73rd Constitutional Amendment Act, 1992

📔Introduction

This is the constitutional heart of Panchayati Raj.
It added an entirely new Part (Part IX) to the Constitution and brought local self-government into the constitutional framework.

📘 Structure Introduced by the Act

Addition	Details
Part IX	Entitled “The Panchayats” — Articles 243 to 243-O
Eleventh Schedule	Contains 29 subjects of rural development under Panchayats — linked to Article 243-G

📜 Link with Directive Principles

Remember Article 40 of the Constitution?
It says:

“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.”

Until 1993, this was just a Directive Principle — i.e., non-binding on the government.
The 73rd Amendment gave practical shape to this article by transforming the directive into a binding constitutional reality.

So, what was earlier a moral instruction now became a legal compulsion.

🛡️ What Changed After the Act

Before this Act, Panchayati Raj institutions were like guests — they could be invited or dismissed by the state at will.
After this Act, they became constitutional citizens — with a guaranteed existence and legal protection.

Now:

States are constitutionally obligated to establish Panchayati Raj institutions.
Regular elections at fixed intervals became mandatory.
Their structure, composition, tenure, reservation, powers, and finances were all defined in the Constitution itself.

In short —

Panchayati Raj moved from “political discretion” to “constitutional obligation.”

⚙️ Compulsory vs Voluntary Provisions

The Act smartly balances uniformity with flexibility — by dividing its provisions into two types:

(A) Compulsory (Mandatory) Provisions

These must be included in every state’s Panchayati Raj law.
Examples:

Establishment of a three-tier system — Gram, Block, and District Panchayats.
Direct elections to all seats.
Reservation for SCs, STs, and women.
Fixed five-year term and regular elections.
Setting up of State Election Commissions and State Finance Commissions.

(B) Voluntary (Discretionary) Provisions

These can be adjusted by states according to local conditions — such as:

Giving taxation powers to Panchayats,
Defining specific subjects or functions,
Deciding organizational details, etc.

This dual design preserved India’s federal spirit while ensuring a common minimum framework across all states.

🌱 Significance of the 73rd Amendment

This Act is often called a “silent democratic revolution” because it brought democracy to the doorsteps of rural citizens.
It converted India from a representative democracy to a participatory democracy.

Let’s summarise its historical importance:

Aspect	Significance
Democratic Deepening	Brought 2.5 lakh local governments and millions of citizens into the democratic process.
Empowerment of Marginalised Groups	Reservation for SCs, STs, and women gave voice to the voiceless.
Administrative Decentralisation	Shifted focus from bureaucratic control to people’s participation.
Local Planning & Development	Enabled grassroots-level planning and implementation.
Stability	Gave PRIs a constitutional guarantee of continuity.

🌾 Salient Features of the 73rd Constitutional Amendment Act, 1992

This Act is the constitutional foundation of rural local self-government in India.
It institutionalised democracy at the grassroots level and created a uniform framework for Panchayati Raj across all states.

1. Gram Sabha – The Foundation of Democracy

The Gram Sabha is the soul of the Panchayati Raj system.

👉 Definition:
It is a body consisting of all the persons registered in the electoral rolls of a village within a Panchayat area.
In simple words, it is the assembly of all the registered voters of the village.

📌 So, remember:
Panchayat = elected body,
Gram Sabha = general body of all villagers.

The state legislature decides what powers and functions the Gram Sabha will have — like approving village plans, selecting beneficiaries, and ensuring transparency.

🗣️ “If Panchayati Raj is the tree of democracy, Gram Sabha is its root.” 🌱

2. Three-Tier Structure

The Act mandates a three-tier system of Panchayati Raj in every state:

Level	Name	Coverage
I	Gram Panchayat	Village level
II	Panchayat Samiti / Block Panchayat	Intermediate level
III	Zila Parishad	District level

✅ Exception:
If a state’s population is below 20 lakhs, it may not create the intermediate level Panchayat.

👉 Thus, Sikkim and a few smaller states are examples where the two-tier system exists.

This provision brought structural uniformity across the nation.

3. Election of Members and Chairpersons

All members of Panchayats at all three levels are directly elected by the people.
Chairpersons:
- At Village Level → manner decided by the State Legislature (some states elect directly, some indirectly).
- At Intermediate & District Levels → elected indirectly, by and from among the elected members of the Panchayat.

Every elected member, including the Chairperson, has the right to vote in Panchayat meetings.

4. Reservation of Seats

To ensure inclusive democracy, the Act made detailed provisions for social justice and gender representation:

SCs & STs → Reservation of seats in every Panchayat in proportion to their population.
1. Also applies to offices of Chairpersons at all levels.
Women → Not less than one-third of:
1. Total seats (including those for SC/ST women), and
2. Total offices of Chairpersons at all levels.
Backward Classes → States may provide reservation for them (discretionary).
Duration of Reservation → These reservations for SCs/STs will cease after the period mentioned in Article 334 — currently 80 years (till 2030).
Special Case: Arunachal Pradesh
1. As the state is entirely inhabited by tribal communities (no SC population),
  the reservation for SCs does not apply here.
  This exception was added by the 83rd Constitutional Amendment Act, 2000.

5. Duration (Tenure) of Panchayats

The term of every Panchayat is five years from the date of its first meeting.
It can, however, be dissolved earlier.

In case of dissolution:

Fresh elections must be held:
- Before expiry of the five-year term, or
- Within six months of dissolution (whichever is earlier).
If the remaining period of the dissolved Panchayat is less than six months, elections are not compulsory.
A Panchayat reconstituted after dissolution holds office only for the remainder of the original term (not a fresh five years).

