1. Gram Sabha:

• It is a village assembly consisting of all the registered voters in a panchayat area.
• It can perform such functions as the state legislature entrusts it with

2. Three-tier system:

• It suggests PRI at the village, intermediate and district levels. Thus bringing uniformity to the PRI.
• However, states with less than 20 lakh populations may not set PRI.

3. Election:

• All the members at the village, intermediate and district levels shall be elected directly by the people.
• The chairperson of the intermediate and district level shall be indirectly elected. The chairman of the Panchayat shall be elected in such a manner as the state legislature provides for

4. Reservation of seats:

• In every Gram Panchayat, seats must be set aside for members of Scheduled Castes and Tribes. The percentage of these seats to the total number of seats in the Panchayat that will be filled through direct election must be as close to equal as possible.
• Women from Scheduled Castes or, where applicable, Scheduled Tribes must have access to at least one-third of the seats set aside for them.
• Not less than one-third (including the number of seats reserved for women in the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Gram Panchayat shall be reserved for women. As prescribed, such seats may be allotted by rotation to different constituencies in a Gram Panchayat.
• The above reservation is for the chairperson position. The Act also authorizes the state legislature to reserve backward classes.

5. Duration of Panchayats:

• Every level of Panchayat is given a five-year term of office under the statute. PRI, however, may be dissolved before the end of the natural term.
• Before the PRI's natural term expires or, in the event of its dissolution, six months have passed since that date, new elections must be held.

6. Qualification & Disqualification:

• A person shall be disqualified for being chosen as or for being a member of the Panchayat if he is so disqualified:
  • Under any law for the time being, in force for elections to the state legislature concerned.
  • No person can be disqualified because he is less than 25 years of age if he has attained the age of 21 years.
  • All questions related to disqualification shall be referred to such authority as the state legislature determines.

7. State election commission:

• The state election commission shall oversee, direct, and control the creation of electoral rolls and the conduct of all panchayat elections.
• The governor will name a state election commissioner. He cannot be dismissed from his position other than in the way and for the reasons specified for dismissing a judge.
• The state legislature has the authority to establish rules on all aspects of panchayat elections.

8. Powers and functions:

• The state legislature may endow the panchayats with the powers and authority necessary to enable them to function as institutions of self-government.

9. Finances:

• The state legislature may authorize a panchayat to levy, collect, and appropriate taxes, provide grants-in-aid to the panchayats, and provide for the constitution of funds for crediting all money of the panchayats.

10. Finance Commission:

• The governor has the authority to establish an annual finance commission to review the panchayats' financial standing, recommend improvements, and make recommendations on any other issues the governor refers to the commission.
• It shall make recommendations on the following matters:
  • The distribution between the state and the panchayats from the net proceeds of taxes
  • Determination of taxes, duties, tolls and fees that may be assigned to the panchayats
  • Grants-in-aid to the panchayats from the consolidated fund of the state
• The state legislature will establish the FC's composition and qualifications.
• Based on the state's finance commission's findings, the central finance commission will also provide recommendations on consolidating the Panchayat's financial situation.

11. Audit:

• The state legislature may provide the manner for auditing PRI.

12. Application to UT:

• The president of India may direct that provisions of this Act shall apply to any union territory subject to such modification as he may specify.

13. Exempted areas:

• It does not apply to Nagaland, Mizoram, Meghalaya, scheduled areas, tribal areas, the hill area of Manipur, and the Darjeeling district of WB.
• However, parliament may extend the provisions of this part to even these exempted areas with modifications as it may specify.
• In this regard, parliament has enacted, 'The provisions of the Panchayat (Extension to the scheduled areas) Act, 1996.

14. Bar to interference of court:

• The Act bars interference by courts in the electoral matters of panchayats. It also mentions the court cannot question the delimitation related to PRI.
• Election petitions shall be entertained based on the mechanism specified by the state legislature.

15. 11th schedule:

• The Act inserted a new schedule that contained areas that came under the purview of the PRI.

Key Takeaways On 73rd Constitutional Amendment Act For UPSC Aspirants!

• Constitutional Status to Panchayati Raj: The Act gave constitutional status to Panchayati Raj Institutions (PRIs), ensuring their continuity and uniformity across India.
• Three-tier System: It established a three-tier structure – Gram Panchayat (village), Panchayat Samiti (block), and Zila Parishad (district).
• Article 243 & 11th Schedule: Added Part IX (Articles 243 to 243-O) and the 11th Schedule listing 29 subjects to be handled by Panchayats.
• Regular Elections: Mandated elections every 5 years for all Panchayat levels.

Subject-wise Prelims Previous Year Questions