Report of the

Committee on Decentralisation
of Powers (S B Sen Committee)
Suggestions for amending Kerala Panchayat Raj Act

Volume I A & B

Government of Kerala

1997
 FOCUS OF THE COMMITTEE ON DECENTRALISATION OF POWERS

PREFACE

1. The Committee on Decentralisation of Powers (Popularly known as the Sen

Committee after its Late Chairperson, Dr. Satya Brata Sen Who passed away
immediately after the Committee submitted its interim report) has finalised its
recommendations. It followed a rigorous methodology in identifying the critical
issues concerning decentralisation. The Committee has taken every effort to strike a
balance between the ideals of decentralisation and the requirements of day-to-day
governance. And the Committee has taken care to ensure that decentralised
governance does not relapse into a rut as it had happened in the past and has tied
to make it into a dynamic force toward taking the State as well as the country
towards building genuine and sustainable institutions of local self government to a
higher level infused with principles capable of sustainable progress towards genuine
autonomy.

2 .The Committee on Decentralisation of Powers has already given two reports to

the Government- an interim report in August 1996 and a part on performance audit
and transfer of files and papers to LSGIs, in April 1997. This final report is
structure in four volumes.

3. Volume I is in three parts. Part A is brief introduction to the whole report

encapsulating the vision of the Committee outlining the fundamental principles and
the focus arias highlighted in the report. Part B deals with the Kerala Panchayat
Raj Act, 1994 and details of amendments proposed to this Act. Part C covers the
Kerala Municipality Act, 1994 and recommends to be made to this Act. Volume II
concerns allied Acts, which need be amended to make the decentralisation process
more operational and comprehensive. Volume III of the report is devoted to the
issues relating to re-deployment of staff and volume IV takes care of miscellaneous
issues.
4. In Volume I and II the Committee has given the amended versions of the
concerned sections so as to enable Government to process the recommendations
without much delay. Though this exercise proved time consuming to the Committee
it has helped to put the recommendations in a ready to use mode. Par B of Volume I
gibes lot of prominence to conceptual expositions and is more narrative. Since most
of the amendments in Panchayat Raj Act are suggested for the Municipality Act
also, Part C of volume I is more concise as the common conceptual part has already
been expounded in the part dealing with the Kerala Panchayat Raj Act.

5. The Committee wished to place on record it deep sense of gratitude to late

Dr.S.B.Sen under whose guidance the fundamental first principles, which have
been reflected in this report, were formulated. Special thanks are due to the elected
members of LSGI's, Government officers and independent experts who greatly
helped the Committee in formulating its recommendations.

6. The Committee hopes that with implementation of these recommendations,

Kerala would become a model for decentralised administrative system not only in
India but also in the whole of the developing world.

GENERAL INTRODUCTION

The Committee on Decentralisation of Powers (CDP) submitted its interim report in

August 1996. In a sense that report contains the nucleus of the entire report. It
encapsulated the vision of the Committee. The basic principles were laid down in
the interim report and to a large extend this final report is an expansion and
elaboration of the ideas contained in germinal form in the initial report.

METHODOLOGY

1.1 The Committee on Decentralisation of powers adopted a rigorous methodology

in identifying various issues concerning decentralisation and suggesting measures
to tone up the Local Self -Government Institutions (LSGI,s in the State. As
mentioned earlier, while preparing the final report the Committee was guided by
the basic principles laid down in its interim report which was also the inception
report, In order to identify the issues the Committee has detailed discussions with
all the concerned groups.. It interacted closely with senior officials of the
Government departments concerned with decentralisation including the State
Planning Board. It met the representatives of all the major organizations of
Government employees, both gazetted and non-gazetted. It had separate intense
exchange of views with individual heads of department accompanied by their senior
staff. These meetings focused on the issues relating to functions transferred, powers
given and the staff re- deployed from related departments and explored the
possibilities of further decentralisation. It also helped in identifying changes in laws
and procedures with reference to individual departments.

1.2 The Committee has a series of meetings with the District Panchayat Presidents,
Block Panchayat Presidents, representatives of Village Panchayat President's
Association, representatives of the Chamber of the Municipal Chairmen and the
Mayors. The Committee utilised the invaluable opportunity it go of interacting with
all the elected heads of local bodies and the Secretaries through formal question and
answer sessions. These sessions provided valuable insight into the process of
decentralisation, its achievements and shortcomings. These interactive sessions
also helped in identifying the operational problems faced by the local bodies.

1.3 The Committee visited and districts and met people from all walks of life who
were interested in meeting it. During these field visits the Committee had the
chance of observing directly the working of various LSGI,s and knowing the kinds of
problems encountered by the LSGI's in different contexts.

1.4 The Committee collected a lot of data from Government departments as well as
the LSGI's. These data enabled the Committee to obtain empirical evidence before
deciding the course of action on certain issues. The Committee also got formal work-
studies conducted with respect to major departments like Education and
Agriculture, besides Panchayat and Municipal Administration departments.

1.5 The Committee held a tow day workshop of legal experts and departmental
officials to analyse various allied Acts identified by the Committee for amendments
to bringing in harmony with the decentralisation process. In this workshop, sub-
group went into detailed analysis of these Acts and came out with proposals for
amendment, which were later, discussed by the Committee and adapted.

1.6 The Committee also studies the Acts and Rules governing Panchayati Raj
Nagarapalika Institutions in the major States of country. There was special focus
on the experience of West Bengal, Karnataka and Maharashtra.

1.7 As Kerala has given similar functions and responsibilities to the urban and
rural local bodies, the strengths of Kerala Panchayat Raj Act identified and made
applicable the Kerala Municipality Act and vice versa.

1.8 The Committee also met experts in the field and sought their comments on the
critical issues identified by the Committee. As a group, the Committee could profit
from the expert comments of Shri E.M S Namboodiripad, Shri.P.,K Vasudevan nair
Dr.N.K raj,. Prof. I.SD Gulati and Shri GV .Ramachandran. The State Election
Commission of Kerala sent detailed suggestions on matters relating to elections.
Also fruitful discussions were held with the members of the Kerala Administrative
Reforms Committee.

1.9 Following this eclectic methodology the committee could cover much ground. It
could see the issues concerning decentralisation from various points of view. This
enabled the Committee prepare a blend of the best available ideas and feasible
propositions. The various ideas were put to rigorous examination in the Committee
sittings before adopting them as a recommendation. The Committee had 178
sessions in all.
2.1 The Committee has attempted to bring about a restructuring of the Kerala
Panchayat Raj Act, the Kerala Municipality Act and the allied Acts besides making
appropriate recommendations to strengthen the LSGIs with adequate staff support.
In making these recommendations, the Committee has been guided by vision of an
effective local self Government capable of providing good governance at the local
level with the full participation of the people. In order to realise this vision, the
Committee has focused on certain critical areas. They are broadly outlined below:

People's participation

2.1.1 The corner stone of decentralised democratic governance is people's

participation anywhere in the world and notably in Kerala. Mobilisation, and not
even consultation is participation. Genuine participation consists of dialogue and
partnership leading to full involvement in decision making in the allocation and
utilisation of resources meant for collective good. That constitutes genuine
particpation. Thus it is a people centred view of local self Government that the
Committee has taken. The citizen is seen on the center stage; it is his voice that has
to be listened to; it is his choice that has to be accepted and it is his interest that
has to be preserved. The Committee has endeavoured to fashion the legislative
framework, which embodies this vision. People's institutions like Grama Sabhas,
Ward Sabhas and Ward Committees have been considerably strengthened. They are
being given definite functions, powers and responsibilities. Besides these, special
purpose vehicles of people's participation in the form of beneficiary committees and
social audit groups are to be created. In order to ensure people's participation there
has to be an enabling environment. Thus the right of information is incorporated as
a prominent feature in the Act and rules governing LSGIs. The Committee believes
that accountability to the people is best ensured through transparency. Transparent
administration enables people to achieve an on-line monitoring of the
administrative process. Citizen's charter is being recommended as an important
instrument to formulate the local bodies' concern for the people in the form of
assured quality of services. In participatory governance patronage has no place.
This can be ensured only through a due and fair process protected by well-published
criteria of eligibility and prioritisation and transparent selection.

2.1.2 Even when a general enabling environment exists for people's participation, it
is possible that certain groups get excluded due to their backwardness and
powerlessness. In order to achieve the constitutional objective of social justice, it is
necessary to empower such excluded groups. In Kerala the Scheduled Tribes belong
to this category. It has been recommended that groups of Scheduled Tribe hamlets
would constitute sub-committee of Grama Sabhas enjoying all the powers of the
Grama Sabha for the purpose of tribal development. Similarly special measures
have been suggested to ensure that funds earmarked for SCs and STs under Special
Component Plan and Tribal Sub Plan are not diverted for other purposes. Any such
diversion would be deemed to be misutilisation of local body funds inviting punitive
action of recovery of funds thus misutilised.

2.1.3 The Committee has recommended that there be an enabling provision to

create participatory community structures to enable the poor to have a say in
development matters like neighbourhood groups, ward level and local body level
orgainsations.

2. Towards institutionalising Local Self Governments

2.1.4 The Constitution envisages the functioning of Panchayat Raj and

Nagarapalika (municipal) bodies as "'institutions of local self government". The
Committee on Decentralisation of Powers strongly feels that every effort should be
made to attain the goal set by the Constitution. There fore the Committee has
recommended that the powers, functions and responsibilities be redefined more
clearly so that the sphere of activity of each local body is fairly clear. It has
suggested amendments to the third, fourth and fifth schedules accordingly. For the
Local Self Government to function, it has to be relatively free of interference and
executive control from above. In order to protect the autonomy of the local bodies,
the Committee has reduced the scope of Government interference in their day to
day affairs. The resolutions can be cancelled only in extraordinary circumstances.
Similarly the dissolution of local bodies has also to be resorted to only as a last step
and that too after following the due process and getting the opinion of an
independent authority in the form of Ombudsman. Even the appellate functions in
respect of statutory matters need be removed from the governmental setup and
made the responsibility of independent quasi judicial authorities.

2.1.5 Local Self Government implies control over its staff and the power to utilise
staff transferred to it according to the division of responsibilities to be decided by
the local bodies, of course in accordance with the expertise and qualifications of the
staff. The Committee has recommended that the power to allocate work should be
given to the LSGIs. This would mean that they can have an integrated staff set up
not divided by artificial departmental barriers. The division of work would be more
functional rather than departmental. This flexibility can be achieved without
compromising the legitimate interest in terms of status and promotion prospects of
the staff transferred. While the LSGIs would have full control over the staff
transferred to them the original parent cadres would remain undestribed or some
time to come.

2.1.6 A kind of delayering is required to protect the autonomy of the LSGIs by

removing superfluous committees and bodies which run parallel to them. Thus the
Development Authorities, Metropolitan Planning Committees and High Level
Committee are recommend to be abolished. In tune with this recommendation, the
Committee recommends that whenever certain structures are to be created to carry
out functions which are not restricted to the boundaries of one local body,
Government may have recourse to joint committees. This would enable special
functions to be carried out without reducing the power of the LSGIs.

3. New checks and balances

2.1.7 The Committee feels that with the reduced role of Government a new system
of checks and balances has to emerge with accent on control from below. In order to
ensure fairness in decisions, propriety in expenditure, legality in actions and
legitimacy in policy, these new checks and balances will have to be in place. Of
course social audit both formal, through groups of professionals and independent
persons of eminence, and informal through Grama Sabhas, Ward
Sabhas/Committees, community structures and people's committees, is expected to
be the main deterrent against possible waywardness in performance of duties of the
LSGIs. The rights of people's groups coupled with the duties of LSGIs in
maintaining transparency and providing information would provide a powerful
check on the LSGIs. At the same time the audit system needs to be strengthened.
Here what is important is the quality and regularity of audit which means that
mere adding to the number of auditors would not be sufficient. A thorough overhaul
of the existing system is required. In the preliminary report itself, the Committee
had suggested strengthening of audit. An Audit Commission as autonomous as the
Public Service Commission could be set up. The Commission could be headed by
expert members and should have the independent authority to decide on the type
and manner of audit. Till such time the Audit Commission is set up and gains
experience, it is essential to entrust the audit of at least the Municipal Corporations
and District Panchayats with the Comptroller and Auditor General. This is
necessary as the system should not afford to face any slip up during the transitional
period as it is likely to affect the very credibility of the system.

2.1.8 For quite some time to come in addition to conventional audit the local bodies
need a corrective on-line system of audit which can double up as a monitoring
mechanism as well. It is with this objective that the performance audit units are
being set up to cover the different LSGIs.

2.1.9 The Committee supports the view that more and more of self regulation
should be introduced with Government laying down the broad parameters. The due
process and proper procedure have to be prescribed clearly and any mal-
administration needs be controlled not by Government but by an independent
system. This would foster autonomy and self-responsibility among the LSGIs.

NEW INSTITUTIONS

2.2 As decentralized governance becomes a reality, some of the existing institutions

need be strengthened and new institutions created. As mentioned earlier,
institutions of people's participation like Grama Sabha/Ward Sabha would need to
get strengthened considerably. Also the State Election Commission would have to
be given more powers particularly in delimitation of constituencies, reservation of
constituencies and offices of President and in disqualification of members. This
reinforcement of the State Election Commission would go a long way in ensuring
the independence of the electoral process from the executive arm of the
Government. Among the new institutions which become inevitable are the
Appellate Tribunal and the Ombudsman. The Tribunal is intended to dispense
justice quickly without tedious delays seen in the courts and with higher credibility
than the Governmental hierarchy. Such Tribunals can deal with most of the appeals
against the decisions of the LSGIs in exercise of their statutory regulatory powers.
Similarly in matters concerning mal-administration, particularly corruption and
nepotism the Ombudsman system could be an effective and acceptable remedial
mechanism. What is needed is an Ombudsman system with more powers than is
traditionally assigned. Instead of just pointing out deficiencies and reporting about
them it has been suggested that corrective measures and punitive action should
also be taken up by Ombudsman. Of course the effectiveness and credibility of the
system would depend on the selection of the best person for the purpose recognized
by one and all for their integrity, merit and capacity for impartial functioning.

DEVELOPMENT ORIENTATION
2.3.1 Traditionally, local authorities in Kerala as in most parts of the world have
been concerned with activities which could be termed more welfarist than
developmental. Importance was always given to provision of civic amenities and in
rendering other social services. But now with the Constitution laying down the twin
objectives of the Local Self Government system as promotion of economic
development and social justice, the legislation needs to reflect these new
perspectives. Therefore the Committee has suggested several changes which would
reflect a development orientation. Thus the schedules listing the powers and
functions have been completely restructured. As the different local bodies are seen
not as hierarchy but as distinct spheres in overall governance it is necessary to
apportion developmental functions to the various LSGIs to make the best use to
their comparative advantages. Even within the developmental functions transferred
to a particular level of LSGIs there should be a range of functions from a mandatory
sole-responsibility item to an agency function on behalf of the Government. Thus
the Committee has attempted to give a greater role clarity to the LSGI in the
discharge of their developmental functions.

2.3.2 The Constitution gives special emphasis to planning process. The idea seems
to be that the LSGIs have a critical role in originating plans including the state and
national plans. The successful campaign launched in Kerala for participatory
planning has thrown up invaluable methodological lessons which need to be
incorporated in the Act and Rules so that planning follows a definite process. Of
course while prescribing the process it should be flexible enough to provide for local
initiative and innovation.

NEW WORK CULTURE

2.4.1 The Committee desires to provide a facilitative environment for a new work
culture in the local bodies. Traditionally, there has been a separation of powers of
the political executives and the official executives, with policy making being the
function of one and the carrying them out, the function of the other. At the level of
local bodies there is a mingling of both functions. Of course policy making in the
larger sense of the term is not applicable to LSGIs. However in laying down
priorities there is always a policy element involved. There is need for professional
support in deciding priorities which has to be provided by the officials both at the
local level and even from the levels not transferred to the LSGIs. Similarly the
elected members have a definite role in implementation. Thus a new work culture is
required for the elected members and for the officials and a creative interface is
needed.

2.4.2 Elected members would have to spend more time and energy in the running of
the LSGIs. Heads of LSGIs have to be full time functionaries. The Committee feels
that in due course other functionaries like Chairpersons of Standing Committees
too would have to be full- time functionaries. The Committee envisions a non-
divisive functioning of the elected members whatever be their political loyalties.
Only this will lead to a political development where a consensus emerges based on
local opinion and local priorities to sort out local problems. In order to permit this
type of functioning the Committee has recommended that every elected member be
given a role in the running of the LSGIs by becoming members of the Standing
Committee. Similarly the Leader of Opposition would be given special importance
by being made the ex-officio head of the Public Accounts and Vigilance Committee-
a role akin to the Public Accounts Committee in the Parliament and State
Legislatures.

2.4.3 As regards officials it is a new opportunity for by hard work and sincere
advice, they can get the professional satisfaction of helping design appropriate
projects for the local level and observing the results of the implementation. These
officials would have to enrich their knowledge and improve their skills to play their
role better. In the long run there would have to be integration of various
administrative services, but in the short run it is not fair to meddle with the career
prospects of present employees. Therefore while they are under the disciplinary
authority of the local bodies during their tenure with them, their cadre conditions
would remain undisturbed. Inevitably there will be dual control over the staff. The
LSGIs will have administrative control over the staff while the senior officers in the
cadre will have more of professional control and can check on the professional
performance.

2.4.4 The interface between the official and elected representatives is very critical
for the functioning of the local bodies. It has to be based on mutual respect, respect
for the representative status of the elected member and respect for the professional
qualities of the official. This has to be blended with mutual understanding of the
service, role of the elected represent actives and the procedural system to be
followed officials. In order to underline the importance of this interface, a code of
conduct is recommended to be enshrined in the legislation. This will uphold the
power of in dependence and impartial advice of the officials while protecting the
decision making authority of the elected members.

NEW POLITICS

2.5.1 It is the desire of the Committee that local self governments would throw up a
new political culture marked by co-operation in matters relating to local
development. Of course there would be constructive criticism resulting in corrective
action but there should be no room for unnecessary conflicts and clashes dividing
people and excluding sections of the society from the developmental process.

2.5.2 For the new politics to emerge, it is necessary that the elected members have
credibility and capability. The Committee has suggested several new conditions for
disqualification. These conditions relating to moral uprightness are quite strict and
will include the criminal, corrupt and immoral persons from getting into the local
Government system.

2.5.3 The Committee has suggested the incorporation of the provisions to prevent
political defections in the Kerala Panchayat Raj Act and the Kerala Municipality
Act. Also open declaration of assets by every elected member has been
recommended.

RESOURCE MOBILISATION

2.6 An important raison d'etre of local government is the capacity to mobilize

resources locally and innovatively. As the finance Commission has gone into several
aspects of this issue, the Committee has confined itself to certain broad aspects
only. It is necessary to underscore the fact that the growing expenditure
responsibilities must not be seen independent of revenue- raising responsibilities.
The "You-Pay-I-Spend" syndrome should not be allowed. The local bodies need to be
enabled to raise user charges and fees besides institutional finance. Similarly
Government need only fix the minimum level of taxation, as the upper limit can be
determined by the local body in accordance with the willingness to pay of its people
for the level of service it is capable of providing. It is also hoped that the emphasis
on participation will lead to greater contribution in financial terms by all the
participants.

CAPACITY BUILDING AND NURTURING

2.7.1 The capacity of an LSGI depends to a large extent on the staff transferred to
that body by the Government. The Kerala Panchayat Raj Act and the Kerala
Municipality Act make it mandatory for the Government to assign staff to LSGIs
commensurate with the functions transferred to them. The Committee considers
such a rational norm-based transfer is absolutely essential.

2.7.2 It is not merely enough to transfer staff and functions to the LSGIs. Their
skills have to be updated and they are to be appropriately equipped to perform the
tasks expected of them in the new context. So also the elected representatives need
systematic training to improve their managerial capacity. A rigorous training
schedule has to be implemented by the Kerala Institute of Local Administration-
both in-house and in the field, in association with other institutions like Institute of
Management in Government and the State Institute of Rural Development.

2.7.3 While the capacity building process goes on the Government should have a
caring and nurturing attitude towards LSGIs. It should play a guiding, advising
and correcting role rather than a punitive or retributory role. It is possible that an
LSGI may make mistakes in the early stages. There should be enough flexibility to
detect the mistakes sufficiently early and correct them rather than allowing them to
grow to malignant proportions. At the same time malafide action should be severely
dealt with. All this calls for a proactive role on the part of Government through all
is related departments. Of course Local Administration Department is the key co-
ordinating department in the decentralization process. But in order to enable it to
play an effective co-ordinating role it is necessary for the partner departments to
take an active interest and play a supporting role. There is a tendency to view
functions transferred to LSGIs as functions transferred to the Local Administration
Department. This is fallacious. Governmental responsibility now vesting in various
departments regarding sectors of development would remain unchanged e.g.
Agriculture, Health or Rural Development Department would continue to be
responsible for development of agriculture, protection of public health or alleviation
of poverty at all the levels of Government right up to the Grama Sabha. To a large
extent, decentralization can succeed only if these departments continue to play their
professional roles with commitment and involvement.

2.7.4 The elected office bearers and members of LSGIs have been saddled with
tremendous responsibility with the transfer of new functions. They have to work
hard to realize the expectations placed on them by the people as well as by the
Government. Of course, at the level of the LSGIs it is the moto of service which
should be the guiding principle for the members. But since much of their time has to
be devoted will-nilly for affairs related to the LSGIs, it is only fair that their present
honoraria be stepped up. This has to be viewed not as a remuneration but as a
token compensation to eke out their own income.

2.7.5 Therefore the Committee suggest that the honorarium of elected office bearers
and members could be fixed as follows:

Municipal Village Block District

Municipal Coun
Corporation Panchayat Panchayat Panchayat
cil

Rs Rs Rs Rs Rs
President /
4000 4500 3500 4000 4500
Chairperson
Vice-president /
3500 2500 3000 3500 3000
Dy.Chairperson
Standing
Committee Chairma 1750 2000 1500 1750 2000
n
Member/Councillor 1250 1500 1000 1250 1500

(If any one is employed elsewhere only sitting fee should be drawn)

2.7.6 It is also suggested that special causal leave sanctioned to members for
attending meetings may be enhanced to 20.

2.7.7 Telephone facilities without STD may be provided at the residence of Block
and Village Panchayat Presidents.

It goes without saying that records are fudged and fudged with impunity with the
tacit understanding with everyone concerned. In this context it would be
meaningless to scrutinize work records, for they bear no relation to reality. An
informal opinion survey among the Panchayat Presidents reveal that on an average,
40% of funds spent on such works do not go into the work for various reasons.
3.30.5 The system also encourages arbitrariness to favour and disfavour
individuals. Such complaints are common in tax assessments and in the selection of
beneficiaries for subsidized schemes. Most of the LSGIs do not seem to follow the
due process in identifying beneficiaries like laying down the criteria for selection,
publicising them, calling for applications, processing the applications with respect
to the criteria and making the selection and explaining the rationale of the selection
to the public.

3.30.6 Thus there is every need for the system to be opened up to bring
administration closer to the people and more acceptable and accountable. In the
context of decentralized governance, people need to know how decisions are taken
and how responsibilities are discharged and how funds are utilized. Also they need
to know about the various alternatives possible and the criteria for deciding the
final choice. At the cutting edge level, fairness is something to be see and judged by
action and corroborated by documentary evidence. The will help reduce suspicions
and fears about the Government and enhance the credibility of the system. A
transparent administration would reduce chances of corruption, particularly in a
high literate state like Kerala. Certainly, transparency is the best audit; sunlight is
the best disinfectant, fresh air is the best tonic and open Government is the best
Government. This idea is in keeping with the general trend in participatory
development. There is growing attention on standards of performance and service
delivery and widespread consultations with and participation of the citizen groups
for whom benefits are intended. These are possible only when there is free flow of
information about the public agencies. Though the right of public access to
information has been well received in political and social activists' levels and it has
received judicial backing there is no specific law guaranteeing public access to
information. Such legal provisions need to be incorporated in the Panchayat Raj
Act.
3.30.7 Fears have been expressed that the right to information could be used to
throttie the nascent grass root level democratic institutions through outside
intervention. Many of the Panchayat Presidents felt that while it is good to insist on
transparent functioning at the LSGIs level, it would be iniquitous to enforce
transparency at the lower level while retaining unhealthy secrecy at the higher
level. The Committee has taken note of these views. It is of the opinion that the
transparency is an organic part of the decentralization process and when
administration itself being restructured to facilitate decentralized governance,
transparency finds an automatic place in the new set up. The Committee also
believes that when society enjoys the benefits of transparency in administration,
there will be a powerful push factor operating taking it to all levels of Government
and all aspects of administration. In the sense, incorporation of transparency
provisions in the Panchayat Raj Act can be expected to act as a catalyst for changes
in other legislations and procedures. This is expected to be a small but powerful
beginning.

3.30.8 There are apprehensions in some quarters that there would be an

exponential growth in the public demand for information, affecting the normal
functioning of the administration particularly at the local level and substantially
add to the administrative costs, for storing and retrieval of information is costly.
The Committee's view is that an new Management Information System needs to be
designed for the LSGIs and increased use of computers would simplify data storage
and retrieval. Also information need be supplied only after realizing the actual
charges. This can take care of any increase in administrative cost due to the
changes.

3.30.9 The Committee recommends that offices and agencies at the LSGIs level
should have a regular system of providing public information suo motu. This would
include information relating to functions and responsibilities, decision making
processes, statutory applications, procedures, concessions, services and financial
matters. This can be achieved by proper maintenance of existing records without
necessitating creation of new records. In addition to this practically every
information at the LSGI level should be available for scrutiny, note taking and
providing copies to the public. The Committee believes that ordinarily information
giving should be the rule and exceptions should be clearly defined. In the case of
LSGIs it would mean that only information relating to health records of individuals,
contracts where giving of information before finalizing would either harm or benefit
individual interests, formulation of taxation proposals, action affecting enforcement
of a regulation etc. need be kept confidential. Wherever there is refusal, the reasons
have to be given and there would be a general right of appeal.

