Article 243 Of The Indian Constitution

Article 243 of the Indian Constitution deals with the composition and powers of Panchayats, which are local government bodies in rural areas of India.

It lays down the framework for the establishment of Panchayats at the village, intermediate and district levels, and sets out the powers and functions of these Panchayats.

It is part of the Part IX of the Indian Constitution, which is dedicated to the Panchayats and Municipalities.

In this article, we’ll go in depth about Article 243 of the Indian Constitution and all it’s sub-articles.

Article 243 Of The Indian Constitution – Definitions Of Panchayats

Article 243 Of The Indian Constitution lays down the formation, functions & the regulations with regards to the Panchayats.

It states that the term:-

(a) “District” refers to a district that is located within a State;

(b) “Gram Sabha” refers to a group of people who are listed on the voter rolls for a village that is part of the Panchayat at the village level;

(c) “Intermediate level” refers to a level between the village level and the district level that the Governor of a State tells the public is the intermediate level for this Part;

(d) “Panchayat” refers to any institution for self-government in rural India that was set up under Article 243B;

(e) “Panchayat area” refers to the area that a Panchayat is in charge of;

(f) “Population” means the number of people counted at the last census for which the numbers have been made public;

(g) “Village” means a town that the Governor has told the public is a village for the purposes of this Part. It also includes a group of such towns.

Article 243 of the Indian Constitution has a total of 26 Sub-Articles under it, laying down the regulations for the following local governing bodies in India:

1. Panchayats (Article 243 to Article 243-O).
2. Municipalities (Article 243P to Article 243ZG).
3. Co-operative Societies (Article 243ZH to Article 243ZT).

Article 243A Of The Indian Constitution – Gram Sabha

Article 243A of the Indian Constitution states that:

A Gram Sabha is a village-level assembly that has the power and authority to perform functions as provided by the state legislature through laws.

Article 243B Of The Indian Constitution – Constitution Of Panchayats

Article 243B of the Indian Constitution mentions about the Constitution of Panchayats that-

(1) In accordance with the guidelines outlined in this Part, panchayats will be established at the village, intermediate, and district levels in each state.

(2) No matter what Clause(1) says, there can’t be intermediate-level Panchayats in a state with fewer than 20 million people.

Article 243C Of The Indian Constitution – Composition Of Panchayats

Article 243C of the Indian Constitution consists of the following clauses in relation to the Composition of Panchayats:

(1) A state’s legislature can make laws about how Panchayats are made up, as long as they don’t go against the rules in this part:

• The proportion of seats to be filled through direct elections in a Panchayat, and the population of Scheduled Castes or Scheduled Tribes in the Panchayat area, should be as similar as possible across the entire state.

(2) Each Panchayat area shall be divided into territorial constituencies so that the ratio between the population of each constituency and the number of seats allotted to it shall, as far as practicable, be the same throughout the area. All seats in a Panchayat shall be filled by persons directly elected from territorial constituencies.

(3) By law, a state’s legislature can provide for the representation of—

• (a) The Chairpersons of the Panchayats at the village level, in the Panchayats at the intermediate level, or, if a state doesn’t have Panchayats at the intermediate level, in the Panchayats at the district level;
• (b) The Chairpersons of the Panchayats at the intermediate and district level;
• (c) The members of the House of the People and the State Legislative Assembly who represent districts made up of all or part of a Panchayat area at a level other than the village level, in such Panchayats, shall be known as the members of the Panchayat;
• (d) The members of the Council of States and the Legislative Council of the State, where they are registered as voters within—
  • (i) an intermediate-level Panchayat area, in an intermediate-level Panchayat;
  • (ii) a district-level Panchayat area, in a district-level Panchayat.

(4) Whether or whether they were directly elected from territorial seats within the Panchayat territory, the Chairperson and other Panchayat members are eligible to vote at Panchayat meetings.

(5) The Chairperson of—

• (a) A Panchayat at the village level will be chosen in the way that a state’s legislature can say in its laws; and
• (b) A district- or intermediate-level Panchayat must be chosen from among and by its elected members.

Article 243D Of The Indian Constitution – Reservation Of Seats

Article 243D of the Indian Constitution states about the Reservation of Seats that-

(1) Seats shall be reserved for—

• (a) the Scheduled Castes; and
• (b) the Scheduled Tribes,

In every Panchayat, a certain number of seats will be reserved for members of the Scheduled Castes or Scheduled Tribes in proportion to their population in the area. These reserved seats will be allotted by rotation to different constituencies within the Panchayat.

(2) Women from the Scheduled Castes and Scheduled Tribes must have at least one-third of the seats designated for them under Clause(1).

(3) At least one-third of the total number of seats filled by direct election in every Panchayat must be reserved for women. This includes seats reserved for women belonging to the Scheduled Castes and Scheduled Tribes. These reserved seats will be allotted by rotation to different constituencies within the Panchayat.

(4) The offices of the Chairpersons in Panchayats at the village or any other level will be reserved for members of the Scheduled Castes, Scheduled Tribes, and women as determined by state legislature in a law:

• Provided that the number of offices of Chairpersons reserved for the Scheduled Castes and the Scheduled Tribes in the Panchayats at each level in a state should be proportional to the population of the Scheduled Castes and Scheduled Tribes in the state, in relation to the total population of the state:
• Provided further that at least one-third of the total number of offices of Chairpersons in Panchayats at each level must be reserved for women:
• Provided that this clause’s reserved offices will rotate among Panchayats at each level.

