The document discusses the institutionalization of local government in India through the 73rd and 74th constitutional amendments and emphasizes the need for mandatory devolution of power following Gandhian principles. It highlights the historical context of local governance, issues with current implementations, and proposes constitutional amendments to enhance grassroots participation and accountability. The arguments also address concerns over caste hierarchies and the necessity of empowering local bodies for effective governance.

1. EMPOWERING LOCAL
GOVERNMENT: REALIZING
GANDHIAN PRINCIPLES
RAGHAV BHUTADA
2021-5LLB-121

2. INTRODUCTION
• 73rd and 74th Amendments to the Constitution – institutionalization of Panchayats
and Municipalities
• Key provisions: Articles 243G and 243W and Articles 243H and 243X
• Caveat – these provisions are only enabling in nature. [Shanti Patel v. State of
Maharashtra, 2006 (2) SCC 505.]
• Practical Considerations – insufficient devolution of power
• Main argument of the paper – mandatory devolution of power as per the
Gandhian Constitution of Free India of 1946, drafted by Shriman Narayan
Agarwal.

3. WHY LOCAL GOVERNMENT?
• Decentralization is justified for two main reasons: efficient delivery of public
goods and increased public participation in democracy.
• Local governments can better tailor public goods and services to local
preferences.
• Decentralization fosters responsive government

4. HISTORY OF LOCAL GOVERNMENT IN INDIA
Pre-Constitutional
• The European model of state formation – highly centralized nation-states.
• The history of the Indian subcontinent reflects a decentralized approach, with
multiple power centers.
• E.g., Geographical political units like Bihar and Bengal, once divisions of the
Mughal Empire, have persisted into the 21st century.

5. During Constituent Assembly
• The Constituent Assembly, leaned towards a strong central government for two main
reasons:
1. economic security concerns, and 2. balanced economic development.
• Provincial autonomy was seen as a barrier to equitable wealth distribution and
development
• Dissenters – RK Sidhwa and Narayan Singh
• Ram Manohar Lohia proposed the concept of the "four-pillar state".
• Compromise worked out – Article 40 – DPSP and Entry 5, List II of Schedule VII

6. Post-Constitutional
• Ashok Mehta Committee Report (1978).
• Highlighted concerns like the authoritarian dominance of bureaucracy and the
concentration of economic power at the national level
• Missing element – lack of responsiveness in the administrative framework
• This culminated in the passing of the 73rd and 74th Amendment Acts in 1992.

7. PROBLEMS WITH PRESENT-DAY LOCAL
GOVERNMENT IN INDIA
Insufficient devolution of power
• Two main factors: 1. The constraints of the 1992 Amendments, and 2. The failure
of states to fully implement the provisions
• Complete discretion with State legislatures regarding devolution of power.
• Three Fs: Functions, Functionaries, and Finances
• Non-implementation of legislations like the Panchayats (Extension to Scheduled
Areas) Act, 1996, and Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006

8. Concerns related to revenue augmentation and taxation powers
• Greater decentralization of expenditure assignments compared to revenue
assignments
• Heavy reliance on intergovernmental fiscal transfers and borrowing to meet
expenditure obligations
• Diminishing responsiveness of local bodies.
• Effective control rests with the State governments
• Courts have upheld that the state can impose taxes on municipal subjects without
transferring powers to municipalities.

9. Encroachment into functions of local government and creation of
parallel bodies
• Diminishing authority of elected executives. For example, Bengaluru
• Creation of parallel bodies by state governments, such as Water Boards and
Development Agencies.
• This practice undermines the role of elected local bodies and limits their authority
• Courts have upheld the restriction of powers of elected local bodies by creating
alternative bodies, considering it not violative of the Constitution. [Municipal Labour

10. LOCAL GOVERNMENT BASED ON GANDHIAN
PRINCIPLES
Gandhian ideas about local government
• Gandhi's vision of Gram Swaraj
• Maximum people's participation and grassroots empowerment.
• Villages with the authority to elect and replace representatives.
• Advantages of Gram Swaraj according to Gandhi.

11. Proposed amendment to the Constitution
• The Gandhian Constitution for Free India of 1946, drafted by Shriman Narayan
Agarwal, embodies Gandhian principles in constitutional provisions for decentralized
governance.
• Relevant provisions – Chapter VI and VII – Outlines the village as the basic unit of
governance
• Key features include a 3-year term for Panchayats, limitations on re-election,
provisions for recall by majority vote, etc.
• Municipal Councils have additional responsibilities
• Proposal to align the provisions of the Indian Constitution with the principles outlined
in the Gandhian Constitution for Free India of 1946.

12. Dr Ambedkar’s challenge to institutionalization of local government
• Dr. BR Ambedkar opposed Gandhi's concept of Gram Swaraj, raising concerns of
perpetuation of caste hierarchies
• The 73rd and 74th Amendments to the Constitution addressed these concerns
partially
• Scholars argue that it is not due to the introduction of the institution of local
government, but due to structural limitations of local bodies that the caste
hierarchies persist.
• They find that marginalized community leaders have demonstrated effectiveness
when given autonomy.
• The solution is effective empowerment of local government.

13. CONCLUSION