Panchayats from the Consolidated  Fund of the State;

(b)  the  measures  needed to improve the financial  position  of  the Panchayats;

(c)  any  other  matter  referred to the  Finance  Commission  by  the Governor in the interests of sound finance of the Panchayats.

(2)  The  Legislature  of  a   State  may,  by  law,  provide  for  the composition  of  the  commission, the qualifications  which   shall  be requisite  for appointment as members thereof and the manner in  which they shall be selected.

(3) The Commission shall determine their procedure and shall have such powers in the performance of their functions as the Legislature of the State may, by law, confer on them.

(4)  The  Governor  shall  cause   every  recommendation  made  by  the Commission  under this article together with an explanatory memorandum as  to  the action taken thereon to be laid before the Legislature  of the State.

243J.   Audit  of accounts of Panchayats.- The Legislature of a  State may,  by  law,  make  provisions with respect to  the   maintenance  of accounts by the Panchayats and the auditing of such accounts.

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.

(2)  Subject to the provisions of any law made by the Legislature of a State,  the  conditions of service and tenure of office of  the  State Election  Commissioner  shall be such as the Governor may by rule  de-termine:

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.

(3)  The  Governor  of a State shall, when so requested by  the  State Election  Commission, make available to the State Election  Commission such staff as may be necessary for the discharge of the functions conferred on the State Election Commission by clause (1).

(4) Subject to the provisions of this Constitution, the Legislature of a  State  may, by law, make provision with respect to all matters  re-lating to, or in connection with, elections to the Panchayats.

243L.   Application to Union territories.-The provisions of this  Part shall  apply to the Union territories and shall, in their  application to a Union territory, have effect as if the references to the Governor of a State were references to the Administrator of the Union territory appointed  under article 239 and references to the Legislature or  the Legislative  Assembly  of  a State were references, in relation  to   a Union  territory  having a Legislative Assembly, to  that  Legislative Assembly:

Provided  that the President may, by public notification, direct  that the provisions of this Part shall apply to any Union territory or part thereof subject to such exceptions and modifications as he may specify in the notification.

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.

(3) Nothing in this Part-

(a)  relating  to Panchayats at the district level shall apply to  the hill  areas of the District of Darjeeling in the State of West  Bengal for  which Darjeeling Gorkha Hill Council exists under any law for the time being in force;

(b)  shall  be  construed to affect the functions and  powers  of  the Darjeeling Gorkha Hill Council constituted under such law.

(4) Notwithstanding anything in this Constitution,-

(a) the Legislature of a State referred to in sub-clause (a) of clause (2)  may, by law, extend this Part to that State, except the areas, if any,  referred  to in clause (1), if the Legislative Assembly of  that State  passes  a resolution to that effect by a majority of the  total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting;

(b)  Parliament may, by law, extend the provisions of this 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.

243N.   Continuance  of existing laws and   Panchayats.-Notwithstanding anything in this Part, any provision of any law relating to Panchayats in  force  in  a  State immediately before  the   commencement  of  the Constitution   (Seventy-third   Amendment)  Act,     1992,   which   is inconsistent with the provisions of this Part, shall continue to be in force  until  amended or repealed by a competent Legislature or  other competent  authority  or  until the expiration of one year  from   such commencement, whichever is earlier:

Provided  that  all  the Panchayats existing immediately  before  such commencement  shall  continue till the expiration of  their  duration, unless  sooner dissolved by a resolution passed to that effect by  the Legislative Assembly of that State or, in the case of a State having a Legislative Council, by each House of the Legislature of that State.

243-O.   Bar  to  interference   by   courts  in  electoral   matters.- Notwithstanding anything in this Constitution,-

(a)  the  validity  of  any  law    relating  to  the  delimitation  of constituencies  or the allotment of seats to such constituencies, made or  purporting  to be made under article 243K, shall not be called  in question in any court;

(b) no election to any Panchayat shall be called in question except by an election petition presented to such authority and in such manner as is  provided  for  by or under any law made by the  Legislature   of  a State.'.