(5) After the time period stated in Article 334 of the Indian Constitution has been exhausted, seat reservations under Clauses(1) and (2) and the offices of Chairpersons under Clause(4) will no longer be in effect, with exception to reservation for women.

(6) This part does not stop state legislatures from making plans to give backward class citizens seats in Panchayats or positions as Chairpersons in Panchayats at any level.

Article 243E Of The Indian Constitution – Duration Of Panchayats

Article 243E of the Indian Constitution mentions about the Duration of Panchayats that:

(1) Each Panchayat will last for five years from the date of its first meeting, unless a law says it has to end sooner. It will not last longer than five years.

(2) No amendment of any current law will cause the dissolution of a Panchayat at any level that is functioning immediately before the amendment until the end of its duration specified in Clause(1).

(3) An election to form a Panchayat must be completed:

• (a) either before the expiration of its duration specified in Clause (1),
• (b) or before the expiration of six months from the date of its dissolution;

Provided that if the remaining period of a dissolved Panchayat is less than six months, there is no need to hold an election for its reconstitution for that period.

(4) If a Panchayat is dissolved before the end of its term, the new Panchayat will only last for the rest of the time that the old Panchayat would have lasted according to Clause(1).

Article 243F Of The Indian Constitution – Disqualifications For Membership

Article 243F of the Indian Constitution lays down regulations for Disqualifications for Memberships.

It states that:

(1) A person can’t be a member of a Panchayat and can’t be chosen to be one—

• (a) If he can’t run for office because of a law or rule in place at the time for elections to the legislature of the state in question:

Provided that as long as a person is at least 21 years old, he or she will not be disqualified because they are younger than 25 years old;

• (b) If any law made by the State Legislature or any other law makes him ineligible.

(2) If there is a question about whether a member of a Panchayat has broken any of the rules in Clause(1), the question will be sent to an authority chosen by the State Legislature in a law. That authority will make a decision.

Article 243G Of The Indian Constitution – Powers, Authority And Responsibilities Of Panchayats

Article 243G of the Indian Constitution mentions about the Powers, Authority & Responsibilities of Panchayats that:

Through a statute, the state legislature may give Panchayats the necessary rights and privileges to operate as institutions of self-government. Under certain conditions, this law may contain provisions for the delegation of authority to Panchayats at the appropriate level in relation to—

• (a) Preparing plans for economic growth and social justice;
• (b) Implementing schemes for economic growth and social justice including those in connection with the matters listed in the Eleventh Schedule, as may be entrusted to them.

Article 243H Of The Indian Constitution – Powers To Impose Taxes By, And Funds Of, The Panchayats

Article 243H of the Indian Constitution states about the Powers of the Panchayats to Impose Taxes and it’s Funds.

It states that the State Legislature may, by law,—

• (a) Authorise Panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees in accordance with a specified procedure and subject to specified limits;
• (b) Assign Panchayats such taxes, duties, tolls and fees levied and collected by the State Government for specific purposes, with certain conditions and limitations;
• (c) Allow the state government to use funds from the State’s Consolidated Fund to give financial assistance to the Panchayats;
• (d) Provide for the creation of such Funds to which all money received by or on behalf of the Panchayats shall be credited, as well as for the withdrawal of such money from it.

Article 243-I Of The Indian Constitution – Constitution Of Finance Commission To Review Financial Position

Article 243-I of the Indian Constitution talks about the Constitution of a Finance Commission for the Review Of Financial Position.

It states that:

(1) The Governor of a state must create a Finance Commission within one year of the Constitution (Seventy-Third Amendment) Act, 1992 coming into effect, and every five years thereafter, to assess the financial status of Panchayats and to make suggestions to the Governor regarding-

• (a) The principles governing—
  • (i) the division of the net proceeds of taxes, duties, tolls, and fees that are collectible by the state, and that can be split between them according to this part, between the state and Panchayats; and the allotment of the shares of the proceeds among Panchayats at all levels;
  • (ii) the identification of taxes, duties, tolls, and fees that can be assigned to or collected by Panchayats;
  • (iii) the grants-in-aid from the Consolidated Fund of the State to the Panchayats;
• (b) The steps that need to be taken to improve the Panchayats’ finances;
• (c) any other matter that the Governor asks the Finance Commission to look into in order to keep the Panchayats’ finances in good shape.

(2) The state legislature may, through a law, determine the composition, qualifications, and selection process for members of the Finance Commission.

(3) The Finance Commission will decide its own procedure and will have the powers given to it by the state legislature through a law to perform its functions.

(4) The Governor must present every recommendation made by the Finance Commission, along with an explanation of the actions taken on it, to the state legislature.

Article 243J Of The Indian Constitution – Audit Of Accounts Of Panchayats

Article 243J of the Indian Constitution states about the Audit of Accounts of the Panchayats.

It mentions that:-

By law, the legislature of a state can make rules about how the Panchayats keep their accounts and how those accounts are checked.

Article 243K Of The Indian Constitution – Elections To The Panchayats

Article 243K of the Indian Constitution mentions about Elections to the Panchayats, stating that:-

(1) The State Election Commission, headed by a State Election Commissioner appointed by the Governor, will be responsible for overseeing the creation of voter lists and organising all Panchayat elections.

(2) The conditions of service and length of tenure for the State Election Commissioner will be determined by the Governor, provided that it does not go against any laws established by the state legislature:

• Provided that the State Election Commissioner can only be removed from office in the same way and for the same reasons as a Judge of a High Court and his conditions of service cannot be changed negatively after his appointment.

