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Maintenance of community assets.] ______ 663 STATEMENT OF OBJECTS AND REASONS FOR ACT NO.10 OF 1973 The ex-French Decree, dated 12th March, 1880 relating to municipalities which continues to be in force, provides for a unitary structure of municipal administration for the urban as well as for the rural areas, with the commune forming the basis unit of local self-Government. Ever since the de jure transfer took place, the question of introduction of panchayat raj in the rural areas of the territory with a view to securing compliance with the constitutional directive to organise village panchayats and endow them with such powers and authority as ma be necessary to enable them to function as units of self-Government has been under the consideration of the Government. There were also number of administrative difficulties at the gross root- level in the execution of various developmental schemes requiring people’s participation, as the existing municipal set-up in rural areas is not attuned to the tasks of mobilising local resources for progressive development of services, works and other facilities. In view of these considerations, it has become expedient to enact a legislation for the implementation of panchayat raj in this territory on the same lines as are obtaining in the rest of the country with suitable modifications as well as inclusion of certain good features in the existing commune set-up to suit local conditions. The present Bill seeks to enact such a law. The Notes on Clauses explain the provisions contained in the Bill. NOTES ON CLAUSES Clauses 1 and 2. – These clauses contain provisions relating to the commencement of contemplated Bill and definitions. The Bill when enacted will come into force in such area as the Government may notify. Provision has also been made to bring into force various provisions of this Act on different dates as may be found expedient to Government. Clauses 3 to 9. – These clauses deal with the formation of panchayat village and commune panchayat. Provision has been made, empowering the Director to classify and declare by notification every local area comprising revenue village or village or any portion thereof with a poupulation of not less than 300 as panchayat village, after inviting objections from the resident or tax payer of the local area to such proposal and considering them. Provision has also been made, empowering the Government to constitute a commune panchayat for a local area comprising such number of panchayat villages as it may think fit. The Director has also been empowered to notify the total number of members of a village panchayat. Each village panchayat will have a President and Vice-President and each commune panchayat council will have a Chairman, Vice-Chairman and a Commissioner for transacting the business of the commune panchayat council. The commune panchayat council shall consist of the Presidents of all village panchayats in the commune panchayat. 664 Clauses 10 to 39. – These clauses deal with the election of members and other related matters. Seats are reserved for the members of Scheduled Castes with due regard to their population in the panchayat village. Provision has also been made to co-opt one woman, if there is no elected woman in the village panchayat. The term of office of the members of every village panchayat is 5 years. The provisions relating to election of members follow closely the corresponding provisions in the Puducherry Municipal Council (Elections) Act, 1966 (Act 1 of 1966) and also reflect many changes made in the Representation of People Act, 1951 (43 of 1951) till date. Provision has also been made to prepare and publish electoral roll for any village panchayat. Clauses 40 to 47. – Provision has been made that the President of a village panchayat is elected by the persons whose names appear in the electoral roll for the panchayat village. The term of office of the President is 5 years. Vice-President shall be elected by the village panchayat from among its members. Clauses 48 to 53. – The Chairman and the Vice-Chairman of a commune panchayat council shall be elected from among its members. Provision has been made that no President, Vice-President, Chairman, Vice-Chairman shall receive, or be paid from the panchayat or commune panchayat fund, any salary or other remuneration for the services rendered by him. Provision has also been made for the appointment of whole time executive officer for any village panchayat or for any group of contiguous village panchayats, as may be notified by the Director. Clauses 54 to 67. – These clauses deal with the power and duties of the executive authority and appointment of Commissioner for commune panchayats and their powers. Provision has also been made to regulate the conduct of business of the meeting of village panchayat and commune panchayat council. In addition to Appointments Committee and General Purposes Committee statutorily created, the commune panchayat council is empowered to appoint such other committees as may be necessary for the efficient performance of its duties and functions under the Bill when enacted. Provision has been made that every village panchayat shall submit to the commune panchayat council concerned