3.30.9.1 In order to achieve the purposes explained above, a new chapter (Chapter
XXV A) has to be added in the Kerala Panchayat Raj Act with Sections 271 A to 271
E there under.

COMPLAINT AND GRIEVANCE REDRESSAL

3.31.1 The Kerala Panchayat Raj Act as hopefully amended based on the
recommendations of the Committee on Decentralisation of Powers would empower
Panchayat Raj Institutions substantially. The power vested with the Panchayats,
particularly the Village Panchayat can be classified into two - regulatory power and
development power. In the case of exercising regulatory power, it is more a question
of fact and question of concerned legal provisions applied in the strict judicial sense
in accordance with principles of justice. Examples of such power would be taxation,
grant of license, enforcement of building regulations and abatements of nuisance
from the public health, public safety or public peace points of view.

3.31.2 The exercise of development power would include running of the office,
providing of services, taking up development programmes, selection of beneficiaries,
public spending etc. Here there would be more of policy, norms and criteria and
greater autonomy at the local level. Here rules and laws have less rigid application
but concepts of fair-play, impartiality, prudence and natural justice would come into
play.

3.31.3 While grass root level institutions have distinct advantages in planning and
implementing development schemes, in providing responsible administration and in
securing larger participation of the people in Government particularly in the
developmental process, they also face local pressures politically and socially which
they cannot ignore easily. The traditional theoretical virtues of public
administration like impartiality, neutrality and anonymity are very difficult to
realize at the local level. It has to be recognized that in Kerala all the LSGIs are
political institutions and the elected members have a constituency both in the
geographical and socio-political sense. As constituency building trends to be seen as
a legitimate activity in the context of highly competitive electoral polities, there is
bound to be every tendency to favour a region, a group of people or even
individuals.

3.31.4 At the same time the elected members have executive authority. Here they
are different form the M.Ps and M.L.As. They have the right to take decisions
having financial implications besides having the power to aruthorise expenditure
from public funds. In a limited sense, they have the power to decide the level of
taxation and they have the larger power of collecting taxes due to them. In addition
they have regulatory powers which are of a quasi-judicial character. Thus it is clear
that the elected members enjoy tremendous powers in the exercise of which values
like impartiality, fairness and propriety have to be adhered to and accountability
becomes all the more important. Those who are cynical about decentralization often
comment about the possibilities of "decentralization of corruption". For
decentralization to succeed there is need to take every precaution to prevent such
possibilities.

3.31.5 For the new LSGIs to strike root and gain credibility they have to perform
with the highest standards of public service with respect for well accepted principles
of fairness and justice. Some times they may have to go beyond normal justice to
attain what is "right" to ensure social justice. This would make positive
discrimination an obligation in the discharge of which fairness has to be practiced.

3.31.6 The new institutions are not virgin structures. In fact they are either
modified versions or adaptations of old institutions. It is well accepted that all was
not well in the functioning of old development institutions at the cutting edge level.
In fact it was to overcome the shortcomings of the old systems that the democratic
decentralization has been introdced in the country as constitutionally mandatory.
To a large extent, it is old wine in new bottles and change of container cannot
change contents. For change of the contents several processes have been initiated of
which two obvious examples are the decentralized People's Planning Campaign and
the setting up of this Committee on Decentralisation of Powers to basically change
development administration below the State level. But organic growth of a new
system would take some time and unless special care is exercised existing
tendencies and practices have a retarding effect which could seriously affect the
growth of the new institutions.

3.31.7 To exemplify what has been said before, the domineering predominance of
roads among the public works project under various development schemes,
influence of contractors who often disguise themselves as convenors of popular
beneficiary committee, the biased selection of beneficiaries, the improper
maintenance of records of financial transaction, low levels of service standards etc.
are some of the common complaints. These are all legacies of the bureaucratic
system. They have no place in the new set up.

3.31.8 Therefore new systems have to be created to check the continuance of old
tendencies and to foster the positive possibilities of the new institutions. Such
systems need to enjoy the full confidence and trust of the public, elected
representatives and the officials. At present the Government has the power to
cancel resolutions if it is found to be unfair or unjust. As this power has to be
delegated to various officials, in practice, it could result in executive control over the
elected bodies. In a sharply politically polarized society like Kerala even if the
Government exercises its control in a reasonable and just manner it may not be
perceived as such by the affected parties. Also Government is physically distant
from the ordinary complainant. It would create hardships for the people in distant
villages to come to the Government even if its officers have delegated power, for
redressal of grievances. And executive control over the elected institutions except in
rare cases would be inappropriate. As has been stressed at several places the
ultimate objective of the constitutional amendment is to empower the ordinary man
and this empowerment would be ineffective if he does not have recourse to an
independent system to redress his grievance if any. As the old checks and balance
have no relevance new safeguards against any possible excesses or shortcomings of
the LSGIs would have to be built up through credible alternative systems.
Therefore there is need for quick, effective and accessible institutions for public
grievance redressal which are outside both the LSGIs and the Government system.

3.31.9 The need for such systems has been made all the more stronger by the
massive devolution of powers and resources to the LSGIs. Most of the institutions of
public service in health, agriculture, animal husbandry, school education, social
welfare and practically the entire resources for poverty alleviation and SC/ST
development are placed at the disposal of LSGIs. Therefore the committee
recommends creation of two sets of institutions to ensure responsible
administration and quick redressal of public grievances. Such a set is expected to
have a double salutary effect. The autonomy of the LSGIs would be ensured while
at the same time arbitrary functioning could be checked and the Government would
be spared of many of the routing supervisory activities so that it can concentrate on
key areas of policy for effective decentralization.

A. APPELLATE TRIBUNALS
3.32.1 For exercising appellate powers over LSGIs in their exercise of regulatory
functions appellate tribunals need be created at the district level.

3.32.2 The appellate tribunals would have a judicial officer of the rank of District
Judge as its presiding officer. The appellate tribunals should hear the appeals
against the decisions of the LSGIs and also revision petitions if the LSGIs
themselves are the appellate authorities. For the success of this institutions the
critical test would be the speed with which appeals are heard and disposed of. Such
speed can be attained only if procedures are simplified.

3.32.3 Tribunal is chosen as the institution as it can combine relatively simple

procedures of an executive authority with the advantages of an independent judicial
system. For tribunals to be citizen-friendly its procedures have to be simple and
should not be bound by conventional technical rules. Also lawyers should be
expressedly barred from appearing in tribunals to ensure informality and reduce
cost to panchayat and the citizen.

B. OMBUDSMAN

3.33.1 While tribunals would concentrate on appeals from decisions taken in

exercise of regulatory authority, there is need for another institution to investigate
the field of administrative activity i.e. to investigate independently complaints from
individuals and groups and even the Government relating to defective
administration by the local bodies. Here the Ombudsman system would be very
appropriate. It is a cost-free mechanism for a complainant and is essentially
investigative in character which is often conducted in private according to
appropriate principles decided by the Ombudsman itself. Ombudsman can go into
the resonableness of a decision. Ombudsman can follow up complaints which relate
to action or inaction. It can also take up matters relating to internal administration
which need not necessarily affect any individual's interest. The Ombudsman system
goes beyond the judicial process, as, after redressal of a grievance it can choose to
monitor the behaviour of the local authority concerned and it can point out systemic
deficiencies and suggest improvements.

3.33.2 In India, an institution to check corruption was recommended by the

Administrative Reforms Commission based on which the Lokpal Bill was published
in 1968 by the Government of India. Lok Ayuktas exist in several states in the
country. The Government of Kerala has recently announced its intention to set up a
Lok Ayukta. So the question may arise whether the Lok Ayukta should not take
care of the LSGIs as well. Hence it is clarified that the Ombudsman system
envisaged by the Committee on Decentralisation of Powers is not a parallel
institution to the proposed Lok Ayukta. Lok Ayuktas focus on corruption, mostly in
punishing corruption which can be only after the event. Of course this has the
deterrent effect as well. But Ombudsman would focus on the process of
administration continuously and will be empowered to check wrong doings at the
initial stages itself. Of course unlike the traditional Ombudsman system which
gains its power from the moral authority and respect bestowed on it, the system
suggested for the local bodies would have more teeth in enforcing its decisions. The
system can tak care of the ordinary grievances of the citizen which often relates to
disregard of the due process in rendering a servies or deciding on a claim. At the
same time it can probe into corruption and punish the corrupt. It would have the
advantage of easy and almost informal access to the lay public. Another advantage
special to the Ombudsman is the inherent power to observe the functioning of
administration and suggest reforms. Thus it is a far more comprehensive institution
than the Lok Ayuktas and needs to be set up for covering only the LSGIs in
recognition of the distinctive character of the functioning of LSGIs. The system may
be headed by a judicial officer of the rank of a High Court Judge and assisted by two
judicial officers of the rank of District Judges, two officers with administrative
experience of the rank of Secretary to Government and two eminent public men
whose credibility is beyond doubt. For selecting public men it is suggested that the
Government should get the concurrence in writing of the Leader of Opposition in
the Legislative Assembly so that the office is kept beyond political differences.

3.33.3 The Committee recommends the setting up of an Ombudsman system in

Kerala to cover all the LSGIs which has to be headed by a judicial officer of the rank
of a High Court Judge and assisted by two judicial officers of the rank of District
Judges, two officers with administrative experience of the rank of Secretary to
Government and two eminent public men whose credibility is beyond doubt. For
selecting public men it is suggested that the Government should get the
concurrence in writing of the Leader of Opposition in the Legislative Assembly so
that the office is kept beyond political differences.

3.33.4 The Ombudsman can act on complaints from elected members or citizens or
on reference by audit authorities or Government or initiate proceedings suo motu. It
should have the power to pass awards to compensate losses sustained by LSGIs or
individuals and to redress grievances. Where the alleged irregularity is found to be
a criminal offence, the Ombudsman may refer such cases to the courts. For effective
functioning the Ombudsman needs to have the power to conduct enquiries through
any governmental system using any official. This should be on the lines of the
Election Commission using officials for conducting elections. It should be clearly
stipulated that while carrying out the directions of the Ombudsman all officials and
agencies would be deemed to be working under the Ombudsman and any dereliction
of dutv would be treated as contempt of court.

3.33.5 In sum it is evident that the two institutions recommended to be created,

would go a long way in upholding the rights of the citizen even while protecting the
autonomy of the elected body against possible intrusion by the executive. These
quasi-judicial bodies would provide the new checks and balances required to make
the system work with greater efficiency. Two new chapters are proposed to be
introduced in the Act with Sections 271 F to 271 R and Sections 271 S to 271 U
respectively.
ENVIRONMENTAL ISSUES

3.34.1 It is commonly accepted that Kerala is undergoing severe environmental

degradation, the consequences of which are affecting people of all walks of life in a
severe manner. Whether it be the problem of declining yields for the traditional
fishermen or the upsetting of the water regime for the small farmer or the rapid
erosion of soil affecting the upland farmer or whether it be increase in pollution of
the atmosphere, land or water, world-wide experience shows that local action can go
a long way in mitigating the problems and if concerted action is taken, can even
reverse the trend.

3.34.2 Thus the Panchayat Raj Institutions, particularly the Village Panchayats
have a very crucial role in mobilizing public action for eco-restoration. By
incorporating the environmental perspective in local level planning particularly in
the sustainable use of natural resources the LSGIs can promote sustainable
development activities by drawing attention to the ill-consequences of
environmental degradation. The panchayats can instill in the citizen a sense of
awareness and a feeling of responsibility and make him look development in the
holistic sense.

3.34.3 More specifically, the panchayats can protect water-bodies, properly train
watershed processes and take positive steps in solid waste management. It can take
up tree planting in a big way. Also using its regulatory power, the panchayats can
bring about a clean environment.

SOLID WASTE MANAGEMENT

3.35 The Committee on Decentralisation of Powers shares the concern expressed by

experts about the deteriorating sanitary conditions in the State particularly due to
accumulation of solid waste. With the increase in population and introduction of
new consumer habits, there has been tremendous strain on the waste disposal
system both in urban and rural areas. Barring hilly areas waste disposal is a
problem even in the village panchayats. Therefore the Committee feels that
scientific solid waste management is a must even in village panchayats. It
recommends the adoption in the Kerala Panchayat Raj Act, of the relevant
provisions in the Kerala Municipality Act concerning solid waste management. New
Sections 219 A to 219 S are proposed for this purpose.

MARKETS AND SLAUGHTER HOUSES

3.36 The provisions regarding market and slaughter houses are very old and most of
them have stood the test of time. These are part of the historical functions of local
bodies. Therefore the Committee has only a few modifications to suggest in these
provisions. They are enumerated below:

In Section 221, a new sub-section has to be inserted prohibiting the use of places set
apart for public markets for any purpose not related to the functions of the market.

The licensing authority in respect of slaughter houses to be opened in private

properties should be the Panchayat and not the Secretary. (Vide amendment to
Sub-section (1) of Section 230)

Section 230 (3) allows slaughtering of animals outside the slaughter house in
connection with festivals, marriage functions etc. without obtaining permission
from the Panchayat. In the interest of public health, this section may be deleted.

It is necessary to maintain the slaughter houses, both public and private, in

hygienic conditions. Therefore a new section needs to be inserted making it
mandatory for the licencee to keep the slaughter house clean. The Panchayat should
be empowered to see that the conditions of licence are observed in practice. If a
complaint regarding non-observance of licence conditions is received, the Panchayat
should enquire into it and take a decision based on facts. A penalty of Rs.5000/- has
to be charged for not maintaining a slaughter house hygienic with penalty of
Rs.100/- per day if the offence continues unabated. New Section 231 A is suggested
for this purpose.

LICENSING OF TRADES AND INDUSTRIES

3.37.1 Provision regarding licensing of various trades is a bit anachronistic. Most of

these provisions were made part of the original Act when economic activity was at a
much lower scale than now. The present list of dangerous and offensive trades
(mentioned in the Rules) includes practically everything. It would be too much to
insist on licence before the starting of all such activities. Therefore a revised list
needs to be made where for some activities only a registration to be renewed at
fixed intervals is required. Licensing need be insisted on only where there is some
public concern involved, where maintenance of public safety, prevention of harm to
public health or avoidance of public nuisance is required.

3.37.2 For registration and licensing of trades, Secretary can be the authority with
Panchayat as the appellate authority. Sub-section (1) of Section 232 is proposed to
be amended accordingly.

3.37.3 As regards provisions of Section 232 relating to Abkari shops, there is

possibility of conflict with the provisions of the Abkari Act. Now since prohibition is
an accepted policy of Government, its enforcement is a matter of importance.
Experience shows that unless there is a grass root level movement against drinking
it would be difficult to enforce prohibition from above. The Village Panchayat, which
can best judge public opinion in this respect should be given the power to
recommend whether it wants total prohibition within its jurisdiction. But of course
the Village Panchayat's decision should not be at cross purposes with the Abkari
policy proclaimed by the Government. In order to avoid this conflict, it is suggested
that the Panchayats inform the Government their stand vis-à-vis the opening of
liquor shops within their jurisdiction to the Government and the Government may
exclude such areas while deciding the number of shops licensed for the year. Of
course in the case of individual shops, the Village Panchayat has right to grant
license or not.

3.37.4 Sections 233 and 234 relate to licences to industrial units. It was brought to
the notice of the Committee that the accepted concept of single window clearance for
industries could not be realized in practice due to the multiplicity of licensing
authorities under various Acts. The Committee is of the view that while most of the
licensing agencies the question of granting licenses from a technical or legal point of
view, it is the Village Panchayat alone which takes into account the perspectives of
the local people. Therefore the licensing function of the Village Panchayat cannot be
dispensed with. However, the procedure for issuing licence can be simplified to a
great deal. As soon as an application is given, the Panchayat should assingn a serial
number and get various aspects enquired into and prepare on a proforma report.
The enquiry can be conducted either by an aruthorised officer or a committee
consisting of elected representatives or officials or both. There should be a time
limit of one month for deciding on an application. If no decision is communicated
within a month, the consent of the Panchayat should be deemed to have been given.

3.37.5 However, licensing for industries would not be required in areas notified as
industrial areas under any legislation in force. Similarly, Panchayat too can set
apart industrial areas within the panchayat for which no licensing would be
required.

3.37.6 Sub-section (3) of Section 234 empowers the Government to give directions to
the panchayat in respect of action taken or omitted to be taken by the panchayat on
licensing of trades and industries. This sub-section is against the spirit of
decentralization. This may be deleted.

3.37.7 For appeal against the orders of the Panchayat in the case of industrial
licences or revision against the orders of the Panchayat in the case of dangerous and
offensive trades, the Appellate Tribunal is the recourse. However, if Government
sets up a special appellate authority under any Act for hearing appeals against non-
sanction on licences for industries, then such case have to be referred to that
authoritv.

3.37.8 Some other minor modifications which are required in these sections are
listed below:

(1) A new sub-section has to be inserted in Section 236 empowering the Panchayat
or its Secretary to deny a licence or its renewal if the applicant has defaulted the
payment of any tax or fees due to the Panchayat.

(2) If an act for which licence or permission has been given is done without
observing the conditions stipulated, the Secretary of the Panchayat can issue notice.
Section 236 (5) (a) may be amended to make it obligatory on the part of the
Secretary to issue a notice if so directed by the Panchayat.

(3) For publishing a rejection order under Section 236 (7) the prior approval of the
President is not necessary.

(4) Section 236 (10) enables the Secretary to inspect any place related to a licence.
This power should be extended to a committee constituted by the Panchayat also. A
proviso may be added to Sub-section (10) for this purpose.

BUILDING RULES

3.38.1 As per Section 220 of the Kerala Panchayat Raj Act a minimum set back of
three metres is required to be left for construction of a building by the side of any
important road as decided and notified by the Village Panchayat. But this Section
alone would not be sufficient if the Village Panchayats were to regulate construction
with a view to providing for future development. Section 220 must be modified to
allow panchayats to fix set backs of even more than three metres in the case of
important roads. In Kerala except in hilly areas most of the Village Panchayats
have suburban characteristics. Unless proper spatial planning is done it will affect
future development prospects especially in the case of roads. Now an option is given
to the Panchayat in the adoption of building rules. The Committee recommends
that Building Rules should be mandatorily applied to all the Village Panchayats in
the State. Therefore it is suggested that a relevant sections in the Kerala
Municipality Act may be incorporated in the Kerala Panchayat Raj Act as Section
235 A to 235 AE on regulation of building construction.

3.38.2 Now Government have power to exempt buildings from the operation of any
or all the provisions of the building rules. The Committee feels that there should not
be any general power of exemption. If at all any exemption is required it should be
only for residential building below 50 square metres and that too based on clear
parameter. Here again, there should be no reduction in the set back from the road
affecting its development. At the same time unaruthorised buildings should be
made to pay taxes to the Village Panchayat till such time a final decision is taken
on their demolition.

MISCELLANEOUS MATTERS

3.39.1 There are certain miscellaneous matters on which the recommendations of

the Committee on Decentralisation of Powers are as follows:

(5) Section 238 (1) which empowers the Panchayats to cut and remove any tree or
its branches endangering any perdon, structure or cultivation, should be extended
to cover trees (branches) which cause pollution of drinking water in well or a tank.

(6) The period of limitation for initiating prosecution in respect of non-payment of

taxes should not apply to escaped taxes. Necessary modification has to be made in
Section 243.

(7) Sub-section (1)and (2) of Section 253 need be modified to make a Panchayat
functionary responsible for any loss caused to the Panchayat during his period of
office even after vacating office. Provision for collective liability also is to be
introduced. The period within which the liability continues is to be limited to ten
years. Government can initiate action if they are satisfied after an enquiry that loss
has been sustained to the panchayat due to any act of omission or commission by
the Panchayat functionary. Provisos are suggested under Sub-section (1), and Sub-
section (2) is revised for the above purpose.

(8) Section 254 (2)(xxv) may be deleted as the mode of acceptance of service in lieu of
tax, is outdated.

(9) Section 259 bans Panchayat employees from entering into contracts with the
Panchayat in respect of works. This ban should be extended to all the elected
members of the Panchayat including office holders. The provision for entering into
contract with the sanction of the Government is unnecessary and therefore the
proviso is to be deleted.

(10) Section 260 makes wrongful restraint of President, Secretary or a delegate for
offence under IPC. The scope of the section should be enlarged to include Standing
Committee Chairman, Panchayat Sub-committees and other committees lawfully
constituted by the Panchayat for specific purposes. New Sub-section (2) is suggested
for this purpose.

(11) Section 264 needs be clarified so that the fines ordered by a competent court
should also be credited to Panchayat fund.

(12) There should be a new sub-section under Section 266 allowing for annual
renewal of registration of tutorial institutions as in the case of health institutions.
Similarly, after Section 267, there should be an enabling provision to allow
Panchayats to collect annual fees from private tutorial institutions as in the case of
health institutions.
(13) The definition of para-medical institutions in Section 269 should include
nursing schools also.

(14) There should be a new Section 270 A on the lines of Section 267 so that a
penalty of up to Rs.5000/- can be imposed for running a private hospital or para-
medical institution without registration. For continued violation, Rs.500/- per day
can be realized. In the case of tutorials, this could be Rs-100/- per day.

(15) Section 276 provides for appeals. The section is proposed to be revised as
powers are now given to the Tribunals Ombudsman.

(16) The Panchayats due to their legal status have the right to institute suit against
Government. Since legal suits are costly and time consuming and since the different
levels of Government are expected to function in harmony without conflict, the
Committee feels that the Panchayats should exercise their right sparingly after
exhausting all other sources of remedy. Therefore a reasonable restriction needs to
be imposed on the Panchayats in filing a suit against the Government. An
appropriate Section has to be introduced in the Kerala Panchayat Raj Act for this
purpose.

(17) First and Second Schedules relating to oath of office may be modified to include
upholding the sovereignty and integrity of India as part of the oath.

SUGGESTED AMENDMENTS TO THE KERALA PANCHAYAT RAJ ACT,

1994

Section 2

The following definitions under Section 2 may be redefined as follows:

(i) "(ii) 'Block Panchayat' means a panchayat constituted at intermediate level

under clause (b) of Sub-section (1) of Section 4 and shall be called by name 'Block
Council;"
(ii) "(vi - a) 'Committee' means a Standing Committee or a Steering Committee
constituted under this Act or any other committee constituted by the panchayat for
any specific purpose."

(iii) "(xii) 'District Panchayat' means a panchayat constituted at district level under
clause (c), of Sub-section (1) of Section 4 and shall be called by name "District
Council"."

(iv) "(xxii) 'local authority' or 'local self government institution' (LSGI- to be short)
means a panchayat at any level constituted under Section 4 of this Act or a
municipality constituted under Section 4 of the Kerala Municipality Act, 1994 (20 of
1994)."

(v) "(xxxi) 'President' means the president of a Village Panchayat or Block

Panchayat or District Panchayat as the case may be, and he shall be the executive
head of that panchayat."

(vi) "(xl) 'Secretary' means the Secretary of a Village Panchayat or a Block

panchayat or a District Panchayat as the case may be, and he shall be the executive
officer of that panchayat."

Section 3

(i) After Sub-section (2), the following proviso shall be added, namely,-

"Provided that in the area of a Grama Sabha where the number of members of
Scheduled Tribes among the members of that Grama Sabha is not less than 50,
such members of Scheduled Tribes shall be deemed to constitute a sub-committee of
the Grama Sabha, and it shall have all the powers, functions, rights and
responsibilities of the Grama Sabha so far as the developmental matters of the
Scheduled Tribes in that area are concerned."

(ii) For Sub-section (3) the following sub-section shall be substituted, namely,
"(3) Grama Sabha shall meet at least once in three months at a place to be decided
by the Village Panchayat and to such meetings the members of Block Panchayat
and District Panchayat representing the area of the Grama Sabha shall invariably
be invited, and such invitation to them shall be issued by the president of the
Village Panchayat concerned:

Provided that the convener of Grama Sabha may convene an extraordinary

meeting, if a request is made by not less than ten percent of the members of the
Grama Sabha with items of agenda specified in such request."

(iii) Sub-sections (8) to (11) of Section 3 shall be deleted.

New Sections 3A and 3B

After Section 3, new sections shall be added, namely,-

"3 A. Powers, functions and rights of the Grama Sabha :- (1) The Grama Sabha
shall, subject to the manner and procedure as may be prescribed, exercise powers
and perform functions, such as,-

a) rendering assistance to the panchayat in collection and compilation of details

required for formulation of development plans;

b) generating proposals and fixing priority of plan schemes and development

programmes to be implemented in the area of the Grama Sabha;

c) preparing list of eligible beneficiaries in the order of priority, for the beneficiary-
oriented schemes from the area of Gama Sabha on the basis of criteria fixed by the
panchayat or Government, by identification of most eligible persons;

d) rendering assistance in effective implementation of development schemes by

providing facilities locally required;
e) providing and mobilizing voluntary labour and contributions in cash and kind for
the development programmes;

f) suggesting the location of street lights, street or community water taps, public
wells, public sanitation units, irrigation facilities and such other public amenity
schemes;

g) formulating schemes and imparting awareness on matters of public interest like

cleanliness, preservation of environment, prevention of pollution, guarding against
social evils like corruption, illicit and clandestine transactions etc.;

h) promoting harmony and unity among various groups of people in the area of the
Grama Sabha and arranging art festivals and sports meets to give expression to the
talents of the people of the locality;

i) Nominating members to the 'beneficiary committees' proposed by the Village

Panchayat;

j) verifying the eligibility of persons getting various kinds of welfare assistance from
Government such as pensions and subsidies;

k) getting information on the detailed estimates of works proposed to be taken in

the area of the Grama Sabha;

l) getting information from the officials concerned as to the services they will render
and the works they propose to do in the succeeding three months;

m) knowing the rationale of every decision of the panchayat concerning the area of
the Grama Sabha;

n) knowing the follow up action taken on the decisions of the Grama Sabha and to
know the detailed reasons for not implementing any of the decisions;
o) co-operating with the employees of the Village Panchayat in the sanitation
arrangements in the area and rendering voluntary service in the removal of
garbage;

p) identification of the deficiencies in the water supply and street lighting

arrangements in the area and suggesting remedial measures;

q) assisting the activities of parent-teacher associations in the area;

r) assisting the activities of public health centers in the area, especially in disease
prevention and family welfare; and

Such other functions as may be prescribed from time to time.