(3) When the State Election Commission requests it, the Governor of a state must provide the commission with the necessary staff to carry out the functions assigned to it in Clause(1).

(4) The state legislature may, through a law, establish regulations for all matters related to or connected with Panchayat elections, as long as it is in accordance with the provisions of the Constitution.

Article 243L Of The Indian Constitution – Application To Union Territories

Article 243L of the Indian Constitution talks about the Application of provisions to Union territories.

It states that:-

The provisions of this Part shall apply to Union Territories and in such a case, the reference to Governor of a State will be considered as reference to Administrator of the Union Territory appointed under Article 239 of the Indian Constitution, and reference to Legislature or Legislative Assembly of a State will be considered as reference to Legislative Assembly of Union Territory, in case it has a Legislative Assembly:

• Provided that the President may, by means of a public notice, direct the application of the provisions of this Part to any Union Territory or part thereof, with such exceptions and modifications as he may specify in the notice.

Article 243M Of The Indian Constitution – Part Not To Apply To Certain Areas

Article 243M of the Indian Constitution talks about the provisions in this Part that shall Not Apply to Certain Areas.

It lists that:-

(1) This section does not apply to the designated Scheduled Areas & tribal regions mentioned in Clause(1) and (2) respectively, of Article 244 of the Indian Constitution.

(2) This section does not apply to:

• (a) the states of Nagaland, Meghalaya, and Mizoram;
• (b) the hilly regions in the state of Manipur that currently have District Councils in place under any applicable laws.

(3) This section does not apply to—

• (a) provisions regarding Panchayats at the district level in the hilly areas of the Darjeeling district in West Bengal that currently have the Darjeeling Gorkha Hill Council in place under any applicable laws;
• (b) any interpretation that would impact the functions and powers of the Darjeeling Gorkha Hill Council established under such laws.

(4) Despite any provisions in this Constitution,—

• (a) The state legislature mentioned in Sub-Clause(a) of Clause(2) may pass a law to extend this part of the Constitution to that state, but exclude any areas mentioned in Clause(1), if the state’s legislative assembly passes a resolution in favour of this by a majority of the assembly’s total membership and at least two-thirds of the members present and voting;
• (b) The Parliament may pass a law to extend the provisions of this part of the Constitution to the scheduled areas and tribal regions mentioned in Clause(1) with specified exceptions and modifications. Such a law will not be considered an amendment of the Constitution for the purpose of Article 368 of the Indian Constitution.

Article 243N Of The Indian Constitution – Continuance Of Existing Laws And Panchayats

Article 243N of the Indian Constitution states the following about the Continuance of Existing Laws & Panchayats:-

• Even though this part of the Constitution applies, any provision of a state law related to Panchayats that was in effect before the Constitution (Seventy-Third Amendment) Act of 1992, and is in conflict with this part of the Constitution, will remain in force until it is changed or repealed by the appropriate state legislature or authority, or until one year after the act’s commencement, whichever comes first;
  • With the understanding that any Panchayats that existed prior to the commencement of this act will remain in place until the end of their term, unless they are dissolved earlier by a resolution passed by the state’s legislative assembly or, if the state has a legislative council, by both houses of the legislature.

Article 243-O Of The Indian Constitution – Bar To Interference By Courts in Electoral Matters

Article 243-O of the Indian Constitution talks about the Bar to Interference by Courts in Electoral Matters in the following clauses regardless of any other provisions of this Constitution:-

• (a) Any law regarding the division of electoral districts or allocation of seats to those districts, passed or appearing to be passed under Article 243K, cannot be challenged in any court of law;
• (b) An election for a Panchayat can only be challenged through an election petition submitted to an authority and in a manner specified by a state law passed by the state legislature.

Article 243P Of The Indian Constitution – Definitions Of Municipalities

Article 243P of the Indian Constitution speaks about the regulations, working & functions of Municipalities in India.

Article 243P of the Indian Constitution along with the Sub-Articles of Article 243 of the Indian Constitution that follow exists in the Part IX-A of the Indian Constitution.

It states that unless otherwise stated, in this Part, the term—

• (a) “Committee” refers to a committee established under Article 243S.
• (b) “District” refers to a district within a State;
• (c) A “Metropolitan area” is defined as a region with a population of at least one million, made up of one or more districts and containing two or more municipalities, panchayats, or other adjacent areas. This designation is made by the Governor through a public announcement for the purpose of this specific section;
• (d) “Municipal area” refers to the territorial area of a Municipality as notified by the Governor;
• (e) “Municipality” is an institution of self-government constituted under Article 243Q;
• (f) “Panchayat” refers to a Panchayat constituted under Article 243B;
• (g) “Population” refers to the population ascertained at the last preceding census whose figures have been published.

Article 243Q Of The Indian Constitution – Constitution Of Municipalities

Article 243Q of the Indian Constitution lays down about the Constitution of Municipalities in the following clauses:-

(1) For every state, the following types of local government bodies shall be established—

• (a) a Nagar Panchayat, which is a transitional government for an area transitioning from rural to urban,
• (b) a Municipal Council for smaller urban areas, and
• (c) a Municipal Corporation for larger urban areas,

as per the provisions of this section:

• However, it also includes a proviso that the Governor may, by public notification, specify an urban area or part thereof as an industrial township if the size of the area and the municipal services being provided or planned to be provided by an industrial establishment in that area and other factors the Governor deems fit.

(2) This article defines what is meant by “transitional area”, “smaller urban area”, or “larger urban area” as areas that the Governor may specify by public notification based on factors such as population, population density, revenue for local administration, percentage of non-agricultural employment, economic significance, or any other factors the Governor deems relevant for the purpose of this section.