a report on its administration every year who, in turn submit a consolidated annual report on its administration and of all village panchayat under its jurisdiction to the Director. Clauses 68 to 75. – These clauses contain provisions relating to establishment of village panchayat and commune panchayat council. The village panchayat and commune panchayat council are competent to create such posts of officers and servants, with the sanction of the Government, for efficient execution of its duties. The Government have, however, retained the power to make rules to regulate the qualifications, pay, allowance, discipline and conduct and other conditions of service, the method of recruitment and the authority competent to appoint such officers and servants of village panchayat and commune panchayat council. 665 Provision has also been made for the provincialisation of any class of officers or servants of commune panchayat council or village panchayat into a common service for the Union territory. The Director is empowered to transfer any officer or other employee of a village panchayat to any commune panchayat council or any other village panchayat. Clauses 76 to 99. – These clauses deal with the functions, powers and property of village panchayats and commune panchayat councils. The duties and powers of the village panchayats and commune panchayat councils both compulsory and optional have been secified in these clauses. Provision has been made to entrust the implementation of the community development programme to the commune panchayat council. Under clause 96 the protection and maintenance of any irrigation works etc., may be transferred to any village panchayat or commune panchayat council. Provision has also been made that the porambokes such as grazing grounds, threshing floors, etc., vested in the commune under the laws for the time being in force shall vest in the village panchayat. Clauses 100 to 104. – These clauses deal with the prevention of diseases. Clauses 105 to 123. – These clauses contain detailed provisions empowering the Commissioner, executive authority, village panchayat and commune panchayat council, as the case may be, to take precautionary measures in case of dangerous tanks, wells, holes, etc., and to control public markets, private markets, cartstands, slaughter-hoses, trades, industries and factories. Provision has also been made for the numbering of building in all village panchayats. Clauses 124 to 194. – These clauses deal with the taxation and finance. The Government shall levy in every commune panchayat, a local cess at the rate of fifty paise on every rupee of land revenue for every year. The commune panchayat council may levy surcharge on local cess not exceeding one hundred per cent. Every village panchayat shall levy a house tax, a tax on profession, trades or callings and such other tax as the Government may by notification direct. A duty on certain transfer of immovable property shall also be levied by the village panchayat. Every village panchayat may also levy a duty on toddy trees, a tax on agricultural land for a specific purpose, a tax on fairs and festivals, a tax on the village produce sold in the village by weight, measurement, number, etc. The commune panchayat council shall also impose any of the taxes which are leviable by a village panchayat at rates not exceeding 25 per cent of the prescribed maxima rates. In addition, every commune panchayat council shall impose entertainments tax and tax on cinematograph exhibition. 666 Provision has been made to appoint by Government valuation officers for assessment of annual value of the buildings subject to the levy of house tax. Provision has also been made enabling the Commissioner to call upon heads of office and other employers to deduct the profession tax from the salary or wages payable to persons employed by them and credit the same to the village panchayat or commune panchayat council, as the case may be. Provision has also been made for the recovery of taxes, fees, cesses and other dues on the analogy of the recovery procedure contained in the Puducherry Revenue Recovery Act, 1970 (Act No.14 of 1970). In order to secure prompt payment of taxes, it is proposed to provide for the levy of interest, if the tax is not paid within 15 days from the date on which the tax is due subject, however, to the condition that the maximum rate of interest does not exceed 10 per cent per annum. Provision has also been made enabling any person to appeal against any claim for taxes or other dues duly made before such authority as may be prescribed. Under clause 180, a panchayat equalisation fund is proposed to be established by the Government for making special grants to backward panchayat villages or commune panchayat councils so as to minimise the social and economic inequalities between them. Provision has also been made for the payment of local cess surcharge matching grant, and local roads grant to commune panchayat council by the Government. An equal amount on every rupee of house tax collected by a village panchayat or commune panchayat council shall also be paid by the Government as house tax matching grant. Clauses 186 to 187 provide for the constitution of a village panchayat fund and a commune panchayat fund. Detailed provisions have been made in respect of objects of expenditure, budget and appointment of auditors of accounts and their powers. Clauses 195 to 212 – These clauses deal with the controlling authorities and their powers. Provision has been made for the appointment of a Director and such other officers as may be required for the purpose of inspecting or superintending the operations of all or any of the village panchayats and the commune panchayat councils so that the Government would be in a position to have a close watch over the activities of the village panchayat and commune panchayat council and to intervene effectively when the panchayat affairs are mismanaged. Sufficient powers have been given to the Director so that he can discharge his functions properly. 