The Sikkim Panchayat Act, 1993

(1) This Act may be called the Sikkim Panchayat Act, 1993. (2) It extends to the whole of Sikkim except the areas which may hereafter be declared as or included in the Nagar Panchayat. (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different areas and for different provisions of the Act.

(1) In this Act, unless the context otherwise requires,- (a) "Adhakshya" means an Adhakshya of a Zilla Panchayat elected under sub-section (1) of section 54; (b) "Auditor" means an auditor appointed under sub-section (2) of section 48; (c) "District Collector" means the Collector of the District; (d) "District Development Officer-cum-Panchayat Officer" means the District Development Officer-cum-Panchayat Officer of the District appointed by the State Government; (e) "Governor" means the Governor of Sikkim; (f) "Gram" means any village or part of a village or group of adjoining villages or parts thereof declared by the State Government to be a Gram under sub-section (1) of section 3; (g) "Gram Panchayat" means a Gram Panchayat constituted under section 12; (h) "Nagar Panchayat" means a Nagar Panchayat and includes a municipality, municipal committee or corporation or such other body by whatever name called constituted under the law relating to such Nagar Panchayats for the time being in force; (i) 'Notification' means the notification published in the Official Gazette; (j) "Prescribed Authority" means an authority appointed by the State Government, by notification, for all or any of the purposes of this Act; (k) "Sabhapati" means a Sabhapati of a Gram Panchayat elected under sub-section (1) of section 17; (l) "Secretary" means the Secretary to the Government of Sikkim in the Rural Development Department and includes an Additional Secretary, Joint Secretary, Deputy Secretary and Under Secretary of that Department; (m) "State Government" means the Government of the State of Sikkim; (n) "Up-Adhakshya" means an Up-Adhakshya of a Zilla Panchayat elected under sub-section (1) of section 54; (o) "Up-Sabhapati" means an Up-Sabhapati of a Gram Panchayat elected under sub-section (1) of section 17; (p) "Zilla Panchayat" means a Zilla Panchayat of a district constituted under sub-section (1) of section 49; (2) Words defined in the Constitution (Seventy-Third Amendment) Act, 1992 but not defined in this Act shall have the same meanings as respectively assigned to them in the Constitution (Seventy-Third Amendment) Act, 1992.

(1) Subject to the consideration of local conditions, the State Government may, by notification, declare for the purpose of this Act any village or part of a village or a group of adjoining villages or parts thereof to be a Gram. (2) As soon as may be after the constitution of a Gram under sub-section (1), the State Government may, by notification, divide each Gram into wards and each ward shall, as far as possible, comprise of a Revenue Block. (3) The State Government may, by notification, specify the number of members to be elected from each ward having regard to the number of voters in such ward and such other considerations as the State Government may consider appropriate. (4) The notification under sub-section (1) shall specify the name of the Gram by which the Panchayat shall be known and shall specify the local limits of such Panchayat. (5) The State Government may, after making such enquiry as it may think fit and/or after obtaining the views of the Gram Sabha, by notification- (a) exclude from any Gram any area comprised therein; or (b) include in any Gram any area adjoining to such Gram; or (c) divide the area of a Gram so as to constitute two or more Grams; or (d) unite the areas of two or more Grams so as to constitute a new Gram.

(1) When an area is excluded from a Gram under clause (a) of sub-section (5) of section 3, such area shall, as from the date of the notification referred to in that sub-section, cease to be subject to the jurisdiction of the Gram Panchayat of that Gram and, unless the State Government otherwise directs, all rules, orders, directions and notifications in force in that Gram shall also cease to apply to the area so excluded. (2) When an area is included in a Gram under clause (b) of sub-section (5) of section 3, the Gram Panchayat for that Gram shall as from the date of the notification referred to in that sub-section have jurisdiction over such area and, unless the State Government otherwise directs, all rules, orders, directions and notifications in force in that Gram shall apply to the area so included. (3) When the area of any Gram is divided under clause (c) of sub-section (5) of section 3 so as to constitute two or more Grams, the Gram Panchayat of that Gram shall, as from the date of the notification referred to in that sub-section, cease to exist and there shall be reconstitution of the Gram Panchayats for the newly constituted Grams in accordance with the provisions of this Act. (4) When the areas of two or more Grams are united under clause (d) of sub-section (5) of section 3 so as to constitute a new Gram, the Gram Panchayats of the said Grams shall, as from the date of the notification referred to in that sub-section, cease to exist and a separate Gram Panchayat shall be constituted for the new Grams in accordance with the provisions of this Act. (5) When under sub-section (5) of section 3 any area is excluded from, or included in, a Gram or a Gram is divided so as to constitute two or more Grams, or two or more Grams are united to constitute a new Gram, the properties, funds and liabilities of the Gram Panchayat or Panchayats affected by such reconstitution shall vest in such Gram Panchayat or Panchayats in accordance with such allocation as may be determined by order in writing by the prescribed authority, and such determination shall be final. (6) An order made under sub-section (5) may contain such supplemental, incidental and consequential provisions as may be necessary to give effect to such reconstitution.

(1) If, at any time, the whole of the area or a Gram is included within the Nagar Panchayat under the provisions of the law made in this behalf, the Gram Panchayat concerned shall cease to exist, and the properties, funds and other assets vested in such Gram Panchayat and all the rights and liabilities of such Gram Panchayat shall vest in, and devolve on, the Nagar Panchayat. (2) If, at any time, a part of the area of a Gram is included in a Nagar Panchayat under the provisions of the law made in this behalf, the area of the Gram shall be deemed to have been reduced to the extent of the part so included within the Nagar Panchayat and the properties, funds, rights and liabilities of the Gram Panchayat concerned in respect of the part so included shall vest in, and devolve on the Nagar Panchayat in such manner as may be determined by the prescribed authority and such determination shall be final and unless the State Government otherwise directs, all rules, orders, directions and notifications in force in the areas comprised in the Nagar Panchayat shall apply to the part of the area of the Gram so included.

Subject to the general orders of the State Government the Gram Sabha shall meet at least twice in a year and where the Gram Panchayat fails to convene Gram Sabha, the prescribed authority shall with the approval of the State Government and after giving notice to the Gram Panchayat concerned, convene it.

(1) Quorum for the meeting of a Gram Sabha shall be one-tenth of the total members of the Gram Sabha. (2) Any resolution relating to the matters entrusted to the Gram Sabha shall be passed by a majority of votes of the members present and voting in the meeting of the Gram Sabha.

The procedure for convening and conducting the meetings of the Gram Sabha shall be such as may be prescribed.

Every meeting of the Gram Sabha shall be presided over by the Sabhapati of the concerned Gram Panchayat and in his absence by the Up-Sabhapati of that Gram Panchayat.

(1) The Gram Sabha shall consider, and may make recommendations and suggestions to the Gram Panchayat on the following matters, namely,- (a) the annual statement of accounts of the Gram Panchayat, the report of administrations of the preceding financial year and the last audit note and replies, if any, made thereto; (b) the report in respect of development programmes proposed to be undertaken during the current year; (c) the promotion of unity and harmony among all sections of society in the village; (d) programme of adult education within the village; (e) such other matters as the State Government may, by general or special order, specify. (2) The Gram Panchayat shall give due consideration to the recommendations and suggestions of the Gram Sabha.