Article 243R Of The Indian Constitution – Composition Of Municipalities

Article 243R of the Indian Constitution states the following clauses with regards to the Constitution of Municipalities:-

(1) Except as specified in Clause(2), all seats in a municipality are to be filled through direct elections from territorial divisions within the municipality known as wards. The municipality’s area is to be divided into these wards for this purpose.

(2) The State Legislature has the authority to create laws—

• (a) For the representation in a Municipality of—
  • (i) individuals who possess specialised knowledge or experience in the administration of municipalities;
  • (ii) members of the national legislative body and members of the state legislative body who represent constituencies that are entirely or partially located within the municipality;
  • (iii) members of the upper legislative body of the state, such as the members of the Council of States, and members of the state’s Legislative Council who are registered to vote within the municipality;
  • (iv) Individuals who hold the position of Chairperson in committees that have been established under Clause 5 of Article 243S:
  • Provided that the the people referred to in Paragraph (i) are not allowed to vote in meetings of the municipality;
• (b) The process or method by which the leader of the municipality, the Chairperson, is elected.

Article 243S Of The Indian Constitution – Constitution And Composition Of Wards Committees

Article 243S of the Indian Constitution talks about the Constitution & Composition of Wards Committees in the following clauses:-

(1) Within a municipality with a population of at least 300,000, there will be established Wards Committees, which are made up of one or more wards.

(2) The State Legislature has the authority to make laws and regulations in relation to—

• (a) the make-up and the geographic area of a Wards Committee;
• (b) the process or method by which the seats in a Wards Committee are filled.

(3) A member of a municipality who represents a ward within the geographic area of a Wards Committee is also a member of that committee.

(4) What makes up a Wards Committee—

• (a) in the case of one ward, the member representing that ward in the municipality; or
• (b) in the case of two or more wards, a member of the Wards Committee elected by the members of the Wards Committee among the members representing those wards in the municipality,

shall be the Chairperson of that Committee.

(5) The State Legislature has the authority to make laws and regulations for the creation of committees in addition to the Wards Committees, and that this article does not prevent them from doing so.

Article 243T Of The Indian Constitution – Reservation Of Seats

Article 243T of the Indian Constitution lays down the following regulations with respect to the Reservation of Seats:-

(1) A certain number of seats in every municipality shall be reserved for members of the Scheduled Castes and Scheduled Tribes, and this number of seats should be roughly proportional to the proportion of the population of the Scheduled Castes or Scheduled Tribes in the municipality. These seats may be assigned to different constituencies within the municipality on a rotating basis.

(2) At least one-third of the seats reserved under Clause(1) must be set aside for women from the Scheduled Castes or Scheduled Tribes.

(3) In every Municipality, at least one-third of the seats to be filled by direct election must be reserved for women, including those from the Scheduled Castes and Scheduled Tribes. These seats should be allocated among different constituencies in a rotating manner.

(4) The position of Chairperson in Municipalities must be reserved for members of the Scheduled Castes, Scheduled Tribes, and women as determined by state legislation.

(5) The reservation of seats and offices of Chairpersons in municipalities as per Clauses 1, 2 and 4 will expire after a certain period as specified in Article 334 of the Indian Constitution and will not be in effect anymore.

(6) This Part does not prevent state legislation from providing for the reservation of seats in any Municipality or offices of Chairpersons in the Municipalities for backward classes of citizens.

Article 243U Of The Indian Constitution – Duration Of Municipalities

Article 243U of the Indian Constitution states the following clauses relating to the Duration of Municipalities:-

(1) Each Municipality, unless dissolved earlier according to the current laws, will last for five years from the date of its first meeting and will not continue for any longer period:

• Provided that the Municipality is given a fair chance to express its views before it is dissolved.

(2) Any amendment to existing laws should not result in the dissolution of a Municipality that is currently in operation before the amendment, until the end of the period specified in Clause(1).

(3) The process of electing members to form a Municipality should be completed—

• (a) prior to the end of the period specified in Clause(1);
• (b) prior to the end of a six-month period from the date of its dissolution:
• Provided that if the remaining duration of the dissolved Municipality is less than six months, it is not necessary to hold an election to constitute the Municipality for that period.

(4) If a Municipality is dissolved before the end of its term, the new Municipality will only remain in office for the remaining time that the dissolved Municipality would have served under Clause(1) if it hadn’t been dissolved.

Article 243V Of The Indian Constitution – Disqualifications For Membership

Article 243V of the Indian Constitution talks about the Disqualifications for Membership by stating that-

(1) A person will be ineligible to be elected and to serve as a member of a Municipality—

• (a) if they are disqualified from being elected to the State Legislature according to any current laws:
  • Provided that a person will not be disqualified from being a member of a Municipality on the basis of age if they are at least 21 years old, even if they are under 25 years old;
• (b) if they are disqualified according to any laws made by the State Legislature.

(2) When there is a question about whether a member of a Municipality is subject to any of the disqualifications mentioned in Clause 1, it will be resolved by the authority and in the manner that the state legislature determines by law.

Article 243W Of The Indian Constitution – Powers, Authority And Responsibilities Of Municipalities

Article 243W of the Indian Constitution lays down regulations about the powers, Authority & Responsibilities of Municipalities.

