Panchayats, Municipalities and Co-operative Societies.pptx

Panchayats, Municipalities and Co-operative Societies.pptx

1. Panchayats, Municipalities and Co-operative Societies

2. Introduction As Abraham Lincoln rightly said, a democracy is a government “of the people, by the people, and for the people.” Therefore, in a democracy, should give every person the right to choose his or her representative who would manage the affairs of that area. A salient feature of a good democracy is the percolation of the self-government mechanism to the grassroots level. This has led to the establishment of panchayats, municipalities and co-operative societies, which have enable better decision-making and greater accountability in rural and urban localities of India.

3. 1. Panchayats Panchayats first came up in Rajasthan, upon the recommendations of Balwant Rai Committee. Other states like Andhra Pradesh and Maharashtra followed suit. However, there was no obligation on the states to set up panchayats in their territory. As the existing panchayat systems started going lax, the L.M. Singhvi Committee recommended a more well-established decentralised administration in the country. Thus, Part IX was added to the Constitution through the 73 rd Amendment. It talks about panchayats. GRAM SABHA Gram Sabha is the fundamental base of the panchayat system. It is defined as the body of all adult persons on the electoral roles of a village. This body elects the members of the panchayat. It also acts as a platform to discuss matters of governance and development.

4. CONSTITUTION OF PANCHAYATS A Panchayat refers to an institution of self-government in rural areas. There are three main types of panchayats: Gram Panchayat, in villages Panchayat Samiti, in blocks Zila Parishad, in districts COMPOSITION OF PANCHAYATS All the members of the three levels of panchayats are elected. The State may also provide for the representation of MLAs in the panchayats. There are a large number of panchayats in each state. It is desirable that throughout the state, the ratio of the population and territory under a panchayat and the number of seats in it be the same.

5. DISQUALIFICATION OF MEMBERSHIP A person may be disqualified from the membership of a panchayat in 2 cases: When he has been disqualified from the membership of the Parliament or the State Legislature due to any reason When a law disqualifies him from the membership of the panchayat In the case of Bhanumati Etc. v. State of U.P. (2010), the court confirmed that the State could determine the rules for election and control of members and so, if State law provided for a no-confidence motion for disqualification of membership, it would not be invalid even though the Constitution does not provide for the same. ELECTIONS TO A PANCHAYAT Panchayat elections are conducted and overseen by the State Election Commissions. The election rules can vary from state-to-state.

6. RESERVATION OF SEATS IN PANCHAYATS The provisions for reservation of seats in a panchayat for marginalised communities are as follows: Seats should be reserved for members of Scheduled Castes and Scheduled Tribes in the panchayat, in the same proportion which their population bears to the total population of the village. At least one-third of the above-mentioned seats should be reserved for women belonging to Scheduled Castes and Scheduled Tribes. At least one-third of the total seats in the panchayat should be reserved for women (including the seats reserved under Clause 2). DURATION OF A PANCHAYAT The duration of every panchayat is 5 years, unless it is dissolved earlier by any law.

7. POWERS, AUTHORITY AND RESPONSIBILITY OF PANCHAYATS A Panchayat is responsible for making plans and schemes for economic development and promotion of social justice in the village. The main functions of a panchayat are: Providing necessary facilities like sanitation, schools, irrigation, drinking water, etc. Making annual developmental plans for the area Making the annual budget and managing the finances of the area. Implementing and coordinating schemes launched by the Central and State governments, like the Public Distribution System. POWER TO IMPOSE TAXES AND FUNDS OF PANCHAYATS According to the Constitution, t he State can take decisions to: Grant the requisite power to the panchayat to levy taxes, tolls, and fees.  Assign to the panchayat some of the money collected by it in similar ways. Make grants to the panchayat, or create funds for it.

8. FINANCE COMMISSION To make the mobilisation of funds for the panchayats easier, a Finance Commission is created by the State Governor. The Constitution provides that: The Finance Commission shall review the financial position of the panchayat and make recommendations on how to distribute the money between the state and the panchayat, and how to improve the financial position of the latter. The Legislature would decide the composition and powers of the Commission. The Governor shall communicate all the recommendations to the state as well as the measures it should take to implement them. AUDIT OF ACCOUNTS OF A PANCHAYAT State governments have the power to determine who will audit the accounts of panchayats and what procedure will be followed.