(a) to identify and approve the plans, programmes and projects for social and economic development in order to give priority from out of the plans, programmes and projects approved by the Ward Sabha before such plans, programmes and projects are taken up for implementation by the Village Panchayat; (b) to lay down the principles for identification of the schemes and their priority for economic development of the village; (c) to identify or selection of persons as beneficiaries under the poverty alleviation and other programmes, in order of priority, from amongst the local persons by the various Ward Sabha falling under its jurisdiction; (d) to ensure proper utilization and disbursement of funds or assets to the beneficiaries; (e) to ascertain and certify the proper utilization of funds for plans, programmes and projects by the Gram Panchayats referred to in clause (a); (f) to exercise social audit in respect of plots allotted to the weaker sections of the society; (g) to mobilize voluntary labour and contribution in kind or cash or both for the community welfare programmes; (h) to promote literacy, education, health and nutrition; (i) to promote unity and harmony among all sections of the society in such area; (j) to seek clarifications from the Chairperson and members of the Gram Panchayat about any particular activity, scheme, income and expenditure; (k) to lease out any minor water body within a specified area for the purpose of fishing and other commercial purposes; (l) to regulate the use of water of rivers, streams, minor water bodies for irrigation purposes; (m) to exercise the right of management over minor forest produce; (n) to exercise control over local plans and resources for such plans including tribal sub-plan; (o) to manage Village Markets; (p) to invoke the right to be consulted before making the acquisition of land in the area for development projects and before re-settling or rehabilitating persons affected by such projects in the area; (q) to consider and approve the recommendations made by each Ward Sabha in the area of such Gram Panchayat; (r) to consider the Annual Budget of the Gram Panchayat, and make recommendations thereon; (s) to consider the report of audit and accounts of the Gram Panchayat; (t) to ensure active participation of people in implementation, maintenance and equitable distribution of benefits of development schemes in the Village; (u) to promote general awareness amongst the people; (v) to exercise control through the Gram Panchayat over institutions and functionaries in social sectors transferred to or appointed by that Panchayat; (w) to manage natural resources including land, water and forests within the area of the Village in accordance with provisions of the Constitution and other relevant laws for the time being in force; (x) to supervise sanitation, conservation and prevention and abetment of nuisance; (y) to supervise the construction, repair and maintenance of public wells, ponds and tanks and supply of water for domestic animals; (z) to supervise the construction and maintenance of sources of water for bathing and washing and supply of water for domestic animals; (aa) to supervise the construction and maintenance of Village roads, culverts, bridges, jhoras and other works and building of public utility; (bb) to supervise the construction, maintenance and clearing of public street, latrines, drains, tanks, wells and other public places; (cc) filling in of disused wells, unsanitary ponds, pools ditches and pits and conversion of step wells into sanitary wells; (dd) to supervise the lighting of Village streets and other public places; (ee) to assist in removal of hindrances and projections to public streets and places as well as the spaces which are not private properties or which are open for public use whether such places are vested in the Panchayat or belong to the State Government; (ff) to supervise recreations, games-shows, shops, eating houses and vendors of beverage, sweets, fruits, milk and similar other articles; (gg) to supervise the construction of houses, cess-pits urinals, drains and flush latrines; (hh) to manage public land, extension and development of Village stte; (ii) to dispose off corpses, carcasses (including those unclaimed) and other obnoxious articles in such a way that the same may not be injurious to public health; (jj) to earmark places for dumping refuse; (kk) to regulate sale and preservation of meat; (ll) to maintain Gram Sabha-properties; (mm) to establish and manage cattle pounds, maintenance of records regarding cattle, maintaining grazing grounds and other lands lying within control of the Gram Sabha; (nn) to take care of ancient and historical monuments other than those which have been declared to be of national importance; (oo) to maintain the records of births, deaths and marriages; (pp) to assist in census or other surveys done by the Centre, State or other organizations constituted lawfully; (qq) to provide assistance in control of contagious diseases, vaccination work etc.; (rr) to help the differently abled and destitute; (ss) to strengthen youth welfare, family welfare and sports; (tt) to encourage afforestation and conservation of village forestry; (uu) to abolish social evils like dowry, child marriage & drug abuse etc.; (vv) to prepare schemes for basic amenities and making arrangements thereof; (ww) to execute work assigned by District Panchayat; (xx) to execute and supervise development schemes and construction work as per specified schemes within the Gram Sabha area; (yy) to control and monitor beneficiary oriented schemes and programmes; (zz) to exercise control over institutions and functionaries in all social sectors transferred to or appointed by the Gram Sabha; (aaa) to disseminate information regarding development land welfare activities; (bbb) to participate in and canvassing of programmes of Health and Literacy and such other time bound developmental programmes; (ccc) to collect essential socio-economic data; (ddd) to provide feedback on the performance of development programmes; (eee) to resort to moral sanction to pay taxes, repayment of loans, promote environmental cleanliness and to maintain social harmony; (fff) to mobilize local resources to augment resources of the Gram Panchayat; (ggg) to supervise development activities as volunteer teams; (hhh) to make arrangements for reporting urgently incidence of epidemics, natural calamities, etc. (iii) to exercise and discharge of powers and functions assigned by the State Government under this Act or any other law in force in the State for the time being.

The function of the Ward Sabha shall be- (a) to render assistance to the Gram Panchayat in collection and compilation of details required for formulation of development plans; (b) to generate proposals and fixing priority of development schemes and programmes to be implemented in the area of the Ward Sabha; (c) to identify weaker section of the beneficiaries in order of priority, for the implementation of development schemes pertaining to the area of Ward Sabha: (d) to render assistance in effective implementation of development scheme; (e) to suggest the location of public utilities, amenities and services like street lights, community water taps, public wells, public sanitation units, irrigation facilities etc.; (f) to formulate schemes and imparting awareness on matters of public interest like cleanliness, preservation of environment, prevention of pollution, guarding against social evils etc; (g) to promote harmony and unity among various groups of people; (h) to verify the eligibility of persons getting various kinds of welfare assistance from State Government such as pensions and subsidies; (i) to obtain information on the detailed estimates of works proposed to be taken in the area of the Ward Sabha; exercise social audit in all works implemented in the area of the Ward Sabha and awarding utilization and completion certificate for such works; (j) to obtain information from the officials concerned as to the services they will render and the works they propose to do in the area of the Ward Sabha; (k) to assist the activities of parent-teacher associations in the area; (l) to promote literacy, education, health, child care and nutrition; (m) to monitor and render assistance to the beneficiary communities engaged in the developmental activities within the area of the Gram Panchayat; (n) to ascertain the rationale behind every decision taken by the Gram Panchayat regarding the area of the Ward Sabha; (o) to ascertain the follow up action taken on the decisions of the Ward Sabha and the detailed reasons for not implementing any of the decisions; (p) to co-operate with the employees of the Gram Panchayats in the sanitation processes and rendering voluntary service for the removal of garbage; (q) to find out the deficiencies in the arrangements for water supply, street lighting etc. within the area of the Ward Sabha and to suggest remedial measures; (r) to assist the public health activities especially the prevention of diseases and family welfare, within the area of the Ward Sabha; (s) to perform such other functions as may be prescribed from time to time.

(1) There shall be constituted, in each Panchayat area, an institution of Self-Government called the Gram Panchayat bearing the name of the Gram. (2) For the purpose of sub-section (1), each Panchayat area shall be divided into wards in such manner as the State Government may determine: Provided that the number of members to be elected in each ward shall, as far as practicable, be in the same proportions to the total number of persons to be elected for the Gram Panchayats as the population of the ward bears to the total population of the Panchayat area. (3) The list of wards determined under sub-section (2) shall be prepared and published in the Official Gazette.

(1) A Gram Panchayat shall, subject to the provisions of sub-section (5), consist of such number of members not less than five and not more than nine, as the Secretary may, subject to the general order of the State Government in regard to the allocation of number of seats to different Gram having regard to the varying extent of population therein, determine and such members shall be chosen by direct election through secret ballot by persons whose names are included in the electoral roll for the Sikkim Legislative Assembly for the time being in force pertaining to the area comprised in the Gram. (2) Election to the Gram Panchayat shall be held in such manner as may be prescribed. (3) Where a Gram fails to elect the full number of members as determined under sub-section (1) it shall be called upon to elect the remaining number of members. (4) The term of office of the members of Gram Panchayat shall, subject to the provisions of section 29, be co-terminus with the term of the Gram Panchayat. (5) The State Government shall, by notification reserve the seats for Scheduled Castes and the Scheduled Tribes in every Gram Panchayat and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Panchayat as the population of the Scheduled Castes in that panchayat area or of the Scheduled Tribes in that panchayat area bears to the total population of that area and such seats shall be allotted by rotation to different wards in a Gram Panchayat in such manner as may be prescribed. (6) Not less than one-third of the total number of seats reserved under sub-section (5) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes. (7) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Gram Panchayat shall be reserved for women and such seats may be allotted by rotation to different wards in a Gram Panchayat in such manner as may be prescribed.

(1) Every Gram Panchayat shall be a body corporate having perpetual succession and a common seal and shall by its corporate name, sue and be sued. (2) A Gram Panchayat shall have power to acquire, hold and dispose of property and to enter into contracts: Provided that in cases of acquisition or disposal of immovable property, the Gram Panchayat shall obtain the previous approval of the State Government.

(1) Every Gram Panchayat, save as otherwise provided in this Act, shall continue for a term of five years from the date appointed for its first meeting and no longer. (2) No amendment of any law for the time being in force shall have the effect of causing dissolution of a Gram Panchayat, which is functioning immediately before such amendment till the expiration of its duration specified in sub-section (1). (3) The election to constitute a Gram Panchayat shall be completed- (a) before the expiry of its duration specified in sub-section (1); (b) in the case of dissolution, before the expiration of a period of six months from the date of its dissolution: Provided that where the remainder of the period for which the dissolved Gram Panchayat would have continued is less than six months, it shall not be necessary to hold any election under this clause for constituting the Gram Panchayat for such period. (4) A Gram Panchayat constituted upon the dissolution of a Gram Panchayat before the expiration of its duration, shall continue only for remainder of the period for which the dissolved Gram Panchayat would have continued under sub-section (1) had it not been so dissolved.

A person shall be disqualified for being chosen as and for being, a member of a Gram Panchayat- (a) if he is so disqualified by or under any law for the time being in force for the purpose of elections to the Legislative Assembly of Sikkim: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty-one years; or (b) if he is a member of a Nagar Panchayat established under the law relating to constitution of such Nagar Panchayat for the time being in force; or (c) if he holds any office of profit under a local authority or a co-operative society or a Government company or a Corporation owned or controlled by the Central or the State Government; or (d) has been dismissed from the service of a State Government or the Central Government or a local authority or a Co-operative Society or a Government company or a Corporation owned or controlled by the Central or the State Government for misconduct; or (e) if he is of unsound mind and is so declared by a competent court; or (f) if he is an undischarged insolvent; or (g) if he is suffering from a variety of leprosy which is infectious; or (h) if he is convicted of an election offence; or (i) if he has been convicted by a court of an offence involving moral turpitude and sentenced to imprisonment for a term exceeding six months; or (j) if he has not paid any arrear in respect of any tax or rate or fee payable to a Gram Panchayat or a Zilla Panchayat or a Nagar Panchayat or the State Government: Provided that the disqualification under this clause shall cease upon payment of the rate or tax or fee; or (k) if he has directly or indirectly by himself or by his partner or employer or an employee, hold any share or interest in any contract with, by or on behalf of a Zilla Panchayat or a Gram Panchayat: Provided that a person shall not be deemed to have incurred disqualification by reason of his having a share or interest in any public company or registered co-operative society which has a contract with or is employed by a Gram Panchayat or a Zilla Panchayat of the district.