It states that, the state legislature can, by law, grant certain powers and responsibilities as per the provisions of the Indian Constitution—

• (a) the Municipalities with the powers and authority they need to function as institutions of self-government, and such law may include provisions for the devolution of powers and responsibilities to Municipalities, subject to such conditions as may be specified therein, with respect to—
  • (i) putting together plans for economic growth and social fairness;
  • (ii) completing tasks and putting plans into action that may be given to them, including tasks and plans related to things on the Twelfth Schedule;
• (b) the Committees with whatever powers and authority they may need to carry out their responsibilities, including those related to the things listed in the Twelfth Schedule.

Article 243X Of The Indian Constitution – Power To Impose Taxes By, And Funds Of, The Municipalities

Article 243X of the Indian Constitution states that in terms of the Power to Impose Taxes by the Municipalities & it’s Funds, the State Legislature may by law-

• (a) Allow a municipality to charge, collect, and use these taxes, duties, tolls, and fees according to these rules and within these limits;
• (b) Assign to a Municipality the taxes, duties, tolls, and fees that the State Government charges and collects for these purposes and within these limits;
• (c) Set up a way for the Consolidated Fund of the State to give these grants to the municipalities; and
• (d) Provide for the creation of such Funds to which all money received by or on behalf of the Municipalities shall be credited and from which such money may be taken.

Article 243Y Of The Indian Constitution – Finance Commission

Article 243Y of the Indian Constitution mentions about a Finance Commission in the following clauses:-

(1) Article 243-I says that the Finance Commission should also look at the financial situation of the Municipalities and make suggestions to the Governor about what to do in terms of—

• (a) the principles which should govern—
  • (i) the distribution of the net proceeds of the State’s taxes, duties, tolls, and fees, between the State and the Municipalities, which can be split between them under this Part, and the allocation of the Municipalities’ respective shares of these proceeds at all levels;
  • (ii) the figuring out of what taxes, duties, tolls, and fees can be given to or taken from the Municipalities;
  • (iii) the aid money from the Consolidated Fund of the State to the Municipalities;
• (b) the steps that need to be taken to improve the Municipalities’ finances;
• (c) any other matter that the Governor asks the Finance Commission to look into in order to keep the Municipalities’ finances in good shape.

(2) The Governor must tell the State Legislature about every recommendation made by the Commission under this article, along with an explanation of what was done about it.

Article 243Z Of The Indian Constitution – Audit Of Accounts Of Municipalities

Article 243Z of the Indian Constitution, with respect to the Audit of Accounts of Municipalities, states that:

By law, the State Legislature can make rules about how accounts are kept by municipalities and how those accounts are checked.

Article 243ZA Of The Indian Constitution – Elections To The Municipalities

Article 243ZA of the Indian Constitution lays down the following clauses about the Elections to the Municipalities:

(1) Article 243K says that the State Election Commission is in charge of overseeing, directing, and controlling the preparation of electoral rolls for Municipality elections and the way they are run.

(2) Subject to what this Constitution says, a state’s legislature can make laws about anything that has to do with or is related to elections to the Municipalities.

Article 243ZB Of The Indian Constitution – Application To Union Territories

Article 243ZB of the Indian Constitution goes as follows with respect to the Application of provisions to the Union Territories:

The rules of this Part apply to the Union territories. When they are applied to a Union territory, they have the same effect as if references to the Governor of a State were references to the Administrator of the Union territory appointed under Article 239 of the Indian Constitution and references to the Legislature or Legislative Assembly of a State were references to that Legislative Assembly:

• Provided, however, that the President can tell the public that the rules of this Part apply to any Union territory or part of a territory, with any exceptions and changes he wants to list in the public notice.

Article 243ZC Of The Indian Constitution – Part Not To Apply To Certain Areas

Article 243ZC of the Indian Constitution mentions about provisions in this Part that shall Not Apply to Certain Areas by stating that:-

(1) Nothing in this Part applies to the Scheduled Areas mentioned in Clause(1) and the tribal areas mentioned in Clause(2) of Article 244 of the Indian constitution.

(2) Nothing in this part should be taken to change the functions and powers of the Darjeeling Gorkha Hill Council, which is made up of people who live in the hilly parts of the district of Darjeeling in the state of West Bengal and was set up by a law that is still in effect.

(3) No part of this Constitution can stop Parliament from passing a law that extends the rules of this Part to the Scheduled Areas and the tribal areas mentioned in Clause (1), with the exceptions and changes that the law specifies. Such a law cannot be seen as a change to this Constitution for the purposes of Article 368 of the Indian Constitution.

Article 243ZD Of The Indian Constitution – Committee For District Planning

Article 243ZD of the Indian Constitution lays down the following regulations about a Committee for District Planning:-

(1) Every state must set up a District Planning Committee at the district level. This committee’s job is to combine the plans made by the Panchayats and Municipalities in the district and make a draught plan for the district’s development as a whole.

(2) The State Legislature may, by law, make provisions with respect to—

• (a) the composition of the District Planning Committees;
• (b) the manner in which seats in such Committees shall be filled:
  • Provided that at least four-fifths of the total number of members of such Committee shall be elected by, and from among, the elected members of the district Panchayat and Municipalities in proportion to the ratio of rural to urban population in the district;
• (c) the functions relating to district planning assigned to such Committees;
• (d) the manner in which the Chairpersons of such Committees shall be chosen.

(3) Every District Planning Committee shall, while preparing the draft development plan,—

• (a) have regard to—
  • (i) Planning for the future, sharing of water and other natural resources, integrated infrastructure development, and environmental protection, all topics of importance to both Panchayats and Municipalities;
  • (ii) the quantity and kind of resources, both financial and non-financial, that are available;
• (b) Consult the establishments and groups that the governor may, by order, specify.