9. APPLICATION OF PART IX TO UNION TERRITORIES The provisions related to panchayats apply to Union Territories in the same way as in the case of the states, but the President may, by public notification, make any modifications in this provision. PART IX TO NOT APPLY TO CERTAIN AREAS The provisions of Part IX do not apply to certain areas, which are: The Schedules Areas and tribal areas in Assam, Meghalaya, Tripura, and Mizoram The states of Nagaland, Meghalaya, and Mizoram The hilly areas in Manipur and Darjeeling. However, the Legislature can decide to extend Part IX to some of the above exceptions. The Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996 or PESA brought about a relaxation in exclusion of Scheduled Areas from the 73rd Amendment. Local self-government system was introduced in ten out of fifteen states having Scheduled Areas. 

10. CONTINUANCE OF EXISTING LAWS AND PANCHAYATS The Constitution says that any laws and provisions in a state regarding panchayats, which existed before the 73 rd amendment would continue to be in force even if they were inconsistent with Part IX of the Constitution. They would only cease to exist if they were specifically repealed or amended by a competent Legislature or any other competent authority. COURTS TO NOT INTERFERE IN PANCHAYAT MATTERS Courts are not allowed to interfere in the matters of panchayats, like delimitation or allotment of seats. Courts have no jurisdiction in panchayat elections. If there are any disputes in an election process, the court cannot step in to resolve them. A panchayat’s elections can be questioned only by an election petition presented before the authority that the State government has prescribed.

11. 2. Municipalities After the Panchayati Raj in rural areas, a system of self-governance at the smallest units was established in urban areas too. It was added to the Constitution by the Constitution (Seventy-Fourth Amendment) Act, 1992 , which was also known as the “ Nagarpalika Act”. This allows the members of a particular urban locality to come together and work towards solving the issues in their area and implementing plans for its development. The urban local self-government is called municipality.

12. CONSTITUTION OF MUNICIPALITIES There are three different types of municipalities: Nagar Panchayats, for transitioning areas (areas turning from rural to urban) Municipal Councils, for smaller urban areas Municipal Corporations, for larger urban areas Most of the members of municipalities are elected, while there may be some who are nominated by virtue of their special knowledge and expertise. The state may also provide for representation of members of the Legislative Assembly and Legislative Council in the municipality.  WARD COMMITTEES For the purpose of conducting elections to the municipality, the area under its jurisdiction is divided into Wards. These Wards also have their own Committees, consisting of one or more wards within the area of all municipalities having a population of 3 lakh or more.

13. RESERVATION OF SEATS IN MUNICIPALITIES The provisions for reservation of seats in a municipality for marginalised communities are as follows: Seats should be reserved for members of Scheduled Castes and Scheduled Tribes in the municipality, in the same proportion which their population bears to the total population of the locality. At least one-third of the above-mentioned seats should be reserved for women belonging to Scheduled Castes and Scheduled Tribes. At least one-third of the total seats in the municipality should be reserved for women (including the seats reserved under Clause 2). The offices of the Chairpersons shall be reserved for Scheduled Castes, Scheduled Tribes and women as the Legislature decides. The Article also says that the Legislature can take extend the reservations to backward classes if it feels the need to do so. DURATION OF A MUNICIPALITY The duration of a municipality is 5 years, unless it is dissolved earlier by any law.

14. DISQUALIFICATION OF MEMBERSHIP A person may be disqualified from the membership of a municipality in 2 cases: When he has been disqualified from the membership of the Parliament or the State Legislature due to any reason When a law disqualifies him from the membership of the municipality. POWERS, AUTHORITY AND RESPONSIBILITY OF A MUNICIPALITY Municipalities regulate the affairs of the localities - ensuring access to civic amenities and formulating plans for development. The main functions of a municipality are: Construction of buildings and regulation of land use Managing the water supply Protecting natural resources and regulating their use Ensuring public health and proper sanitation Construction of schools in the locality

15. POWER TO COLLECT TAXES AND FUNDS OF MUNICIPALITIES According to the Constitution, t he State can take decisions to: Grant the requisite power to the municipality to levy taxes, tolls, and fees.  Assign to the municipality some of the money collected by it in similar ways. Make grants to the municipality, or create funds for it. FINANCE COMMISSION To make the mobilisation of funds for the municipality easier, a Finance Commission is created by the State Governor. The Constitution provides that: The Finance Commission shall review the financial position of the municipality and make recommendations on how to distribute the money between the state and the municipality, and how to improve the financial position of the latter. The Legislature would decide the composition and powers of the Commission. The Governor shall communicate all the recommendations to the state as well as the measures it should take to implement them.