(2) The Grama Sabha may, in its ordinary meeting or a special meeting convened
for the purpose, discuss the report referred to in Sub-section (6) of Section 3 and it
shall have right to know the budgetary provisions, details of plan outlay and the
subject-wise allocation of funds and also the details of the estimate and cost of
materials of the works executed or proposed to be executed in the area of the Grama
Sabha.

(3) The audit report or the report on performance audit placed for the consideration
of the Grama Sabha may be discussed in its meeting and the views,
recommendations or suggestions communicated to the Village Panchayat.

(4) The quorum of Grama Sabha shall not be less than ten percent of the electors of
the constituency and the procedure for convening and conducting meetings of the
Grama Sabha shall be may be prescribed.

(5) The officers of the Village Panchayat shall attend the meetings of the Grama
Sabha as may be required by the president, and an officer specifically nominated by
the Panchayat as the co-ordinator of the Grama Sabha shall assist the convener of
the Grama Sabha in convening and conducting its meetings, in recording its
decisions in a minutes book, and also in taking follow up action thereon.

(6) Grama Sabha may appoint elect or constitute sub-committees, consisting of not
less than ten members of whom not less than half shall be woman, for general or
specific purposes for in-depth discussion of issues and programmes or for effective
implementation of schemes, policies or decisions of the Grama Sabha, and in
furtherance of the rights and responsibilities of Grama Sabha.

(7) Resolutions may be passed, on majority basis, in the meetings of the Grama
Sabha in respect of any issue coming under the jurisdiction of the Grama Sabha;
however effort should be made to take decisions on the basis of consensus as far as
possible.

3 B Responsibilities of Grama Sabha,- (1) The Grama Sabha shall have the
following responsibilities, namely,-

(i) dissemination of information on development and welfare programmes;

(ii) canvassing participation in health, literacy and similar development campaigns;

(iii) collecting essential socio-economic data;

(iv) providing feed-back on the performance of development programmes;

(v) resorting to moral suasion to pay taxes, repay loans, promote environmental
cleanliness, maintain social harmony, etc;

(vi) mobilizing local resources to augment panchayat resources;

(vii) supervising development works as volunteer teams and

(viii) creating arrangements to report quickly incidence of epidemics, natural

calamities etc.
(2) The Grama Sabha shall make periodical reports to the Village Panchayat in
respect of matters specified in Section 3A."

Section 6

Sub-section (3) may be revised as follows:-

"(3) The number of seats to be notified under Sub-section (1) or under Sub-section
(2) shall not,-

(a) in the case of Village Panchayat, be less than ten or more than twenty five;

(b) in the case of Block Panchayat, be less than fifteen or more than twenty five;

(c) in the case of District Panchayat be less than fifteen or more than twenty five:

Provided that the ratio between the population of the territorial area of a panchayat
at any level and the number of seats in such panchayat to be filled by election shall
as far as practicticable, be the same through-out the State."

Section 7

(i) In Sub-section (4) the words, "such seats shall be allotted by the Government or
an officer authorised by them under Section 10 by rotation to different
constituencies in that panchayat area:" shall be substituted by the words,- "such
seats shall be allotted under Section 10 by the State Election Commission or an
officer aruthorised by it by rotation to ............... area."

(ii) In Sub-section (6) for the words, "such seats shall be allotted by the Government
or the officer authorised by them under Section 10 by rotation to different
constituencies in the Village Panchayat area," the words "such seats shall be
allotted under Section 10 by the State Election Commission or the officer
aruthorised by it by rotation to ...............area" shall be substituted.
Section 8

(i) Sub-section (1) of Section 8 shall be revised as follows:

"(1) Every Block Panchayat shall consist of elected members equal to the number of
seats notified under Sub-section (1) of Section 6. The presidents of the Village
Panchayats in the territorial area of the Block Panchayat shall be permanent
invitees to the meetings of the Block Panchayat; but shall not have right to vote in
its meetings."

(ii) In Sub-section (4) for the words,- "such seats shall be allotted by the
Government or the officer aruthorised by them under Section 10 by rotation to
different constituencies in that Block Panchayat area", the words "such seats shall
be allotted under Section 10 by the State Election Commission or the officer
aruthorised by it by rotation to ...............area" shall be substituted.

(iii) In Sub-section (6) for the words,- "such seats shall be allotted by the
Government or the officer aruthorised by them under Section 10 by rotation to
different constitutions in Block Panchayat area" the words, "such seats shall be
allotted under Section 10 by the State Election Commission or the officer
aruthorised by it by rotation to ................ Area" shall be substituted.

Section 9

(i) Sub-section (1) of Section 9 shall be revised as follows:-

(ii) "(1) Every District Panchayat shall consist of elected members equal to the
member of seats notified under Sub-section (1) of Section 6. The presidents of the
Block Panchayats in the district shall be permanent invitees to the meeting of the
District Panchayat; but shall not have right to vote in its meetings."

(iii) In Sub-section (4), for the words. "such seats shall be allotted by the
Government or the officer aruthorised by them under Section 10 by rotation to
different constituencies in that District Panchayat area" shall be substituted with
the words, "such seats shall be allotted under Section 10 by the State Election
Commission or the officer quthorised by a by rotation to ...................area".

(iv) In Sub-section (6), for the words "such seats shall be allotted by the Government
or the officer authorsed by them under Section 10, by rotation to different
constituencies in the District Panchayat area" shall be substituted by the words,
"such seats shall be allotted under Section 10 by the State Election Commission or
the officer aruthorised by it by rotation to ...............area".

Section 10

(i) In Sub-section (1) for the words, "the Government or an officer aruthorised by
them" the words, "the State Election Commission or an officer aruthorised by it"
shall be substituted.

(ii) In Sub-section (2) the words; "The Government or the officer authorised by
them" shall be substituted by the words, "The State Election Commission or the
officer aruthorised by it".

(iii) In clause (a) of Sub-section (2), for the words "in regard to the matters
mentioned in Sub-section (1)", the words, "inregard to the matters mentioned in
clause (a) of Sub-section (1)" shall be substituted.

(iv) In clause (c) of Sub-section (2) for the words "by the Government or the
authorised officer", the words "by the State Election Commission or the officer
authorised by it" shall be substituted.

(v) In clause (d) of Sub-section (2) the words "specifying therein ..........for women"
shall be deleted.

(vi) After clause (d) of Sub-section (2) the following new clause shall be inserted,
namely,-
"(e) delermine the constituencies to be reserved for Scheduled Castes or the
Scheduled Tribes or women, by draw of lots by the officer aruthorised by the State
Election Commission in the manner, on the date at the time and the place to be
specified by the Commission:

Provided that any constituency reserved for Scheduled Castes, Schedule Tribes or
women in a general election shall as far as possible, be excluded from the draw of
lots for the purposes of rotation and determination of reservation of constituencies
in the succeeding general elections.

(f) make an order after the draw of lots, specifying the constituencies which shall be
reserved for the Scheduled Castes or Scheduled Tribes or women."

(vii) In Sub-section (3) for the words "by the Government or the aruthorised officer"
the words, "by the State Election Commission or the officer authorised by it" shall
be substituted.

(viii) In Sub-section (4) for the words "Government or the officer aruthorised by
them" occurring at two places, the words "State Election Commission or the officer
aruthorised by it" shall be substituted.

Section 11

In Section 11, for the words "the Government or the officer aruthorised by them" the
words "the State Election Commission or the officer authorised by it" shall be
substituted.

Section 27

(i) The existing section may be numbered as Sub-section (1) and in that sub-section
the words "one thousand rupees" shall be substituted with the words "five thousand
rupees".
(ii) After Sub-section (1) the following new sub-section shall be added, namely:-

"(2) Any offence punishable under Sub-section (1) shall be cognizable and action in
this regard shall be initiated on an intimation from the State Election Commission."

Section 33

In Section 33 clauses (a),(b) and (c) may by substituted by the following,-

"(a) has failed to lodge an account of election expenses within the time and in the
manner prescribed and has no sufficient reason or justification for such failure; or

(b) has submitted accounts which are not correct, or

(c) has incurred election expenses in excess of the limit prescribed;"

Section 34

(i) Clause (b) of Sub-section (1) of Section 34 may be substituted with the following,-

"(b) (i) has been sentenced by a criminal court to imprisonment for a period not less
than one year, for any offence.

(ii) has been sentenced by any court or tribunal with imprisonment for a period not
less than three months for an offence involving moral delinquency.

(iii) Has been found guilty of corruption by a competent authority under any law in
force.

(iv) Has been held by the Ombudsman constituted under Section 271 G, to be
personally liable, for any maladministration; or"

(ii) The following additional clause may be inserted after clause (o),-
"(p) had been found liable for loss, waste or misapplication of money or other
property of the panchayat under Section 253 previously and such liability realized
thereunder."

Section 35

(i) Clause (a) of Section 35 may by substituted with the following,-

"(a) is sentenced, held personally liable or found guilty as described in clause (b) of
Sub-section (1) of Section 34; or"

(ii) In clause (k) after the existing proviso the following proviso shall be added,
namely:-

"Provided further that no permission shall be granted by the panchayat to a

member for being absent from its meetings for a period of six months from the date
of the meeting last attended by such member."

(iii) In Section 35 the following additional clauses may be added after clause (m).

"(n) is or has been elected or nominated as a member of the House of the People
(Lok Sabha) or a member or the Council of States (Rajya Sabha) or a member of the
State Legislative Assembly and has assumed that office; or

(o) has been found liable for any loss, waste or misapplication of money or other
property of the panchayat under Section 253.

(p) has failed, twice consecutively, to convene the meeting of the Grama Sabha, due
once in three months and of which he is the convener.

(q) has failed to file declaration of assets as required under Section 160 A within the
time limit specified therein."
(iv) The existing Section 35 may be numbered as Sub-section (1) and a new Sub-
section (2) may be added as follows,-

"(2) The question of disqualification under Sub-section (1) shall be referred by the
Secretary, to the State Election Commission for decision, as and when such question
comes to his notice."

New Section 35 A

After Section 35, the following new section shall be added, namely:-

"35 A Disqualification on the ground of defection,- (1) A member of panchayat,

belonging to a political party recognized by the Election Commission of India as a
National Party or a State Party in the State of Kerala under the Election Symbols
(Reservation and Allotment) Order, 1968, (hereinafter referred to as a 'political
party' for the purpose of the Section) and who was elected as such under the election
symbol of such political party, shall be disqualified for being such member, if he
votes or abstains from voting in an election to the office of the President or Vice-
president under Section 153 or in respect of a no-confidence motion moved under
Section 157, contrary to any written direction issued by such political party or by
any person or authority aruthorised by it in this behalf, without obtaining, in either
case, the prior permission of such political party, person or authority and such
voting or abstention has not been condoned by such political party, person or
authority within seven days from the date of such voting or abstention, as the case
may be:

(2) A member who was elected to a panchayat under an election symbol other than
the election symbol of a political party may, within three months from the date of
such election, join a political party with the written consent of the such political
party, or a person or authority aruthorised by it in this behalf, and intimate the fact
to the Secretary of the panchayat who shall send a report to this effect to the State
Election Commission and such members shall be deemed to have been elected under
the election symbol of that political party, from the date of such intimation.

(3) Any member of a panchayat ousted from a political party in accordance with the
byelaw or rules governing such political party shall not be bound by the direction
issued by such political party in respect of voting referred to in Sub-section (1).

(4) The political party or any person or authority aruthorised to issue a direction in
respect of voting referred to in Sub-section (1) may, make a complaint in regard to
violation of any such direction by any member to the Secretary of the panchayat
and to the State Election Commission within ten days from the date of voting, with
documentary evidence. The Secretary of the panchayat, on receipt of such
complaint, shall furnish report to the State Election Commission with details of
facts thereon within three days from the date of receipt of the complaint. The State
Election Commission shall decide the question of disqualification of the member and
pass an order thereon within thirty days from the date of the receipt of the
reference and its decision shall be final:

Provided that the State Election Commission shall not decide any such question
without conducting an inquiry and providing an opportunity to the member
complained against and the complainant of being heard.

(5) A member shall cease to hold office as such if he has been found by the State
Election Commission as disqualified under Sub-section (1) with effect from the date
of order of the Commission.

(6) The Government may, make rules for carrying out the purposes of this section."

Section 36

(i) In Sub-section (1) after the words "elected as a member" the following words
shall be inserted namely: -
(ii) "the Secretary or an officer aruthorised by the Government may refer such
question to, or"

(iii) In Sub-section (2), the words "the petition referred to in Sub-section (1)" shall be
deleted.

(iv) In Sub-section (2) for the words "the member shall be ................not disqualified"
the following shall be substituted, namely:- "the Commission may pass an interim
order as to whether the member may continue to hold office or not during the
pendency of the proceedings."

(v) In sub-section (3) the word "petition" may be substituted by the word "petition or
reference".

Section 68

Following proviso shall be added to Section 68, namely:-

" Provided also that the poll shall not be countermanded under this section if the
candidate died was not one sponsored by a political party."

Section 151

(i) In Section 151, the marginal heading may be substituted with the following
words,-

"151. Appointment of Special Officer or Administrative Committee on failure to

constitute a panchayat",-

(ii) Sub-section (2) may be revised as follows,-

"(2) Where the duration of a panchayat has expired and a new panchayat has not
been constituted or where a panchayat has been dissolved under Section 193, the
Government may by notification in the Gazette appoint a Special Officer or and
Administrative Committee consisting of at least three members, who shall be
Officers of the Government, to administer the panchayat."

(iii) In Sub-section (3) the words,- "President, Vice-president and the members of"
may be deleted.

(iv) Sub-section (3 a) may be omitted.

(v) Sub-section (4) may be revised as follows,-

"(4) Where a Special Officer is appointed under Sub-section (2), all powers functions
and duties of the Panchayat concerned and of the President, Vice-president and the
committees of the Panchayat shall be exercised and performed by such Special
Officer and where an Administrative Committee is appointed, the powers, functions
and duties of the Panchayat shall be exercised and performed by such committee
and those of the President and the Vice-president shall be exercised and performed
by such member of the committee as aruthorised by the Government in the
notification issued under Sub-section (2):

Provided that the Special Officer or the Administrative Committee so appointed

shall exercise powers and perform functions subject to general or specific direction
from Government."

(vi) The proviso under Sub-section (5) may be substituted with the following,-

"Provided that the Special Officer or the Administrative Committee appointed

under Sub-section (2) shall, notwithstanding that the period of appointment as
specified in the notification under the said sub-section has not expired, cease to hold
office on the date of re-constitution of the panchayat."

Section 152

Sub-section (1) and (2) shall be revised as follows:-

"(1) Every elected member of a panchayat shall, before assuming his office, make
and subscribe an oath or affirmation in the form set out in the Second Schedule.

(2) The eldest among the members elected in a general election shall make and
subscribe such oath or affirmation before the officer aruthorised by Government in
this behalf and all other members elected in that election shall, in the alphabetical
order of their names in English, make and subscribe such oath or affirmation before
the eldest member who has made and subscribed oath or affirmation before the
officer aruthorised on a date specified by the Government not later than a date fixed
by the State Election Commission for the election of the President under Sub-
section (5) of Section 153."

Section 153

(i) In Sub-section (1) the following sentence may be added at the end,-

" The President shall be a full time functionary of the Panchayat and he shall not
engage himself in any profession or occupation during the period he holds such
office."

(ii) In clause (a) of Sub-section (4) the words "by the State Election Commission by a
notification in the Gazette" shall be added at the end.

(iii) In clause (d) of Sub-section (4) the words "Before issuing notification for general
election, the Government shall allot by rotation the reserved seats under clauses
(a), (b) and (c)" shall be substituted with the following words,-

"The State Election Commission shall allot by rotation the reserved offices under
clauses (a), (b) and (c) for each general election."

(iv) Following proviso shall be added after the existing provisos to Sub-section (4),-
"Provided again that if the office of the president of a panchayat is reserved for
Scheduled Castes, Scheduled Tribes or women in a general election the office of the
President of that panchayat shall not, as far as possible, be reserved for them in the
succeeding general election."

(v) In Sub-section (7), before the words "it shall be the duty", the following words
shall be inserted namely:-

" The election shall be by open vote using ballot paper in which each member
participating in the election shall record, under his signature, his choice, and"

Section 155

(i) In Sub-section (1) the words "under his own hand" shall be deleted.

(ii) In Sub-section (2)

a) The words "under his own hand" may be deleted.

b) After the words "to the President of the Panchayat", the words "or in his absence
to the Secretary" shall be inserted.

c) After the words "received by the President", the words "or the Secretary" shall be
inserted.

d) After the words "and the President", the words "or the secretary" shall be
inserted

(iii) In Sub-section (3) the following words shall be added at the end, namely,-

"or hand it over to the person concerned".

(iv) In the proviso under Sub-section (4) the words "thirty days" shall be revised as
"ten days".
Section 156

(i) After Sub-section (3) a new sub-section (3A) may be inserted as follows:-

"(3A) Where both the offices of President and Vice-president are vacant, the
Chairman of the Standing Committee in the order of preference mentioned in Sub-
section (1) of Section 162, shall exercise the functions of the President, until a new
President or Vice-president assumes office, and where there is no president, Vice-
president or Chairman of Standing Committee to hold the office of the President,
the eldest among the elected members shall exercise the functions of the President
of the Panchayat for such period till a President or Vice-president assumes office".

(ii) After Sub-section (5) a new sub-section (6) may be added as follows:-

" (6) The President shall have the following additional powers, namely:-

(a) to ensure attendance of the Secretary of the Panchayat and the employees under
the control of the Panchayat including the officers and staff of the Government
departments transferred to the Panchayat, in the meetings of the Panchayat;

(b) to place under suspension any of the employee or officers under the control of the
Panchayat (other than the Secretary and the officers in the gazetted rank) pending
disciplinary proceedings;

(c) to call for records and files, and pass orders thereon in accordance with the
provisions in the Act, rules and other standing orders:

Provided that the President shall not call for the files and records which are directly
related to the exercise of independent statutory functions of the Secretary or any
other officer under the Panchayat.

Note: - The receipt and return of the files and records shall be properly
acknowledged and accounted for.
(d) to refer to Government a resolution passed by the Panchayat which in his
opinion is in excess of powers conferred by this Act or if carried out, is likely to
endanger human life or health or public safety, or has not been legally passed,
provided that such resolution was passed in his absence or has been passed without
considering his objections on the grounds mentioned in this clause".

Section 157

(i) Sub-section (5) of Section 157 may be substituted with the following,-

"(5) A meeting convened under this section shall be presided over by-

(a) the President, if the motion is against the Vice-president or the Chairman of a
Standing Committee,

(b) the Vice-president, if the motion is against the President,

(c) by the Chairman of the Standing Committee in the order of preference

mentioned in Sub-section (1) of Section 162, if the President or the Vice-president as
the case may be, is unable to preside over the meeting as provided under clause (a)
or clause (b) due to absence from station or otherwise;

Provided that where no one is able to preside under this clause also a member
elected by the elected members present at the meeting from among themselves shall
preside over the meeting."

(ii) After Sub-section (5) following new sub-section shall be inserted, namely,-

"(5A) The officer referred to Sub-section (2) shall attend the meeting convened
under this section, as an observer."

(iii) In Sub-section (9) the following words shall be added at the end, namely,-
"by means of open vote using ballot paper in which each member participating in
the voting shall record under his signature whether he supports the motion or not."

(iv) In Sub-section (10) for the words and "shall not be entitled to vote thereon" shall
be substituted with the words "but shall be entitled to vote there on without the
right to exercise casting or a second vote".

(v) In Sub-section (11) after the words "to the Government by" the following words
shall be inserted namely, "the person presided over the meeting and a report on the
proceedings of the meeting shall be forwarded to Government by".

(vi) Sub-section (12) (including the provisos) shall be substituted with the following
sub-section.

"(12) If the motion is carried with the support of the majority of the sanctioned
strength of the Panchayat the President or the Vice-president or the Chairman of
the Standing Committee, as the case may be, shall cease to hold office and such
office shall fall vacant forthwith, and the officer referred to in Sub-section (2) shall
report the fact to the Government and to the State Election Commission and shall
cause to publish a notice to this effect in the notice board of the Panchayat. The
Government, on receipt of such report shall notify the cessation of office by the
President, Vice-president or the Chairman of the Standing Committee, as the case
may be."

Section 158

In Sub-section (3) after the words, "every member" the words "shall have the power
to inspect the works and schemes undertaken by the panchayat and to make report
to the President or the Chairman of the Standing Committee and" shall be inserted.

Section 159

Section 159 shall be deleted.

New Section 160 A

After Section 159, the following new section shall be added, namely:-

"160 A. Members to declare assets:- (1) Every member shall, within three months
from the date of assuming his office, file a declaration of assets and interests in
property of himself and the members of his family, in such manner and in such form
as may be prescribed, before the competent authority as may be notified by the
Government.

(2) Where a member, after filing a declaration under Sub-section (1), acquires or
disposes any asset or interest in property, he shall file further declaration to this
effect before the competent authority, within three months from the date of such
acquisition or disposal as the case may be.

(3) Any member, who makes a declaration under Sub-section (1) or Sub-section (2)
which is false and which he either knows or believes to be false or does not believe
to be true, shall be liable to be proceeded against in accordance with law, for filing
such false declaration.

(4) Failure to file a declaration under Sub-section (1) or Sub-section (2) shall attract
the provisions for disqualification of membership under Section 35."

Section 161

(i) The following proviso shall be added after the existing proviso under Sub-section
(1) namely:-

"Provided further that the President of the panchayat shall convene, at any time, a
special meeting of the panchayat, if not less than one-third members of the
sanctioned strength of the panchayat requests in writing to convene such a meeting
for the purpose specified in the request."
(ii) Sub-section (8) of Section 161 may be revised as follows,

"(8) Every member who was present at a meeting of the Panchayat and voted
against any resolution being adopted by the Panchayat shall have the right to
present to the Secretary a note of dissent regarding such resolution, within forty-
eight hours of the conclusion of the meeting. Such note of dissent shall be specific."

(iii) After Sub-section (8) following new sub-sections may be added. Namely,-

"(9) A copy of the minutes of every meeting of the Panchayat shall be forwarded by
the Secretary within seven days after the date of the meeting to all the members of
the Panchayat. He shall also forward within such time limit a copy of the minutes of
the meeting to the Government or to the officer authorised by the Government in
this behalf, along with the notes or dissent if any received under Sub-section (8).

(10) The Government or the officer authorised by Government, on receipt of the copy
of the minutes and the notes of dissent shall examine such notes of dissent and if
the Government or the officer authorised, as the case may be, finds that the
resolution or minutes leading to the dissent involves violation of the provisions of
the Act, rules or guide lines or exceeds the powers conferred on the Panchayat, the
Government, or the officer authorised as the case may be, shall pass such orders or
initiate such action as may be necessary within fifteen days from the date of receipt
of the note of dissent under intimation to the member concerned and the Secretary.

(11) Where a note of dissent is received by the Secretary under Sub-section (8) in
respect of a resolution passed by the Panchayat and if he considers that such
resolution calls for reconsideration by reason of any illegality or injustice, he may
bring the matter to the notice of the Panchayat at its next meeting and in such
cases the Panchayat, notwithstanding the provisions in Sub-section (7), may
reconsider suchresolution and modify, vary or cancel the resolution or uphold it for
reasons to be recorded, or keep the resolution in abeyance till the decision under
Sub-section (10) of the Government or the officer authorised is received by the
Panchayat."

Section 162

In Section 162.

(i) In Sub-section (1) against items (a), (b) and (c) the following items and entries
shall be substituted,-

"(a) In a Village Panchayat,-

(ii) Standing Committee for Finance and General Administration.

(iii) Standing Committee for Planning, Development and Welfare.

(v) Standing Committee for Infrastructure.

(a) In a Block Panchayat,-

(7) Standing Committee for Finance and General Administration.

(8) Standing Committee for Planning, Development and Welfare.

(9) Standing Committee for Infrastructure.

(10) Standing Committee for Health and Education.

(c) In a District Panchayat,-

(i) Standing Committee for Finance and General Administration.

(ii) Standing Committee for Planning, Development.

(iii) Standing Committee for Infrastructure.

(iv) Standing Committee for Health and Education.

(v) Standing Committee for Welfare."

(ii) For the existing sub-sections (2) to (8) following shall be substituted,-

"(2) Every Standing Committee shall consist of such number of members, including
its Chairman, as decided by the Panchayat so that every member, except the
President and Vice-president, shall be elected as a member of any one of the
Standing Committees and the number of elected members in each Standing
Committee shall, as far as possible, be equal.

(3) The members of every Standing Committee shall be elected by the elected
members of the Panchayat from among themselves under the proportional
representation system by single transferable vote, and no member of Panchayat
shall be a member of more than one Standing Committee at a time. The
membership in the Standing Committee shall be co-terminus with the membership
in panchayat unless sooner the member resigns the membership in the Standing
Committee.