(4) Every district’s planning committee chair is responsible for sending the state government the development plan that group has proposed.

Article 243ZE Of The Indian Constitution – Committee For Metropolitan Planning

Article 243ZE of the Indian Constitution consists of the following clauses in terms of a Commitee for Metropolitan Planning:-

(1) A Metropolitan Planning Committee must be established in each Metropolitan area in order to design a development plan for the entire Metropolitan area.

(2) The State Legislature may, by law, make provision with respect to—

• (a) the composition of the Metropolitan Planning Committees;
• (b) the manner in which seats in such Committees shall be filled:
  • As long as at least two-thirds of the members of the Committee are elected by and from the elected members of the Municipalities and Chairpersons of the Panchayats in the Metropolitan area in proportion to the ratio of the populations of the Municipalities and Panchayats in that area;
• (c) the representation in such Committees of the Government of India, the Government of the State, and such organisations and institutions as may be deemed necessary to carry out the tasks given to such Committees;
• (d) the tasks that may be given to such Committees for planning and coordinating in the Metropolitan area;
• (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 & the Panchayats in the Metropolitan area;
  • (ii) the issues that Municipalities and Panchayats have in common, such as coordinated spatial planning of the area, sharing of water and other natural resources, integrated infrastructure development, and environmental preservation;
  • (iii) the overall objectives and priorities set by the Government of India and the State Government;
  • (iv) the size and type of investments that Indian government and state government agencies are likely to make in the metropolitan area, as well as other financial and non-financial resources that may be available;
• (b) Consult the establishments and groups that the governor may, by order, specify.

(4) The development plan, as approved by the committee, must be forwarded to the state government by the chairperson of each metropolitan planning committee.

Article 243ZF Of The Indian Constitution – Continuance Of Existing Laws And Municipalities

Article 243ZF mentions the following about the Continuance of Existing Laws & 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, that is inconsistent with this Part shall continue in force until amended or repealed by a competent Legislature or other competent authority or until one year from such commencement, whichever is earlier:

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

Article 243ZG Of The Indian Constitution – Bar To Interference By Courts In Electoral Matters

Article 243ZG of the Indian Constitution states, about the Bar To Interference By Courts In Electoral Matters, that despite provisions in this Constitution—

• (a) Any law relating to constituency delimitation or seat allocation under Article 243ZA shall not be challenged in court;
• (b) A Municipal election can only be contested by filing a petition with the appropriate authority as outlined in a law passed by a State Legislature.

Article 243ZH Of The Indian Constitution – Definitions Of Co-Operative Societies

Article 243ZH of the Indian Constitution speaks about the regulations, working & functions of Co-operative Societies in India.

Article 243ZH of the Indian Constitution along with the Sub-Articles of Article 243 of the Indian Constitution that follow exists in the Part IX-B of the Indian Constitution.

It states that unless otherwise stated, in this Part, the term-

• (a) “Authorised person” means a person referred to as such in Article 243ZQ;
• (b) “Board” means the board of directors or the governing body of a co-operative society, to which the direction and control of the management of the affairs is entrusted to;
• (c) “Co-operative society” refers to a society registered or deemed to be registered under any law relating to co-operative societies for the time being in any State;
• (d) “Multi-State co-operative society” refers to a group whose goals aren’t limited to just one state and that is registered or deemed to be registered under any law in place at the time that applies to co-ops;
• (e) “Office bearer” refers to the President, Vice-President, Chairperson, Vice-Chairperson, Secretary, or Treasurer of a co-operative society, as well as anyone else who will be chosen by the board of a co-operative society;
• (f) “Registrar” refers to the Central Registrar appointed by the Central Government for multi-State co-operative societies and the Registrar for co-operative societies appointed by the State Government under the law made by the legislature of a State for co-operative societies;
• (g) “State Act” means any law made by the State Legislature;
• (h) “State level co-operative society” refers to a co-op whose service area covers the whole state and is called that in any law made by the state legislature.

Article 243ZI Of The Indian Constitution – Incorporation Of Co-Operative Societies

Article 243ZI of the Indian Constitution states the following in terms of the Incorporation of Co-operative Societies:-

Subject to the rules of this Part, a State Legislature can make laws about how co-operative societies that are based on the principles of voluntary formation, democratic member control, member economic participation, and autonomous functioning can be set up, regulated, and shut down.

Article 243ZJ Of The Indian Constitution – Number And Term Of Members Of Board And Its Office Bearers

Article 243ZJ of the Indian Constitution mentions the following clauses in terms of the Number & Term of Board Members & Office Bearers of a Co-operative Society:-

(1) The board shall consist of such number of directors as may be provided by the State Legislature, by law:

• Provided that the maximum number of directors of a co-operative society shall not exceed 21:
• The State Legislature is required to pass a law that reserves one seat for Scheduled Castes/Tribes and two seats for women on the board of any co-operative society that has individual members and includes members from those specific groups.

(2) The elected members of the board and its leaders shall serve a five-year term starting from the date of their election and the leaders’ term shall end at the same time as the board’s term:

• Provided that the board has the authority to nominate a replacement for any vacancies that occur on the board, as long as the remaining term of the board is less than half of its original term, and the replacement must come from the same group of members as the person who left.

(3) By law, the legislature of a state must make it possible for people with experience in banking, management, finance, or any other field related to the co-operative society’s goals and activities to become board members:

• As long as there are no more than two co-opted members on top of the 21 directors listed in the first proviso to Clause(1):
• Also, co-opted members won’t be able to vote in co-op elections or run for office:
• Provided also that the functional directors of a co-op society shall also be members of the board, and these members shall not be counted toward the total number of directors listed in the first proviso to Clause(1).