Constitution,  after sub-clause (b), the following sub-clause shall be inserted, namely:-

"(bb)  the measures needed to augment the Consolidated Fund of a State to  supplement  the  resources of the Panchayats in the State  on   the basis  of  the recommendations made by the Finance Commission  of  the State;".

Constitution, the following Schedule shall be added, namely:-

ELEVENTH SCHEDULE

(Article 243G)

1.  Agriculture, including agricultural extension.

2.  Land improvement, implementation land reforms, land consolidation and soil conservation.

3.  Minor irrigation, water management and watershed development.

4.  Animal husbandry, dairying and poultry.

5.  Fisheries.

6.  Social forestry and farm forestry.

7.  Minor forest produce.

8.  Small scale industries, including food processing industries.

9.  Khadi, village and cottage industries.

10.  Rural housing.

11.  Drinking water.

12.  Fuel and fodder.

13.  Roads, culverts, bridges, ferries, waterways and other means of communication.

14.  Rural electrification, including distribution of electricity.

15.  Non-conventional energy sources.

16.  Poverty alleviation programme.

17.  Education, including primary and secondary schools.

18.  Technical training and vocational education.

19.  Adult and non-formal education.

20.  Libraries.

21.  Cultural activities.

22.  Markets and fairs.

23.  Health  and  sanitation,   including  hospitals,  primary  health centres and dispensaries.

24.  Family welfare.

25.  Women and child development.

26.  Social welfare, including welfare of the handicapped and mentally retarded.

27.  Welfare  of  the  weaker sections, and  in  particular,  of  the Scheduled Castes and the Scheduled Tribes.

28.  Public distribution system.

29.  Maintenance of community assets.

An Act further to amend the Constitution of India.

BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:-

1. Short title and commencement.-(1) This Act may be called the Constitution (Seventy-fourth Amendment) Act, 1992.

(2) It shall come into force on such date_681 as the Central Government may, by notification in the Official Gazette, appoint.

2. Insertion of new Part IXA.-After Part IX of the Constitution, the following Part shall be inserted, namely:-

PART IXA
THE MUNICIPALITIES

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

(a) "Committee" means a Committee constituted under article 243S;

(b) "district" means a district in a State;

(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;

(d) "Municipal area" means the territorial area of a Municipality as is notified by the Governor;

(e) "Municipality" means an institution of self-government constituted under article 243Q;

(f) "Panchayat" means a Panchayat constituted under article 243B;

(g) "population" means the population as ascertained at the last preceding census of which the relevant figures have been published.

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.

(2) In this article, "a transitional area", "a smaller urban area" or "a larger urban area" means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part.

243R. Composition of Municipalities.- (1) Save as provided in clause (2), all the seats in a Municipality shall be filled by persons chosen by direct election from the territorial constituencies in the Municipal area and for this purpose each Municipal area shall be divided into territorial constituencies to be known as wards.

(2) The Legislature of a State may, by law, provide-

(a) for the representation in a Municipality of-

(i) persons having special knowledge or experience in Municipal administration;

(ii) the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies which comprise wholly or partly the Municipal area;

(iii) the members of the Council of States and the members of the Legislative Council of the State registered as electors within the Municipal area;

(iv) the Chairpersons of the Committees constituted under clause (5) of article 243S:

Provided that the persons referred to in paragraph (i) shall not have the right to vote in the meetings of the Municipality;

(b) the manner of election of the Chairperson of a Municipality.

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.

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

(a) the composition and the territorial area of a Wards Committee;

(b) the manner in which the seats in a Wards Committee shall be filled.

(3) A member of a Municipality representing a ward within the territorial area of the Wards Committee shall be a member of that Committee.

