THE PROVISIONS OF THE PANCHAYATS (EXTENSION TO THE

SCHEDULED AREAS) ACT, 1996No.40 OF 1996

(24
th
December, 1996)
An Act to provide for the extension of the provisions of Part IX of the Constitution relating
to the Panchayats to the Scheduled Areas.
Be it enacted by Parliament in the Fortyseventh !ear of the "epublic of India as follo#s$
Short title
%. &his Act may be called the Provisions of the Panchayats '(xtension to the Scheduled
Areas) Act* %++,
-efinition
.. In this Act* unless the context other#ise re/uires* 0Scheduled Areas1 means the
Scheduled
Areas as referred to in Clause '%) of Article .22 of the Constitution.
(xtension of part IX of &he Constitution
3. &he provision of Part IX of the Constitution relating to Panchayats are hereby extended
to the Scheduled Areas sub4ect to such exceptions and modifications as are provided in
section 2.
(xceptions and modifications to part IX of &he Constitution
2. 5ot#ithstanding anything contained under Part IX of the Constitution* the
6egislature of a State shall not ma7e any la# under that Part #hich is inconsistent #ith
any of the follo#ing features* namely$
'a) a State legislation on the Panchayats that may be made shall be in
consonance #ith the customary la#* social and religious practices
and traditional management practices of community resources8
'b) a village shall ordinarily consist of a habitation or a group of
habitations or a hamlet or a group of hamlets comprising a
community and managing its affairs in accordance #ith traditions
and customs8
'c) every village shall have a 9ram Sabha consisting of persons #hose
names are included in the electoral rolls for the Panchayat at the
village level8
'd) every 9ram Sabha shall be competent to safeguard and preserve the
traditions and customs of the people* their cultural identity*
community resources and the customary mode of dispute resolution8
'e) every 9ram Sabha shall
i. approve of the plans* programmes and pro4ects for social
and economic development before such plans* programmes and
pro4ects are ta7en up for implementation by the Panchayat at the
village level8
ii. be responsible for the identification or selection of
persons as beneficiaries under the poverty alleviation and other
programmes8
'f) every Panchayat at the village level shall be re/uired to obtain from
the 9ram Sabha a certification of utilisation of funds by that
Panchayat for the plans* programmes and pro4ects referred to in
clause'e)8
'g) the reservation of seats in the Scheduled Areas at every Panchayat
shall be in proportion to the population of the communities in that
Panchayat for #hom reservation is sought to be given under Part IX
of the Constitution8
Provided that the reservation for the Scheduled &ribes shall not be
less than onehalf of the total number of seats8
Provided further that all seats of Chairpersons of Panchayats at all
levels shall be reserved for the Scheduled &ribes8
'h) the State 9overnment may nominate persons belonging to such
Scheduled &ribes as have no representation in the Panchayat at the
intermediate level or the Panchayat at the district level$
Provided that such nomination shall not exceed onetenth of the
total members to be elected in that Panchayat8
'i) the 9ram Sabha or the Panchayats at the appropriate level shall be
consulted before ma7ing the ac/uisition of land in the Scheduled
Areas for development pro4ects and before resetling or
rehabilitating persons affected by such pro4ects in the Scheduled
Areas8 the actual planning and implementation of the pro4ects in the
Scheduled Areas shall be coordinated at the State level8
'4) planning and management of minor #ater bodies in the Scheduled
Areas shall be entrusted to Panchayats at the appropriate level8
'7) the recommendations of the 9ram Sabha or the Panchayats at the
appropriate level shall be made mandatory prior to grant of
prospecting licence or mining lease for minor minerals in the
Scheduled Areas8
'l) the prior recommendation of the 9ram Sabha or the Panchayats at
the appropriate level shall be made mandatory for grant of
concession for the exploitation of minor minerals by auction8
'm) #hile endo#ing Panchayats in the Scheduled Areas #ith such po#ers
and authority as may be necessary to enable them to function as
institutions of selfgovernment* a State 6egislature shall ensure that
the Panchayats at the appropriate level and the 9ram Sabha are
endo#ed specifically #ith
'i) the po#er to enforce prohibition or to regulate or restrict
the sale and consumption of any intoxicant8
'ii) the o#nership of minor forest produce8
'iii) the po#er to prevent alienation of land in the Scheduled
Areas and to ta7e appropriate action to restore any unla#fully
alienated land of a Scheduled &ribe8
'iv) the po#er to manage village mar7ets by #hatever name
called8
'v) the po#er to exercise control over money lending to the
Scheduled &ribes8
'vi) thepo#er to exercise control over institutions and
functionaries in all social sectors8
'vii) the po#er to control over local plans and resources for
such plans including tribal subplans8
(n) the State Legislations that may endow Panchayats with powers and
athority as may be necessary to enable them to !nction as instittions
o! sel!"go#ernment shall contain sa!egards to ensre that Panchayats at
the higher le#el do not assme the powers and athority o! any
Panchayat at the lower le#el or o! the $ram Sabha%
(o) the State Legislatre shall endea#or to !ollow the pattern o! the Si&th
Schedle to the 'onstittion while designing the administrati#e
arrangements in the Panchayats at district le#els in the Schedled (reas)

Continuance of existing la#s on panchayats$
:. 5ot#ithstanding anything in Part IX of the Constitution #ith exceptions and
modifications made by this Act* any provision of any la# relating to Panchayats in force in
the Scheduled Areas* immediately before the date on #hich this Act receives the assent of
the President* #hich is inconsistent #ith the provisions of Part IX #ith such exceptions
and modifications shall continue to be in force until amended or repealed by a competgent
6egislature or other competent authority or until the expiration of one year from the date
on #hich this Act receives the assent of the President8
Provided that all the Panchayats existing immediately before such date shall
continue till the expiration of their duration unless sooner dissolved by a resolution passed
to that effect by the 6egislative Assembly of that State or* in the case of a State having
6egislative Council* by each ;ouse of the 6egislature of that State.
<.6. =>;A5P?"IA*
Secy. &o the 9ovt. of India