(1) A member of the Panchayat shall, within 3 (three) months from the date of assuming office, file a statement of assets and liabilities of himself and of the members of his family, in the form prescribed before the competent authority authorized in this behalf by the State Government by notification in the Official Gazette: Provided that, a person who is a member of the Panchayat at the commencement of this Act shall submit such a statement to the Competent authority before the date specified by the State Government to this effect. (2) Where a member of the Panchayat who filed a statement under sub-section (1) acquires any asset in his name or that of other members of his family or disposes or creates any liability thereafter on the assets specified in the statement, he shall file a statement in this regard to the Competent Authority within 3 (three) months from the date of such acquisition or disposal or creation of liability, as the case may be, (3) Any member of the Panchayat who makes a statement under sub-section (1) or sub-section (2) which is false and which he 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 statement. (4) Where a member of the Panchayat fails to file such a statement to the Competent Authority within the date specified under sub-section (1) and sub-section (2), action shall be taken to disqualify him from continuing as member of the Panchayat under Section 16. Explanation 1. - For the purpose of this section "family" of a member of the Panchayat means spouse of that member and his parents, unmarried sisters and children who are dependent on him. Explanation 2. - For the purpose of this section "asset" means all immovable properties and movable properties worth not less than Rs. 10,000.

(1) Every Gram Panchayat shall, at its first meeting at which a quorum is present, elect one of its members to be the Sabhapati and another member to be the Up-Sabhapati of the Gram Panchayat in such manner as may be prescribed. (2) The State Government shall, by notification reserve- (a) such number of offices of Sabhapati and Up-Sabhapati of Gram Panchayats in each district for the Scheduled Castes and the Scheduled Tribes and the number of such offices shall bear, as nearly as may be, the same proportion to the total number of offices in the district as the population of the Scheduled Castes and of the Scheduled Tribes in the district bears to the total population of the district; (b) not less than one-third of the total number of offices of Sabhapati and Up-Sabhapati of the Gram Panchayat of the district from each of the categories which are reserved for persons belonging to the Scheduled Castes and the Scheduled Tribes and of those which are reserved for women: Provided that the offices reserved under this sub-section shall be allotted by rotation to different Gram Panchayats in such manner as may be prescribed. Explanation: For the removal of doubt it is hereby declared that the principle of rotation for purposes of reservation of offices under this sub-section shall commence from the first election to be held after the commencement of this Act. (3) The Sabhapati and Up-Sabhapati shall, subject to the provision of section 27 and to their continuing as members, hold office for a period of five years. (4) When- (a) the office of the Sabhapati falls vacant by reason of death, resignation, removal or otherwise; or (b) the Sabhapati is, by reason of leave, illness or other cause, temporarily unable to act, the Up-Sabhapati shall exercise the powers, perform the functions and discharge the duties of the Sabhapati until a new Sabhapati is elected and assumes office or until the Sabhapati resumes his duties, as the case may be. (5) When- (a) the office of the Up-Sabhapati falls vacant by reason of death, resignation, removal or otherwise; or (b) the Up-Sabhapati is, by reason of leave, illness or other cause, temporarily unable to act, the Sabhapati shall exercise the powers, perform the functions and discharge the duties of the Up-Sabhapati until a new Up-Sabhapati is elected and assumes office or until the Up-Sabhapati resumes his duties, as the case may be. (6) When the office of the Sabhapati and the Up-Sabhapati are both vacant, or the Sabhapati and Up-Sabhapati are temporarily unable to act, the prescribed authority may appoint a Sabhapati and Up-Sabhapati from among the members of the Gram Panchayat to act as such until a Sabhapati and Up-Sabhapati are elected and assume office.

Every election or nomination of a Sabhapati, Up-Sabhapati, Sachiva and members of Gram Panchayat, as the case may be, shall be published by the State Government by notification and such persons shall enter upon their respective offices from the date of such publication: Provided that if no such publication has been made the Sabhapati, Up-Sabhapati, Sachiva and members shall be deemed to have entered upon their respective offices from the date of declaration of result of their election or nomination, as the case maybe.

(1) Notwithstanding any vacancy in the membership of the Gram Panchayat, the prescribed authority shall, immediately after (before the expiration of thirty days from the date of publication of the notification under section 18) appoint a date for the meeting of the Gram Panchayat members (which meeting shall be called the first meeting of the Gram Panchayat) for electing the Sabhapati, Up-Sabhapati and the Sachiva of the Gram Panchayat from amongst themselves. (2) The meeting to be held under sub-section (1) shall be convened by the prescribed authority in such manner as may be prescribed.

(2) The Subhapati may, whenever he thinks fit, in the public interest or shall upon receipt of a written requisition of not less than one half of the total number of members of the Gram Panchayat or if directed by the Secretary of the Rural Development Department or District Development Officer-cum-Panchayat Officer or the District Collector of the concerned district, call a special meeting of the Gram Panchayat within a period of ten days from the date of receipt of the requisition or direction, as the case may be: Provided that if the Subhapati fails to call such special meeting within the specified period from the date of receipt of the requisition or direction, as the case may be, the Secretary of the Rural Development Department or District Development Officer-cum-Panchayat Officer or the District Collector of the concerned district may direct the Sachiva or any member of the Gram Panchayat to call such meeting at such time and at such place within the local limits of the Gram Panchayat concerned as the Sachiva or the member directed to call the meeting may decide. (3) Two-third of the total number of members constituting the Gram Panchayat shall form a quorum for a meeting of the Gram Panchayat: Provided that no quorum shall be necessary for an adjourned meeting. (4) The Sabhapati or in his absence, the Up-Sabhapati shall preside at the meeting of the Gram Panchayat and in the absence of both, the members present shall elect one from amongst themselves to preside at the meeting. (5) All questions coming before a Gram Panchayat shall, unless otherwise specifically provided under this Act be decided by a majority of votes of the members present and voting: Provided that in case of equality of votes the person presiding shall have a second or a casting vote. (6) No member shall vote on, and take part in the discussions of any question coming up for consideration at a meeting of a Gram Panchayat if the question is one in which he has any direct or indirect pecuniary interest other than an interest as a member of public. (7) If it appears to any member present at a meeting that the person presiding at the meeting has any such pecuniary interest in any matter before the meeting for discussion or any question coming up for consideration as referred to in sub-section (6) and a motion brought by him to that effect is carried, such a person shall not preside at such meeting and shall not take part therein, and for the purpose of sub-section (4) such person shall be deemed to be absent during the discussions or consideration of the particular matter.

No matter once finally disposed of by the Gram Panchayat shall be reconsidered by it within the period of six months unless the recorded consent of not less than one-half of its total number of members has been obtained thereto.

(1) A list of the business to be transacted at every meeting of a Gram Panchayat except at an adjourned meeting, shall be sent to each member of the Gram Panchayat, at least seven days before the time fixed for such meeting and no business shall be brought before or transacted at any meeting, other than the business for which notice has been so given except with the approval of the majority of the members present at such meeting: Provided that non-receipt of a notice by a member shall not vitiate the proceedings of the meeting: Provided Further that if the Sabhapati thinks that a situation has arisen for which an emergent meeting of the Gram Panchayat should be called, he may call such meeting at such time and at such place within the local limits of the Gram Panchayat concerned after ensuring receipt of intimation of such emergency meeting by all members. (2) The business of the Gram Panchayat shall be transacted in the language commonly spoken and understood by the members. (3) Minutes of the proceedings at each meeting of the Gram Panchayat shall be recorded in a book to be kept for this purpose and shall be read and signed by the Sabhapati of the meeting before the meeting disperses. (4) The Sachiva of the Gram Panchayat shall, within a week after a meeting of the Gram Panchayat is held, send copies of minutes of every such meeting to the Secretary of the Rural Development Department and the District Development Officer-cum-Panchayat Officer of the concerned district.

The Sabhapati shall- (a) regulate the meetings of the Gram Panchayat; (b) be responsible for the maintenance of records and registers of the Gram Panchayat; (c) exercise supervision and control over the acts done and action taken by the members of the Gram Panchayat and such officers and other employees whose services may be placed at the disposal of the Gram Panchayat by the State Government; (d) operate jointly with the Sachiva of the Gram Panchayat the fund of Gram Panchayat including authorisation of payment, issue of cheques and refunds; (e) issue receipts under his signature for money received by him on behalf of the Gram Panchayat; (f) cause preparation of all statements and reports required by or under this Act; (g) exercise such other powers, perform such other functions and discharge such other duties as the Gram Panchayat may, by general or special resolution, direct or as the State Government may prescribe.

The Up-Sabhapati shall- (a) in the absence of the Sabhapati regulate the meetings of the Gram Panchayat; (b) exercise such of the powers and perform such other functions and discharge such of the duties of the Sabhapati, as the Sabhapati may, from time to time, delegate to him by order in writing: Provided that the Subhapati may at any time withdraw all or any of the powers, functions and duties so delegated to the Up-Sabhapati; (c) during the absence of the Subhapati, exercise all the powers, perform all the functions and discharge all the duties of the Sabhapati.

The member of a Gram Panchayat at any of the meeting may move resolution and put questions to the Sabhapati or Up-Sabhapati or the Sachiva, as the case may be, on matters connected with the administration of the Gram Panchayat or execution of any work or scheme undertaken by or entrusted to such Gram Panchayat.

(1) A Sabhapati or an Up-Sabhapati or a member of a Gram Panchayat may resign his office by notifying in writing his intention to do so to the prescribed authority and on such resignation being accepted the Sabhapati or the Up-Sabhapati or the member shall vacate his office and the casual vacancy shall be deemed to have occurred in such office: Provided that a person tendering resignation may withdraw his resignation before it is accepted by the prescribed authority. (2) When the resignation is accepted under sub-section (1), the prescribed authority shall communicate it to the members of the Gram Panchayat within a period of thirty days of such acceptance.