(4) Where a Wards Committee consists of-

(a) one ward, the member representing that ward in the Municipality; or

(b) two or more wards, one of the members representing such wards in the Municipality elected by the members of the Wards Committee,

shall be the Chairperson of that Committee.

(5) Nothing in this article shall be deemed to prevent the Legislature of a State from making any provision for the constitution of Committees in addition to the Wards Committees.

243T. Reservation of seats.-(1) Seats shall be reserved for the Scheduled Castes and the Scheduled Tribes in every Municipally 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 Municipality as the population of the Scheduled Castes in the Municipal area or of the Scheduled Tribes in the Municipal area bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Municipality.

(2) Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to the Sche- duled 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 Municipality shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Municipality.

(4) The officers of Chairpersons in the Municipalities 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.

(5) The reservation of seats under clauses (1) and (2) and the reservation of offices of Chairpersons (other than the reservation for women) under clause (4) shall cease to have effect on the expiration of the period specified in article 334.

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

243U. Duration of Municipalities, etc.-(1) Every Municipality, 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:

Provided that a Municipality shall be given a reasonable opportunity of being heard before its dissolution.

(2) No amendment of any law for the time being in force shall have the effect of causing dissolution of a Municipality at any level, which is functioning immediately before such amendment, till the expiration of its duration specified in clause (1).

(3) An election to constitute a Municipality 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 Municipality would have continued is less than six months, it shall not be necessary to hold any election under this clause for constituting the Municipality for such period.

(4) A Municipality constituted upon the dissolution of a Muni- cipality before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Municipality would have continued under clause (1) had it not been so dissolved.

243V. Disqualifications for membership.-(1) A person shall be disqualified for being chosen as, and for being, a member of a Municipality-

(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;

(b) if he is so disqualified by or under any law made by the Legislature of the State.

(2) If any question arises as to whether a member of a Municipality has become subject to any of the disqualifications mentioned in clause (1), the question shall be referred for the decision of such authority and in such manner as the Legislature of a State may, by law, provide.

243W. Powers, authority and responsibilities of Municipalities, etc.- Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow-

(a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to-

(i) the preparation of plans for economic development and social justice;

(ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule;

(b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule.

243X. Power to impose taxes by, and Funds of, the Municipalities.-The Legislature of a State may, by law,-

(a) authorise a Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;

(b) assign to a Municipality such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits;

(c) provide for making such grants-in-aid to the Municipalities from the Consolidated Fund of the State; and

(d) provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Municipalities and also for the withdrawal of such moneys therefrom.

as may be specified in the law.

243Y. Finance Commission.-(1) The Finance Commission constituted under article 243-I shall also review the financial position of the Municipalities and make recommendations to the Governor as to-

(a) the principles which should govern-

(i) the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Municipalities at all levels of their respective shares of such proceeds;

(ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Municipalities;

(iii) the grants-in-aid to the Municipalities from the Consolidated Fund of the State;

(b) the measures needed to improve the financial position of the Municipalities;

(c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Municipalities.

(2) The Governor shall cause every recommendation made by the Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State.

243Z. Audit of accounts of Municipalities.-The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Municipalities and the auditing of such accounts.

243ZA. Elections to the Municipalities.-(1) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to the Municipalities shall be vested in the State Election Commission referred to in article 243K.

(2) Subject to the provisions of this Constitution, the Legislature of a State may, by law, make provision with respect to all matters relating to, or in connection with, elections to the Municipalities.

243ZB. Application to Union territories.-The provisions of this Part shall apply to the Union territories and shall, in their application to a Union territory, have effect as if the references to the Governor of a State were references to the Administrator of the Union territory appointed under article 239 and references to the Legislature or the Legislative Assembly of a State were references in relation to a Union territory having a Legislative Assembly, to that Legislative Assembly:

Provided that the President may, by public notification, direct that the provisions of this Part shall apply to any Union territory or part thereof subject to such exceptions and modifications as he may specify in the notification.