👉 This ensures continuity and accountability.

6. Disqualifications

A person is disqualified for being chosen as or remaining a member of a Panchayat if:

He/she is disqualified under any law for state legislative elections, or
Under any state law relating specifically to Panchayat elections.

However:

Minimum age for contesting Panchayat elections = 21 years (not 25 as in Legislative Assembly).
All disqualification disputes are decided by an authority specified by the state legislature.

7. State Election Commission (SEC)

To ensure free and fair elections, the Act created an independent body in each state — the State Election Commission (Article 243K).

It controls and supervises the preparation of electoral rolls and conduct of Panchayat elections.
Headed by a State Election Commissioner (SEC), appointed by the Governor.
His tenure and service conditions are also decided by the Governor but with constitutional safeguards:
- He cannot be removed except in the manner and on the grounds applicable to a High Court judge.
- His service conditions cannot be varied to his disadvantage after appointment.

Thus, the SEC acts as the guardian of electoral democracy at the local level.

8. Powers and Functions of Panchayats

The State Legislature decides how much power to give to Panchayats.
It may devolve powers to enable them to function as institutions of self-government for:

Preparing plans for economic development and social justice, and
Implementing schemes related to the 29 subjects listed in the Eleventh Schedule.

This gives states flexibility — while also ensuring decentralisation of planning and development.

9. Financial Provisions

The State Legislature may:

Authorize Panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees.
Assign taxes collected by the state to Panchayats.
Grant-in-aid from the Consolidated Fund of the State.
Create funds for Panchayat finances.

Thus, financial decentralisation accompanies political decentralisation.

10. State Finance Commission (SFC)

To strengthen Panchayat finances, the Governor must constitute a State Finance Commission every five years (Article 243-I).

Functions:

Recommend principles for:
- Sharing of state taxes between state and Panchayats.
- Assigning specific taxes or duties to Panchayats.
- Grants-in-aid to Panchayats.
Suggest measures to improve Panchayat finances.
Any other matter referred by the Governor.

Process:

Governor places the Commission’s report and the Action Taken Report before the State Legislature.
The Central Finance Commission also recommends steps to supplement Panchayat resources.

11. Audit of Accounts

The State Legislature may make laws for:

Maintenance of Panchayat accounts, and
Audit of those accounts — ensuring financial transparency.

12. Application to Union Territories

The provisions of Part IX also apply to Union Territories,
but the President can modify or make exceptions as required.

13. Exempted States and Areas

The Act does not apply to:

Nagaland, Meghalaya, and Mizoram
Scheduled Areas and Tribal Areas (under 5th and 6th Schedules)
Hill Areas of Manipur (with District Councils)
Darjeeling District of West Bengal (Darjeeling Gorkha Hill Council)

However, Parliament can extend these provisions with modifications.
➡️ This was later done through the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) — ensuring tribal self-governance.

14. Continuance of Existing Laws and Panchayats

All state laws relating to Panchayats continued for one year from 24 April 1993 (the commencement date).
Within this period, states had to enact new laws conforming to the 73rd Amendment.
Old Panchayats continued till their term expired.

By 1993–94, almost all states passed their new Panchayati Raj Acts.

15. Bar on Court Interference

To maintain election autonomy:

No court can question the validity of any law concerning delimitation or seat allotment.
Panchayat elections can be challenged only through election petitions filed before authorities specified by state law.

16. Eleventh Schedule – Functional Domain of Panchayats

The Eleventh Schedule (Article 243-G) lists 29 subjects that may be devolved to Panchayats — covering nearly every aspect of rural development.

Some key examples:

Sector	Examples
Agriculture & Land	Agriculture, land reforms, irrigation, soil conservation
Rural Economy	Animal husbandry, fisheries, small-scale industries, village industries
Infrastructure	Roads, bridges, rural housing, electrification, drinking water
Social Sectors	Education, health, women & child development, social welfare
Natural Resources	Forests, minor produce, watershed development
Community Assets	Maintenance of community properties, markets, and fairs

This makes Panchayats directly responsible for economic development and social justice at the local level.

🧩 Compulsory vs Voluntary Provisions

To balance uniformity and flexibility, the Act classifies its features as:

A. Compulsory (Mandatory) Provisions

These must be followed by every state:

Organisation of Gram Sabha.
Establishment of Panchayats at all three levels.
Direct elections for all seats.
Indirect elections for Chairpersons at intermediate & district levels.
Voting rights for all elected members.
Minimum age 21 years to contest elections.
Reservation for SCs and STs (members & chairpersons).
One-third reservation for women.
Five-year tenure and elections within six months if dissolved.
State Election Commission.
State Finance Commission every five years.

B. Voluntary (Discretionary) Provisions

States have the freedom to decide on these:

Powers & functions of Gram Sabha.
Manner of electing village-level chairperson.
Representation of lower-level chairpersons in higher-level Panchayats.
Inclusion of MPs/MLAs in Panchayats.
Reservation for Backward Classes.
Granting Panchayats autonomy and devolution of powers.
Financial empowerment (taxation, funds, grants).
Implementation of Eleventh Schedule functions.

🧠 Final Summary

“The 73rd Amendment did not merely create local bodies —
it created local democracy.”

The Gram Sabha represents direct democracy.
The three-tier Panchayat represents representative democracy.
Together, they transform India into a participatory democracy.

And that is why —
📅 24 April (the day the Amendment came into force) is celebrated as National Panchayati Raj Day,
marking the true realisation of Mahatma Gandhi’s dream of Gram Swaraj — self-rule of the villages.