(4) The members of every Standing Committee, except the Standing Committee for
Finance and General Administration shall elect one among themselves as its
Chairman, in the manner prescribed.

(5) The President shall be ex-officio member of all Standing Committees without
right to vote, and the Vice-president shall be an ex-officio member and Chairman of
the Standing Committee for Finance and General Administration.

(6) In keeping with the broad subjects indicated below, the powers and functions of
the Standing Committees shall be such as maybe prescribed in this behalf,-
(a) In a Village Panchayat,-

(I) Standing Committee for Finance Finance, Taxation, Accounts, Audit,

and General Administration Budget, General Administration and
miscellaneous Matters.

Development Planning, Socio-

(ii) Standing Committee for Planning
economic and Spatial
Development and Welfare
Planning, Agriculture, Soil
Conservation, Social Forestry, Animal
Husbandry, Minor Irrigation,
Fisheries, Small Scale Industries,
Scheduled castes and Scheduled
Tribes Development, Social Welfare,
Social Security measures, Slum
Improvement, Poverty Alleviation,
(iii) Standing Committee for Public distribution System, Public
Infrastructure health, Environment, Sanitation,
Education, Arts, Culture and Sports.

Public Works, Housing, Town

(b) In a Block panchayat, -
Planning, Regulation of
building constructions, Electricity,
Water supply and Sewerage.
(i) Standing Committee for
Finance and General Administration

(ii) Standing Committee for Finance, Accounts, Audit, Budget,

Planning , Development and General Administration

 Welfare and miscellaneous matters

Development Planning, Socio-

economic Planning, Agriculture, Soil
conservation, Animal husbandry,
Dairy, Minor rrigation, Fisheries,
Small Scale Industries,Scheduled
(iii) Standing Committee for Castes and Scheduled Tribes
Infrastrucure Development, Social Welfare
and Poverty alleviation.
(iv) Standing Committee for Health
and Education

(c) In a District Panchayat, - Public Works, Housing, Town Planning

and Spatial Planning.
(i) Standing Committee for Finance
and General General Administration.

Public Health, Education, Art

and Culture.
(ii) Standing Committee for Planning
and Development

Finance, Accounts, Audit, Budget,

Finance and General General
(iii) Standing Committee for Administration and Administration
Infrastructure miscellaneous matters

(iv) Standing Committee for Health Development Planning,

and Education Socioeconomic Planning ,Agriculture, Soil
conservation, Animal husbandry,Minor
 (v) Standing Committee for Welfare Irrigation, Fisheries and Small Scale
Industries

Public Works, Housing and Spatial

Planning

Public Health and Education

Social Welfare and Scheduled Castes and

Scheduled Tribes Development.

(7) The Panchayat, may in addition to the powers and function conferred on a
Standing Committee by rules, confer any of its powers and functions on that
Standing Committee.

(8) The resolutions of every Standing Committee shall be placed before the
Panchayat in its next meeting and the Panchayat shall have the power to revise
such resolutions, if necessary."

(iii) After Sub-section (8) new sub-sections (9) and (10) shall be added, namely,-

"(9) If any Standing Committee cannot function effectively due to the resignation of
the majority of members there from or due to any other reason whatsoever, the
powers and functions of that Standing Committee shall vest with the President
until the Standing Committee is reconstituted.

(10) The Secretary of the Panchayat shall function as the Secretary of every
Standing Committee and the officers designated as ex-officio Secretaries under Sub-
section (11) of Section 179 shall attend the meetings of the respective Standing
Committee and render necessary assistance to the Committee in the discharge of its
functions."
New Section 162 A

After Section 162 the following new section shall be inserted, namely,-

"162 A. Steering Committee: - (1) In every Panchayat there shall be a Steering

Committee consisting of the President and the Chairman of the Standing
Committees and the President shall be the Chairman of the Steering Committee.

(2) Steering Committee shall co-ordinate and monitor the functioning of the
Standing Committees and discharge the powers and functions entrusted to it by the
Panchayat."

New Section 162 B

The following section may by added after the proposed new Section 162 A:

"162 B Public Accounts and Vigilance Committee :- (1) In a District Panchayat there
shall be constituted a Public Accounts and Vigilance Committee, which shall,
including its Chairman, consist of not less than five but not more than seven
members.

(2) The members of the Public Accounts and Vigilance Committee other than its
Chairman shall be elected by the elected members of the District Panchayat from
among themselves.

(3) The Leader of Opposition in the District Panchayat, chosen in the manner
prescribed, shall be the chairman and ex-officio member of the Public Accounts and
Vigilance Committee and he shall hold office of the Chairman of the committee till
he ceases to be the Leader of Opposition, and a member shall hold office till such
time he remains as a member of panchayat, unless sooner he resigns membership in
the committee.
(4) The Public Accounts and Vigilance Committee shall scrutinize the accounts,
inspect the works and enquire into the observations in the audit and inspection
reports, and present periodical reports to the District Panchayat for timely action.
For this purpose its Chairman shall have the right to call for any record, register or
file of the panchayat from the Secretary or the officer concerned. The committee
shall keep surveillance on administrative and financial transactions of the
panchayat and make observations thereon in its periodical report."

Section 163

(i) In Sub-section (1) the word "may" occurring after the words "Every Panchayat"
shall be substituted with the word "shall".

(ii) Following proviso shall be added to Sub-section (1) namely,-

"Provided that the members nominated shall not have any right to vote".

Section 164

(i) In Sub-section (1) the word "may" occurring after the words "Every Panchayat"
shall be substituted with the word "shall".

(ii) Following proviso shall be added to Sub-section (1), namely, -

"Provided that the members nominated shall not have any right to vote".

(iii) In Sub-section (3) for the words "laid down in the byelaws of the panchayat
concerned", The words "such as may be prescribed" shall be substituted.

Section 165

In Sub-section (1), -
(i) After the words "A panchayat may" the following words shall be inserted
namely,-

"and if so required by the Government, shall"

(ii) After the words "one or more panchayats" the words "or municipalities" shall be
inserted.

Section 166

(i) In Sub-section (1) the words "subject to the rules made under this Act" shall be
omitted.

(ii) Following proviso shall be added to Sub-section (1), namely:-

"Provided that the Village Panchayat shall be duty bound to render service to the
inhabitants of the Village Panchayat are on matters listed out as mandatory
functions in the Third Schedule."

(iii) In Sub-section (2) after the words "Third Schedule" the following words shall be
added namely:-

"and shall prepare plans and implement schemes on the subjects enumerated
therein, for economic development and social justice."

(iv) Under Sub-section (3) following explanation shall be added namely:-

"Explanation:- Man Power Bank means a data bank having the details of skilled or
unskilled unemployed persons, or employed persons who are willing to render
service on demand, and such other details as may be prescribed to be entered into a
register, maintained by the Village Panchayat in this behalf."

(v) Following words shall be added to Sub-section (6), namely:-

"and soon on such transfer, the institutions shall be named after the Village
Panchayat concerned and shall be known accordingly."

(vi) After Sub-section (6) the following sub-sections shall be added, namely:-

"(7) The institutions and schemes transferred by the Government to a Village

Panchayat shall be managed and administered by it, subject to the technical
guidance of the Government and subject to adherence to the national and State
policies.

(8) No Village Panchayat shall sell, transfer or alienate any property transferred to
it by the Government under Sub-section (6) or create any charge thereon."

Section 169

(i) Sub-section (1) of Section 169 may be revised as follows, -

"169 Vesting of Public Roads in Panchayats (1) Notwithstanding anything contained

in the Kerala Land Conservancy Act, 1957 (8 of 1958) or in any other law for the
time being in force, all public roads, streets, lanes and paths, the bridges, ditches,
dikes and fences on or beside the same, and all adjacent land not being private
property appertaining thereto in any panchayat area, other than the roads which
have been classified as National Highways, State Highways and Major District
Roads as on Second October 1995, shall stand transferred to, and vest absolutely in
the panchayats, in the following order, namely:-

(a) In District Panchayats - the District Roads (other than Major District Roads)

which connect more than One Block Panchayats

(b) In Block Panchayats - the District Roads (other than Major District Roads) and
Village Roads which
 Are within the Block Panchayat area and Connect more than
one Village Panchayat, and

(c) In Village Panchayat - other Village Roads, lanes, and pathswith in the Village
Panchayat area,

together with all pavements, stones and other materials and other things provided
therein, all sewers, drains, drainage works, tunnels and culverts in, alongside or
under such roads and all works materials and things appertaining thereto."

(ii) In Sub-section (2),

a) The word 'village' occurring at two places may be deleted, and

b) The words "sub-section (2)" in English version and the words "Sub-section

(3)" in Malayalam version shall be substituted with the words "Sub-section

(4)"

(iii) In Sub-section (3), in proviso the word "village" shall be deleted.

(iv) In Sub-section (4) the words "village" occurring at three places shall be omitted.

(vi) In Sub-section (5) the word "village" occurring at two places shall be deleted.

Section 170

Section 170 shall be substituted by the following: -

"170 Panchayats to maintain the roads properly: - (1) It shall be the duty of the
panchayats to maintain the roads vested in them properly and free from
encroachments.
(2) The Village Panchayat shall keep all public roads and drains in its area free
from garbage, rubbish, sewage and other waste materials and shall protect all such
roads from encroachment.

(3) All garbage, rubbish, sewage and other waste materials collected by a Village
Panchayat during the process of clearing and cleaning of roads and drains shall be
disposed of by it in the manner as it may think fit.

Section 172

(i) In Sub-section (1) the words "subject to the rules made under this Act" shall be
omitted.

(ii) In Sub-section (2) after the words "Fourth Schedule" the following words shall be
added namely:-

"and shall prepare plans and implement schemes, on the subjects enumerated
therein, for economic development and social justice."

(iii) Following words shall be added to Sub-section (5), namely:-

"And soon on such transfer, the institutions shall be named after the Block
Panchayat concerned and shall be known accordingly."

(iv) After Sub-section (5) the following sub-section shall be added, namely:-

"(6) The institution and schemes transferred by the Government to a Block

Panchayat shall be managed and administered by it, subject to the technical
guidance of the Government and subject to adherence to the national and State
policies.

(7) No Block Panchayat shall sell, transfer or alienate any property transferred to it
by the Government under Sub-section (5) or create any charge thereon."
Section 173

(i) In Sub-section (1) the words "subject to the rules made under this Act" shall be
omitted.

(ii) In Sub-section (2) the following words shall be added, namely:-

"and shall prepare plans and implement schemes, on the subjects enumerated
therein, for economic development and social justice."

(iii) Following words shall be added to Sub-section (5), namely,-

"and soon on such transfer, the Institution shall be named after the District
Panchayat concerned and shall be known accordingly."

(iv) After Sub-section (5) the following sub-sections shall be added, namely:-

"(6) The institutions and schemes transferred by the Government to a District

Panchayat shall be managed and administered by it, subject to the technical
guidance of the Government and subject to adherence to the national and State
policies.

(7) No District Panchayat shall sell, transfer or alienate any property transferred to
it by the Government under Sub-section (5) or create any charge thereon."

New Section 173 A

After Section 173, a new section shall be inserted as follows, namely:-

"173 A. Management Committee for public health institutions,- A Management

Committee shall be constituted for every public health institution transferred to it
by the Government and it shall consist of not more than fifteen members including
the Chairman of the Standing Committee concerned, member of the constituency
concerned, head of the institution, engineer in charge of civil works of the
institution and other interested persons of the locality."

Section 175

(i) In Sub-section (1), (2) and (3) for the words "in such form" the words "in such
form and in such manner" shall be substituted.

(ii) Sub-section (4) shall be revised as follows:-

"(4) The Panchayat shall, in addition to the annual and five year plans, prepare
perspective plan foreseeing a period of fifteen years, with special focus on spatial
planning for infrastructure development and considering the resources and
endowments and the need for further development. Such perspective plan shall be
submitted to the District Planning Committee through the respective District
Panchayat."

New Section 176 A

"176 A. Installation of electrical undertakings by panchayat.- Any panchayat may

undertake installation for generation, transmission and supply of electricity, subject
to the provisions of the Indian Electricity Act, 1910 (Central act 9of 1910) or the
Electricity (Supply) Act, 1948 under the terms of licence granted by the Kerala
State Electricity Board to the panchayat."

New Section 176 B

After Section 176 A the following new section shall be inserted, namely:-

"176 B. Provision for lighting public streets :- (1) A Village Panchayat shall cause all
public streets in its area to be lighted and for that purpose shall provide such lamps
and equipments as may be necessary.
(2) For the discharge of the functions under Sub-section (1) the Kerala State
Electricity Board shall provide electric energy, technical advice and service of its
employees to the Village Panchayat and such employees shall be under the
superintendence and control of the Village Panchayat.

(3) The energy charges for providing street lights shall be paid by the Village
Panchayat to the Kerala State Electricity Board at such rates as may be fixed by
the Government from time to time.

(4) Salary and other emoluments to the employees placed under the
superintendence and control of the Village Panchayat shall be paid by the Kerala
State Electricity Board as if they are in the service of the Board:

Provided that no salary shall be paid by the Board to any such employee unless the
Village Panchayat issues a satisfactory work certificate in his favour;

Provided further that the Village Panchayat may, as aruthorised by the

Government, make a contribution to the Board towards the payment of salary to
any such employee or grant a monthly honorarium to him with the consent of the
Board.

(4) Notwithstanding anything contained in Sub-section (1) it shall be lawful for the
Government to provide any public street with a lighting system through an agency
approved by them and in such cases the expenditure thereof shall be incurred by
the Government

(5) It shall be lawful for a Village Panchayat and any other local authority to
provide for any street lighting system and maintain it jointly."

Section 179

In Section 179,
(i) In Sub-section (1) the words "whole time" may be deleted.

(ii) Following proviso shall be added to Sub-section (4), viz, -

"Provided that before passing such resolution, the Secretary shall be given
opportunity to know the grounds for the proposed transfer and to defend himself in
writing and he shall be heard if so desired by him;

Provided further that the resolution recommending transfer shall explain the
reason for over-ruling the defence of the Secretary."

(iii) After Sub-section (9) the following sub-sections shall be added,-

"(10) Where disciplinary proceedings which may end in the imposition of a major
penalty have to be initiated against the Secretary, the President shall have the
right to conduct an enquiry against him and to submit report to the authority
competent to appoint him in service and such authority shall consider the report,
take appropriate action thereon and intimate the result to the President.

(11) The Government may by a general or special order designate any officer of the
Government transferred to the service of the panchayat as Ex-officio Secretary of
the panchayat and he shall have the powers of the Secretary so far as the subjects
with which he is concerned."

Section 180

(i) In Sub-section (6) the words "village" shall be omitted.

(ii) In Sub-section (7) the following provisos shall be added namely:-

"Provided that the Government may, if situation so demands, pool the engineering
staff or such technical staff of the Government Departments and make their
services available to one or more panchayats by allotment or transfer as in the case
of staff from other departments;

Provided further that if there is dearth of staff for allotment from Government
Departments, the panchayat in the exigencies of service may engage the services of
the engineers from outside the Government service for specific work, on the terms
and conditions as may be specified by Government in this regard."

(iii) The following new sub-sections may be added after Sub-section (13),-

"(14) Where disciplinary proceedings which may end in the imposition of a major
penalty have to be initiated against an officer or employee of the panchayat, the
President shall have the right to conduct an enquiry against that officer or
employee and submit report to the authority competent to appoint him in the
service of the panchayat, and such authority shall consider the report, take
appropriate action thereon and intimate the result to the President.

(15) The panchayat shall make available the services of the officers and employees
of the panchayat to discharge the duties as may be assigned by the Government
involving the implementation of any scheme, project or plan of the Government."

Section 181

Following sub-section shall be added after Sub-section (3):-

"(4) The officers and employees transferred to a panchayat under Sub-section (1)
shall perform functions and discharge duties as if they are officers and employees of
that panchayat and they shall attend to, in addition to their normal duties, any
other duty assigned to them by the panchayat subject to the guidelines, if any,
issued by the Government.

(5) The officers and employees transferred to a panchayat under Sub-section (1)
shall be duty bound to execute works, perform functions or discharge duties
involving implementation of any scheme, project or plan of the Government, not
assigned or delegated to the panchayat under this act or any other law.

(6) The Government shall continue to pay the salary, allowances and other dues to
the employees and officers transferred to the panchayat from Government it, till
such time as the Government finds that such expenses shall be met by the
panchayat concerned."

Section 182

(I) In the Marginal heading the words "Powers and" shall be prefixed;

(ii) After the word "Secretary" and before the word "shall" the following words shall
be inserted, namely,-

"as the executive officer of the panchayat."

(iii) After clause (i) the following provisos shall be added, namely,-

"Provided that the Secretary shall record his views in writing in any matter that
may come up for consideration of the panchayat and each item of agenda shall be
placed before the panchayat with specific opinion of the Secretary;

Provided further that in cases where the Secretary considers that the resolution, if
passed, will have to be referred to Government under proviso to clause (iii), he shall
record in writing such opinion."

(iv) The proviso under clause (iii) shall be revised as follows:-

"Provided that where the Secretary considers that a resolution has not been legally
passed or is in excess of the powers conferred by this Act or that if carried out it is
likely to endanger human life or health or public safety, the Secretary shall refer
the matter direct to the Government and report the fact to the Panchayat in its next
meeting and in that case, the Panchayat, notwithstanding the provisions in Sub-
section (7) of Section 161, may reconsider such resolution and modify, vary or cancel
the resolution or uphold it for reasons to be recorded or keep the operation of the
resolution in abeyance till a decision of the Government is received on the
rerference by the Secretary."

(v) After clause (xi) following clauses shall be added, namely,-

"(xii) Shall place before the Standing Committee for Finance and General
Administration the monthly accounts of the panchayat before the tenth day of
succeeding month or on the first meeting in the succeeding month.

(xiii) Shall prepare the annual accounts and the DCB statement for preceding
financial year and place them before the panchayat before thirtieth June of the next
financial year.

(xiv) Shall furnish the returns, statement of accounts and such other information
when called for by the Government or any audit authority.

(xv) Shall inspect or cause to be inspected the accounts of the institutions under the
control of the panchayat

(xvi) Shall keep records of the panchayat, standing committees, functional

committees such other committees and Grama Sabha .

(xvii) Shall co-ordinate the preparation of the annual plan and five year plan so that
the approved plan is submitted to the District Planning Committee within the time
fixed by the Government

(xviii) Shall disburse the plan funds to the officers concerned and to render
utilization certificate to the Government as ordered by the Government."

Section 185
Sub-section (2) shall be substituted with the following:-

"(2) All official correspondence from the Secretary, to the Government and to any
other authority not below the rank of the District Officer of a Government
Department and vice-versa shall be routed through the President:

Provided that the correspondence with the Government and other local authorities
should have the approval of the President or be signed by himself;

Provided further that the President may, by general or special order, aruthorise the
Secretary to correspond with the Government and other local authorities in
specified categories of correspondence;

Provided also that where the correspondence is in respect of a resolution of

Panchayat passed in contravention to any of the provisions in the Act or rules, the
Secretary may address the Government directly."

New Section 185 A

After Section 185 the following new section shall be inserted, namely:-

"185 A. Relationship between the elected functionaries and the officials. - (1) There
shall be a code of conduct as prescribed by the Government governing the
relationship between the elected functionaries of the panchayat and the officers and
employees under its control for the purpose of protection of the right of such officers
and employees to tender advice on the matters dealt with by them, and their
professional freedom or statutory rights.

(2) Wherever minutes of discussions are kept it should reflect all the points of view
expressed by the officials.

(3) There shall be mutual respect in behavior between the elected functionaries of
the panchayat and the officials, totally avoiding rude language, gesture or action.
(4) Comptaints on the infringement of the code of conduct by the elected
functionaries shall be considered by the Ombudsman for LSGIs constituted under
Section 271 G and the report furnished to the Government for appropriate action.

(5) Oral instructions by the elected functionaries to the officials shall be confirmed
in writing before they are acted upon."

New Section 185 B

After the new Section 185 A, the following new section shall be inserted, namely:-

"185 B. Exercise of statutory functions by the officials. - Where any officer of the
panchayat is conferred with any statutory powers or functions to be independently
and solely exercised by such officer, the panchayat, the President, the Chairman of
any Standing Committee or any member shall not interfere with or influence the
exercise of such powers or functions by such officer."

Section 187

The caption of Chapter XVIII, namely "Control" shall be substituted by the words
"Role of the Government."

Section 188

(i) In clause (a) of Sub-section (1) the following proviso shall be added, namely:-

"Provided that the document, register or record furnished by the panchayat shall be
returned in original within 90 days of its receipt by the Government, or an attested
copy thereof shall be given to the panchayat thereafter."

(ii) In Sub-section (2) the words "clause (f) of" shall be omitted.

(iii) After Sub-section (2) the following new sub-section shall be inserted, namely:-
"(3) The Government may, in the manner prescribed, arrange periodical
performance audit in respect of the administration of the panchayat."

New Section 188 A

After Section 188, the following new section shall be inserted, namely:-

"188 A. Technical Supervision and Inspection.- The Heads of departments

concerned and other technical officers nominated by them may inspect works or
development schemes being implemented by any officer of that department under
the control of any panchayat and also inspect relevant documents pertaining to such
works or development schemes, in the manner specified by the Government."

Section 189

The section shall be omitted.

New Section 189 A

After Section 189 the following new section may be inserted namely,-

"189 A. General power of Government to issue direction and to conduct enquiry:- (1)
Notwithstanding anything contained in this Act, the Government shall have power
to issue directions to the panchayats, consistent with National and State policies, in
respect of matters such as finance, maintenance of accounts, selection of
beneficiaries of schemes and sites, proper functioning of Grama Sabha, welfare
programme and environmental regulations and the panchayats shall comply with
such directions.

(2) Where persistent default in implementation of schemes or maintenance of

accounts or abuse of power is reported or specific complaint received in the matter,
the Government may arrange for enquiry into such matter and the Panchayat shall
co-operate with such enquiry.
(3) After such enquiry, the Government may take such action called for and
permissible under this Act."

Section 191

Section 191 shall be substituted by the following :-

"191. Cancellation and suspension of resolution: - (1) The Government may, either
suo motu or on a reference by the President, Secretary or a member of a Panchayat
or on a petition from a citizen, refer a resolution or decision passed by a panchaya,
which in the opinion of Government, if implemented, shall cause threat to public
health, public safety, public peace or adversely affect the communal hard, to the
concerned Appellate Tribunal constituted under Section 271S and the Tribunal
shall after giving the panchayat an opportunity of being heard, furnish a report to
Government with its findings based on which the Government may cancel or uphold
the resolution as it deems fit.

(2) Where the implementation of any such resolution, in the opinion of Government,
may cause threat to public peace, safety or health or communal disharmony, the
Government may suspend the resolution or ask the panchayat to keep the
implementation of the resolution in abeyance pending the final decision of the
Government in a proposal for its cancellation under Sub-section (1)."

Section 192

Existing Section 192 may be revised as follows:-

"192. Administration Report of the Panchayats: - (1) Every panchayat shall publish
a report on its administration for each year, in such form and with such details as
the Government may direct, not later than the thirtieth day of June of the
succeeding year. If the report is not published within the time limit specified, the
Government may withhold the payment of grants due to the Panchayat thereafter.
(2) The draft of the administration report in respect the institutions and offices
under the control of the panchayat shall initially be prepared by the heads of such
institutions and offices concerned and furnished to the Secretary of the Panchayat
and he shall prepare the draft of the administration report of that panchayat in
consultation with the President and place it before the panchayat for its approval.

(3) The Administration report of the Village panchayats and Block panchayats in a
District as approved and published by those panchayats shall be forwarded to the
officer aruthorised by the Government at District level and to the District
panchayat as soon as it is published. The District panchayat also shall furnish the
administration report of that panchayat to the officer aruthorised by the
Government in the same manner.

(4) The officer aruthorised shall, before the thirtieth day of September every year,
submit to Government a consolidated report containing abstracts of the
administration reports of the Village panchayats, Block panchayats and District
panchayat in the District.

(5) The Government shall, as soon as may be after the receipt of the consolidated
report cause the same to be laid before the Legislative Assembly, with a review of
the Government, in its next session, at any rate within forty five days from the first
day of that session."

Section 193

(i) Sub-sections (1) and (2) may be revised as follows,-

"(1) Where the Government are of the opinion that :-

1. there is functional breakdown of the administration of the panchayat by reasons

such as failure of the panchayat to approve the budget of the panchayat for a
financial year within three months from the expiry of the preceding financial year,
or the resignation or disqualification of majority of members, or

2. the panchayat exceeded or abused its powers to the detriment to the normal and
proper administration of the panchayat, or

(c) the panchayat made persistent or willful default of lawful directions from the
Government.

The Government may, by notification in the gazette, dissolve the panchayat from
such date as may be specified in the notification and forward a copy thereof to the
State Election Commission.

(2) Before publishing a notification under Sub-section (1) the Government shall
communicate to the President and the members of the panchayat concerned the
grounds on which they propose to dissolve the panchayat, give them a reasonable
period to show cause against the proposal and consider their explanation or
objection, if any. If the proposal for dissolution of the panchayat is based on the
grounds specified in clause (b) or clause (c) of Sub-section (1), the advice of the
Ombudsman constituted under Section 271 G shall also be obtained on the proposal
and considered before publishing a notification under Sub-section (1)"

(ii) Sub-section (5) may be revised as follows:-

"Subject to the control of the Government, during the interval between the
dissolution and the reconstitution of a panchayat, all the power, functions and
duties of the panchayat including those of the President, Vice-president, Standing
Committees and other committees thereof shall be exercised, performed and
discharged by a Special Officer or an Administrative Committee consisting of at
least three Government officials as members, appointed by the Government by
notification in the gazette.
Section 195

Section 195 may be revised as follows:-

"195. Grants and shares of taxes:- (1) The Government shall having regard to the
recommendation, if any, of the Finance Commission, in each year after due
appropriation made by the State Legislature by law in this behalf, make such
grants and shares of various taxes collected by the Government, as are necessary to
the Panchayats for proper discharge of their functions under this Act.