Article 243ZK Of The Indian Constitution – Election Of Members Of Board

Article 243ZK of the Indian Constitution states the following clauses with respect to the Election of Members of the Board:-

(1) Despite any state laws, the board’s election must be held before the current board’s term ends, to ensure that the new members can take office immediately after the current members’ term ends.

(2) The preparation of electoral rolls and the conduct of elections for a co-operative society will be under the supervision of a body or authority designated by the State Legislature:

• Provided that the State Legislature may also pass laws to establish the procedures and guidelines for these elections.

Article 243ZL Of The Indian Constitution – Supersession And Suspension Of Board And Interim Management

Article 243ZL of the Indian Constitution talks about the Supersession & Suspension of Board & Interim Members in the following clauses:-

(1) No board can be replaced or put on hold for more than six months, no matter what the law says:

• Provided that the board may be superseded or kept under suspension in a case—
  • (i) of its persistent default; or
  • (ii) of negligence in performance of its duties; or
  • (iii) the board commits any act prejudicial to the interests of the co-operative society or its members; or
  • (iv) there is a stand-off in the constitution or functions of the board; or
  • (v) the authority or body provided by the State Legislature, by law, under Clause(2) of Article 243ZK, has failed to conduct elections in accordance with the provisions of the State Act:
• Provided further that the board of any of these co-operative societies can’t be replaced or put on hold if the government doesn’t have any shares, loans, financial help, or guarantees:
• Provided also that if a co-op society runs a bank, the Banking Regulation Act of 1949 also applies:
• Provided also that if a co-operative society, other than a multi-State co-operative society, is in the banking business, the rules of this clause apply as if the words “six months” had been replaced with “one year.”

(2) In the event that a board is removed, the administrator who is in charge of running the co-business op’s must set up elections within the time limit set out in Clause(1) and give control of the business to the newly elected board.

(3) The State Legislature may establish rules for the administrator’s terms of service through legislation.

Article 243ZM Of The Indian Constitution – Audit Of Accounts Of Co-Operative Societies

Article 243ZM of the Indian Constitution states the following in terms of Audit of Accounts of Co-operative Societies:-

(1) A State’s legislature has the authority to enact laws that specify how cooperative societies are to keep its financial records and to audit such records at least once in every financial year.

(2) The minimum qualifications & experience for auditors and auditing firms that are qualified to review the financial statements of cooperative societies must be established by legislation by the state’s legislature.

(3) Every co-operative society must get audited by an auditor or auditing firm named by the general body of the society under Clause(2):

• Provided that these auditors or auditing firms come from a panel approved by a State Government or an authority the State Government has given permission to use in this case.

(4) Every co-operative society’s books must be checked by an auditor within six months of the end of the financial year that the books are for.

(5) The audit report of the accounts of an apex co-operative society, as defined by the State Act, must be given to the State Legislature in a way that the State Legislature can set out in a law.

Article 243ZN Of The Indian Constitution – Convening Of General Body Meetings

Article 243ZN of the Indian Constitution states with respect to the Convening of General Body Meetings that:-

A state’s legislature has the authority to pass laws that require co-operative societies to hold an annual general meeting within six months of the end of their financial year, for the purpose of conducting any business outlined in the law.

Article 243ZO Of The Indian Constitution – Right Of A Member To Get Information

Article 243ZO of the Indian Constitution lays down the following clauses in relation to the Right of a Member to Get Information:-

(1) A state’s legislature can make it so that every member of a co-operative society has access to the books, information, and accounts that the society keeps as part of its regular business with that member.

(2) A state’s legislature may pass laws to ensure that members are actively involved in the management of a cooperative society, including setting requirements for attendance at meetings and use of the society’s services.

(3) By use of legislation, a state’s legislature may mandate cooperative education and training for its members.

Article 243ZP Of The Indian Constitution – Returns

Article 243ZP states the following with respect to the Returns filed by Co-Operative Societies:-

• Every cooperative society is required to file returns submit within six months after the end of each financial year to the state government-designated authority, including details on its-
  • (a) annual activities,
  • (b) audited financial statements,
  • (c) plans for surplus disposal as approved by the society’s general body,
  • (d) any changes to the society’s bylaws,
  • (e) information on when general meetings and elections will be held, and
  • (f) any other information requested by the Registrar in accordance with state laws.

Article 243ZQ Of The Indian Constitution – Offences And Penalties

Article 243ZQ lists down the following clauses relating to Offences & Penalties regarding Co-Operative Societies:-

(1) The Legislature of a State may, by law, establish the definitions and punishments for the offences related to cooperative organisations.

(2) A state’s legislature may enact a statute under Sub-Section(1) that defines that a person may be found guilty of an offence if they:—

• (a) wilfully make a false return or furnish false information as a cooperative society, officer, or member, or fail to furnish any information required by an authorised person under state law.
• (b) wilfully or without sufficient cause disobey any summons, requisition, or lawful written order issued under state law.
• (c) as an employer, fail to pay a cooperative society an amount deducted from an employee’s wages within 14 days of the deduction, without a valid reason.
• (d) as an officer or custodian, wilfully fail to handover custody of books, accounts, documents, records, cash, security, and other property belonging to a cooperative society to an authorised person.
• (e) engage in any corrupt practice before, during, or after the election of members of the board or office bearers.