16. AUDIT OF ACCOUNTS OF A MUNICIPALITY State governments have the power to determine who will audit the accounts of municipalities and what procedure will be followed. ELECTIONS TO A MUNICIPALITY Municipality elections are conducted and overseen by the State Election Commissions. The election rules can vary from state-to-state. APPLICATION OF PART IX-A TO UNION TERRITORIES The provisions related to municipalities apply to Union Territories in the same way as in the case of the states, but the President may, by public notification, make any modifications in this provision.

17. PART IX-A TO NOT APPLY TO CERTAIN AREAS The areas where provisions of Part IX-A do not apply are as follows: The Scheduled Areas and tribal areas in the states of Assam, Meghalaya, Tripura, and Mizoram  The Darjeeling Gorkha Hill Council. However, the Parliament can choose to extend the provisions of Part IX to the Scheduled Areas mentioned above, subject to certain exceptions and modifications specified by law. COMMITTEE FOR DISTRICT PLANNING A Committee for District Planning is set up to consolidate the plans made by panchayats and municipalities in a district. It is responsible for preparing development plans for the district, keeping in mind the interests of both the rural and urban areas within it and the resources available with the district. These plans are communicated by the Chairperson of the Committee to the State government.

18. COMMITTEE FOR METROPOLITAN PLANNING A Committee for Metropolitan Planning is created in every Metropolitan area in a state, which makes plans for development keeping in mind the needs of the rural and urban areas within it (with respect to water and other natural resources, infrastructure, etc.). It also implements the plans made by the Union or the State and makes investments in the metropolitan area. CONTINUANCE OF EXISTING LAWS AND MUNICIPALITIES The Constitution says that any laws and provisions in a state regarding municipalities, which existed before the 74 th amendment would continue to exist even if they were inconsistent with Part IX-A of the Constitution. They would only cease to exist if they were specifically repealed or amended by a competent Legislature or any other competent authority.

19. COURTS TO NOT INTERFERE IN MUNICIPAL MATTERS Courts are not allowed to interfere in the matters of panchayats, like delimitation or allotment of seats. They have no jurisdiction in panchayat elections. If there are any disputes in an election process, the court cannot step in to resolve them. A panchayat’s elections can be questioned only by an election petition presented before the authority that the State government has prescribed. AMENDMENT OF ARTICLE 280 The 125th Amendment to the Constitution, which sought to change Article 280 and the Sixth Schedule. This amendment provided for significant improvement in the financial resources and powers of the autonomous District councils in the predominantly-tribal states of Assam, Meghalaya, Mizoram, and Tripura. It also provided for elected and more empowered village councils who could prepare plans for economic development and social justice in the area - dealing with important matters like agriculture and irrigation, forests, etc. 

20. 3. Co-operative Societies Sometimes, a group of people with shared characteristics (for eg. the same occupation) may come together to manage the affairs of their community. This results in a co-operative society. A co-operative society refers to an organisation of like-minded people who voluntarily come together to promote their economic, social or cultural interests. They invest their time, efforts and personal resources for this purpose. For eg. Amul . Co-operatives may be of different types, like a co-operative housing society, a co-operative business society (which sells goods produced by its members), etc. The Constitution (Ninety-Seventh Amendment) Act was passed in 2011 to make states facilitate the creation and working of co-operative societies in their territory.

21. INCORPORATION OF COOPERATIVE SOCIETIES A State Legislature can decide the process of incorporation, regulation and winding up of co-operative societies in its territory, keeping in mind the major co-operative principles - democratic set-up, member participation, and autonomy. Therefore, the rules of incorporation vary from state-to-state. NUMBER AND TERM OF MEMBERS OF THE BOARD AND OFFICE BEARERS The maximum number of directors on the board of a co-operative society can be 21. The exact number within this limit can be decided by the State. Among these directors, one seat should be reserved for a person of Scheduled Castes or Scheduled Tribes and two seats should be reserved for women. The term of board members and office members of the society shall be 5 years. The State Legislature may appoint at most 2 persons to the society who have expertise in that particular field. However, these 2 members shall not vote or contest in elections. CONTINUANCE OF EXISTING LAWS The Constitution says that any laws and provisions in a state regarding co-operative societies, which existed before the 97 th amendment would continue to exist even if they were inconsistent with Part IX-B of the Constitution.