(2) The distribution of such shares of taxes shall be based on a formula fixed by the
Government ensuring just and equitable distribution of such taxes among the
panchayat."

Section 197

1. The existing section may be numbered as Sub-section (1) and the following
proviso shall be added there under, namely:-

"Provided that no property of the panchayat shall be pledged for raising such loan
unless the loan is to be utilized for a remunerative development scheme."

2. After Sub-section (1) the following sub-sections shall be added, namely:-

"(2) The borrowing powers shall be fixed by the Government in manner prescribed
and in relation to annual income of the Panchayat.

(3) The District Panchayat may float Revenue Bonds for which the net revenue
flowing from the facilities or services created utilizing the proceeds of such bonds
can be offered as security. Any shortfall in the payment to the escrow accounts shall
be made good by the Government by directing the grants due to the Panchayat to
the escrow account."
Section 198

Existing section shall be renumbered as Sub-section (1), and the following sub-
sections shall be added:-

"(2) The panchayat may collect 'user-charges' from the beneficiaries for utilizing the
facilities and services provided by the panchayat such as toilets, parking space and
other amenities and conveniences. The user charges shall be at the rate as may be
decided by the panchayat.

(3) The amount collected as user-charges shall be utilized for the maintenance and
up keep of the facilities and services."

Section 199

In Section 199 the following sub-section shall be added:-

"(3) No surcharge under Sub-section (1) shall be directed to be levied unless the
prior concurrence of the panchayat concerned is obtained for the implementation of
the plan, project or work."

Section 200

(i) In sub-section (1) the words "building tax" may be substituted with the words

"property tax".

(ii) Sub-section (2) may be revised as follows:-

"(2) Service tax at such rates as may be fixed by the Village Panchayat, subject to a
minimum as may be prescribed, for sanitation, water supply, street lighting and
drainage shall be levied wherever such services are provided by the Village
Panchayat."
(iii) In Sub-section (3A) the words "not exceeding seventy five rupees per one are of
land" may be deleted.

Section 201

Section 201 shall be deleted.

Section 203

(i) In the marginal heading the words "building tax" shall be substituted with the
words "property tax."

(ii) In Sub-section (1) for the words "a tax on all buildings other than huts and
buildings exempted by the provisions of the Act in the Panchayat area" the words "a
property tax on all buildings other than huts and the land appurtenant thereto",
shall be substituted.

(iii) In sub-sections (2), (3) and (5) the words "building tax" shall be substituted with
the words "property tax".

Section 205

Section 205 may be substituted with the following :-

"205. Meaning of the expression transact business:- (1) The expression 'transact
business' Section 204 shall be deemed to include the doing of acts or business of
whatever nature, whether isolated or not, such as soliciting. Obtaining or
transmitting orders or buying, making, manufacturing exporting, importing,
receiving, transmitting or otherwise dealing in goods.

(2) Where for the purpose of transacting business within the village Panchayat
area, a company or a person has an office or an agent or a firm to represent it or
him, the company or the person shall be deemed to transact business within the
village Panchayat area, whether or not such office, agent or firm has power to make
binding contracts on behalf of the agent or firm, as the case may be shall be liable
for the tax payable by the company or person.

(3) A company or a person otherwise liable to profession tax under section 204 shall
not cease to be liable to such tax by reason only of its being situated outside the
village Panchayat area or by reason only of the fact that its or his transactions are
finalized outside the Village Panchayat area."

New Sections 205 A to 205 K

After Section 205 following new Sections shall be inserted, viz.,

"205 A. Statements, returns etc., to be confidential:- All statements made, returns

furnished or accounts or documents produced, in connection with the assessment of
profession tax by any company or person shall be treated as confidential and copies
thereof shall not be issued to the public.

205 B. Requisition on Owner or occupier to furnish list of person liable to tax:- The
Secretary may, by notice, require the owner or the occupier of any building or land
and every Secretary or manager of a hotel, boarding or lodging house, club or
residential chambers to furnish within a specified time a list in writing containing
the names of all persons occupying such building, land, hotel, boarding or lodging
house, club or residential chambers and specifying the profession, art or
appointment of every such person and the rent, if any paid by them and the period
of such occupation.

205 C. Requisition on employers or their representatives to furnish list:- The

Secretary may, by notice, require any employer or the head or the Secretary or the
manager of any public or private office, hotel, boarding or lodging house or club or of
a firm or a company,-
(a) to furnish, within a specified time, a list writing of the names of all persons
employed by such employer or in such office, hotel, boarding or lodging house, club
firm or company as officers, servants, interpreters, agents suppliers or contractors,
with a statement of the salary or income of such employed persons, and

(b) to furnish particulars in regard to any company of which such employer or head,
secretary or manager, as the case may be, is the agent.

205 D. Recovery of profession tax by employers:- Notwithstanding anything

contained in the foregoing provisions, every head of office or employer or manager
or proprietor or any person in the administrative control of any office, company,
firm, undertaking establishment or any institution where persons are employed or
engaged for salaries or wages shall be bound to recover from any such person liable
to profession tax, the profession tax due at the rate fixed by the Village Panchayat
and pay over to the Village Panchayat as hereinafter provided.

205 E. Requisition to furnish name of institutions etc.:- (1) The Secretary shall
during the month of April every year, by notice, require every head of office or
person liable to recover profession tax under section 205 D to furnish to the
Secretary the names and addresses of the offices or institution under his control
within such time as may be specified in the notice.

(2) Every head of office shall furnish to the Secretary the information required by
him under sub-section (1) within such time as may be specified and he shall also
furnish the name and designation of the head of office and shall intimate the
Secretary whenever there is a changes of head of office.

(3) The Secretary shall on receipt of the information furnished to him under sub-
section (1) register the name of offices or institutions in a register to be maintained
for the purpose.
205 F. Assessment of profession tax by head of office etc.:- (1) The Secretary shall
during the month of May and November in every half year, by notice, require every
head of office or employer to assess every employees in his institution liable to
profession and every self drawing officer to remit the profession tax due in
accordance with the Schedule to the said notice.

(2) Before the end of August and February of every year, head of office or employer
shall assess every employee liable to tax and recover the amount from him and pay
over to the Village Panchayat together with a list of all employees who have been
assessed t o tax giving the details such as name designation, half-yearly income and
the amount of tax recovered and shall also furnish a certificate to the effect that all
employees liable to tax have been included in the statement furnished.

205 G. Issue of receipt to remittance: - (1) The Secretary shall, on receipt of the
payment, issue an official receipt in the name of the head of office for the amount
remitted.

(2) Every head of office shall, in turn, grant to each tax payer a certificate of
recovery and payment of tax to the Village Panchayat for the half-year in question.

205 H. Payment of tax by self drawing officer:- (1) Every self drawing officer shall,
before the end of August and February every year, remit or cause to be remitted the
profession tax due from him in respect of such half-year in accordance with the
Schedule of tax in force along with a statement showing the details of half-yearly
income.

(2) On receipt of payment under sub-section (1), the Secretary shall issue official
receipt therefore.

205 I. Maintenance of Demand Register: - The Secretary shall maintain a ward-wise

Demand Register by providing independent pages for every institution specified in
sub-section (2) of section 205 E, and in such case the head of office and the self-
drawing officers, if any, shall be the assesses and the remittance shall be entered
against their names. One demand register for this purpose can be used for one or
more years.

205 J. Certificate of drawing and disbursing officers and self-drawing officers:- A

certificate shall be furnished in the salary bill of the drawing and disbursing officer
and the self drawing officer relating to the month of February and August every
year to the effect that profession tax due in respect of all employees and himself, as
the case may be, has been paid and the details furnished to the Secretary and in the
absence of such certificate the passing officer shall not honour the bill.

205 K. Penalty for non-payment of tax:- Where at any time it appears to the
Secretary that any head of office or employer or self-drawing officer under a duty to
furnish the particulars and remit the tax due as specified under sections 205 E, 205
F and 205 H has failed to furnish such details or to remit the tax due within the
specified time the Secretary shall immediately thereafter prosecute such defaulter
or defaulters.

Explanation: - For the purpose of this section and section 205 D to 205 J (both
inclusive) the expression Head of office or employer in relation to an office,
institution, undertaking, establishment etc., shall mean the person authorised to
draw and disburse the salary or wages of the employee in such office, institution,
undertaking, establishment etc., shall mean the person authorised to draw and
disburse the salary or wages of the employees in such office, institution,
undertaking or establishment."

Section 206

There are printing mistakes in Sections 206 and 207 of the English version of
Kerala Panchayat Raj Act published in the gazette dated 23rd November, 1995
which are to be corrected as follows; -
(i) Sub-sections (3), (4) and (5) appearing after Sub-section (2) of Section 207 are to
be read immediately after Sub-section (2) of Section 206 which ends with the words
"to the Village Panchayat as well as Government ".

(ii) The last sentence of Sub-section (5) of Section 206 is to be read as,-

"The balance of twenty five per cent of the amount shall be distributed to the
Village Panchayats in such proprtion ...............Panchayat administration."

(iii) Section 207 is to end with the explanation under Sub-section (2) of that Section.

Section 207

(i) In the Malayalam version of the Kerala Panchayat Raj Act, clause (c) of Sub-
section (1) may be revised as follows,-

(kn) kÀ¡mÀ AwKoIcn¨n«pff hnZym`ymk Øm]\§fpsS DSaØXbnepw D]tbmK¯nepapff

tlmÌepIÄ, DÄs¸sSbpff þ sI"nS§fpw AKXnIÄt¡m arK§Ät¡m A`bw \ðIp¶ [mÀanI
Imcy§Ä¡mbn D]tbmKs¸Sp¯p¶ s]mXpþsI"nS§fpw Øe§fpw s]mXpP\§Ä¡v {]thin¡mhp¶
{KÙimeIfpw IfnØe§fpw"

(ii) In the explanation under Sub-section (1) of Section 207, the words "hospitals,
dispensaries and" shall be deleted.

Section 208

In Section 208 the term "building tax" wherever it occurs shall be substituted with
the term "property tax"

Section 209

The Section may be substituted with the following,-

"209. Tax on advertisement:- Every person who erects, exhibits, fixes or retains
upon or over any land, building, wall, hoarding or structure in a Village Panchayat
area any advertisement or who displays any advertisement to public view in any
manner whatsoever in any place in such area, whether public or private, shall pay
to the Village Panchayat on every such advertisement a tax calculated at such rates
and in such manner and subject to such exemptions as the Village Panchayat may
by resolution determine:

Provided that the rates shall be subject to the maximum and minimum prescribed
by the Government in this behalf:

Provided further that the tax under this section in any advertisement displayed in a
public service vehicle as defined in the Motor Vehicles Act, 1988 (Central Act 59 of
1988) passing through the local limits of more than one local authority shall be
levied by a Village Panchayat only if such vehicle-

(a) commences its operation from the area of that Village Panchayat; or

(b) commences its operation from a place other than that Village Panchayat area
and passes through that Village Panchayat area before it passes through the local
limits of any other local authority.

Provided also that no tax shall be levied under this section on any advertisement or
a notice-

(a) of a public meeting; or

(b) of an election to any legislative body or a Municipality or a Village Panchayat, or

a Panchayat or a Co-operative Society; or

(c) of a candidature in respect of such an election; or

(d)of a political party exhibited in connection with the propaganda of that political
party;

Provided also that no such tax shall be levied on any advertisement which is not a
sky sign and which -

(a) is exhibited within the window of any building which is not a public place; or

(b) relates to the trade or business carried on within the land or building upon or
over which such advertisement is exhibited, or to any sale or letting of such land or
building or any effects therein or to any sale, entertainment or meeting to be held
upon or in the same; or

(c) relates to the name of the land or building upon or over which the advertisement
is exhibited or to the name of the owner or occupier of such land or building; or

(d) relates to the business of any railway administration ; or

(e) is exhibited within any railway station or upon any wall or other property of a
railway administration except any portion of the surface of such wall or property
fronting any street.

Explanation 1:- The words 'structure' in this section shall include any movable
board on wheels used as an advertisement or an advertisement medium.

Explanation 2:- The expression 'sky-signs', in this section, means any advertisement
supported on or attached to any post, pole, standard, framework or other support
wholly or in part upon or over any land, building, wall or structure which, or any
part of which, sky-sign shall be visible against, the sky from some point in any
public place and includes all and every part of any such post, pole, standard, frame
work or other support. The expression 'sky-sign' shall also include any balloon,
parachute or other similar device employed wholly or in part for the purposes of any
advertisement upon or other any land, building, or structure or upon or over any
public, but shall not include-

(a) any flag-staff, pole, vane, or weather-cock, unless adapted or used wholly or in
part for the purpose of any advertisement; or

(b) any sign, or any board, frame or other contrivance securely fixed to or on the top
of the wall or parapet of any building, or on the cornice or blocking course of any
wall, or to the ridge of a roof;

Provided that such board, frame or other contrivance be of one contiguous face and
not open work, and do not extend in the height more than one meter above any part
of the wall, or parapet or ridge to, against or on which it is fixed or supported; or

3. any advertisement relating to the name of the land or building upon or over
which the advertisement is exhibited, or to the name of the owner or occupier of
such land or building; or

4. any advertisement relating exclusively to the business of a railway

administration and place wholly upon or over any railway, railway station, yard,
platform or station approach belonging to a railway administration and so placed
that it can not fall into any street or public place; or

5. any notice of land or buildings to be sold or let, placed upon such land or
building.

Explanation 3:- Public place shall for the purpose of this section means any place
which is open to the use and enjoyment of the public whether it is actually used or
enjoyed by the public or not."

New Sections 209 A to 209 E

After Section 209, the following new sections shall be added, namely;-
"209 A. Prohibition of advertisement without written permission of the Secretary:-
(1) No advertisement shall, after the levy of the tax under section 209 has been
determined upon by the Village Panchayat, be erected, exhibited, fixed or retained
upon or over any land, building, wall, hoarding or structure within the Village
panchayat area or shall be displayed in any manner whatsoever in any place in that
area without the written permission of Secretary granted in accordance with the
provisions of the Act and in the manner prescribed.

(2) The Secretary shall not grant such permission if -

(i) the advertisement contravenes any bye-law made by the Village Panchayat
under Section 256; or

(ii) the tax, if any, due in respect of the advertisement has not been paid.

(3) Subject to the provisions of sub-section (2) in the case of an advertisement liable
to advertisement tax the Secretary shall grant permission for the period to which
the payment of tax relates and no fee shall be charged in respect of such
permission:

Provided that the provisions of this section shall not apply to any advertisement
erected, exhibited, fixed or, retained on the premises of a railway administration
relating to the business of a railway administration.

209 B. Permission of the Secretary to become void in certain cases:- The permission
granted under Section 209 A shall become void in the following cases, namely,-

a) if the advertisement contravenes any bye-law made by the Village Panchayat

under section 256; or

b) if any addition to the advertisement be made except for the purpose of making it
secure; or
c) if any material change be made in the advertisement or any part thereof; or

d) if the advertisement or any part thereof falls otherwise than through accident; or

e) if any addition or alteration be made to, or in the building wall or structure, upon
or over which the advertisement is erected, exhibited, fixed or remained, if such
addition or alteration involves the disturbance of the advertisement or any part
thereof; or

f) if the building, wall or structure upon or over which the advertisement is erected,
exhibited, fixed or retained be demolished or destroyed,

209 C. Owner or person in occupation to be deemed responsible:- Where any

advertisement is erected, exhibited, fixed or retained upon or over any land,
building, wall, hoarding or structure in contravention of the provisions of Section
209 or Section 209 A or after the written permission for the erection, exhibition,
fixation or retention thereof for any period shall have expired or becomes void, the
owner or person in occupation of such land, building, wall, hoarding or structure
shall be deemed to be the person who has erected, exhibited, fixed or retained the
advertisement in contravention unless he proves that such contravention was
committed by a person not in his employment or under his control or was committed
without his connivance.

209 D. Removal or unaruthorised advertisement : - (1) Where any advertisement is

erected, exhibited, fixed or retained contrary to the provisions of Section 209 or
Section 209 A or after the written permission for the erection, exhibition, fixation or
retention thereof for any period shall have expired or become void, the Secretary
may, by notice in writing, require the owner or occupier of the land, building. Wall,
hoarding or structure upon or over which the same is erected, exhibited, fixed or
retained to take down or remove such advertisement or may enter any building,
land or property and have the advertisement removed.
(2) Any person exhibiting or responsible for exhibiting any advertisement otherwise
than in accordance with the provisions of this Act shall be liable to pay a penalty
not exceeding rupees five hundred on detection of offence and not exceeding rupees
one hundred for every day of continuing offence, to pay the village Panchayat and in
addition, the charges of the removal of the unaruthorised advertisement.

209 E. Collection of tax on advertisement:- The Secretary may farm out the
collection of any tax on advertisement leviable under Section 209 for any period not
exceeding one year at a time on such terms and conditions as may be provided for
by bye-laws made under Section 256."

Section 212

(i) In clause (a) of Sub-section (2) the words "those collected as fees for licenses and
permissions under this Act or any other law for the time being in force and" shall be
deleted.

(ii) Clause (b) Sub-section (2) shall be revised as follows,-

"(b) The Village Panchayat fund shall comprise of the following components,
namely:-

(i) Own income of the Village Panchayat which shall consist of taxes, duties, cesses,
and surcharge levied under this Act or any other law, lease, rents and other receipts
from properties and enterprises, fees for licenses and permissions, fines and
penalties, income from unclaimed deposits and other forfeitures and miscellaneous
income from sources such as ferries, fisheries and porambokes, and shall include
the share of the taxes collected by Government and transferred to the credit of the
Village Panchayat and the untied grants released by the Government ;

(ii) Grants released by the Government for implementation of schemes, projects and
plans formulated by the Village Panchayat;
(iii) Grants released by the Government for the implementation of schemes, projects
or plans assigned, delegated or entrusted to the Village Panchayat under this Act;
and

(iv) Money raised through donations, contributions and grants from the public and
non-governmental agencies."

(iii) In Sub-section (6) of Section 212 the words, - "in the Public Deposit Account in
the Government Treasury as may be specified by the Government" shall be
substituted with the words "at the Government Treasury, Bank or at such other
place and in such manner as may be prescribed."

(iv) In Sub-section (7) the following Sub-section shall be added, namely; -

"(8) All grants released by the Government for the implementation of schemes,
projects and plans shall be utilized only for the purposes for which such grants are
released.

(9) No contribution, grant or expense for a purpose not directly concerned with a
function of the Panchayat specified in this Act or any other law shall be made by a
Panchayat from the Panchayat fund in excess of an annual limit that may be
specified by the Government."

Section 213

(i) In Sub-section (1) after the words "subject to this Act" the word "and" shall be
inserted.

(ii) In Sub-section (1) the words "and such general or special orders as the
Government may issue; and shall be applicable thereto outside the panchayat area
if the expenditure is specially sanctioned by the Government" shall be omitted.
(iii) In item (ii) under Sub-section (4) the following words shall be added namely, "or
any expense which is not specifically provided for in the provisions of this Act and
the rules made there under".

(iv) The proviso under Sub-section (4) shall be revised as follows:-

" Provided that the aggregate annual expenses under this Sub-section shall not
exceed the limit that may be specified by the Government."

(v) Sub-section (5) shall be revised as follows:-

"The panchayat may constitute a separate fund out of local donations and
contributions, for discretionary expenses of the Panchayat to be incurred by the
President under the powers delegated to him by the Panchayat. The manner of
constitution of such fund and the incurring of expenses there from shall be governed
by the bye-laws made by the Panchayat in this regard."

Section 214

(I) Sub-section (1) may be revised as follow:-

"(1) The Secretary shall, subject to such rules as may be prescribed and such
instructions as may be issued by the Government, in this behalf from time to time,
prepare and submit to the Standing Committees concerned on or before fifteenth
January of each year budget proposal containing detailed estimate of receipts and
expenditure for the ensuing year, including the expenditure for the development
schemes prepared and sanctioned under Section 175. The Standing Committees
shall consider the estimate and proposals of the Secretary and submit their
proposals to the Standing Committee for Finance and General administration. The
Standing Committee for Finance an General Administration after considering those
proposals and the requirements of this Act frame a budget estimate of the receipts
and expenditure of the Panchayat for the next year, which shall be laid before the
Panchayat by the Chairman of that Standing Committee at a meeting of the
Panchayat not later than the first week of March. The presentation of the Budget
before the Panchayat shall be preceded by a policy address by the President. The
Panchayat shall consider the budget proposal and finally pass the budget estimate,
with alterations if any, before the beginning of the year to which it relates."

(ii) Sub-section (7) may be revised as follows:-

"(7) As soon as the budget estimate is passed, copies thereof shall be furnished by
the Panchayat to the Government and the officers authorised by the Government in
this behalf and also to the auditors. The aruthorised officers shall prepare a
consolidated statement of the budget estimate of the Panchayats in each District
and furnish the same to the Government with such details as may be required by
the Government. The Village Panchayats and the Block Panchayats in a District
shall furnish the copy of the budget as passed by them to the District Panchayat
and the District Planning Committee concerned for reference."

(iii) A new Sub-section (8) shall be added as follows:-

"(8) No expenditure shall be incurred by a Panchayat on or after first April of a year

without passing a budget for that year or in excess of the provision in the budget."

Section 215

(i) Sub-section (2) shall be substituted with the following:-

"(2) The responsibility to maintain or cause to maintain the accounts and the
connected books of the Panchayat in the manner and form as prescribed and to
submit or cause to submit such accounts to the auditor for conducting audit in time
shall vest with the Secretary and in case of failure he shall be liable to be proceeded
against under relevant provisions of law."

(ii) Sub-section (3) shall be modified as follows:-

"(3) The auditors of the Panchayats shall be as notified by the Government."

(iii) A new Sub-section (18) shall be added after Sub-section (17) as follows:-

"(18) Save as otherwise expressly provided in the foregoing sub-sections, the

provisions in the Kerala Local Fund Audit Act, 1994 and the rules made thereunder
shall apply in respect of the audit and accounts of the Panchayats where the
Director of Local Fund Audit is notified as the auditor."

Section 216

(i) In this section the words "with the sanction of the Government and shall if so
directed by then" shall be deleted.

(ii) In this section the words "provided that such expenditure was incurred with the
consent of that Panchayat" may be added.

New Section 219 A to 219 S

The following new section may be added after Section 219, namely:-

"219 A. Village Panchayat to arrange for the removal of rubbish, solid wastes and
filth :- (1) Every Village Panchayat shall make adequate arrangements, for,

a) the regular sweeping and cleansing of the roads and removal of sweepings
thereform;

b) the daily removal of the filth and the carcasses of animals from private premises;

c) the removal of solid wastes, and

d) the daily removal of rubbish from dusibins and private premises, and with thius
object, it shall provide:
(i) depots, receptactes and places for the deposit of filth, rubbish and the carcasses
of animals;

(ii) covered vehicles or vessels for the removal of filth;

(iii) vehicles or other suitable means for the removal of the carcasses of large
animals and rubbish; and

(iv) dust-bins, receptacles and places for the temporary deposit of domestic waste,
dust, ashes, refuse, rubbish, offensive matter, trade refuse, institutional refuse,
carcasses of dead animals.

(2) The Secretary shall make adequate provision for preventing the depots, place,
receptacles, dust-bins, vehicles and vessels referred to in Sub-section (1) from
becoming sources of nuisance.

(3) A Village Panchayat may contract out any part or the whole process of collection
and disposal of solid waste from the public or private premises.

219 B. Duty of owners and occupiers of storage and deposit of rubbish and solid
waste:- (1) It shall be incumbent on the owners of all premises to provide receptacle
o a size to be specified by the Secretary for the purpose of storage of domestic waste,
trade waste, institutional waste, dust, ashes, refuse and rubbish generated from
such premises.

(2) Such receptacles shall at all time be kept in good condition and shall be provided
in such number and at such place as the Secretary may from time to time, by
written notice, direct.

(3) The Secretary may, by public notice, direct the owners or occupiers of all
premises to segregate the waste generated from such premises for easy
management and disposal of such waste by the employees or contractors engaged by
the Village Panchayat.
(4) It shall be incumbent on the owners and occupiers of all premises to cause all
domestic waste, trade waste, institutional waste, dust, ashes, refuse, rubbish to be
collected from their respective premises and to be deposited in the public receptacle
depot or place provided for the temporary deposit of wastes at such time as the
Secretary may, by public notice, from time to time, specify or hand over the waste to
the persons engaged or identified by the Village Panchayat for the purpose.

219 C. Contract with owner or occupier for removal of rubbish or filth :- The
Secretary may enter into contract with the owner or occupier of any premises to
remove rubbish or filth from such premises on such terms and conditions as may
seem suitable to the Secretary and on payment of fees at such rates as the Village
Panchayat determines from time to time.

219 D. Introduction of house to house collection of rubbish: - (1) The Secretary may,
with the sanction of the Village Panchayat introduce in the Village Panchayat area
or part thereof house to house collection of rubbish and other offensive matter for
which he may publish, from time to time, an order specifying the hours within
which the occupier of any house, or premises or land may place rubbish or offensive
matter adjacent to his house, premises or land or on a public road adjacent to his
house, premises or land as may be specified by the Secretary, in a proper receptacle
provided by the Village Panchayat or in a receptacle of the size and type as may be
specified by the Secretary in the order that such rubbish or offensive matter may be
removed by the employees of the Village Panchayat or by the contractor who may be
engaged by the Village Panchayat for this purpose.