A Sabhapati or an Up-Sabhapati or a Gram Panchayat may, at any time be removed from office by a resolution of the Gram Panchayat carried by the majority of the members of the Gram Panchayat present at a meeting specially convened for the purpose. Notice of such meeting shall be given to the prescribed authority: Provided that at any such meeting while any resolution for the removal of- (i) the Sabhapati from his office is under consideration: or (ii) the Up-Sabhapati from his office is under consideration, he shall not, though present, preside at such meeting and the provisions of sub-section (4) of section 20 shall apply in relation to any such meeting as they apply in relation to a meeting from which the Sabhapati or, as the case may be, the Up-Sabhapati, is absent.

10. In the Principal Act, after section 27, the following new section 27A shall be inserted, namely ,- "27 A, The manner of removal of Sabhapati and Up-Sabhapati". (1) Every Sabhapati or Up-Sabhapati of Gram Panchayat shall forthwith be deemed to have vacated his office if he is removed through a secret ballot by a sample majority of the total number of the members constituting the Gram Panchayat in accordance with the procedure, as may be prescribed: Provide that no such process of removal shall be initiated unless a notice is signed by not less than one-third of the total number of the members of the Gram Panchayat in accordance with the procedure as may be prescribed. (2) If such Sabhapati or Up-Sabhapati, as case may be, desires to challenge the validity of the act of removing him under the foregoing sub-section, he shall within 7 (seven) days from the date on which he is deemed to have vacated the office, refer the dispute to the Collector who shall decide within 30 (trrirty) days from the date of receipt of such reference and his decision shall be final. (3) If a motion for removal under sub-section (1) of this section is not carried by the majority of the total number of the Gram Panchayat or the meeting cannot be held for want of quorum, no notice of any subsequent motion of removal of the same office bearer shall be taken into cognizance within a period of 1 (one) year from the date appointeo for such meeting. (4) Notwithstanding anything contained in sub-section (1) of this section, no meeting for removal 01" Sabhapati or Up-Sabhapati under this section shall be convened within a period of 2 (two) years from the date of election of the Sabhapati or the Up-Sabhapati at the first meeting following reconstitution of the Gram Panchayat for filling casual vacancy in the said office".

(1) In the event of removal of a Sabhapati or an Up-Sabhapati under section 27 or when a vacancy occurs in the office of a Sabhapati or an Up-Sabhapati by resignation, death or otherwise, the Gram Panchayat shall elect another Sabhapati or Up-Sabhapati and the person so elected shall take office forthwith and shall hold such office for the unexpired term of office of his predecessor. (2) No person who has been removed from office under section 27 shall be eligible for re-election to the vacancy so caused.

(1) The prescribed authority may, after giving an opportunity, to a member of a Gram Panchayat to show cause against the action proposed to be taken against him, by order remove him from office if- (a) after his election he is convicted by a criminal court of an offence involving moral turpitude and punishable with imprisonment for a period of more than six months; or (b) he was disqualified to be a member of the Gram Panchayat at the time of his election; or (c) he incurs any of the disqualifications mentioned in section 16, after his election as a member of the Gram Panchayat; or (d) he is absent from three consecutive meetings of the Gram Panchayat without the leave of the Gram Panchayat. (2) Any member of a Gram Panchayat who is removed from his office by the prescribed authority under sub-section (1) may, within a period of thirty days from the date of the order, appeal to the Secretary to the Government of Sikkim in the Rural Development Department who may stay the operation of the order till the disposal of the appeal and may, after giving notice of the appeal to the prescribed authority and after giving the appellant an opportunity of being heard, modify, set aside or confirm the order. Explanation:- For the purpose of this sub-section, the term "Secretary" will mean only the Secretary. (3) The order passed by such authority on such appeal shall be final.

(1) If the office of a member of a Gram Panchayat becomes vacant by reason of his death, resignation, removal or otherwise, such vacancy shall be filled in by election of another person under this Act. The person elected shall take office forthwith and shall hold such office for the unexpired term of office of his predecessor: Provided that no election for filling in of a casual vacancy shall be held if the vacancy occurs within a period of six months preceding the date on which the term of office of the person concerned expires. (2) No person who has been removed from his office under section 29 shall be eligible for re-election to the vacancy so caused.

(1) Every Gram Panchayat shall, at its first meeting at which a quorum is present, elect one of its members to be Sachiva of the Gram Panchayat: Provided that no member who is not able to read or write any of the official languages of the State shall be qualified to be elected as a Sachiva: Provided further that where no such person as referred to in the first proviso is available, the Gram Panchayat may appoint Panchayat Assistant appointed by the Secretary to the Government in the Rural Development Department to look after the works of Sachiva. (2) The Sachiva of the Gram Panchayat so elected or, as the case may be, appointed shall assist the Sabhapati or the Up-Sabhapati, as the case may be, of the Gram Panchayat in due maintenance of the Gram Panchayat office and for proper organisation and execution of rural development schemes and shall be directly answerable to the members of the Gram Panchayat. (3) The Sachiva shall be in charge of office of the Gram Panchayat and shall exercise such powers and perform such other functions and discharge such other duties as the State Government may, by rules made in this behalf prescribe. (4) The term of office of the Sachiva shall, subject to the provisions of section 33 be co-terminus with the term of the Gram Panchayat.

(1) A Sachiva of a Gram Panchayat may resign his office by notifying in writing his intention to do so to the prescribed authority and on such resignation being accepted the Sachiva shall vacate his office and the casual vacancy shall be deemed to have occurred in such office: Provided that a person tendering resignation may withdraw his resignation before it is accepted. (2) When the resignation is accepted under sub-section (1), the prescribed authority shall communicate it to the members of the Gram Panchayat within a period of thirty days of such acceptance.

(1) A Sachiva may, at any time, be removed from office by a resolution of the Gram Panchayat carried by the majority of the members of the Gram Panchayat present at a meeting specially convened for the purpose. Notice of such meeting shall be given to the prescribed authority. (2) In the event of removal of a Sachiva under sub-section (1) or when a vacancy occurs in the office of a Sachiva by resignation, death or otherwise, the Gram Panchayat shall elect one of its members to be the Sachiva and the person so elected shall take office forthwith and shall hold such office for the unexpired term of office of his predecessor. (3) No person who has been removed from his office under sub-section (1) shall be eligible for re-election to the vacancy so caused.

Subject to any general or special direction of the State Government, the duties of a Gram Panchayat shall be to provide within the area under its jurisdiction for- (a) sanitation, conservancy and drainage and the prevention of public nuisance; (b) curative and preventive measures in respect of any infectious disease; (c) supply of drinking water and the cleaning and disinfecting the sources of supply and storage of water; (d) maintenance, repair and construction of village roads and protection thereof; (e) the removal of encroachments of village roads or public places; (f) the management of common grazing grounds, burning places and public graveyards; (g) the supply of any local information which the District Collector or District Development Officer-cum-Panchayat Officer or the Zilla Panchayat may require, within the limits of the jurisdiction of the Gram Panchayat; (h) organising voluntary labour for community work and works for the upliftment of its areas; (i) control and administration of the Gram Panchayat Fund established under this Act; (j) the imposition, assessment and collection of taxes, fees or rates leviable under this Act; (k) construction and maintenance of dharmasalas; (l) regulating places for the disposal of dead bodies and carcasses and other offensive matters; (m) assisting the development of agriculture, forestry, animal husbandry, poultry, fisheries, village and cottage industries and co-operative; (n) registering births, deaths and marriages and annually submitting such records to the Zilla Panchayat: (o) maintenance of such records relating to cattle census, population census, crop census and census of unemployed persons and such other statistics as may be required and annually submitting such records to the Zilla Panchayat: (p) regulating inflow of animals within the area and their transfer: (q) destruction and disposal of ownerless and rabid dogs and disposal of unclaimed animals; (r) maintenance, upkeep and supervision of any building or other property which may be entrusted to it by the State Government for management; (s) assisting the Zilla Panchayat in preparing development plan of its area; (t) rendering assistance in extinguishing fire and protecting life and property when fire occurs; (u) any other local work or service of public utility which is likely to promote the health, comfort, convenience or material prosperity of the public not otherwise provided for in this Act; (v) such other duties as may be entrusted to it by the State Government from time to time.

(1) A Gram Panchayat shall also perform such other functions as the State Government may assign to it in respect of- (a) primary, social, technical or vocational education: (b) rural dispensaries, health centres, maternity and child welfare centres; (c) minor irrigation; (d) grow more food campaign; (e) care of the infirm and destitute; (f) rehabilitation of displaced persons; (g) improved breeding of cattle, medical treatment of cattle and prevention of cattle diseases; (h) its acting as a channel through which Government assistance should reach the residents of the Gram; (i) bringing private waste land under cultivation; (j) promotion of plantations in the Gram; (k) arranging for cultivation of land lying fallow; (l) arranging for co-operative management of resources of the Gram; (m) implementation of such schemes as may be formulated or performance of such acts as may be entrusted to it by the State Government; (n) field publicity of matters connected with development works and other welfare measures undertaken by the State Government; (o) regulation of fairs, melas, hats and exhibition of local produce and products or local handicrafts and home industries; (p) assisting and advising the residents of the Gram in the matter of obtaining state loan and its distribution and repayment; (q) assisting in the implementation of land reform measure in its area; (r) the promotion and encouragement of education including adult education; (s) such other functions which the State Government may, from time to time, by order in writing, entrust to such Gram Panchayat which in its opinion to promote directly or indirectly the welfare of the public. (2) If the State Government is of opinion that a Gram Panchayat has persistently made default in the performance of any of the functions assigned to it under sub-section (1), the State Government may, after recording its reasons, withdraw such functions from such Gram Panchayat. (3) Where the State Government assigns any functions to a Gram Panchayat under sub-section (1), it shall place such funds at the disposal of the Gram Panchayat as may be determined by the State Government for the due performance of such function.