243ZC. 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 be construed to affect the functions and powers of the Darjeeling Gorkha Hill Council constituted under any law for the time being in force for the hill areas of the district of Darjeeling in the State of West Bengal.

(3) Notwithstanding anything in this Constitution, 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.

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 Municipalitiies in the district and to prepare a draft development plan for the district as a whole.

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

(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 mambers 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;

(c) the functions relating to district planning which may be assigned to such Committees;

(d) the manner in which the Chairpersons of such Committees shall be chosen.

(3) Every District Planning Committee shall, in preparing the draft development plan,-

(a) have regard to-

(i) matters of common interest between the Panchayats and the Municipalities including spatial planning, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation;

(ii) the extent and type of available resources whether financial or otherwise;

(b) consult such institutions and organisations as the Governor may, by order, specify.

(4) The Chairperson of every District Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State.

243ZE. Committee for Metropolitan planning.-(I) 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;

(c) the representation in such Committees of the Government of India and the Government of the State and of such organisations and institutions as may be deemed necessary for carrying out the functions assigned to such Committees;

(d) the functions relating to planning and coordination for the Metropolitan area which may be assigned to such Committees;

(e) the manner in which the Chairpersons of such Committees shall be chosen.

(3) Every Metropolitan Planning Committee shall, in preparing the draft development plan,-

(a) have regard to-

(i) the plans prepared by the Municipalities and the Panchayats in the Metropolitan area;

(ii) matters of common interest between the Municipalities and the Panchayats, including co-ordinated spatial planning of the area, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation;

(iii) the overall objectives and priorities set by the Government of India and the Government of the State;

(iv) the extent and nature of investments likely to be made in the Metropolitan area by agencies of the Government of India and of the Government of the State and other available resources whether financial or otherwise;

(b) consult such institutions and organisations as the Governor may, by order, specify.

(4) The Chairperson of every Metropolitan Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State.

243ZF. Continuance of existing laws and Municipalities.- Notwithstanding anything in this Part, any provision of any law relating to Municipalities in force in a State immediately before the commencement of THE CONSTITUTION (Seventy-fourth Amendment) Act, 1992, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is earlier:

Provided that all the Municipalities existing immediately before such commencement shall continue till the expiration of their duration, unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of that State or, in the case of a State having a Legislative Council, by each House of the Legislature of that State.

243ZG. Bar to interference by courts in electoral matters.- Notwithstanding anything in this Constitution,-

(a) the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies, made or purporting to be made under article 243ZA shall not be called in question in any court;

(b) no election to any Municipality shall be called in question except by an election petition presented to such authority and in such manner as is provided for by or under any law made by the Legislature of a State.'.

3. Amendment of article 280.- In clause (3) of article 280 of the Constitution, sub-clause (c) shall be relettered as sub-clause (d) and before sub-clause (d) as so relettered, the following sub-clause shall be inserted, namely:-

"(c) the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State;".

4. Addition of Twelfth Schedule.-After the Eleventh Schedule to the Constitution, the following Schedule shall be added, namely:-

TWELFTH SCHEDULE
(Article 243W)

1. Urban planning including town planning.

2. Regulation of land-use and construction of buildings.

3. Planning for economic and social development.

4. Roads and bridges.

5. Water supply for domestic, industrial and commercial purposes.

6. Public health, sanitation conservancy and solid waste manage- ment.

7. Fire services.

8. Urban forestry, protection of the environment and promotion of ecological aspects.

9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.

10. Slum improvement and upgradation.

11. Urban poverty alleviation.

12. Provision of urban amenities and facilities such as parks, gardens, playgrounds.

13. Promotion of cultural, educational and aesthetic aspects.

14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums.

15. Cattle pounds; prevention of cruelty to animals.

16. Vital statistics including registration of births and deaths.

17. Public amenities including street lighting, parking lots, bus stops and public conveniences.

18. Regulation of slaughter houses and tanneries.