667 Under clause 199, the Director may suspend or cancel any resolution passed, orders issued or licence or permission granted etc, under this Bill when enacted if in his opinion the doing of such act is likely to cause danger to human life, health or safety or is likely to lead to a riot or an affray. Provisions have been made to empower the Director to remove the President or Vice-President of a village panchayat and also to empower the Government to remove the Chairman or Vice-Chairman of a commune panchayat council who wilfully omits or refuses to carry out or disobeys the provisions of the law or abuses the powers vested in him. Provision has also been made to make motion of no- confidence in Vice-President of village panchayat and Chairman or Vice-Chairman of commune panchayat council. Government have taken powers to dissolve any village panchayat or commune panchayat council and to supersede any village panchayat for a maximum period of two years in certain extraordinary circumstances. Clauses 213 to 231 – These clauses deal with the licences and permissions etc. Clauses 232 to 236 – These clauses contain provision for the constitution of a territorial council for panchayats for the purpose of consultation and co-ordination between various panchayats. Clauses 237 to 245 – These clauses empower the village panchayat to establish cattle pounds in supersession of the provisions of the Cattle Trespass Act, 1871 (Central Act 1 of 1871). Clauses 246 to 255 – These clauses deal with the eviction of persons in unauthorised occupation of panchayat premises. The proposed provisions are modelled on the corresponding provisions in the Public Premises (Eviction of Unauthorised Occupants) Act, 1958 (No.32 of 1958). Clauses 256 to 317 – These clauses deal with the constitution of conciliation board and nyaya panchayats whose powers are limited to petty civil suits relating to movable properties and to minor offences leading to a sentence of fine as a corrective measure. Suits cognizable by nyaya panchayats under civil jurisdiction and criminal jurisdiction have also been indicated in detail. Clauses 318 to 327 – These clauses contain provisions relating to subsidiary legislation namely, rules, bye-laws, regulations and penalties. The delegation of legislative power is of normal character only. Clauses 328 to 331. – Provision has been made for the extension of any of the provisions of the Puducherry Municipalities Bill, 1973 when enacted or of any rules made thereunder, to any panchayat village or commune panchayat. Provision has also been made in the legislation conferring power on the Government to pass 668 orders for removing any difficulty which may arise in giving effect to the provisions of the Bill when enacted. Provision is being made in the legislation conferring power on the Government to make suitable provisions by order when a panchayat village or commune panchayat is created or altered. Clauses 332 to 336 – These clauses deal with repeals and transitory provisions. Provisions have been made for the smooth change over from the present system of local-Government. Schedule I .. This schedule contains names of the commune panchayat councils in respect of existing municipal councils (conseil municipal). Schedule II .. This schedule prescribes the minima and maxima rates at which the house tax is leviable. Schedule III .. This schedule prescribes the minima and maxima rates at which the profession tax is leviabe. Schedule IV .. This schedule lists out the various types of instruments subject to the levy of duty on transfer of immovable property. Schedule V .. This schedule contains the maxima rates of surcharge on duty on toddy trees. Schedule VI .. Maxima and minima rates of entertainments tax are prescribed in this schedule. Schedule VII .. Maxima and minima rates of show tax are prescribed in this schedule. Schedule VIII .. This schedule contains form of distraint warrant. Schedule IX .. This schedule contains table of fees payable on distraint. Schedule X .. This schedule contains form of inventory and notice. Schedule XI .. This schedule contains table of compoundable offences. Schedule XII .. This schedule lays down the maximum amount of fine which may be imposed in respect of offences under the proposed legislation. ___________ 669 STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 5 OF 1977 The extended term of office of the Councillors/Members of all the Municipal Councils and Commune Panchayat councils is due to expire on 30.9.1977.