All property within the limits of the jurisdiction of a Gram Panchayat other than property maintained by the Central or the State Government or a local authority or any other Gram Panchayat shall vest in and belong to the Gram Panchayat and shall with all other property of whatsoever nature or kind which may become vested in the Gram Panchayat, be under its direction, management and control.

(1) The State Government may allocate to a Gram Panchayat any public property situated within its jurisdiction, and thereupon such property shall vest in and come under the control of the Gram Panchayat. (2) No property vested in or belonging to a Gram Panchayat shall be transferred by way of sale, gift, mortgage, exchange or lease except with the previous sanction of the State Government. (3) Where the State Government is of opinion that any property vested in or belonging to a Gram Panchayat is required for the purpose of any national or State development plan or for any other public purpose, the State Government may resume such property, and upon such resumption, the property shall cease to vest in the Gram Panchayat and shall re-vest in the State Government. (4) No compensation other than the amount paid by the Gram Panchayat for such transfer and the market value of any building or works erected or executed on such property by the Gram Panchayat at the time of resumption shall be payable. Any sum so received shall be credited to the Gram Panchayat fund.

Where a Gram Panchayat requires land for carrying out any of the purposes of this Act, it may negotiate with the person or persons having interest in the said land, and if it fails to reach an agreement, it may make an application to the District Collector for the acquisition of the land, who may, if he is satisfied that the land is required for a public purpose, take steps to acquire the land under the provisions of the Sikkim Land (Requisition and Acquisition) Act, 1977 and such land shall, on acquisition, vest in the Gram Panchayat.

(1) For every Gram Panchayat there shall be constituted a Gram Panchayat Fund bearing the name of Gram Panchayat on the basis of the review and recommendations made by the State Finance Commission and there shall be placed to the credit thereof- (a) contributions and grants, if any, made by the Central or the State Government; (b) contributions and grants, if any, made by Zilla Panchayat or any other local authority; (c) loans, if any, granted by the Central Government or the State Government; (d) all receipts on accounts of taxes, rates and fees levied by the Gram Panchayat; (e) all sums received by way of gift or contribution; (f) all other sums received by or on behalf of the Gram Panchayat; (g) such percentage of the land revenue collected by it as may be determined by the State Government. (2) Every Gram Panchayat shall set apart and apply annually such sum as may be required to meet the cost of its administration including allowances payable to the members. (3) Every Gram Panchayat shall have the power to spend such sums as the State Government may, by order, specify for carrying out the purposes of this Act. (4) The Gram Panchayat Fund shall be vested in the Gram Panchayat and the balance to the credit of the Fund shall be kept in such custody as the State Government may direct. (5) Subject to such general control as the Gram Panchayat may exercise from time to time, all orders and cheques for payment from the Gram Panchayat Fund shall be signed by the Sabhapati or in his absence by the Up-Sabhapati.

(1) Subject to the rates which may be fixed by the State Government, a Gram Panchayat may levy the following taxes, rates and fees, namely:- (a) a tax on fairs, melas, hats and other entertainments; (b) a general sanitation tax for the construction or maintenance or both the construction and maintenance of public latrines and for the removal and disposal of refuse; (c) a water rate where arrangements for the supply of water for drinking, irrigation or any other purpose are made; (d) a fee for temporary erection on, or putting up projections over, or temporary occupation of, any village road or place; (e) a fee on private latrines, premises or compounds cleaned by the Gram Panchayat agency; (f) a fee for grazing cattle on grazing lands vested in a Gram Panchayat; (g) a fee on the registration of animals sold in any market or place belonging to or under the control of the Gram Panchayat; (h) a market fee on persons exposing goods for sale in any market or on any place or any building or structure therein belonging to or under the control of the Gram Panchayat; (i) a fee for the use of Dharmasalas and camping grounds; (j) a fee for drainage where system of drainage has been introduced by the Gram Panchayat; (k) a temporary tax for special works of public utility; (l) a tax on houses. (2) The Gram Panchayat shall not levy taxes, rates or fees referred to in sub-section (1) if such taxes, rates or fees have already been levied by any other authority under any law for the time being in force or by any other local authority.

(1) The State Government may, in the manner specified in the notification, regulate the imposition, assessment and collection of taxes, rates and fees under section 40. (2) Subject to the provisions of this Act or rules made thereunder, no person shall object in respect of his liability to any assessment made or tax imposed under this Act.

An appeal against the levy of any tax, rate or fee under section 40 may be preferred to the prescribed authority in such manner and within such time as may be prescribed and the decision of such authority shall be final.

Any arrear of tax, rate or fee levied under section 40 shall be recoverable as arrears of land revenue or public demand if the Gram Panchayat passes a resolution to that effect and communicates it to the District Collector.

(1) The District Collector, on receipt of such communication of the sum recoverable under section 43 and on being satisfied with the demand, shall proceed to recover it. (2) Any sum so recovered shall be sent to the Gram Panchayat and shall be credited to the Gram Panchayat Fund.

(1) If on a complaint made to it or otherwise it appears to the State Government that any tax, rate or fee levied by a Gram Panchayat is excessive, it may, after calling for a report from the Gram Panchayat in this regard, abolish, suspend or reduce the amount of any such tax, rate or fee. (2) The State Government may, on its own motion or otherwise after giving the Gram Panchayat an opportunity of expressing its view in the matter, by order, exempt from the payment of any tax in whole or in part- (a) any person or class or persons: or (b) any property or description of properties; subject to such conditions as may be specified in such order.

(1) Every Gram Panchayat shall, at such time and in such manner as may be prescribed, prepare each year a budget of its estimated receipts and disbursements for the following year and shall submit the budget to the State Government for approval through the Zilla Panchayat of the District concerned. (2) No expenditure shall be incurred unless the budget is approved by the State Government.

A Gram Panchayat may prepare in each year supplementary estimate providing for any modification of its budget and submit it to the State Government for approval through the Zilla Panchayat of the District concerned within such time and in such manner as may be prescribed.

17. In the Principal Act, in section 48, for sub-section (3) the following shall be substituted, namely :- "(3) The Directorate of Local Fund Audit, Finance Revenue and Expenditure Department, Government of Sikkim shall audit the accounts of Gram Panchayat/Zilla PanchayatiDistrict Planning Committee, as soon as may be after the end of each financial year in the manner provided under the Sikkim Local Fund Audit Act, 2012, and submit the Annual Audit Report for placing. it before State Legislature. Whereas, the Comptroller and Auditor General of India shall provide Technical Guidance and Supervision (TG & S) over the audit of the Gram Panchayat and submit its Annual Technical Inspection Report for placing it before State Legislatu re".

18. In the principal Act, after section 48, the following section shall be inserted, namely :- "48 A. Liabilities of Sabhapati, Up-Sabhapati and Member of Gram Panchayats .- (1) Every member of a Panchayat including the Sabhapati and Up-Sabhapatithereof shall be liable to the Panchayat of which they are members or, as the case may be, Sabhapati and Up-Sabhapati, for the loss, waste or misappropriation of any money or other property belonging to such a Panchayat as direct consequence of his neglect or misconduct while in office, (2) If on appearance the member or, as the case may be, the Sabhapati and Up-Sabhapati admits his liability and its amount, the Prescribed Authority shall pass an order for the recovery of the amount of each liability from such member or, as the case may be, such as Sabhapati and Up-Sabhapati. (3) If the member or, as the case may be, the Sabhapati and Up-Sabhapati disputes their liabilities or its extent, the Prescribed Authority after recording evidence in support of the allegations and after giving the concerned office-bearer opportunity to cross-examine the witness and to adduce evidence in defense shall, by order, determine the extent and amount of liability of such office-bearer for such waste or misappropriation of money or property".

(1) For every district the State Government shall, by notification constitute a Zilla Panchayat bearing the name of the district. (2) For the purpose of electing members as referred to in sub-section (1), the State Government may, by notification, divide the district into territorial constituencies and determine the number of members to be elected from each such constituency: Provided that the number of members to be elected in each constituency shall, as far as practicable, be in the same proportion to the total number of persons to be elected for the Zilla Panchayat as the population of the constituency bears to the total population of the Zilla Panchayat area.

(1) A Zilla Panchayat shall, subject to the provisions of sub-section (4), consist of the following members, namely:- (a) directly elected members from the territorial constituencies in the district; (b) Sabhapatis of the Gram Panchayats within the district; (c) Members of both the Houses of Parliament and the Legislative Assembly of the State elected from a constituency comprising the district or any part thereof. (2) Each constituency will elect one or more members through direct election in such manner as may be prescribed. (3) The term of office of the members of Zilla Panchayat shall, subject to...

(1) Every Zilla Panchayat shall be a body corporate having perpetual succession and a common seal and shall by its corporate name sue and be sued. (2) A Zilla Panchayat shall have power to acquire, hold and dispose of property and to enter into contract: Provided that in all cases of acquisition or disposal of immovable property, the Zilla Panchayat shall obtain the previous approval of the State Government.

(1) Every Zilla Panchayat, save as otherwise provided in this Act, shall continue for five years from the date appointed for its first meeting and no longer. (2) No amendment of any law for the time being in force shall have the effect of causing dissolution of a Zilla Panchayat, which is functioning immediately before such amendment, till the expiration of its duration specified in sub-section (1). (3) An election to constitute a Zilla Panchayat shall be completed— (a) before the expiry of its duration specified in sub-section (1); (b) in case of dissolution, before the expiration of a period of six months from the date of such dissolution: Provided that where the remainder of the period for which the dissolved Zilla Panchayat would have continued is less than six months, it shall be not necessary to hold any election under this clause for constituting the Zilla Panchayat for such period. (4) A Zilla Panchayat constituted upon the dissolution of a Zilla Panchayat before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Zilla Panchayat would have continued under sub-section (1) had it not been so dissolved. (5) When a new Zilla Panchayat is thus duly constituted the old Zilla Panchayat shall stand dissolved.

