Union Territories & Local Government

A Union Territory is not a state; it is administered by the President through an Administrator or Lieutenant Governor, ensuring direct Union control over strategically important areas.

• UTs are governed under Articles 239 to 241, in Part VIII of the Constitution.
• Article 239 — Administration of Union Territories by an Administrator.
• UTs are directly governed by the Union Government — they are not states.
• UTs are administered by the President through an Administrator or L.G., who is not a constitutional head.

• In Delhi, J&K, Andaman & Nicobar, Ladakh and Puducherry, the administrator is called the Lieutenant Governor (L.G.).
• In Lakshadweep, Chandigarh, and Dadra & Nagar Haveli and Daman & Diu, the administrator is simply called the Administrator.
• The Lieutenant Governor is an administrator and is not a constitutional head.

• Delhi — 70 seats.
• Puducherry — 30 seats.
• J&K — 114 seats (90 J&K + 24 PoK).

• Jammu and Kashmir Reorganisation Act, 2019 led to the creation of the UTs of J&K and Ladakh.
• In 2020, Dadra and Nagar Haveli, and Daman and Diu were merged into a single UT.

• Article 239 — Administration of Union Territories by an Administrator.
• Article 239AA — Special provisions with respect to Delhi.
• Article 241 — High Courts for Union Territories.

Delhi enjoys a special status midway between a UT and a state, with its own elected Assembly but key powers reserved for the Centre.

• It created a Legislative Assembly and a Council of Ministers for Delhi — 70 members.
• The strength of the Council of Ministers is less than 10% of the total strength of the Assembly (i.e. 7).
• The Chief Minister is appointed by the President (not by the L.G.); the other ministers are appointed by the President on the advice of the Chief Minister.
• The Assembly can make laws on all matters of the State List and Concurrent List except three State List matters — Public Order, Police and Land.

Each UT has its own capital; J&K and Ladakh notably have separate summer and winter capitals.

Local self-government means decentralised, grassroots democracy; it became a part of the Constitution only in 1992, though its roots go back to British India.

• Local self-government is also called Decentralised Democracy and Grassroot Democracy.
• 1687 — Madras got the first municipal corporation.
• 1870 — Lord Mayo's resolution on financial decentralisation.
• Constitutional status was given by the 73rd and 74th Amendments, 1992.
• Local Government is a State subject under the Seventh Schedule.
• Article 40 — "The State shall take steps to organise village panchayats" — a Directive Principle of State Policy (DPSP).

• Rajasthan was the first state to establish Panchayati Raj.
• The scheme was inaugurated by Prime Minister Jawaharlal Nehru on 2nd October 1959, in Nagaur district.
• Panchayati Raj means "rule by the people" at the village level.

• Panchayat — in Rural areas.
• Municipalities — in Urban areas.

A series of committees shaped the structure and functioning of Panchayati Raj Institutions before they got constitutional status in 1992.

• 1957 — the Balwant Rai Mehta Committee was established to examine the Community Development Programme.
• It recommended the 3-Tier System:
• (i) Gram Panchayat at the Village Level;
• (ii) Panchayat Samiti at the Block Level;
• (iii) Zila Parishad at the District Level.
• Direct election for Gram Panchayat and indirect election for Panchayat Samiti and Zila Parishad.
• The head of the Zila Parishad is the DC (District Collector), who supervises development policy and programmes.

• Recommended a Two-Tier System: Zila Parishad (district level) and the Mandal Panchayat (a group of villages).

• The 73rd and 74th Constitutional Amendments, 1992 gave constitutional status to PRIs and Urban Local Bodies.

The 73rd Amendment gave constitutional status to rural local bodies, building a three-tier structure across village, block and district levels.

• The Panchayats — Part IX, the 11th Schedule, and Articles 243 to 243O.
• 11th Schedule — 29 items (Article 243G).
• National Panchayati Raj Day — 24th April; it commemorates the 73rd Amendment Act, 1992 coming into effect in 1993.

• Creation of a three-tier Panchayati Raj structure at the Zila, Block and Village levels.
• States with a population of less than 20 lakhs may not constitute the intermediate level.
• By direct election, 5 Panch are elected, who implement policy; all 5 Panches form a Development Committee at the Panchayat Samiti (block) level.
• Almost all posts, at all levels, are filled by direct elections.
• The post of Chairman at the Zila and Block levels is filled by indirect election.
• Minimum age — 21 years; tenure 5 years; if dissolved earlier, fresh election within 6 months.
• State Election Commission conducts Panchayat elections — Article 243K.
• Gram Sabha — Article 243A; it is a group of adults (18 years or above) whose names are in the voter list.
• A State Finance Commission is set up in each State every five years — Article 243I.

• The Panchayati Raj can levy property tax, professional tax, water tax, sewerage tax, fees, toll tax, tax on agricultural land and tax on local fairs.
• Sales tax is levied by the State government (not the Panchayat).

• Panchayati Raj exists in all states except Nagaland, Meghalaya and Mizoram.
• It exists in all UTs except Delhi.
• The 73rd Amendment empowered local self-government in rural areas; Panchayats are institutions of grassroots democracy.

The 74th Amendment gave constitutional status to urban local bodies, creating three categories of municipalities based on the size of the urban area.

• It came into force on 1st June 1993.
• It added Part IXA — Articles 243P to 243ZG.
• 12th Schedule — 18 items (Article 243W).
• Minimum age — 21; tenure — 5 years; if dissolved, fresh election in 6 months.
• The State Election Commission conducts elections.
• The State Finance Commission deals with financial matters.
• The Ministry of Urban Development was created as a separate ministry in 1985 (now the Ministry of Housing and Urban Affairs).

• Nagar Panchayat — for an area in transition from rural to urban.
• Municipal Council — for a smaller urban area.
• Municipal Corporation — for a larger urban area.

• Each Municipal area is divided into constituencies called Wards; the elected members are Ward Councillors.
• The Mayor is the head of the Municipal Corporation — the "First Citizen of the City".

• Property Tax, Water Tax (for water supplied), Sewerage Tax, Fire Tax, taxes on animals and vehicles.
• Theatre Tax, Duty on transfer of Property, Octroi Duty on items brought into the city, Education Cess (Tax), and Professional Tax.
• Urban Local Bodies provide essential civic services; financial empowerment and accountability are key for effective urban governance.

Cooperative societies gained constitutional protection in 2011, completing the framework of participatory, self-reliant democracy.

• The 97th Constitutional Amendment Act, 2011 gave constitutional status and protection to cooperative societies.
• It made three changes to the Constitution:
• Made the right to form cooperative societies a Fundamental Right (Article 19).
• Added a new DPSP on the promotion of cooperative societies — Article 43B.
• Added a new Part IXB titled "The Cooperative Societies" — Articles 243ZH to 243ZT.
• It empowered cooperative societies and recognised their contribution to inclusive development.

A quick reference to the key Articles governing Panchayats, Municipalities and Cooperative Societies.

Both landmark amendments came in 1992 and gave constitutional status to local bodies — the 73rd for rural Panchayats, the 74th for urban Municipalities.