Article 243ZR Of The Indian Constitution – Application To Multi-State Co-Operative Societies

Article 243ZR of the Indian Constitution states the following about the Application of this Part to Multi-State Co-Operative Societies:-

The rules outlined in this section apply to multi-state cooperative societies, with the modification that any reference to “Legislature of a State”, “State Act”, or “State Government” should be understood as referring to “Parliament”, “Central Act”, or “the Central Government” respectively.

Article 243ZS Of The Indian Constitution – Application To Union Territories

Article 243ZS of the Indian Constitution mentions, with respect to Application of this Part to Union Territories, that:-

• The rules outlined in this section apply to Union Territories. In their application to Union Territories without Legislative Assembly, references to “Legislature of a State” shall be understood as references to the Administrator appointed under Article 239 of the Indian Constitution. In relation to Union Territories with Legislative Assembly, the references shall be to that Legislative Assembly.
  • However, the President can by notification in the Official Gazette, exclude any Union Territory or part thereof from the application of these rules.

Article 243ZT Of The Indian Constitution – Continuance Of Existing Laws

Article 243ZT of the Indian Constitution states the following with respect to Continuance of Existing Laws:-

• Despite anything in this section, any state laws related to cooperative societies that were in effect prior to the Constitution (Ninety-Seventh Amendment) Act, 2011 and are inconsistent with the provisions of this section will continue to be in force until they are amended or repealed by the appropriate legislature or authority, or until one year after the commencement of the Act, whichever occurs first.

Summary

1. Article 243 Of The Indian Constitution – Definitions Of Panchayats.
2. Article 243A Of The Indian Constitution – Gram Sabha.
3. Article 243B Of The Indian Constitution – Constitution Of Panchayats.
4. Article 243C Of The Indian Constitution – Composition Of Panchayats.
5. Article 243D Of The Indian Constitution – Reservation Of Seats.
6. Article 243E Of The Indian Constitution – Duration Of Panchayats.
7. Article 243F Of The Indian Constitution – Disqualifications For Membership.
8. Article 243G Of The Indian Constitution – Powers, Authority And Responsibilities Of Panchayats.
9. Article 243H Of The Indian Constitution – Powers To Impose Taxes By, And Funds Of, The Panchayats.
10. Article 243-I Of The Indian Constitution – Constitution Of Finance Commission To Review Financial Position.
11. Article 243J Of The Indian Constitution – Audit Of Accounts Of Panchayats.
12. Article 243K Of The Indian Constitution – Elections To The Panchayats.
13. Article 243L Of The Indian Constitution – Application To Union Territories.
14. Article 243M Of The Indian Constitution – Part Not To Apply To Certain Areas.
15. Article 243N Of The Indian Constitution – Continuance Of Existing Laws And Panchayats.
16. Article 243-O Of The Indian Constitution – Bar To Interference By Courts in Electoral Matters.
17. Article 243P Of The Indian Constitution – Definitions Of Municipalities.
18. Article 243Q Of The Indian Constitution – Constitution Of Municipalities.
19. Article 243R Of The Indian Constitution – Composition Of Municipalities.
20. Article 243S Of The Indian Constitution – Constitution And Composition Of Wards Committees.
21. Article 243T Of The Indian Constitution – Reservation Of Seats.
22. Article 243U Of The Indian Constitution – Duration Of Municipalities.
23. Article 243V Of The Indian Constitution – Disqualifications For Membership.
24. Article 243W Of The Indian Constitution – Powers, Authority And Responsibilities Of Municipalities.
25. Article 243X Of The Indian Constitution – Power To Impose Taxes By, And Funds Of, The Municipalities.
26. Article 243Y Of The Indian Constitution – Finance Commission.
27. Article 243Z Of The Indian Constitution – Audit Of Accounts Of Municipalities.
28. Article 243ZA Of The Indian Constitution – Elections To The Municipalities.
29. Article 243ZB Of The Indian Constitution – Application To Union Territories.
30. Article 243ZC Of The Indian Constitution – Part Not To Apply To Certain Areas.
31. Article 243ZD Of The Indian Constitution – Committee For District Planning.
32. Article 243ZE Of The Indian Constitution – Committee For Metropolitan Planning.
33. Article 243ZF Of The Indian Constitution – Continuance Of Existing Laws And Municipalities.
34. Article 243ZG Of The Indian Constitution – Bar To Interference By Courts In Electoral Matters.
35. Article 243ZH Of The Indian Constitution – Definitions Of Co-Operative Societies.
36. Article 243ZI Of The Indian Constitution – Incorporation Of Co-Operative Societies.
37. Article 243ZJ Of The Indian Constitution – Number And Term Of Members Of Board And Its Office Bearers.
38. Article 243ZK Of The Indian Constitution – Election Of Members Of Board.
39. Article 243ZL Of The Indian Constitution – Supersession And Suspension Of Board And Interim Management.
40. Article 243ZM Of The Indian Constitution – Audit Of Accounts Of Co-Operative Societies.
41. Article 243ZN Of The Indian Constitution – Convening Of General Body Meetings.
42. Article 243ZO Of The Indian Constitution – Right Of A Member To Get Information.
43. Article 243ZP Of The Indian Constitution – Returns.
44. Article 243ZQ Of The Indian Constitution – Offences And Penalties.
45. Article 243ZR Of The Indian Constitution – Application To Multi-State Co-Operative Societies.
46. Article 243ZS Of The Indian Constitution – Application To Union Territories.
47. Article 243ZT Of The Indian Constitution – Continuance Of Existing Laws.

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