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2003 DIGILAW 533 (PAT)

Bihar Rajya Panchayat Parishad v. Union Of India

2003-05-05

R.N.PRASAD, RAVI S.DHAVAN

body2003
Judgment 1. Nothing worth the name has been done as a dedicated exercise to work self government institutions referred to in the Constitution of India consequent upon 73rd and 74th amendments, the Chapters on Panchayats and Municipalities. Pushing figures without dates and leaving blanks against subjects for planning and fund allocation and not telling details whether powers and funds have been transferred to self government institutions, is running away from constitutional obligations. This is an anti-people stance at the behest of the State administration. 2. The manner in which the self government institutions are being treated by the State of Bihar is subversive to democracy, self government institutions and utter disrespect to the Constitution of India. 3. The Court cannot help but reiterate the guidelines which were provided by the Eleventh Finance Commission (2000-1 to 2004-2005). Even these guidelines desire transfer of powers to self government institutions, allocation of funds, disbursement and utilisation and intimating the Government of India so that recurring process of whatever has to be received from the Government of India may become a habit. This will not happen until the State administration will make a plan and fall in line with the Finance Commissions discipline. The conditions for release of funds to the local body grants are very important. These are reproduced in this order : "4.0 Conditionalities for Release of Local Body Grants to States. 4.1 Local Body grants shall be released to States that have completed the due election process in respect of the local bodies. Therefore, States should certify whether elections have been held, before the expiry of the terms of local bodies, to all the local bodies at all the levels/tiers. In case of delay in holding local body elections in time, funds will be deducted proportionately. 4.2 The intention of the 73rd and 74th amendments to the Constitution was to empower PRls and ULBs to discharge functions assigned to them under the Constitution. States are expected to devolve responsibilities, powers and resources upon the PRIs and ULBs, as envisaged in Schedule XI and XII respectively. Similarly, for Schedule V areas other than the North East, additional responsibilities are to be devolved upon the local bodies. Where such powers, responsibilities and resources have not been devolved upon local bodies, States should ensure that the same is done no later than 31st March, 2002. Similarly, for Schedule V areas other than the North East, additional responsibilities are to be devolved upon the local bodies. Where such powers, responsibilities and resources have not been devolved upon local bodies, States should ensure that the same is done no later than 31st March, 2002. The Central Government shall withold 25% of the grants meant for PRIs and ULBs, from such States that do not devolve responsibilities, powers and resoures, as recommended by the respective State Finance Commissions, upon the local bodies. 4.3. Details of release of grants to local bodies by the State Government in respect of grants received from the Central Government on the recommendation of the Tenth Finance Commission (TFC) and the utilization thereof shall be communicated to this Ministry. 4.4 A certificate stating that the grants have been released only to elected local bodies where elections are mandatory under the Constitution should be furnished to this Ministry. Also, a certificate stating that the local bodies have utilized the grants released to them for the purposes of the Schemes should be furnished to this Ministry. This should contain the consolidated details of actual utilisation of grants along with matching contribution by the local bodies within a period of eighteen months from the date of receipt of grants from the Central Government. The first such utilisation certificate from State should reach this Ministry latest by October, 2002. 4.5 The State Govt, shall treat expenditure against these grants as part of Plan Expenditure in their budgets. Funds to the State Government under LBGs shall be treated as earmarked funds. 4.6 That LPGs shall not be diverted for any other purpose. Also, the grant shall not be withheld by the State Govt. 4.7 The LBGs shall be transferred to the concerned Local Bodies within a month or earlier or if the local body is not able to raise matching funds, within three months or earlier of its being released to the State Government. The order of the State Government regarding onward release of grants to LBs should be endorsed to the FCD, Department of Expenditure, within a week of its issue. The onward release of grants to the LBs shall be an additionality over and above the amounts flowing from the State Government to the Local Bodies. The order of the State Government regarding onward release of grants to LBs should be endorsed to the FCD, Department of Expenditure, within a week of its issue. The onward release of grants to the LBs shall be an additionality over and above the amounts flowing from the State Government to the Local Bodies. 4.8 The State Govt, should ensure that the District Planning Committees and Metropolitan Planning Committees have been constituted and they function as per the intention of the Constitution. The State Government should keep the Ministry of Finance informed about the status of these Committees. 4.9 No amount from the Local Body Grants should be given to the intermediate or district level panchayats where these do not have any direct responsibility for maintenance of civil services. 4.10 The local bodies shall raise matching resources amounting to not less than 25 per cent of the grant received from the Central Government in case of PRIs and 50 per cent in case of ULBs. In case any local body is unable to provide the matching contribution, the State Govt. should provide the balance within three months or earlier to the concerned local body. Grants flowing to local bodies on the recommendation of SFCs or sharing in taxes from the States will not be treated as matching contribution. 4.11 The grant shall be given only in respect of elected local bodies wherever such elections are mandatory under the Constitution. In case where elected local bodies are not in place, the Central Government shall hold the share of such bodies in trust on a non-lapsable basis during 2000-05. 4.12 These grants would be united except that they should not be used for payment for salaries and wages." 4. The information being presented to the Court is half baked and withheld. Transfer of powers to self government institution does not need formal hand over. It is inherent under the Constitution. If this information is classified, secret and confidential, then, the State government may claim non disclosure on the ground of privilege of the State. But, democracy and self government and the plans which facilitate the working of these institutions are public plans and public information. Non disclosure of information on public plans, is secrecy. It is inherent under the Constitution. If this information is classified, secret and confidential, then, the State government may claim non disclosure on the ground of privilege of the State. But, democracy and self government and the plans which facilitate the working of these institutions are public plans and public information. Non disclosure of information on public plans, is secrecy. Someone within the portals of power in Patna, politician or bureaucrat wants to control public funds meant for self government institutions, and deny the power to these institutions to work and determine their planning. The District Planning Committee (Article 243 ZD) was structured by the Constitution for this purpose. Hanging on to the funds and powers meant to descend to and for the benefit of self government institutions is aggrandisement by misplaced powers. It is coming into the mischief of the phenomenon "Power tends to corrupt and absolute power corrupts absolutely." 5. This matter is adjourned to come up in July, 2003 and by that time the Court expects that the State government will fall in line with the Eleventh Finance Commission. 6. Put up in July, 2003 in the supplementary list under the same heading.