The provisions of section 16 relating to disqualification of members of Gram Panchayat shall, mutatis-mutandis be applicable to the elected members of the Zilla Panchayat also.

(1) Every Zilla Panchayat shall, at its first meeting at which a quorum is present, elect in such manner as the State Government may, by notification specify, one of its members to be the Adhakshya and another member to be Up-Adhakshya of the Zilla Panchayat: Provided that the members referred to in clause (c) of sub-section (1) of section 50 shall not be eligible for such election, nor shall they have any voting right thereof. (2) The State Government shall, by notification, reserve— (a) such number of offices of Adhakshya and Up-Adhakshya of Zilla Panchayat in the State for the persons belonging to the Scheduled Castes and the Scheduled Tribes and the numbers of such offices bearing as nearly as may be the same proportion to the total number of offices in the State as the population of the Scheduled Castes in the State or of the Scheduled Tribes in the State bears to the total population of the State; (b) not less than one-third of the total number of offices of Adhakshya and Up-Adhakshya in the State from each category reserved for persons belonging to the Scheduled Castes, the Scheduled Tribes and those which are non-reserved, for women: Provided that the Offices reserved under this sub-section shall be allotted by rotation to different Zilla Panchayat. Explanation:— For the removal of doubts it is hereby declared that the principle of rotation for the purposes of reservation of offices under this sub-section shall commence from the first election to be held after the commencement of this Act. (3) The Adhakshya and Up-Adhakshya shall, subject to the provisions of section 64 and to their continuing as members, hold office for a period of five years. (4) When- (a) the office of the Adhakshya falls vacant by reason of death, resignation, removal or otherwise; or (b) the Adhakshya is, by reason of leave, illness or other cause, temporarily unable to act, the Up-Adhakshya shall exercise the powers, perform the functions and discharge the duties of the Adhakshya until a new Adhakshya is elected and assumes office or until the Adhakshya resumes his duties, as the case may be. (5) When - (a) the office of the Up-Adhakshya falls vacant by reason of death, resignation, removal or otherwise; or (b) the Up-Adhakshya is, by reason of leave, illness or other cause, temporarily unable to act, the Adhakshya shall exercise the powers, perform the functions and discharge the duties of the Up-Adhakshya until a new Up-Adhakshya is elected and assumes office or until the Up-Adhakshya resumes his duties, as the case may be. (6) When the offices of the Adhakshya and the Up-Adhakshya are both vacant or the Adhakshya and the Up-Adhakshya are temporarily unable to act, the prescribed authority may appoint an Adhakshya and an Up-Adhakshya from among the members of the Zilla Panchayat to act as such until an Adhakshya or an Up-Adhakshya are elected and assume office or resume his duties, as the case may be.

Every election or nomination of an Adhakshya, an Up-Adhakshya and members of a Zilla Panchayat shall be published by the State Government by notification and such persons shall enter upon their respective offices from the date of such publication.

(1) Notwithstanding any vacancy in the membership of the Zilla Panchayat, the prescribed authority shall as soon may be (but before the expiration of thirty days from the date of publication of the notification under section 55) call a meeting of the members of a Zilla Panchayat at such place and at such time as he may fix for electing an Adhakshya and Up-Adhakshya. (2) The meeting to be held under sub-section (1) shall be called the first meeting of the Zilla Panchayat and may be convened by the prescribed authority in such manner as may be prescribed.

(1) Every Zilla Panchayat shall hold a meeting for transaction of its business atleast once in every three months at the office of the Zilla Panchayat or at such place within the local limits of the district concerned and at such time as the Adhakshya of the Zilla Panchayat may fix. (2) The Adhakshya may, whenever he thinks fit in the public interest or shall upon a written requisition of not less than one half of the total number of members of the Zilla Panchayat or if directed by the Secretary to the Government in the Rural Development Department call a special meeting of the Zilla Panchayat within a period of ten days from the date of receipt of the requisition or direction, as the case may be: Provided that if the Adhakshya fails to call such special meeting within the specified period from the date of receipt of requisition or direction, as the case may be, the Secretary to the Government in the Rural Development Department may call such meeting which shall be held at such time and in such place within the local limits of the district concerned as he may fix. (3) Two-third of the total number of members shall form a quorum for a meeting of the Zilla Panchayat: Provided that no quorum shall be necessary for an adjourned meeting. (4) The Adhakshya or in his absence, the Up-Adhakshya shall preside at the meeting of the Zilla Panchayat and in the absence of both, the members present shall elect one member from amongst themselves to preside at the meeting. (5) All questions coming before a Zilla Panchayat shall, unless otherwise specifically provided under this Act, be decided by a majority of votes of the members present and voting: Provided that in case of equality of votes the person presiding shall have a second or casting vote. (6) No member shall vote on, and take part, in the discussion of any question coming up for consideration at a meeting of Zilla Panchayat if the question is one in which he has any direct or indirect pecuniary interest other than an interest as a member of the public. (7) If it appears to any member present at a meeting that the person presiding at the meeting has any such pecuniary interest in any matter before the meeting for discussion or any question coming up for consideration as referred to in sub-section (6) and a motion brought by him to that effect is carried, such a person shall not preside at such meeting and shall not take part therein, and for the purposes of sub-section (4) such person shall be deemed to be absent during the discussion or consideration of the particular matter.

No subject once finally disposed of by the Zilla Panchayat shall be reconsidered by it within six months unless the recorded consent of not less than one half of members has been obtained therefor.

(1) A list of the business to be transacted at every meeting of a Zilla Panchayat except at an adjourned meeting, shall be sent to each member of the Zilla Panchayat at least seven days before the time fixed for such meeting and no business shall be brought before or transacted at any meeting other than the business of which notice has been so given except with the approval of the majority of the members present at such meeting: Provided that non-receipt of a notice by a member shall not vitiate the proceedings of a meeting: Provided further that if the Adhakshya thinks that a situation has arisen for which an emergent meeting of the Zilla Panchayat should be called, he may call such meeting after giving three days notice to the members: Provided also that not more than one matter shall be included in the list of business to be transacted at the meeting called under the second proviso. (2) The business of the Zilla Panchayat shall be transacted in the language spoken and understood by the members. (3) Minutes of the proceedings of each meeting of the Zilla Panchayat shall be recorded in a book to be kept for this purpose and shall be read out and signed by the Adhakshya of the meeting before the meeting disperses. (4) The Sachiva of a Zilla Panchayat shall, within a week after meeting of the Zilla Panchayat send copies of minutes of every such meeting to the District Development Officer-cum-Panchayat Officer and the Secretary.

The Adhakshya shall- (a) regulate the meetings of the Zilla Panchayat; (b) be responsible for the maintenance of record and registers of the Zilla Panchayat; (c) exercise supervision and control over the act done and action taken by the members of the Zilla Panchayat and such officers and such other employees whose services may be placed at the disposal of the Zilla Panchayat by the State Government; (d) operate jointly with the Sachiva of the Zilla Panchayat the Fund of the Zilla Panchayat including authorisation of payment and refunds; (e) cause to issue receipts under his signature or signature of Sachiva for sums of money received by him for and on behalf of the Zilla Panchayat; (f) cause preparation of all statements and reports required by or under this Act; (g) exercise such other powers, perform such other functions and discharge such other duties as the Zilla Panchayat may, by general or special resolution direct or as the State Government may, by order specify: Provided that the Adhakshya shall not exercise such powers, perform such functions or discharge such duties as may be required by the rules made under this Act to be exercised, performed or discharged by the Zilla Panchayat at a meeting.

The Up-Adhakshya shall- (a) in the absence of the Adhakshya, preside over and regulate the meetings of the Zilla Panchayat; (b) exercise such of the powers, perform such of the functions and discharge such of the duties of the Adhakshya as the Adhakshya may, from time to time, delegate to him by order in writing: Provided that the Adhakshya may at any time withdraw all or any of the powers, functions and duties so delegated to the Up-Adhakshya; (c) during the absence of the Adhakshya, exercise all the powers, perform all the functions and discharge all the duties of the Adhakshya.

At a meeting of a Zilla Panchayat a member may move any resolution and put questions to the Adhakshya or Up-Adhakshya, as the case may be, on matters connected with the administration of Zilla Panchayat or execution of rural works or schemes entrusted to or undertaken by such Zilla Panchayat.

(1) An Adhakshya, or an Up-Adhakshya or a member of a Zilla Panchayat may resign his office by notifying in writing his intention to do so to the prescribed authority and on such resignation being accepted the Adhakshya or the Up-Adhakshya or the member shall vacate his office and casual vacancy shall be deemed to have occurred in such office: Provided that a person tendering resignation may withdraw his resignation before it is accepted. (2) When the resignation is accepted under sub-section (1), the prescribed authority shall communicate it to the members of the Zilla Panchayat within thirty days of such acceptance.

(1) An Adhakshya or an Up-Adhakshya may, at any time, be removed from office by a resolution of the Zilla Panchayat passed by the majority of the members of the Zilla Panchayat present and voting at a meeting specially convened for the purpose. Notice of such meeting shall be given to the prescribed authority: Provided that any such meeting while passing any resolution for the removal of (i) the Adhakshya from his office is under consideration; or (ii) the Up-Adhakshya from his office is under consideration, he shall not, though he is present, preside at such meeting and the provisions of sub-section (4) of section 57 shall apply in relation to every such meeting as they apply in relation to a meeting from which the Adhakshya or, as the case may be, the Up-Adhakshya is absent. (2) No person who has been removed from his office under sub-section (1) shall be eligible for re-election to the vacancy so caused.