22. REMOVAL OF MEMBERS BY NO-CONFIDENCE MOTION In case a member of the co-operative society is found to be using unfair or corrupt practices, or is working against the general interest of the body, or occupies a managerial position whose functions he or she is not able to perform, the other members can pass a no-confidence motion against him or her to remove the said member.  The circumstances in which a no-confidence motion can be passed as well as its rules and procedure vary from state-to-state. ELECTION OF MEMBERS The State Legislature decides the rules and procedure of co-operative society elections. The elections are conducted and supervised by the authority which the state government prescribes. The elections to the board must be conducted before the expiry of the term of the existing board.

23. SUPERSESSION AND SUSPENSION OF THE BOARD The board of the co-operative can be superseded or suspended by the government in the following situations: When the board has persistently been defaulting When it has neglected its duties When it has committed any act against the interests of the co-operative society or its members When there is a stalemate in the constitution of the board or its functions When the authority or body prescribed by the State Legislature has failed to conduct elections in accordance with the provisions of the State Act. This can only be done when the Government has some shareholding in or has given as loan or financial assistance to the society. In case the board is superseded, the administrator appointed by the state to look over the affairs of the co-operative society should take the necessary steps to conduct elections for the board. CONVENING OF GENERAL BODY MEETINGS The State Legislature to make provisions for co-operative societies to convene their general body meetings within 6 months of the end of every financial year.

24. AUDIT OF ACCOUNTS The main rules for audit of the accounts of co-operative societies are: The State Legislature may make provisions for regular maintenance of accounts by co-operative societies and their audit at least once a financial year. It may also decide the minimum qualifications for the auditors. The audit of the accounts of every co-operative society should be completed within 6 months of the end of each financial year. These audit reports should be produced before the State Legislature in the manner prescribed by it. RIGHT OF A MEMBER TO GET INFORMATION The State Legislature may: Provide for access by a co-operative society member to its books, accounts, etc.  Provide for participation of members in the management of the society by ensuring a minimum attendance by members. Provide for co-operative education and training for the members.

25. FILING OF RETURNS Every co-operative society is required to file returns to the authority prescribed by the State government. Certain matters that these returns must include are: An annual report of its activities An audited statement of accounts A plan for using surplus as approved by consensus of the members of the society A list of amendments to the bye-laws of the co-operative society (if any) A declaration as to the date of its general body meeting as well as elections Any other information required by the State. APPLICATION TO MULTI-STATE CO-OPERATIVE SOCIETIES Part IX-B applies in the same way to multi-state co-operative societies as to the single state ones. The only difference is that in the case of the former, ‘Legislature’, ‘State Act’ and ‘State government’ are replaced by ‘Parliament’, ‘Central Act’ or ‘Central government’.

26. OFFENCES AND PENALTIES The State Legislature may decide what constitutes as an offence with reference to a co-operative society, and how those offences are to be punished. Certain situations which must be included in the offences are: A society or its member intentionally filing false returns, giving false information, or not furnishing information at all to a State- authorised person. A person intentionally or without reasonable justification ignoring summons or orders issued by the state. An employer not paying the money to the co-operative society which has been deducted by him from his employee, within 14 days. A custodian of records, documents, cash, etc. of a co-operative society failing to hand them over to an authorised person. Any person adopting a corrupt practice before, during or after the election of board members or office bearers. APPLICATION TO UNION TERRITORIES The provisions related to co-operative societies apply to Union Territories in the same way as in the case of the states, but the President may, by public notification, make any modifications in this provision.

27. Conclusion The Constitution has given us elaborate and thought-out provisions that determine the meaning and functions of local self-government and management bodies i.e. panchayats, municipalities and co-operative societies. This has been done to render greater decentralisation to the governance mechanism, which enables better decision-making and faster development. Thus, these institutions play a very important role in improving the quality of life of citizens in rural areas and urban centres .