(2) No person shall place or cause to be placed rubbish of offensive matter on a

public street at the time other than the time specified by the Secretary and except
in the receptacle provided or specified under Sub-section (1).

219 E. Rubbish and other solid waste to be the property of the Village Panchayat:-
All the rubbish and solid waste collected by the employees or contractors of the
Village Panchayat and the carcasses of dead animals deposited in any public
receptacles, report or place shall be the property of the Village Panchayat and the
Village Panchayat may dispose the same by auction or otherwise.

219 F. Provision for final disposal of solid wastes:- (1) Every Village Panchayat shall
identify and notify suitable lands within or without the Village Panchayat area for
the purpose of final disposal of waste.

(2) While notifying the land under Sub-section (1), health and environmental
aspects shall be taken into consideration by the Village Panchayat.

(3) Every Village Panchayat may make adequate arrangements for the utilization of
solid wastes for the preparation of compost and the disposal of it by sale.

(4) Where composing of waste is not found possible or practicable, sanitary landfill
methods shall be adopted by the Village Panchayat or the disposal of waste at the
landfill sites in the manner as may be specified by the Village Panchayat.

(5) Incineration of waste may be resorted to by the Village Panchayat for the
disposal of infectious waste generated from the hospitals, nursing homes or
healthcare centers and non-industrial hazardous waste as specified by the Village
Panchayat fromtime to time.

219 G. Provision for processing of solid wastes :- The Village Panchayat may, for the
purpose of recvding,treating, processing and disposing of solid wastes or converting
such solid wastes into compost or any other matter, construct, acquire operate,
maintain and manage any establishment within or outside the Village Panchayat
area and run it on a commercial basis or may contract out such activity.

219 H. Removal of solid waste, rubbish and solid waste accumulated on non-
residential premises :- (1) The Secretary may, if he thinks frt, by notice in writing,
require the owner or the occupier of any premises used or,-
(i) a factory, workshop or a place for carrying on any manufacturing process, or

(ii) a market or trade premises, or

(iii) a slaughter house, or

(iv) a hotel, eating house, or restaurant, or

(v) a hospital or a nursing home, or

(vi) a warehouse or godown, or

(vii) a place to which large number of persons resort, where rubbish, offensive
matter, filth, trade refuse, special wastes hazardous wastes or execrementitious and
polluted matters are accumulated in large quantities, to collect such matters
accumulating thereon and to remove the same to a depot or place provided or
directed by the Secretary at such time and in such matter and by such routes as
may be specified in the notice:

Provided that if any hazardous or excrementitions or polluted waste cannot be

removed for disposal as aforesaid on health reason, the Secretary may require the
owner or occupier of such premises to make his own arrangements for treatment
and management of such waste, including its disposal and if such owner or occupier
does not comply with such direction he shall on conviction be punished with a fine
extending upto ten thousand rupees and a further fine extending upto hundred
rupees for each day during which the offence is continued.

(2) Where the owner or occupier fails to carry out the instructions under Sub-section
(1), the Secretary may, after giving a notice, cause all rubbish including building
rubbish, offensive matter, trade refuse, special wastes, hazardous wastes or
excrementitious and polluted matter accumulated in such premises to be removed
and disposed off and charge the said owner or occupier the cost for such removal
and disposal at such rate as determined by the Village Panchayat and specified in
the notice issued under this sub-section for such removal and disposal.

219 I. Prohibition of improper disposal of carcasses, rubbish and filth :- (1) No

person shall, after due provision has been made under Section 219 A by the Village
Panchayat for the deposit and removal or rubbish, solid wastes, carcasses or filth,
deposit the same,-

a) in any road or on a verandah of any building or on any unoccupied ground along

side any road or on any public quay, jetty or landing place, or on the bank of a water
course or tank; or

b) in any dust-bin or in any vehicle not intended for the removal of the same; or

c) in any vehicle or vessel intended for such removal save for the purpose of
deodourising the same.

(2) Without prejudice to the generality of the provisions in Sub-section (1) no person
shall deposit or cause or permit to be deposited any building rubbish on or along
any road, public or private land without the previous permission of the Village
Panchayat:

Provided that no permission shall be granted until a fee as may be determined by

the Village Panchayat is paid;

Provided further that the Secretary may, for reasons to be recorded in writing,
refuse to give such permission

219 J. Prohibition of keeping filth on premises :- No owner or occupier of any

premises shall keep or allow to be kept for more than twenty four hours any filth on
such premises or in any building or on the roof thereof or in any outbuilding or any
place belonging thereto or fail to comply with any requisition of the secretary as to
the construction, repair, paving or cleansing of any latrine on or belonging to his
premises.

219 K. Prohibition of allowing outflow of filth :- No owner or occupier of any

premises shall allow the water from any sink, drain, latrine or sable, or any other
filth to flow out of such premises to any portion of a road except a drain or a cess-
pool or to flow out of such premises in such a manner as to cause an avoidable
nuisance by the soakage of the said water on filth into the walls or ground at the
side of drain forming a portion of a road.

219 L. Prohibition of disposal of skin :- No person shall deposit the skin or otherwise
dispose of the carcass of any dead animal at a place not provided for the purpose.

219 M. Prohibition of using any cart without cover in the removal of filth etc.:- No
person shall, in the removal of filth, use any cart or receptacle not having a proper
covering for preventing the escape of the contents thereof or of the stench
therefrom, or intentionally or negligently spill any filth in the removal thereof or
omit carefully to sweep and clean every place in which any such filth has been
spilled, or place or set down in any public place any filth whether in a vessel, closed
or open.

219 N. Prohibition of throwing rubbish or filth into public places:- (1) No person
shall put or cause to be put any rubbish or filth or other debris into any public place
not intended for deposit of rubbish or filth or debris.

(2) Notwithstanding anything contain in this Act, the Secretary or an officer

specifically aruthorised for the purpose shall on being satisfied that any person
deposits or causes to deposit any rubbish, or filth or other debris in any public place
not intended for the same, impose on the person so depositing or causing such
deposit, a fine, on the spot, which may not exceed two hundred and fifty rupees and
the fine so imposed shall be paid to the Village Panchayat fund within fifteen days
and the Secretary shall initiate prosecution against the person if the fails to do so.
219 O. Prohibition of commission of nuisance in public roads etc.:-No person shall
commit a nuisance by relieving himself in any road. Public place or through fare or
permit any person under his control to do so.

219 P. Presumption as to offender :- Where any rubbish, offensive matter, trade

refuse, special waste, hazardous waster or excrementitious and polluted matter
accumulation or any premises is deposited in any place in contravention of the
provisions of this Act, it shall be presumed, unless the contrary is proved, that such
contravention has been committed by the occupier of such premises.

219 Q. The employees of the Village Panchayat engaged in rubbish and solid waste
management service prohibited depositing waste at a place other than specified, etc.
:- No employee of the Village Panchayat engaged in rubbish and solid waste
management service shall throw or place any domestic waste, dust, ashes, refuse,
rubbish or trade refuse or any excrementtious or polluted matter on any street or in
any place not provided for the purpose or place or keep in any road, any vehicle or
carriage for the removal of solid waste, excementitious or polluted matter, or suffer
the same to remain in any road for any greater length of time than is reasonably
necessary.

219 R. Power to inspect premises for sanitary purposes:- The Secretary or any
officer aruthorised by him may, at any time, inspect any premises for the purpose of
ascertaining compliance with the provisions of this Act.

219 S. Punishment for depositing or throwing any rubbish or solid waste in

contravention of the provisions of this Act:- Whosoever deposits or throws any
rubbish, solid waste filth or carcasses in contravention of the provisions of this Act
shall on conviction be publishable with fine which shall not be less than fifty rupees
but may extend to two hundred and fifty rupees."

Section 221
A new sub-section (3) may be added as follows:-

"(3) Places provided for the public market shall be properly maintained by the
Village Panchayat and no part thereof shall be used for any purpose not related to
the functioning of the market."

Section 230

(i) In Sub-section (1) the word "Secretary" shall be substituted with the word

"Village Panchayat".

(ii) In Sub-section (2) the words "the Secretary of" shall be omitted.

(iii) Sub-section (3) shall be deleted.

Section 231 A

After Section231 the following new section may be inserted, namely:

"231 A. Slaughter houses to be maintained properly:- Every public or licensed

slaughter house, shall be maintained properly and waste materials there from shall
be disposed of without causing nuisances to the public. Where any violation of the
conditions of agreement or licence leads to un-hygienic condition of the slaughter
house the person concerned shall be liable for penalty not exceeding five thousand
rupees at the first instance and not exceeding one hundred rupees for everyday of
the continuance of the offence."

Section 232

(i) In Sub-section (1) for the words "the license issued by the village panchayat" the
words "the license issued by the Secretary" shall be substituted.

(ii) For Sub-section (2) the following sub-section shall be substituted, namely:-
"(2) Notwithstanding anything contained in the Abkari Act (1 of 1077) the
Government shall not permit an obkari shop being established or run in any
particular place or locality or anywhere at all within a Village Panchayat area it,
that village panchayat, in the interest of public peace, morality or expediency or on
the grounds of nuisance, makes a request to the Government to this effect, and the
Government on consideration of such request, are satisfied that such circumstances
or grounds do exist."

(iii) Sub-sections (3) and (4) shall be deleted and the explanation thereunder
retained.

Section 233

(i) The existing section may be numbered as Sub-section (1) and in clause (b) the
words "by the rules" shall be substituted with the words "by this Act or rules".

(ii) After Sub-section (1), the following sub-sections shall be added, namely:-

"(2) An application of permission required under Sub-section (1) to the village

panchayat, addressed to Secretary, shall be in such form and with such details
therein, as may be prescribed.

(3) The Secretary shall as soon as may be after the receipt of the application,
enquire and report to the village panchayat as to whether the establishment of the
factory, workshop or workplace or other installation of machinery or manufacturing
plant, for which permission is applied for, is objectionable by reason of density of
population in the neighbourhood and the possibility to cause nuisance or pollution,
and the village panchayat, after having considered the application and the reports
of the Secretary any of such other authorities as specified in Sub-section (4), may, as
expeditiously as possible, at any rate within sixty days,-
a) grant the permission either absolutely or subject to such conditions as it thinks
fit to impose, or

b) refuse the permission for the reasons to be recorded.

(4) Before granting or refusing the permission under Sub-section (3) the village
panchayat shall obtain and consider,-

a) if the factory, workshop, workplace or remises comes within the purview of the
Factories Act, 1948 (Central Act 63 of 1948), a report of the Inspector of Factories
appointed under the said Act of an officer of the Industries Department not below
the rank of Industries Extension Officer having jurisdiction over the area, as
reqards the plan of the factory, workshop, workplace or premises with reference to
the adequacy of provisions for ventilation and light and sufficiency of height and
dimensions of the rooms and doors, suitability of exits to be used in case of fire and
such other matters as may be prescribed;

b) if the connected load of the machinery proposed to be installed exceeds 25 HP or

if the nature of the machinery and installations are such that it may cause nuisance
or pollution, a report of the District Medical Officer of Health as regards the
possibility of nuisance or pollution; and

c) if the industry involves use of high tension power, inflammable materials or

explosives, a report from the Divisional Fire Force Officer or any officer nominated
by him as to the sufficiency of the fire prevention and fire fighting measures
planned:

Provided that no report under clause (b) shall be required in respect of any industry
for which a declaration is given by the applicant duly recommended by the General
Manager of the District Industries Centre of the Kerala State Pollution Control
Board to the effect that no pollution or untreated effluent is involved.
(5) The grant of permission under this section,-

a) Shall, in regard to the replacement of machinery, the levy of fees, the conditions,
to be observed, be subject to such restrictions and controls as may be prescribed,
and

b) Shall not be deemed to dispense with the necessity for compliance with the
provisions of Sections 235 G and 235 I or Sections 235 R and 235 S as the case may
be."

New Sections 233 A to 233 B

After Section 233, the following new sections may be inserted, namely:-

"233 A. Abatement of nuisance caused by factory, workshop etc- (1) Where any
factory, workshop, workplace or machinery causes, in the opinion of the village
panchayat, nuisance by reason of a particular kind of fuel being employed or by
reason of the noise or vibration created, or effluent discharged or by reason of
obnoxious obour, smoke or dust emitted, the secretary may direct the person in
charge of such factory, workshop, workplace or machinery for the abatement of such
nuisance within a reasonable time to the specified for that purpose.

(2) The village panchayat may if required, obtain expert opinion with regard to the
determination of the nuisance or its abatement, at the cost of the owner or person in
charge of the factory, workshop, workplace or machinery concerned.

(3) Where there has been willful default in carrying out a direction given under Sub-
section (1) or where in the existing circumstances the abatement of nuisance is
found impracticable, the Secretary may prohibit the working of the factory,
workshop, workplace or machinery till such time the person concerned takes
necessary steps to the satisfaction of the Secretary for the abatement of the
nuisance."
"233 B. Exemptions.- Notwithstanding anything contained in Section 233, on
permission of the village panchayat shall be required for the installation or
establishment of the following machinery or manufacturing plant or industrial unit
as the case may be:

1) Electrical and non-electrical appliances and machinery intended to be used for

domestic or personal purposes of comfort;

2) Electrical and non-electrical installations installed for agricultural purposes;

3) Normally unattended static transformer stations, condenser stations and

rectified stations;

4) Portable drilling machines and portable engines used for construction purposes
such as concrete misers;

5) Machinery installed at a workshop or workplace attached to an educational

institution or for scientific purposes;

6) Installations of the Kerala State Electricity Board of generation or transmission

or electricity;

7) Installations of the Kerala Water Authority for supply of drinking water or for
sewerage;

8) Industrial units with machinery having capacity of less than 5 HP, which is
certified by the Industries Department of the Government or the Kerala State
Pollution Control Bard to be a non-polluting industry;

9) Industrial units in an industrial stem, industrial development area, industrial

development plot, industrial growth center, export processing zone or industrial
park declared as such by the Government or a Government controlled agency;
Provided that the owner of any industrial unit specified under items (8) and (9)
shall register the unit with the village panchayat concerned on remission of the fee
prescribed;

Provided further that before opening an industrial estate, industrial development

area, industrial development plot, industrial growth center, export processing zone
or industrial park by the Government or a Government controlled agency, the
village panchayat concerned shall be consulted;

Provided also that in respect of the industrial units specified under item (8 ) the
provisions of Sections 235 G and 235 I or Sections 235 R and 235 S as the case may
be shall be complied with"

(Sections 235 G, 235 I, 235 R and 235 S newly proposed, relate to building
constructions)

Section 234

The existing Sub-section (3) shall be omitted.

New Section 234 A

After Section 234 the following new section shall be inserted, namely:-

"234 A. Establishment and maintenance of water supply schemes :- (1)

Notwithstanding anything contained in the Kerala Water Supply and Sewerage
Act, 1986 (14 of 1986) a Panchayat may implement and maintain any scheme for
the supply of water for domestic, industrial or commercial purposes in the whole or
part of the panchayat area, utilizing the water sources available in that area, or,
with the approval of the local authority concerned or the District Planning
Committee, utilizing the water sources available in the area of another local
authority.
(2) Government shall, as soon as may be after coming into force of this Act and if
requested for by the panchayat, transfer every water supply scheme which exists at
the commencement of this Act and which serves a single panchayat area, to the
panchayat concerned, with the staff required for the maintenance of such scheme.

(3) In case a water supply scheme which exists at the commencement of this Act
serves the area of two or more local authorities the government shall, as soon as
may be after coming into force of this Act, place it under the operation and
maintenance of a committee consisting of the Chairpersons of the municipalities
and the presidents of the Panchayats concerned and the Chairperson of the
Municipality or, as the case may be, the president of the panchayat in which the
major portion of the water supply scheme falls shall be the Chairman of such
Committee.

(4) The senior engineer of the Kerala Water Authority constituted under the Kerala
Water Supply and Sewerage Act, 1986 (14 of 1986) in charge of the respective
scheme shall be the Secretary of the committee constituted under Sub-section (3)
and the staff required for the operation and maintenance of the scheme shall be
placed under the control of such Committee."

New Sections 235 A to 235 AE

The following new sections may be inserted after Section 235.

"235 A. Building Rules,- (1) The Government may make rules-

a) For the regulation or restriction of the use of sites for building; and

b) For the regulation or restriction of building construction.

(2) Without prejudice to the generality of the powers conferred by clause (a) or sub-
section (1), rules made under that clause may provide that-
a) no insanitary or dangerous site shall be used for building construction; and

b) no site shall be used for the construction of a building intended for public
worship, if the construction thereon will wound the religious feelings of any class of
persons.

(3) Without prejudice to the generality of the powers conferred by clause (b) of sub-
section (1), rules made under that clause may provide for the following matters,
namely:-

a) information and plans to be submitted together with applications for permission

to construct a building

b) height of buildings, whether absolute or relative to the width of streets;

c) level and width of foundation level of lowest floor, and stability of structure;

d) number and height of storeys composing a building and height of rooms;

e) provision of sufficient open space, external or internal and adequate means of

ventilation;

f) provision of means of egress in case of fire;

g) provision of secondary means of access for the removal offish;

h) materials and methods of construction of external and partition walls, roofs and
floors;

i) position, materials and methods of construction of hearths, smoke escapes,

chimneys, staircases, latrines, drains, cesspools;

j) paving yards;
k) restrictions on the use of inflammable materials in the building; and

l) in the case of wells, the dimensions of the well, the manner of enclosing it, and if
the well is intended for drinking purposes the means which shall be used to prevent
pollution of water.

235.B. Building site and construction or reconstruction of buildings:- No piece of

land shall be used as a site for the construction of a building and no building shall
be constructed or reconstructed otherwise than in accordance with the provisions of
this part and of any rules or bye-laws made under this Act relating to the use of
building sites or the construction or reconstruction of buildings:

Provided that the Government may in respect of all village Panchayat areas or with
the consent of the village Panchayat in respect of any particular Village Panchayat
area or portion thereof, exempt all or any of the buildings or any class of buildings
from all or any of the provisions of this chapter or the said rules.

235 C. Power of Village Panchayat to regulate further construction of certain classes

of buildings in particular streets or localities- (1) A village Panchayat may give
public notice of its intention to declare-

a) that in any road or portions of roads specified in the notice,-

(i) continuous building shall be allowed;

(ii) the elevation and construction of the frontage of all building thereafter
constructed or reconstructed shall, in respect of their architectural features, be such
as the village Panchayat may consider suitable to the locality; or

(b) that in any locality specified in the notice, the construction of only detached
buildings shall be allowed; or
(c) that in any road, portion of road or localities specified in the notice, the
construction of shops, warehouses, factories, huts or buildings of a specified
architectural character of buildings destined for particular use shall not be allowed
without the special permission of the Village Panchayat.

(2) No objection to any such declaration shall be received after a period of three
months from the publication of such notice.

(3) The Village Panchayat shall consider all objections received within the said
period and may modify or confirm the declaration, and the modification shall not be
so as to extend its effect.

(4) The Secretary shall publish the declaration which shall take effect from the date
of publication.

(6) No person shall, after the date of publication of the declaration under sub-
section (4) construct or reconstruct any building in contravention of such
declaration.

235 D. Buildings at corner of road.- A Village Panchayat may require any building
intended to be erected at the corner of two roads to be rounded off or splayed off to
such height and extent as it may determine, and may acquire in accordance with
the provisions of the Land Acquisition Act, 1894, (Central Act I of 1894), such
portion of the site at the corner as it may consider necessary for public convenience
or amenity.

235 Eprohibition of the use of inflammable materials for building construction

without permission.- No external roof, verandah, pandal or wall of a building shall
be constructed or reconstructed of grass, leaves, mats or other inflammable
materials, except with the permission of the Village Panchayat.
235 F.Prohibition of construction of doors, ground floor windows and bars so as to
open outwards.- No door, gate, bar or ground floor window which opens on any
public road shall be constructed or reconstructed.

235 G. Application of construct or reconstruct building.- (1) Where any person

intends to construct or reconstruct a building other than a hut within a Village
Panchayat area, he shall send to the Secretary-

(a) an application in writing together with a site plan of the land for the approval of
the site; and

(b) an application in writing together with a ground plan, elevation and sections of
the building and specification of the work for permission to execute the work.

Explanation:- Building in this sub-section shall include a wall or fence of whatever

height bounding or abutting or any public road.

(2) Every document furnished under sub-section (1) shall contain such porticulars
and be prepared in such manner as may be required under the rules or bye-laws
made under this Act.

235 H. Requirement of prior approval of site.- The Secretary shall not grant
permissin to construct or reconstruct a building unless and until he has approved
the site on an application made under Section 235G.

235 I. Prohibition of commencement of work without permission.- The construction

or reconstruction of a building shall not be begun unless and until the Secretary has
granted permission for the execution of the work.

235 J. Period within which approval or disapproval shall be intimated.- Within

thirty days after the receipt of an application made under section 235 G for
approval of a site or of any information or further information required under any
rules or bye-laws, made under this Act, the Secretary, by written order, either
approve or refuse to approve the site on any of the grounds mentioned in Section
235 M and intimate the fact to the applicant.

235 K. Period within which Secretary is to grant or refuse in granting permission to

execute work.-Within thirty days after the date receipt of an application under
section 235 G for permission to execute any work or of any information or of
document or further information or documents required under the rules or bye-laws
made under this Act, the Secretary shall, by written order either grant or refuse to
grant such permission on any of the grounds mentioned in section 235 M and
intimate the fact to the applicant in writing:

Provided that the said period of thirty days shall not begin to run until the site has
been approved under section 235 J

235 L. Reference to Village Panchayat where Secretary delays grant or refusal of

approval or permission.- (1) Where, within the period specified in section 235 J or
section 235 K, as the case may be, the Secretary has neither given nor refused his
approval of a building site, or his permission to execute any work, as the case may
be, the Village Panchayat shall be bound, on the written request of the applicant, to
determine whether such approval or permission should be given or not.

(2) Where the Village Panchayat does not, within one month from the date of receipt
of such written request, determine whether such approval or permission should be
given or not, such approval or permission shall be deemed to have been given, and
the applicant may proceed to execute the work, but not so as to contravene any of
the provisions of this Act or any rules or bys-laws made thereunder

235 M. Grounds on which approval of site or permission to construct or reconstruct

a building may be refused.- (1) The grounds on which approval of site for
construction or reconstruction of a building or permission to construct or reconstruct
a building shall be refused are the following, namely:-
(i) That the work or use of the site for the work or any of the particulars comprised
in the site plan, ground plan, elevations, sections or specifications would contravene
provisions of any law, or any order, rule, declaration or bye-law made under such
law;

(ii) That the application for such permission does not contain the particulars or is
not prepared in the manner required by any rule or bye-law made under this Act;

(iii) That any of the documents referred to in section235 G has not been signed as
required by rules or bye-laws made under this Act;

(iv) That any information or document required by the Secretary under the rules or
bye-laws made under this Act has not been duly furnished;

(v) That the streets or roads have not been made for giving access to site and
connecting with an existing road;

(vi) That the proposed building would be an encroachment upon a land belonging to
the Government or the Village Panchayat; or

(vii) That the land is under acquisition proceedings.

(2) No application for approval of a building site or for permission to construct or

reconstruct a building shall be refused without stating the reasons for such refusal.

235 N. Lapse of permission.- Where the construction or reconstruction of a building

is not completed within the period specified in the permission, such permission shall
lapse unless an application for extension of time is made before the expiry of the
period specified.

235 O. Power of Secretary to require alteration in work.- (1) Where it comes to the
notice of the Secretary that a work,-
(a) is not in accordance with the plans or specifications approved, or

(b) is in contravention of any of the provisions of this Act or any rule, bye-law, order
or declaration made thereunder, he may, by notice, require the person for whom
such work id done-

(i) to make such alterations as may be specified in the said notice with the object of
bringing the work in conformity with the plans or specifications approved or the
provisions so contravened; or

(ii) to show cause why such alterations should not be made, within such period as
may be specified in the notice.

(2) Where such person does not show cause as aforesaid, he shall be bound to make
the alterations specified in such notice.

(3) Where such persons shows sufficient cause as aforesaid, the Secretary may, by
order confirm, modify or cancel the notice issued under sub-section (1).

Provided that any construction made in deviation from the approved plan and
specifications may not be required to be altered unless it contravenes any standard
or specification mentioned in the Act or rules made under Section 235 A.

235 P. Stoppage of work endangering human life.- Notwithstanding anything

contained in any of the foregoing provisions in this Chapter, the Secretary may at
any time, stop the construction or reconstruction of any building if, in this opinion,
the work in progress endangers human life.

235 Q. Application of certain sections to wells.- The provisions of sections 235 G, 235
H, 235 I, 235 N, 234 O and 235 P shall, as far as may be apply to be digging of a
well.
235 R. Application to construct or reconstruct huts.- (1) Every person who intends to
construct or reconstruct a hut within a Village Panchayat area shall send to the
Secretary-

(a) a site plan of the land, and

(b) and application for permission to execute the work.

(2) Every such application and plan under sub-section (1) shall contain such
particulars and be prepared in such manner as required by rules of bye-laws made
under this Act.

235 S. Prohibition of commencement of work without permission.- No person shall

begin the construction or reconstruction of a hut without permission under Section
235 R.

235 T. Period within which Secretary is to grant or refuse to grant permission to

execute the work.- Within fourteen days after the date of receipt of an application
under Section 235 R. or of any information or plan or further information or fresh
plan required under the rules or bye-laws made under this Act, the Secretary shall,
by written order, either grant or refuse permission on any of the grounds mentioned
in Section 235V.