In the event of removal of an Adhakshya or an Up-Adhakshya under section 64 or when a vacancy occurs in the office of the Adhakshya or Up-Adhakshya by resignation, death or otherwise, the Zilla Panchayat shall elect another Adhakshya or Up-Adhakshya, as the case may be. The person so elected shall take office forthwith and shall hold office for the unexpired term of office of his predecessor.

(1) The prescribed authority may, after giving opportunity to a member of a Zilla Panchayat other than a member specified under clause (c) of sub-section (1) of section 50 to show cause against the action proposed to be taken against him, by order, remove him from office if- (a) after his election he is convicted by a criminal court of an offence involving moral turpitude and punishable with imprisonment for a period of more than six months; or (b) he was disqualified to be a member of the Zilla Panchayat at the time of his election; or (c) he incurs any of the disqualifications specified in section 16 except clauses (e) and (f) after his election as a member of the Zilla Panchayat; or (d) he is absent from three consecutive meetings of the Zilla Panchayat without the leave of the Zilla Panchayat provided he is not an ex-officio member of the Zilla Panchayat under clause (c) of sub-section (1) of section 50. (2) Any member of a Zilla Panchayat who is removed from his office by the prescribed authority under sub-section (1) may, within thirty days from the date of the order, appeal to the Secretary to the Government in the Rural Development Department, who may stay the operation of the order till the disposal of the appeal and may, after giving notice of the appeal to the prescribed authority and after giving the appellant an opportunity of being heard, modify, set aside or confirm the order. Explanation:- For the purpose of this sub-section, the term "Secretary" will mean only the Secretary. (3) The order passed by such authority on such appeal shall be final. (4) If a member of a Zilla Panchayat referred to in clause (c) of sub-section (1) of section 50 ceases to be the member of the Parliament or as the case may be, member of the Legislative Assembly of the State, he shall cease to be the member of the Zilla Panchayat and the newly elected person shall become the member of the Zilla Panchayat.

23. In the Principal Act, after section 66, the following section shall be inserted, namely ;- "66 A. Recalling of Adhakshya or Up-Adhakshya or Member of Zilla Panchayat :- The provision of section 27 A relating to Recalling of Sabhapati or Up-Sabhapati or Member of Gram Panchayat shall mutatis-mutandis be applicable to the Adhakshya or Up-Adhakshya or Member of Zilla Panchayat".

(1) If the office of a member of a Zilla Panchayat becomes vacant by reason of his death, resignation, removal or otherwise, such vacancy shall be filled in by election of another person under this Act. The person so elected shall take office forthwith and shall hold such office for the unexpired term of office of his predecessor: Provided that no election for filling in of a casual vacancy shall be held if the vacancy occurs within a period of six months preceding the date on which the term of office of the person concerned expires. (2) No person who has been removed from his office under section 66 shall be eligible for re-election to the vacancy so caused.

(1) There shall be a Sachiva for a Zilla Panchayat appointed by the State Government on such terms and conditions as may be prescribed. (2) The Sachiva shall have authority to supervise all records of every Gram Panchayat falling under the jurisdiction of a Zilla Panchayat of a concerned district. (3) The Sachiva shall be in charge of the office of the Zilla Panchayat and shall discharge such duties and perform such functions as may be prescribed.

(1) Subject to any general or special directions of the State Government, a Zilla Panchayat shall have power in respect of - (a) regulating melas or hats within its local limits; (b) construction and maintenance of Panchayat Ghars, Dharmasalas and rest houses; (c) construction, repair and maintenance of such small irrigation projects of such class or types thereof, as may be specified by the State Government by general or special order in this behalf, and regulating of supply of water therefrom for irrigation purposes; (d) regulating supply of water for irrigation or drinking water supply schemes constructed by the Government and entrusted to it for maintenance and repairs; (e) regulating, maintaining and developing of lands vested in it by the State Government; (f) organising plantation programme in the public land, road sides and such other places as may be specified for promotion of social forestry and environmental conservation and maintaining and regulating of such forests; (g) establishing and maintaining primary schools and organising adult education centres; (h) establishing health centres and maternity and child welfare centres; (i) managing and maintaining all works of public utility and adopting measures for the relief of distress; (j) preparing plans for all round development of the district after obtaining previous approval of the State Government and with such technical assistance as may be made available by the State Government; (k) co-ordinating and integrating the development plans and schemes prepared by Gram Panchayats within its jurisdiction; (l) fulfilling any other obligation imposed on or under this Act or by any other law for the time being in force or by general or special order of the State Government in this behalf.

(1) Subject to such condition as may be imposed by the State Government, a Zilla Panchayat may, if the State Government so directs make provisions for- (a) the promotion of opportunity of employment through community farming by organising model agriculture or dairy farms and small scale village industries; (b) the organisation and maintenance of clubs and other places for recreation or games; (c) establishment and maintenance of library or reading rooms and public radio listening centres; (d) construction and maintenance of destitute homes, slaughter houses and encamping grounds; (e) rendering assistance in extinguishing fire and protecting life and property when fire occurs; (f) assisting in the prevention of burglary and dacoity; (g) the promotion of socio-cultural and communal harmony; (h) the promotion of agriculture and allied activities connected with it; (i) any other local work or service of public utility which is likely to promote the health, comfort, convenience or material prosperity of the public not otherwise provided for in this Act. (2) Where the State Government directs a Zilla Panchayat to make provision for any of the items enumerated in sub-section (1), it shall place such funds at the disposal of the Zilla Panchayat as may be determined by the State Government for the purpose. (3) A Zilla Panchayat shall have the power to advise the State Government on all matters relating to all round development of rural areas. (4) Notwithstanding anything in sub-section (1), a Zilla Panchayat shall not undertake or execute any scheme confined to a Gram unless the implementation of such a scheme is beyond the competence of the Gram Panchayat concerned financially or otherwise. In the latter case the Zilla Panchayat may execute the scheme itself or entrust its execution to the Gram Panchayat and give such assistance as may be required: Provided that a Zilla Panchayat shall undertake or execute any scheme if it extends to more than one Gram.

The Zilla Panchayats of two or more adjacent districts may jointly undertake and execute at common cost any development schemes or project on such terms and conditions as may be agreed upon, and in case of any difference as to the interpretation of such terms and conditions the matter shall be referred to the State Government whose decision shall be final.

A Zilla Panchayat shall exercise general powers of supervision over Gram Panchayats in the district and it shall be the duty of Gram Panchayat to give effect to any direction of the Zilla Panchayat on matters of policy or planning for development.

All roads, buildings or other works constructed by a Zilla Panchayat with its own funds shall vest in it.

(1) The State Government may allocate to a Zilla Panchayat any public property of whatsoever nature or kind situated within its local limits, and thereupon, such property shall vest in and come under the control of the Zilla Panchayat. (2) No property vested in or belonging to a Zilla Panchayat shall be transferred by way of sale, gift, mortgage, exchange or lease without the previous sanction of the State Government. (3) Where the State Government is of opinion that any property vested in or belonging to a Zilla Panchayat is required for the purpose of any National or State Development plan or for any other public purpose, the State Government may resume such property and upon such resumption the property shall cease to vest in the Zilla Panchayat and shall re-vest in the State Government. (4) No compensation other than the amount paid by the Zilla Panchayat for such transfer and the market value of any building or works erected or executed on such property by the Zilla Panchayat at the time of such resumption shall be payable. Any sum so received shall be credited to the Zilla Panchayat Fund.

Where a Zilla Panchayat requires land for carrying out any of the purposes of this Act, it may negotiate with the person or persons having interest in the said land, and if it fails to reach an agreement it may make an application to the District Collector for the acquisition of the land, who may, if he is satisfied that the land is required for a public purpose, take steps to acquire the land under the provisions of the Sikkim Land (Requisition and Acquisition) Act, 1977.

(1) For every Zilla Panchayat there shall be constituted a Zilla Panchayat Fund bearing the name of the Zilla Panchayat and there shall be placed to the credit thereof- (a) contribution and grants, if any, made by the Central or the State Government including such portion of land revenue collected within its jurisdiction as may be determined by the State Government; (b) contribution and grants, if any, made by any other local authority; (c) loans, if any, granted by the Central or State Government; (d) proceeds of collection of revenues in respect of schemes, projects and other properties undertaken or vested in the Zilla Panchayat by the Government at such rates as may be determined by the State Government; (e) such rates, fees, taxes, as may be imposed and realised under the provisions of this Act; (f) such sums received from the Government for fulfilling duties and obligations entrusted to the Zilla Panchayat by the State Government; (g) all other sums received by or on behalf of the Zilla Panchayat. (2) Every Zilla Panchayat shall set apart and apply annually such sum as may be required to meet the cost of its administration including allowances payable to the members. (3) Every Zilla Panchayat shall have the power to spend such sums as the State Government may, by order, specify for carrying out the purposes of this Act. (4) The Zilla Panchayat Fund shall be vested in the Zilla Panchayat and the amount standing to the credit of the Fund shall be kept in such custody or invested in such manner as the State Government may, from time to time, direct. (5) Notwithstanding anything contained in clause (d) of section 60 but subject to such general control as the Zilla Panchayat may exercise from time to time, orders and cheques for payment from the Zilla Panchayat Fund shall be signed by the Sachiva.