235 U. reference to Village Panchayat where Secretary delays passing orders.- (1)
where within the period specified in section 235. T. the Secretary has neither
granted nor refused to grant permission to construct or reconstruct a hut, the
Village Panchayat shall be bound on the written request of the applicant to
determine whether such permission should be granted or not.

(2) Where the Village Panchayat does not, within thirty days from the date of
receipt of such written request, determine whether such permission should be
granted or not, such permission shall be deemed to have been granted and the
applicant may proceed to execute the work but not so as to contravene any of the
provisions of this Act or any rules or bye-laws made thereunder.

235 V. Grounds on which permission to construct or reconstruct hut may be

refused.-

(1) The grounds on which permission to construct or reconstruct a hut may be

refused are the following, namely:-

(i) That the work or use of the site for the work would contravene the provisions of
any law or any order, rule, bye-law of declaration made under such law;

(ii) That the application for permission does not contain the particulars or are not
prepared in the manner required by any rule or bye-law made under this Act;

(iii) That any information or plan required by the Secretary under the rules or bye-
laws made under this Act has not been duly furnished;

(iv) That roads have not been made for giving access to the site and connecting with
an existing road, or

(v) That the proposed hut would be an encroachment upon a land belonging to the
Government or the Village Panchayat.

(2) No application for permission to construct or reconstruct a hut shall be refused

without stating the reasons for such refusal.

235 W. Lapse of permission.- Where the construction or reconstruction of a hut is

not completed within the period specified in the permission, such permission shall
lapse unless an application for extension of time is made before the expiry of the
period specified.
235 X. Maintenance of external walls in repair.- The owner or occupier of any
building adjoining a public street shall keep the external part of the building in
proper repair, with lime or cement plaster or any other material to the satisfaction
of the Secretary.

235 Y. Application of provisions to alterations and additions:- The provisions of this

Act and of any rule or bye-law made thereunder relating to construction and
reconstruction of buildings shall also be applicable to any alteration thereof or
addition thereto:

Provided that works using materials of the same nature and value to keep the
building as such without enhancing its value and without changing its occupancy
and usage and which do not affect the position or dimension of a building or any
room therein shall not be deemed an alteration or an addition for the purpose of this
section. Changing of roof by using a different material, fitting of rolling shutters,
building of walls using a different material and other similar works which enhance
the value of the building to any extent will not be treated as repair but as a new
construction.

235 Z. Demolition or alteration of building work unlawfully commenced, carried on

or completed:- (1) Where the Secretary is satisfied-

(i) that the construction reconstruction or alteration of any building or digging of

any well-

a) Has been commenced without obtaining the permission of the Secretary or in

contravention of the decision of the Village Panchayat; or

b) Is being carried on, or has been completed otherwise than in accordance with the
plans or specifications on which such permission or decision was based; or
c) Is being carried on, or has been completed in breach of any of the provisions of
this Act or any rule or bye-law or order made or issued thereunder or any direction
or requisition lawfully given or made under this Act. Such rule, bye-law or order; or

(ii) That any alteration required by any notice issued under section 235-O has not
been duly made; or

(iii) That any alteration of a addition to any building or any other work made or
done for any purpose in or upon any building has been commenced or is being
carried on or has been completed in contravention of the provisions of section 235 Y,
he may make a provisional order requiring the owner or the person for whom the
work is done to demolish the work done, or any part of it as, in the opinion of the
Secretary, has been unlawfully executed or to make such alterations as may, in the
opinion of the Secretary, be necessary to bring the work in conformity with the
provisions of this Act, bye-laws, rules, direction, order or requisition as aforesaid, or
with the plans and specifications on which such permission or decision was based,
and may also direct that until the said order is complied with, the owner or such
person shall refrain from proceeding with the work:

Provided that the Secretary may, on realization of a compounding as may b fixed by

Government, regularise any construction, reconstruction or alteration of any
building or digging of any well, commenced carried or completed, without getting a
plan approved by the Secretary or in deviation of the plan approved by him, if such
construction reconstruction or alteration of the building or digging of the well does
not contravene any of the standard or specification mentioned in the Act or the
rules made under section 235 A.

(2) The Secretary shall serve a copy of the provisional order made under sub-section
(1) on the owner or the person for whom such work is done together with a notice
requiring him to show cause within a reasonable time, to be specified in such notice,
why the order should not be confirmed.
(3) Where the owner or the person for whom the work is done fails to show cause to
the satisfaction of the Secretary, the Secretary may confirm the order or modify the
same to such extent as he may think fit to make, and such order shall then be
binding on the owner or the person for whom the work is done and on the failure to
comply with the order, the Secretary may himself cause the building or part thereof
demolished or the well dismantled, as the case may be, and the expenses therefore
shall be recoverable from the owner or such person.

(4) Notwithstanding anything contained in sub-section (2) or sub-section (3),

prosection proceedings against the owner or the person for whom the work is done
may be initiated.

(5) Where the Government is satisfied that the construction, reconstruction or

alteration of any building has been carried out in breach of any of the provisions of
this Act or any rule made thereunder or any direction lawfully given by the
Government or the Secretary, the Government may direct the Secretary of the
village panchayat to cause the demolition of such construction, reconstruction or
alteration unlawfully carried out, and if such direction is not complied with within
the time limit specified in such direction, the Government may arrange the
demolition and the cost thereof shall be recovered from the village panchayat.

235 AA. Order of stoppage of buildings or works in certain cases.- (1) Where the
erection of any building or the execution of any work has been commenced or is
being carried on (but has not been completed) without obtaining the permission of
the Secretary or in contravention of any decision of the Village Panchayat or any of
the provisions of this Act or any rule or bye-law made thereunder or any lawful
direction or requisition given or made under this Act, or the rules or bye-laws, the
Secretary may, without prejudice to any other action that may be taken under this
Act, by order require the person at whose instance the building or the work has
been commenced or it being carried on, to stop the same forthwith:
(2) Where such order is not complied with, the Secretary may require any police
officer to remove such person and all his assistants and workmen from the premises
within such time as may be specified in the requisition, and such police officer shall
comply with the requisition accordingly.

(3) After the requisition under sub-section (2) has been compiled with, the Secretary
may, if he thinks fit, require in writing the assistance of a police officer or depute by
a written order an officer or employee of the Village Panchayat to watch the
premises in order to ensure that the erection of the building or the execution of the
work is not continued and the cost thereof shall be paid by the person at whose
instance such erection or execution was being continued or to whom notice under
sub-section (1) was given, and shall be recoverable from such person as an arrears
of property tax under this Act.

235 AB. Certain buildings or sheds exempted.- (1) Any building constructed and
used, or intended to be constructed and used, exclusively for the purpose of a plant-
house, meter-house, summer-house (not being a dwelling house), or sheds for
keeping fuel, or firewood for the domestic use of its owner or for keeping
agricultural implements, tools, rubbish or other materials or for watching crops or
kennel shed or cattle shed or pultry shed or any other shed of temporary nature
shall stand exempted from the provisions of the chapter other than section 235 F,
provided the buildings is wholly detached from, and situate at a distance of at least
one mete from the adjacent building.

(2) The Secretary may grant permission to a person on such terms as may generally
be decided by the Village Panchayat, to erect for a specified period huts or sheds of a
purely temporary nature for stabling, or other similar purposes. On the failure of
the person to demolish or dismantle it at the expiry of the period specified, the
Secretary may cause it to be demolished or dismantled and the cost therefore shall
be recovered from such person as if it were an arrears of property tax due under this
Act.
235 AC. Power of Government to grant exemption:- (1) Notwithstanding anything
contained in this Act and the rules made thereunder, the Government may, in
exceptional circumstances, on application by any land owner and on due
consideration of the views of the Village Panchayat and the objection if any received
from the adjacent land owners, in response to the notice served on them by the
village panchayat in this behalf, exempt the construction of any residential building
from any of the provisions of this Act or the rules made under section 235 A, subject
to such conditions or restrictions as may be specified in the order in this regard:

Provided that while granting exemption, the Government shall have due regard to
the right of privacy, the right to light and air and the right of easement of the
neighbour and the right of the public in general, the problems of traffic, flood and
rain, and the possibilities for future development of the locality or roads in that
locality:

Provided further that not such exemption shall be granted to construct a building or
structure whether temporary or permanent in any land abutting a National
Highway, State Highway, District Road or any other road notified by the Village
Panchayat under clause (b) of section 220, within a minimum distance of three
metres from the road boundary of such land, provided that in the case of a building
existing at the commencement of the Act in a land abutting a road other than
National Highway, State Highway or District road Government may grant
exemption from the above said three metre limit for the construction of the first
floor or second floor or both upon such building.

(2) The order of exemption under Sub-section (1) shall specify the grounds on which
the exemption is granted and shall be communicated to the applicant as well as the
adjacent land owners and the village panchayat.

235 AD. Penalty for unlawful building construction: - (1) Where the construction or
reconstruction or any building or digging of any well-
a) is commenced without the permission of the Secretary or

b) is carried on or completed otherwise than in accordance with the particulars on

which such permission based, or

c) is carried on or completed in contravention or any lawful order or in breach of any

provision contain in this Act or in any rule or bye-law made there under or of any
Direction or requisition lawfully given or made; or

d) about which any alteration or addition required by any notice issued under
Section 235.O or Section 235. Y is not duly made; or

e) about which any person to whom a direction if any, given by the Secretary under
Section 235.Z fails to obey such direction, the owner of the building or the well or
such person as the case may by shall be made on conviction to a fine which may
extend, in the case of building to ten thousand rupees and in the case of well orhut
one thousand rupees and to a further fine which may extend in the case of a
building to one thousand rupees and in the case of well or hut to ten rupees for each
day during which the offence continued:

Provided that no person is liable to be convicted under this sub-section if the

unlawful construction or reconstruction of the building or the digging of the well is
liable to be regularisedand has been regularized accordingly by the Secretary under
Sub-section (1) of Section 235 Z;

(2) Where violation of any stipulation as to the standard of specification mentioned

in any provision in this Act or any rules or lawful directions in regard to the
construction of a building poses threat to public safety or danger to human life, the
owner or the building of such building shall be publishable with imprisonment for a
term which may extend to one year.
235 AE. Property tax of the buildings constructed unlawfully:- (1) Where any person
has unlawfully constructed or re-constructed any building, such building shall,
without prejudice to any action that may be taken against that person, be liable to
property tax under Section 203 from the date of completion or occupation whichever
is earlier till the date of demolition of that building.

(2) Nothing contained in Sub-section (1) shall preclude the Secretary from
proceeding against that person under Section 235 Z and the owner shall not be
entitled to any compensation or damages due to any action, taken by the Secretary
under this section."

Section 236

(i) In clause (a) of Sub-section (5), after the words the "Secretary may" and before
the words "by notice". Words "and if the village panchayat so directs shall," shall be
inserted.

(ii) In Sub-section (7) the words "with the prior approval of the President" shall be
deleted.

(iii) The following proviso shall be added to Sub-section (1), namely:-

"Provided that a sub-committee of the village panchayat, if aruthorised by the

panchayat, may conduct such inspection and furnish a report to the panchayat of
such action as it deems necessary."

After Sub-section (12) the following new sub-section shall be added, namely:-

"(13) Notwithstanding anything contained in the foregoing provisions in this

section, no licence or permission under this Act shall be granted to a person or
owner of a premises if he has defaulted in payment of any tax, fees or other dues
payable to the village panchayat."
Section 238

In sub-section (1) after clause (b) the following new clause shall be inserted,
namely:-

"(c ) If any tree or any branch of a tree causes, in the opinion of the village
panchayat, pollution to the drinking water in a well or tank, the panchayat may by
notice require the owner of such tree to cut down the tree or branch thereof so as to
prevent pollution to the drinking water."

Section 239

(i) In the Malayalam version of the Act, in clause (a) of Sub-section (3), the last part
shall be modified as".................. t\m«okv aqew Bhiy¸s¸Sp¶Xn\pw"

(ii) In clause (b) of Sub-section (3), the last part shall be modified as ".............\S]Sn
kzoIcn¡p¶Xn\pw."

Section 241

(i) In the Malayalam version of the Act, in clause (a) of Sub-section (1) the last part
shall be modified as aqey\nÀ(r)bw \S¯¶Xnt\m: aäv FsX¦nepw tPmen
\nÀÆln¡p¶Xnt\m"

(ii) In clause (b) of Sub-section (1) the last part shall be modified as "................"kzbw
t_m[yw hcp¯p¶Xnt\mþ{]thin¸n¡mhp¶XmWv."

Section 243

The existing section may be numbered as Sub-section (1) and after Sub-section (1)
the following proviso shall be added, namely:-

"Provided that in the case of assessment made under Sub-section (2) the said period
of three years shall be computed from the date on which destraint might have been
made, suit instituted or prosecution commenced, after such assessment shall have
been made."

After Sub-section (1) the following new sub-section shall be added, namely: -

"(2) Notwithstanding anything to the contrary contained in this Act or the rules
made there under, where for any reason a person liable to pay any tax or fees
leviable under this Act has escaped assessment, the Secretary may at any time
within four years from the date on which such person should have been assessed,
serve on him a notice assessing to the tax or fee due and demanding payment
thereof within fifteen days from the date of such service and thereupon the
provisions of this Act and the rules made thereunder shall, so far as may be, apply
as if the assessment of such tax or fee was made in time.

(3) Where any amount due to a panchayat has been barred by limitation under Sub-
section (1) due to the default of not taking steps at the appropriate time and it is
found in a lawful enquiry that it was lost due to the default of any officer or officers,
the amount so lost to the Panchayat shall be realized with twelve percent interest
thereon from such officer or officers."

Section 245

In Malayalam version of the Act in Sub-section (1) the words "sk{I"dntbmSv" shall
be corrected as"sk{I"dntbmSv"

New Section 249 A

After Section 249 the following new section shall be inserted, namely:-

"249 A. Restriction on institution of suit by the Panchayat against the Government:-

No Panchayat or any person on its behalf shall institute a suit against the
Government or any officer of the Government who acts in his official capacity,
unless-
a) the Panchayat has availed of all other means for the redressal of its grievance,

b) the Panchayat has decided to institute such a suit, and

c) the President or the Secretary has conveyed to the Government or the officer
concerned the intention of the Panchayat to institute the suit and reasonable time
thereafter has lapsed:

Provided that nothing in this section shall prevent the Panchayat from instituting a
suit against the Government on any order passed it."

Section 250

In the English version of the Act, after Section 249, the section number and the
marginal heading given as "251. Assessment etc. not to be impeached" shall be
corrected as "250. Protection of acts done in good faith".

Section 251

In Malayalam version of the Act, in Sub-section (1) the words "NmÀPnt\tbm ]än
ssI¯täm GsX¦nepw ]nitIm aqetam" shall be substituted by the word ºÞVç¼Þ

In clause (c ) the words words " XpI kw_Ônt¨m tNmZyw sN¿IpItbm m[Iam¡pItbm
sN¿m³ ]mSpffX" shall be substituted by the words " XpItbm kw_Ôn¨v , ssIs¯täm
GsX¦nepw ]nitIm kw`hn¨nXnsâ t]cnð, tNmZyw sN¿pItbm _m[Iam¡pItbm sN¿m³
]mSpffXñ"

Section 253

(i) After Sub-section (1) the following provisos shall be added, namely:-

"Provided that such liability shall sustain even if such person has vacated his office,
unless a period of five years has lapsed after vacating the office;
Provided further that if a decision of the panchayat or any standing committee
causes or facilitates any loss, waste or misapplication of money or other property of
the panchayat, each and every member of the panchayat who is a party to such
decision shall be personally liable for such loss, waste or misapplication of money or
other property."

(ii) Sub-section (2) shall be substituted by the following, namely:-

"(2) Where the Government, having caused such enquiry as may be necessary, is
satisfied that any person is liable for any loss, waste or misapplication of money or
other property of the panchayat under Sub-section (1), the Government may, after
giving him a reasonable opportunity of showing cause to the contrary, direct such
person to remit to the panchayat, before a specified date, the amount required to be
reimbursed to it for such loss, waste or misapplication of money or other property."

Section 254

In Sub-section (2) item (xxv) shall be deleted.

Section 259

(ii) In the marginal heading after the words "acquisition by" the words "a member,"
shall be inserted.

(iii) In the section, after the words "if any" the word "member," shall be inserted.

(iv) The second proviso shall be deleted.

Section 260 The existing section shall be numbered as Sub-section (1) and the
following new Sub-section (2) shall be added, namely:-

"(2) Any person who prevents any Standing Committee or any other committee of
the Panchayat or the Chairman of a Standing Committee from exercising its or his
lawful power of entering into any place, building or land shall also be deemed to
have committed such offence as specified in Sub-section (1)."

Section 264

In this section, after the words "all fines imposed", the words "by the panchayat or
any competent court" shall be inserted.

Section 266

The existing section shall be numbered as Sub-section (1) and the following new
Sub-section (2) shall be added, namely:-

"(2) Such registration shall be renewed annually before first of April of every year
and the application for such renewal and the fee shall be as may be prescribed."

Section 267

In this section after the words "one thousand rupees" the following words shall be
added, namely:-

"and with a further fine which may extend to one hundred rupees per day if the
offence continues."

New Section 268

After Section 267, the following new section shall be added, namely:-

"268, Collection of fee for service rendered to tutorial institutions.- The village
panchayat may collect such annual fees from the tutorial institutions for any service
redered by it at such rates, as may be fixed by it, subject to the rules made by the
Government for the purpose, but the fees so collected shall be at different rates for
tutorial institutions of different standards."
Section 269

In clause (d), after the words "respective subjects", the words "and nursing schools"
shall be added.

New Section 270 A

After Section 270, the following new section shall be added, namely:-

"270 A. Penalty for maintaining or running private hospitals or para-medical

institutions without registration.- Any person who maintains or runs a private
hospital or para-medical institution without registration or continues to maintain or
run the same after cancellation of registration shall, on conviction, be punished with
fine which may extend to five thousand rupees and with a further fine which may
extend to five hundred rupees per day if the offence continues."

New Sections 271 A to 271 E

A new chapter XXV-A with the title "Right to information" may be inserted after
chapter XXV as follows:-

CHAPTER XXV-A

RIGHT TO INFORMATION 271 A. Definition For the purpose of this chapter,-

a) 'Information' means any material or information contained in a document

relating to the administrative, developmental or regulatory functions of a
Panchayat and includes any document or record relating to the affairs of the
Panchayat.

b) 'Right to information' means the right of access to information and includes the
right for taking extracts and obtaining certified copy of the document.
c) 'Notified document' means any document of the Panchayat containing categories
of information, which the Government may, by notification in the Gazette, classify
as 'notified document' under Sub-section (2) of Section 271 B.

271 B. Right to information.- (1) Every person bonafide requiring any information
shall have right to such information from a Panchayat in accordance with the
procedure prescribed.

(2) Notwithstanding anything contained in Sub-section (1) the Government may, in

the interest of public and local administration, by notification in the Gazette classify
any documents containing categories of information as notified document to which
no person shall have right to information and any request for such information is
liable to be rejected by the Panchayat.

(3) Government may, general special order, direct the Panchayats to publish the
categories of information specified in the order, for the general information of the
inhabitants of the area of that Panchayat.

271 C. Procedure for furnishing the information.- (1) A person requiring any
information from a Panchayat shall make an application in that behalf to the
Secretary of that Panchayat in the form, manner and on payment of fee as may be
prescribed and the Secretary or the officer aruthorised by the Panchayat shall
furnish the information to the applicant within the period prescribed, unless the
application is rejected or otherwise disposed within that period.

(2) If any application for information is rejected, the reasons for such rejection shall
be given in writing.

271 D. Penalty for withholding information.- (1)The Secretary of any officer of the
Panchayat responsible for furnishing any information under this chapter shall be
personally liable for furnishing the same within the period prescribed, unless such
information is in respect of a notified document.
(2) Where such information is not furnished, within the time specified, the officer
responsible for non-supply of the information shall be punishable with a fine of fifty
rupees for every day of delay after the date on which the supply is due, and such
fine shall be credited to the fund of the Panchayat.

(3) If the Secretary of any officer of the Panchayat responsible for providing
information under this chapter fails to furnish such information or furnishes any
information which is false in any material particulars and which he knows or has
reasonable cause to believe to be false or does not believe it to be true, he shall be
punishable with fine which shall not be less than one thousand rupees.

271 E. Protection of action taken in good faith Notwithstanding anything contained

in Section 271 D, the Secretary or the officer responsible for supply of information,
after making through search for a document, finds that the document concerned is
not available or traceable, by reason of expiry of period for preservation of document
or for any other valid reason and that the information cannot therefore be made
available, he shall inform the applicant accordingly and dispose of the application
and no action shall lie against him."

New Sections 271 F to 271 B

A new chapter XXV-B with the title "Ombudsman for Local Self Government
Institutions" may be inserted after the proposed new chapter XXV-A, as follows:-

CHAPTER XXV B

OMBUDSMAN FOR LOCAL SELF GOVERNMENT INSTITUTIONS

271 F. Definitions. - (1) for the purposes of this Chapter, -

a) 'action' means action taken by way of decision, recommendation, resolution or

finding or in execution thereof or in exercise of administrative or regulatory
functions in any other manner and includes failure to act; and all other expressions
connoting action shall be construed accordingly.

b) 'Allegation' in relation to a public servant means any affirmation that such public
servant-

(i) has abused his position as such to obtain any gain or favour or himself or to any
other person or to cause under harm or hardship to any other person,

(ii) was actuated in the discharge of his functions as such public servant by personal
interest or improper or corrupt motives,

(iii) is guilty of corruption or lack of integrity in his capacity as such public servant,
or

(iv) is guilty of any action leading to loss, waste or misapplication of money or other
property of the LSGI or any member of public.

(c) 'Complaint' means a statement of allegation and includes any reference to an

allegation, if asuo motu proceedings are proposed and a reference from the
Government in regard to an allegation.

(d) 'corruption' in relation to a public servant means an action of,-

(i) accepting or obtaining for himself or for any other person any gratification
whatever other than legal remuneration, as a motive or reward for doing or
forbearing to do any official act or showing or forbearing to show, in the exercise of
his official functions; or inducing any public servant by malafide illegal or means for
doing or forbearing from doing any official act or showing or forbearing to show, in
the exercise of his official functions

(ii) abusing his position as public servant by obtaining from any other person any
valuable thing or pecuniary advantage or willfully does any act in contravention of
any provisions of any law for the time being in force intending to show undue favour
or cause injury or inconvenience to any person.

(iii) Accepting or obtaining for himself or for any other person any valuable thing
without consideration or for consideration which he knows to be inadequate, from
any person whom he knows to have been or to be or likely to be concerned in any
proceedings or business transacted or about to be transacted by such person or
having any connection with the official functions of himself or any public servant or
from any person whom he knows to be interested in or related to the person so
concerned.

(iv) Possessing or being in possession for himself or any member of his family or any
other person in his behalf, of pecuniary resources or property disproportionate to his
known sources of income or for which he cannot satisfactorily account for.

(v) Abusing his position shows any act of favoritism or nepotism in the discharge of
his official function by obtaining any monitory gain for himself or for his family.

Explanation I :- The word 'gratification' means pecuniary gratification estimable in

money.

Explanation II :- The word 'law' includes any ordinance, bye-law, rule, regulation or
notification.

Explanation III :- The words 'legal remuneration' are not restricted to remuneration
which is lawfully permissible.

Explanation IV :- A person who receive a gratification as a motive for doing what he

does not intend to do, or as a reward for doing what he has not done, comes within
the expression "a motive or reward for doing".

(e) 'Local Self Government Institution' (hereinafter referred to as LSGI) means a

Panchayat constituted under Section 4 of this Act or a municipality constituted
under Section 4 of the Kerala Municipality Act, 1994 (20 of 1994) and shall include
any institution or office transferred to such Panchayat or Municipality under the
provisions of this Act or the said Kerala Municipality Act 1994 as the case may be.

(f) 'maladministration' means action taken or purporting to have been taken in the
exercise of administrative function in any case,-

(i) where such action administrative procedure or practice governing such action is
unreasonable, unjust, oppressive or improperly discriminatory; or

(ii) where there has been negligence or under delay in taking such action, or non-
observance of the rules, administrative procedure, practice or guidelines governing
such action,

and includes action leading to loss, waste or misapplication of fund by non-feasance,

misfeasance or malfeasance.

(g) 'Public servant' means an employee, officer or member of staff under an LSGI or
an elected member of the LSGI including President or Chairperson of the LSGI and
includes an employee or officer of any office or institution transferred to the LSGI
under the provisions of this Act.

(h) 'Secretary' means the Secretary of the Ombudsman constituted under Section
271 G.

(i) 'Investigating officer' means an officer with whom the Ombudsman may entrust
the investigation into an allegation.

271 G. Constitution of Ombudsman:- (1) The Government shall, by notification in

the Gazette constitute an authority for LSGIs (hereinafter known as Ombudsman
for LSGIs or Ombudsman), at State level for the purpose of conducting
investigations and inquiries on any complaint in regard to any action involving
corruption, maladministration or irregularities in the administration by the LSGIs
and for disposal of such complaint in accordance with Section 271 Q.

(2) Ombudsman for LSGIs shall consist of the following members, namely,-

(a) A High Court Judge, appointed by Government with the approval of the Chief
Justice of the High Court of Kerala who shall be its Chair man.

(b) Two Judicial Officers of the rank of District Judge appointed by Government
with the approval of the Chief Justice of High Court of Kerala.

(c) Two officers of the Government, not below the rank of Secretary to Government,
appointed by Government.

(d) Two public men of repute having known integrity apposition of the Legislative
Assembly of the State.

(3) A vacancy in the office of the Chairman or any member of the Ombudsman shall
not invalidate the proceedings of the Ombudsman.

(3) In the absence of the Chairman, the senior in service among the judicial officers
shall exercise the powers and perform the functions of the Chairman during such
period of his absence.

(4) A member shall hold office for a term of five years from the date on which he
enters upon office or till attains sixty two years of age whichever is earlier:

Provided that, (a) a member may by writing under this hand addressed to the
Government, resign his office, and (b) a member may be removed from office in the
manner provided in Section 271 H.

271 H. Removal of member. - (1) A member shall not be removed from his office,
except by an order of the Governor, passed after an address by the State Legislative
Assembly supported by a majority of the total membership of the house and by a
majority of not less than two thirds of the members of the Legislative Assembly
present and voting, has been presented to the Governor in the same session for such
removal on the ground of proved misbehaviour or incapacity.

(2) The procedure of the presentation of an address and for the investigation and
proof of the misbehaviour or incapacity of the member under Sub-section (1) shall
be as provided in the Judges (Inquiry) Act, 1968. (Central Act 51 of 1968), in
relation to the removal of a Judge and accordingly the provisions of that Act shall,
mutates mutandis apply in relation to the removal of a member as they apply in
relation to the removal of a Judge.

271 I. Staff of the Ombudsman .- (1) The Ombudsman shall have a Secretary and
such other officers and employees as the Government may determine in
consultation with the Ombudsman to assist the Ombudsman in the exercise of its
powers and the discharge of its functions under this Act.

(2) Method of appointment and conditions of service of Secretary and employees

shall be such as may be specified by the Government and as far as possible
appointment on deputation from Government Departments shall be resorted to.

(3) The Ombudsman may request the assistance of any officer in any Department of
Government in order to ascertain the veracity of any complaint in an investigation
and such officer shall be duty bound to render such assistance in addition and
without detriment, to his official duties.

(4) The Ombudsman may engage the services of any person having experience and
expertise in any particular subject for arriving at a decision on matters before it.

271 J. Functions of the Ombudsman .- (1) The Ombudsman shall perform all or any
or the following functions namely;
(j) cause investigation into any allegation, contain in a complaint or on a reference
from Government or that has come to the notice of the Ombudsman.

(ii) Inquire into any allegation against a public servant, alleging corruption or
maladministration.

(iii) pass an order on the allegation in the following manner namely:-

(a) Where the Irregularity involves commission of a criminal offence by a public

servant, refer the matter to the appropriate authority to cause further investigation
and initiation of prosecution,

(b) Where the irregularity leads to loss, or inconvenience to a citizen award

compensation to the victim by the LSGI concerned and cause to recover such
amount from the persons responsible for the irregularity.

(c) Where the irregularity involve any loss, waste misapplication of funds of LSGIs,
cause to recover such loss from the person responsible for the irregularity.

(d) Where the irregularity is by reason of omission or inaction, cause to supply the
omission or to cause rectification.

(2) In addition to the functions enumerated in Sub-section (1) the Ombudsman may
pass interim order restraining the LSGI from doing anything detrimental to the
interest of the complainant, if the Ombudsman is convinced that the complainant
may suffer imminent loss or injury, by the act of the LSGI complained of.

(3) The Ombudsman may in its order, impose fine in addition to the award of
compensation if it is of the opinion that the irregularity involves some corrupt
practice for personal gain.

(4) Notwithstanding any action taken against an employee or officer of the LSGI
under Sub-section (1) or Sub-section (3) the Government appointing authority or
disciplinary authority in respect of that employee or officer shall have right to take
appropriate disciplinary proceedings against him.

271-K. Powers of the Ombudsman.- (1) Ombudsman shall for the purpose of any
investigation or inquiry under this Act, have the same powers as are vested in a
civil court while trying a suit under the code of civil procedure, 1908 (Central Act V
of 1908), in respect of the following matters, namely:-

(a) summoning and enforcing the attendance of any witness and examining him;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavits;

(d) requisitioning any public records or copy thereof from any (public) court or office.

(e) Issuing commissions for the examination of witness,

(2) Where the Ombudsman finds that the allegation contained in a complaint is
without substance or trivial in nature it may order the complainant to pay such
amount of cost as may be specified in its order, to the opposite party.

(3) Where the allegation in a complaint is about the loss, waste or misapplication of
fund or the LSGI, or the loss or inconvenience to the citizen the Ombudsman may
during the enquiry collect evidence, quantify such loss and specify in its order the
amount to be realised from the person responsible.

(4) The amount due as per order of the Ombudsman passed under Sub-section (s) or
Sub-section (3),if not paid within the time specified by the Ombudsman, shall be
recoverable under revenue recovery proceedings as if it were arrears of tax due on
land.
271 L. Services of Government Departments:- The Government may on request of
the Ombudsman make available the service of officers and staff of any Government
Department including police personal to render assistance to the Ombudsman for
the purpose of investigation of inquiry and in regard to such functions, the employee
or officer will be treated as employee or officer of the Ombudsman.

271 M. Investigation. - (1) The Ombudsman may on receipt of a complaint, cause

investigation conducted in the matter, and where there is a prima-facie case,
conduct a summary enquiry in the manner prescribed.

(2) The Ombudsman shall not investigate,-

(a) any matter in respect of which a formal and public enquiry has been ordered by
Government.

(b) Any matter in respect of which a remedy is available from the Appellate
Tribunal of the LSGIs constituted under Section 271 S.

(c) Any matter, which has been referred for enquiry under the Commission of
Inquiries Act1952 (Central Act 60 of 1952) or any matter, pending before any court
of law.

(d) Any complaint made after the expiry of three years from date of on which the
matter complained against is alleged to have taken place.

Provided that, if the complainant satisfies that he had sufficient cause for not
making the complaint within the specified period the Ombudsman may entertain
such complaint.

271 N. Enquiry.- (1) if, after an investigation, the Ombudsman is of opinion that,-

(a) the complaint is frivolous or vexatious or is not made in good faith; or

(b) there are no sufficient grounds for proceeding further or

(c) other remedies are available to the complainant and if the circumstances of the
case it would be more proper for the complainant to avail of such remedies;

The Ombudsman may dispose the complaint as rejected after recording its findings
stating the reason therefore, and communicate the same to the complainant.

(2) If, the Ombudsman is of opinion that there is a prima-facie case against the
person or LSGI complained of, shall record its findings to this effect and send
notices to the complaint and to the opposite party, of the proposed inquiry.

(3) The Ombudsman shall, subject to the provisions of this Act and the rules made
there under, have power to regulate its own procedure, including the fixing of the
time and place of sitting.

(4) For the speedy and efficient transaction of business, the Chairman of the
Ombudsman may constitute two or more benches of the Ombudsman, each
consisting of not less than two of its members, among whom one shall be nominated
as the presiding officer of such bench.

(5) A bench so constituted shall hold its sittings at various District headquarters at
regular intervals, as may be fixed by the Chairman of the Ombudsman and such
bench shall exercise all or any of the powers of the Ombudsman.

271 O. Bar or Legal Practitioner:- In any proceedings before the Ombudsman no

legal practitioner will be permitted to represent any person, unless the Ombudsman
permits, by an order, a person to be represented by a counsel for reasons to be
recorded.

271 P. Initiation of prosecution .-(1) If, after a preliminary investigation or inquiry

the Ombudsman finds that there is a prima-facie case against the person
complained of involving a criminal offence, the Ombudsman may refer the
complaint and the findings after investigation or inquiry to a competent authority
with recommendation to initiate prosecution.

(2) The authority responsible for initiating such prosecution shall conduct a detailed
investigation if necessary and charge sheet the case.

271 Q. Disposal of the complaints.-(1) The complaints other than those involving
criminal offence shall be disposed by the Ombudsman, after findings,-

(i) By awarding compensation, where loss or grievance to a citizen is found.

(ii) By ordering recovery of loss caused to the LSGI from the person responsible,

(iii) By ordering supply of omission or rectification of defects due to inaction

(iv) By ordering recovery of loss from the accused failing which ordering realisation
through Revenue Recovery proceedings.

(v) By ordering such other remedies called for in the facts and circumstances of the
case.

(2) Where the Ombudsman finds that any procedure or practice in the
administration of LSGI gives room for complaint, the Ombudsman may recommend
to the Government, or LSGL to take such measures to avoid its recurrence.

(3) The Ombudsman shall present annually a consolidated report on the

performance of its functions under this Act to the Government, which shall be
caused by the Government to be placed before the Legislative Assembly, with an
explanatory memorandum.

271 R. Procedure to be prescribed: - The Government may frame files for the
following matters viz,

(i) The conditions of service of the members of the Ombudsman and its staff,
(ii) The manner of filing complaints before the Ombudsman and the manner of
taking cases on the file, suo motu and on reference by State Government.

(iii) The manner and procedure of conducting investigation.

(iv) Procedure for moving appropriate authority for initiation of prosecution.

(v) Procedure to be followed during the inquiry, which as far as possible shall be
summary proceedings;

(vi) The manner or implementing the order of the Ombudsman and follow up
action.

(vii) Any other matter that the Government may find necessary to prescribed."

New Sections 271-S to 271-U

A new chapter XXV-C with the title "Appellate Tribunals for LSGIs" may be
inserted after the proposed new chapter XXV -B, as follows:

"CHAPTER XXV C

APPELLATE TRIBUNALS FOR LSGIs

271 S. Constitution of Appellate Tribunals for LSGIs. - (1) There shall be an

Appellate Tribunal for LSGIs constituted by Government in every district to
consider and dispose of the appeal or revision against the decisions of the LSGIs,
under Section 276 of this Act or Section 509 of the Kerala Municipality Act, 1994
(20 of 1994).

(2) An Appellate Tribunal shall consist of one Judicial Officer only, not below the
rank of a District Judge having not less than three years service as a District Judge
or Additional District Judge, appointed by the Government by notification in the
Gazette, in consultation with the Chief Justice of the High Court of Kerala.
(3) An Appellate Tribunal shall have the same powers as are vested in a civil court
under the code of Civil Procedure, 1908 (V of 1908) when trying a suit in respect of
following matters, namely:-

(a) summoning and enforcing the attendance of any person and examining him on
oath;

(b) requiring the discovery and production of any document or other material object
producible as evidence;

(c) receiving evidence on affidavits;

(d) requisitioning any public record or a copy thereof from any court or office;

(e) issuing commissions for the examination of witness or documents.

(4) Any proceedings before the Appellate Tribunal shall be deemed to be a judicial
proceedings within the meaning of Section 193 and Section 228 of the Indian Penal
Code (Central Act 45 of 1860).

(6) The Appellate Tribunal shall be assisted by such officers and staff as the
Government may decide.

271 T. Tendering of opinion on matters referred to by the Government. - The

Appellate Tribunal shall on a reference from the Government with regard to the
legality or sustainability of any decision of the LSGI tender its opinion to the
Government thereon if necessary, after giving opportunity to the President or the
LSGI concerned of being heard.

271 U. Matters to be prescribed:- The Government may prescribe,-

a) the conditions of service of the Appellate Tribunals;

b) the manner of filing appeal or revision petitions;

c) the procedure to be followed in hearing the appeal or revision petition;

d) the effects of the orders of the Appellate Tribunals;

e) any other matter which the Government may find it necessary to prescribe."

New Section 272 A

After Section 272 the following new section shall be inserted:-

"272 A. Citizens' Charter to be published.- (1) Every Panchayat shall in the manner
prescribed. Formulate and publish a Citizens' Charter' which shall specify the
categories of service guaranteed by the Panchayat to the citizen, the standards of
such service, and also the time limit or periodicity within which such service will be
rendered.

(2) The 'Citizens' Charter' shall be renewed and updated periodically at least once in
a year."

Section 276

The section shall be substituted by the following, namely:-

"276. Appeals and revisions.- (1) An appeal shall lie to the Panchayat from any
notice issued or order passed or action taken by the President or Secretary under
the powers conferred on him as per any provision in this Act or rules made or bye-
laws or regulations framed there under, other than Sections 235 J, 235 K, 235 O,
235Z and 235 AA.

(2) Pending decision on appeal filed under Sub-section (1) the President may on
application, by order, stay the operation of the notice, order or other action appealed
against. Every case in which an order has been made shall be reported by the
President to the panchayat at its next ordinary meeting with the reasons in full for
making such order and the panchayat shall either confirm such order with or
without modification or revoke it, failing which it shall lapse.

(3) An appeal on the notice, order or action taken by the Secretary under Sections
235 J, 235 K,235 O,235 Z and 235 AA shall lie to the Appellate Tribunal for LSGIs
constituted under Section 271 S, which on an application, by an order, stay the
operation of the notice, order or action taken, pending disposal of such appeal.

(4) An appeal on any notice issued, order passed, or action taken by the Panchayat
and a revision on a decision taken by the Panchayat on any appeal shall lie to the
Appellate Tribunal constituted under Section 271 S, provided that such appeal or
revision shall be confined to only on the decision taken on the subjects of,-

(a) Assessment, demand and collection of taxes, fees and cess, and

(b) Issuing permissions and granting licences for trades, factories, markets and
other establishments.

(5) An appeal or revision shall be filed within thirty days from the date of notice or
order or action taken appealed against and such appeal or revision as the case may
shall be disposed of sixty days of receipt of such appeal or revision.

(6) No appeal or revision against the impositioning tax shall be filed unless the tax
demanded in the demand notice has been paid."

FIRST SCHEDULE

The Schedule shall be revised as follows:-

"I...............do swear in the name of God/solemnly affirm that I will bear true faith
and allegiance to the Constitution of India as by law established, that I will uphold
the sovereignty and integrity of India and that if elected I will ....................or ill-
will."
SECOND SCHEDULE

The Schedule shall be revised as follows:-

"I..................do swear in the name of God/solemnly affirm that I will bear true faith
and allegiance to the Constitution of India as by law established, that I will uphold
the sovereignty and integrity of India and that I will .....................or ill-will."

THIRD SCHEDULE

The Schedule shall be revised as follows:-

"A. Mandatory functions of Village Panchayats

Regulation of building construction. Protection of public land from encroachment.

Protection of traditional drinking water sources. Preservation of ponds and other

water bodies.

Maintenance of water-ways and canals under their charge. Collection and disposal
of solid waste and control of liquid waste disposal.

Storm water drainage. Maintenance of environmental hygiene

Management of markets. Vector control

Regulation of slaughtering of animals and sale of meat, fish and other perishable
food items. Regulation of eating establishments.

Prevention of food adulteration. Maintenance of roads and other public assets.

Street lighting and their maintenance. Immunisation.

Carrying into effect national and State level strategies and programmes for disease
prevention and control. Opening and maintenance of burial and burning grounds.
Licensing of dangerous and offensive trades. Registration off births and deaths.

Provide bathing and washing ghats. Provision of ferries.

Provide parking space for vehicles. Provide waiting-sheds for travellers

Provide toilet facilities in public places. Regulate conduct of fairs and festivals.

Licensing of pet doges and destroying stray dogs.

B. General functions

Collection and updating of essential statistics. Organising voluntary labour and

contribution for community works.

Carrying out campaigns for thrift. Awareness building on control of social evils like
drinking, consumption of narcotics, dowry and abuse of women and children.

Ensuring maximum people's participation in all stages of development. Organising

relief during natural calamities.

Inculcating environmental awareness and motivating local action for environmental

up gradation Promoting co-operatives

Enhancing communal harmony. Mobilising local resources in cash and in kind,

including free surrender of land for development purposes.

Spreading legal awareness among the weaker sections. Compaigning against

economic crimes.

Organising neighbourhood groups and self-help groups with focus on the poor.
Awareness building on civic duties.

C. Section-wise distribution of responsibilities

1.AGRICULTURE

Bring into cultivation wastelands and marginal lands.

Bring about an optimum utilization of land. Soil conservation

Production of organic manure. Establishment of nurseries.

Promotion of co-operative and group farming. Organising self-help groups among

cultivators.

Promotion of horticulture and vegetable cultivation. Fodder development

Plant protection. Seed production.

Farm mechanization. Management of Krishi Bhavans

II. ANIMAL HUSBANDRY AND DAIRY

Cattle improvement programmes. Dairy farming.

Poultry farming bee keeping, piggery development, goat rearing, rabbit rearing.
Running or veterinary dispensaries.

Running of ICDP sub-centres. Preventive health programmes for animals.

Prevention of cruelty to animals. Fertility improvement programmes.

Control of diseases of animal origin.

III. MINOR IRRIGATION

All minor irrigation schemes within the area of a village panchayat.

All micro irrigation schemes. Water conservation.

IV. FISHERIES

Development of fisheries in ponds and fresh water and brackish water fish culture,
mari culture. Fish seed production and distribution.

Distribution of fishing implements. Fish marketing assistance.

Provision of basic minimum services for the families of fishermen. Welfare schemes
for fishermen.

V. SOCIAL FORESTRY

Raising of fodder, fuel and fruit trees. Organising campaigns for tree planting and
environmental awareness.

Afforestation of waste lands.

VI. SMALL SCALE INDUSTRIES

Promotion of cottage and village industries.

Promotion of handicrafts. Promotion of traditional and mini industries.

VII. HOUSING

Identification of homeless people and poramboke dwellers and provide house sites
and houses. Implementation of rural housing programmes.

Implementation of shelter up gradation programmes.

VII. WATER SUPPLY

Running of water supply schemes covering one village panchayat.

Setting up of water supply schemes covering one village Panchayat.

IX. ELECTRICITY AND ENERGY

Street lighting.

Promotion of bio-gas.

X. EDUCATION

Management of Government pre-primary schools and Government primary schools.

Literacy programmes.

XI. PUMLIC WORKS

Construction and maintenance of village roads with in the village panchayat.

Construction of buildings for institutions transferred.

XII. PUBLIC HEALTH AND SANITATION

Management of dispensaries and primary health centres and sub-centres (in all
systems of medicine).

Management of child welfare centres and maternity homes. Immunisation and

other preventive measures.

Family welfare. Sanitation.

XIII. SOCIAL WELFARE

Running of anganwadies.

Sanctioning and distribution of pensions to destitutes, widows, handicapped and

agricultural labourers. Sanctioning and distribution of unemployment assistance.
Sanctioning of assistance for marriage of the daughters of widows. Management of
group insurance scheme for the poor.

XIV. POVERTY ALLEVIATION

Identification of the poor.

Self employment and group employment schemes for the poor especially women.
Providing community assets of continuing benefit to the poor.

XV. SCHEDULED CASTES AND SCHEDULED TRIBES DEVELOPMENT

Beneficiary oriented schemes under SCP and TSP. Management of nursery school
for Scheduled Castes and Scheduled Tribes.

Provision of basic amenities in Scheduled Castes and Scheduled Tribes habitats.

Assistant to Scheduled Castes and Scheduled Tribes students.

Discretionary assistance to Scheduled Castes and Scheduled Tribes in need.

XVI. SPORTS AND CULTURAL AFFAIRS

Construction of play grounds.

XVII. PUBLIC DISTRIBUTION SYSTEM

Examination of complaints against the public distribution system and taking of

remedial measures. Organisation of campaigns against weights and measures
offences.

General supervision and guidance of ration shops and maveli stores and other
public distribution centres and if necessary starting new public distribution
centres.
XVIII. NATURAL CALAMITIES RELIEF

Management of relief centres. Organisation of relief works.

(Repair works to assets will be divided and carried out by the Panchayat in charge
of the assets)

XIX. CO-OPERATIVES

Organisation of co-operatives within the jurisdiction of the panchayat.

Payment of Government grants and subsidies within the jurisdiction."

FOURTH SCHEDULE

The Schedule shall be revised as follows:-

A. General functions of Block Panchayats

1. Pool technical expertise both Government and non-government at the block level.

2. Provide technical services to Village Panchayats.

3. Prepare plans after taking into account the plans of Village Panchayat to avoid
duplication and provide the backward and forward linkages.

B. Sector-wise distribution of responsibilities

I. AGRICULTURE

1. Farmers' training for the programmes implemented at the village level.

2. Arrangements of agricultural inputs required for schemes at the village level.

3. Conduct of agricultural exhibitions.

4. Integrated water-shed management in water-sheds falling within Block
Panchayat area.

5. Mobilise agricultural credit.

6. Sericulture.

II. ANIMAL HUSBANDRY AND DAIRY

1. Running of veterinarypoly clinics and Regional Artificial Insemination Centres.

2. Provide speciality services in animal husbandry.

3. Conduct cattle and poultry shows.

III. MINOR IRRIGATION

All lift irrigation schemes and minor irrigation schemes covering more than one
village panchayat.

IV. FIRSHERIES

Development of traditional landing centres.

V. SMALL SCALE INDUSTRIES

Setting up of mini industrial estates. Promotion of industries with investment limit

of one-third of SSI.

Self employment schemes in industrial sector.

VI. HOUSING

1. Popularisation of low cost housing.

2. Promotion of housing co-operative societies.

VII. ELECTRICITY AND ENERGY

Promotion of non-conventional energy sources.

VIII. EDUCATION

Management VIII of Industrial Training Institutes.

IX. PUBLIC WORKS

1. Construction and maintenance of all village roads connecting more than one
village panchayat and Other District Roads within the block panchayat.

2. Construction of buildings for institutions transferred.

X. PUBLIC HEALTH AND SANITATION

Management of community health centres and taluk hospitals within the block
panchayat area in all system of medicine.

XI. SOCIAL WELFARE

Management of ICDS.

XII. POVERTY ALLEVIATION

Planning and implementation of Employment Assurance Schemes in co-ordination

with the village panchayats.

Skill upgradation of the poor for self employment and wage employment for people
below poverty line.

XIII. SCHEDULED CASTES AND SCHEDULED TRIBRS DEVELOPMENT

1. Management of pre-matric hostels.

2. Promoting Scheduled Castes and Scheduled Tribes co-operatives.

XIV. CO-OPERATIVES

Organisation of co-operatives within the jurisdiction of block panchayat

Payment of Government grants and subsidies within the jurisdiction."

FIFTH SCHEDULE

The Schedule shall be revised as follows:-

A. General functions of District Panchayats

Mobilise the technical expertise available from Government and non-government

institutions.

Provide technical service to the Block Panchayats and Village Panchayats and the
Municipalities. Prepare plans after taking into account the plans of the Village
Panchayats and Block Panchayats to avoid duplication and to provide backward
and forward linkage.

B. Sector-wise distribution of responsibilities

I. AGRICULTURE

1. Running of agricultural farms other than regional farms and research centres,
and establishment of new farms.

2. Integrated water-shed management in water-sheds covering more than one Block

Panchayat area.

3. Provision of agricultural inputs.

4. Soil testing.

5. Pest control

6. Marketing of agricultural produce.

7. Cultivation of ornamental plants.

8. Promotion of agricultural co-operatives.

9. Promotion of commercial crops.

10. Biotechnology applications.

11. Field trials and pilot projects to popularize innovation.

12. Locally appropriate research and development.

II. ANIMAL HUSBANDRY AND DAIRY

Management of district level veterinary hospitals and laboratories.

Management of dairy extension service units. Promotion of milk co-operatives.

Management of farms other than regional farms, breeding farms and research
centres. District level training.

Implementation of disease prevention programmes. Field trials and pilot projects

on innovative practices.

Locally relevant research and development.

III. MINOR IRRIGATION

Development of ground water resources.

Construction and maintenance of minor irrigation schemes covering more than one
block panchayat. Command area development.

IV. FISHERIES

Arrangements for marketing of fish. Management of Fish Farm Development

Agency.

Management of district level hatcheries, net making units, fish markets, feed mills,
ice plants and cold storages. Management of fisheries schools.

Introduction of new technologies. Provide inputs required for fishermen.

Promotion of fishermen's co-operatives.

V. SMALLSCALE INDUSTRIES

Management of District Industries Centre.

Promotion of small scale industries. Setting up of industrial estates.

Arranging exhibitions for sale of products. Entrepreneur development

programmes.

Marketing of products. Training.

Input service and common facility centres. Industrial development credit planning.

VI. HOUSING

Housing complex and infrastructure development.

Mobilising housing finance.

VII. WATER SUPPLY

1. Running of water supply schemes covering more than one village panchayat.

2. Taking up of water supply schemes covering more than one village panchayat.

VIII. ELECTRICITY AND ENERGY

Taking up of micro-hydal projects. Determining priority areas extension of

electricity.

IX. EDUCATION

Management of Government high schools (including LP section and UP section

attached high schools). Management of Government higher secondary schools.

Management of Government technical schools. Management of vocational training

centres and polytechnics.

Management of vocational higher secondary schools. Management of District

Institute for education and Training.

Co-ordinate centrally and State sponsored programmes related to education.

X. PUBLIC WORKS

Construction and maintenance of all district roads other than State high ways,
National high ways and Major District Roads.

Construction of buildings for institutions transferred.

XI. PUBLIC HEALTH AND SANITATION

Management of district hospital in all systems of medicine.

Setting up of centres for care of special categories of disabled and mentally ill
people. Co-ordination of centrally and State sponsored programme at the district
level.

XII. SOCIAL WELFARE

Payment of grants to orphanages. Starting of welfare institutions for the disabled,

destitutes etc.

XIII. POVERTY ALLEVIATION

Providing infrastructure for self-employment programmes.

XIV. SCHEDULED CASTES AND SCHEDULED TRIBES DEVELOPMENT

Management of post matric hostels. Management of vocational training centres for

Scheduled Castes and Scheduled Tribes.

XV. SPORTS AND CULTURAL AFFAIRS

Construction of stadiums.

XVI. CO-OPERATIVES

Organisation of co-operatives within the jurisdiction of District Panchayats.

Payment of Government grants and subsidies to co-operatives within the
jurisdiction."

EIGHTH SCHEDULE

This schedule shall be omitted.