(1) Subject to the maximum rates which may be fixed by the State Government, a Zilla Panchayat may levy following taxes, rates and fees, namely:- (a) a tax on fairs, melas and other entertainments; (b) a general sanitation tax for the construction, maintenance, or both the construction and maintenance of public latrines and for the removal and disposal of refuse; (c) a water rate where arrangement for the supply of water for drinking, irrigation or any other purpose is made by the Zilla Panchayat within its jurisdiction; (d) a fee for temporary erection on, or putting up projections over, or temporary occupation of any village road or place; (e) a fee on private latrines, premises or compounds cleaned by the Zilla Panchayat agency; (f) a fee for grazing cattle on the grazing lands vested in a Zilla Panchayat; (g) a fee on the registration of animals sold in any market or place belonging to or under the control of the Zilla Panchayat; (h) a market fee on persons exposing goods for sale in any market or at any place or in any building or structure therein belonging to or under the control of the Zilla Panchayat; (i) a fee for the use of dharmasalas, rest houses, slaughter houses and encamping grounds; (j) a fee for drainage where system of drainage has been introduced by the Zilla Panchayat; (k) a temporary tax for special works of public utility. (2) The Zilla Panchayat shall not levy taxes, rates or fees referred to in sub-

An appeal against any tax, rare orfee under section 77 may be preferred to the prescribed authority in such maimer and within such time as may be p-rescribed and the decision of such authority shall be final.

Any arrcur of tax, rate or feeimposed under section 80 shall be recoverable as arrears of land revenue or public demand if the Zilla Panchayat passes a resolution to that effect and communicates it to the District Collector.

(1) The District Collector on receipt or communication under section 77 and on being satisfied with the demand shall proceed to recover it. (2) Any sum so recoveree! shall be sent (0, tile Zilla Panchayat ane! shall be credited to the Zilla Panchayat fund.

(1) 11'on a complai nt made to it or otherwise, it appears to the S tate Government thnt any tax, r~te or fee imposed by a Zilla I'anchayat.js excessive, it may, after calling a report from the Zilla Panchnyat in this regard, abolish or suspend or reduce the amount of any tax, rate or fee, ,IS the else may be. (2) The Stale Government may, on its own motion or otherwise after giving the Zilla Pnnchuyut ~111 opportunity of expressing its view in the matter, by order, exempt- (a) any person or class of persons; or (b) any property or description of properties, from the payment of whole or part of any tax, rate or fees subject to such conditions as may be specified in such order.

(1)' Every Zilla Panchuyat shall at such time and in such manner as may be prescribed, prepare in each year a budget of its estimated receipts and expenditure for the next finaucialyear and submit it to the State Government for approval. (2) No expenditure shall be incurrer" unless the budget is approved by the State Governmen t.

1\ Zilla Pnnchayar may prepare in each year supplementary estimates provid- ing for any modification ~f its budget and submit it to the State Government for approval within such time and in such manner as may be prescribed.

A Zilla Panchayat shall keep such accounts in such manner as may be prescribed.

25. In the Principal Act, after section 85, the following new section shall be inserted namely:- "85 A. Liabilities of Sabhapati, Sachiva and Member of Zilla Panchayats :- The provision of Section 48 A relating to Liabilities of Sabhapati or Sachiva or Member of Gram Panchayat shall mutatis-mutandis be applicable to the Adhakshya or Up-Adhakshya or Member of Zilla Panchavat".

The accounts 0[' the runt! 0[' a Gram Panchaynt or Zilla Panchnyat shall be CXHl11i ncd ;\and nud ileel by an nud ilor appoi n rcd uude:' su b-section (:2) of section Ligat such place and in such manner as may be prescribed.

The Sabhnpati or, as the case may be, lhe Adhaksliyn shall produce, or cause to be produced to the auditor ~11 such accounts of the Fund of the Gram Punchayat or the Zilla Pnncbayu: concerned as may be required by the auditor.

For the purposes or an audit under this Act :111 auditor may- (u) require in writing the production before him of any document or the. supply 0[' any information which he considers to be necessary for the proper conduct oi the audit; (L)) require in writing the personn: ,\ppcarance before him of any person accountable for, or having the custody or control of, any such document, or having, directly or indirectly, whether by himself or his partner, any share or .interest in any contract made with, by or 011 behalf of, the members of the Gram Panchayat or the Zilla Panchayat concerned; (c) req uire any person so appearing before him to make nnd sign a declaration in respect of any such document or to answer nnyquestion or prepare and submit any statement; (d) in the event of an explanation being required from the Adhakshyn or other member of the Zilla Panchayat, in writing, invite such person to meet him, and shall, in writing, specify the point on which the explanation is required.

Any person who neglects or refuses to comply with the requisition made by the auditor under section 88 within such time as may be specified, shall, on conviction by a court, be. punishable with a fine. which may extend to two thousand rupees in respect of each item included in the requisition.

(1) Within two months from the date on which an audit under this Act is completed, the auditor shall prepare a report and send a copy of the report to the Sabhnpari, the !\clhakshya, .IS the case may be, of the Grum Pnnchayat or the Zilla Panchayat and to the State Government. (2) The auditor shnll append 10 his report a statement showing- (a) the grants-in-aid recei ved by the Gram Punchayars or the Zilla Pamchayat and the expenditure. incurred therefrom; (b) any material impropriety or irregularity which he may observe in the expenditure or in the recovery of money clue to the Gram Panchayats or the Zilla Panchaynt or in the account of the Gram Panchayats, or the Zilla Pnnchayat Fund; (c) )IIlY loss or wastage of money or other property owned by or vested in the Gram Panchuyat or the Zilla Panchayar.

(1) With in two months from the elate of recei pt of the report referred to ill section 90, the Gram Panchayat or the Zilla Pnnchayat concerned shall, at a meeting, remove or cause to be removed any defect or irregularity pointed outin the report and shall also inform the auditor of the action taken by it. The Gram Panchnyat or the Zilla Punchayat concerned shall give reasons or explanations if any defect or irregularity is not removed. (2) If, within the period referred to in sub-section (1), no information is received by the auditor from the Gram Panchuyat or the Zilla Panchayatconcerned or if rhe reasons or explanations given by it for not removing any defect or irregularity pointed out in the report is not considered sufficient by the auditor, the auditor shall if he has not already exercised or does not propose to exercise the powers conferred upon him by section 92 refer the matter (0 the State Government within such time ane! in such manner as the State Government may prescribe. (3) On receipt of the report under sub-section (2), it shall be competent for the State Government to pass such orders thereon as it may think fit. The orders of the State Government shall, save as provided in sections 92 and 93 be final and the Gr,1111 Punchnyat or the Zilla Panchayat concerned shall take action in accordance with such orders. (4) If the Gram Panchayat or the Zilla Panchayat concerned fails to comply with the order within the period specified therein, the State Government may empower any officer of the State Government to carry out the order. (5) The officer empowered under sub-section (4) shall, for the purpose of carrying out the order, exercise any of the powers which might have been exercised by the Gram Panchayat or Zilla Punchayat concerned.

(1) The aiditor, after giving the person concerned an opportunity to submit an explanation within a time to be specified by him and after considering such explanation, shall disallow every item of account contrary to law and surcharge the same on the person making orauthorixing ihe making 0[' the illegal payments, and shall charge against allY person responsible for the amounr of any loss incurred by the neligcnce or misconduct of that person, and shall, in every such case, certify the amounts due from such person: Provided that the Auditor may ill his discretion waive the surcharge or charge in cases where thcumount involved does not exceed fifty rupees, (2) For the purposes of this section any member of Gram Panchayar or Zilla Panchuyar. as the case may be, who is present at a meeting at which a motion orresolution is passed uuthorising any expenditure which is subsequently disallowed under sub-section (1) orauthorising any action which results ill allY such expenditure, shall be deemed to be a person authorising such expenditure if dissent is not recorded in the proceedings. All such persons shall be held jointly and severally liable for such expenditure. (3) The Auditor shall record in writing his reasons for every disallowance, surcharge and charge made under sub-section (1) and shall, in such manner as may be prescribed.send a certificate of the amount clue and a copy of the reasons for his decision to the person ill respect of whom the certificate is made, and shall also furnish copies thereof LO the Subhapati or Adhakshyn, as the case may be, and the State Government. (4) Tile Stale Government may, (')1'its own motion and within one year from the rccci pt by il of Ihe copy ofthe certificate, set aside or modify any disallowance, surcharge or charge and any certificate in respect thereof made by the auditor.

(1) /vny person 1'1'0111whom .\1\y sum has been certified b)' the auditor to be clue under sccton 911\lay, within thirty clays of the receipt by him of the certificate, appeal to the State Government to set aside or modify the disallowance, surcharge or charge in respect of which the certificate was made und the Slate Government may pass thereon such orders as it thinks fit, and such orders shall be final. (2) Where a person referred to in sub-section (2) of section 92 who has been surcharged as .uuhorising an illegal expenditure, appeals to the State Government under this section, the State Government shall set aside such surcharge if it is proved to its satisfaction rh.u such person voted for the resolution or motion in good faith.

(1) The sum certified by the auditor to be due from any person under section 92 or when an appeal is made undersu b-section (1) of section 93, such sum as may beordered by the State'. Government to be due from such person shall, within two months of the date . of certification, or order, as the case may be, be paid by such person to the Gram Panchayat or the Zilla Panchaynt concerned which shall credit the slim to the Fund of the Gram Panchayat or the Zilla Punchayar concerned. (2) Any sum not paid in accordance with the provisions of sub-section (1) shall be recoverable as arrears of lane! revenue if tlie Gram Panchayut or the Zilla Panchayat, as the cast' may, passes a resolution lO rhat effect .md communicates il to the District Collector. (3) The District Collector 011 receipt of such communication LInder sub-section (2) ane! on being satisfied with the demand, shall proceed to recover it :IS soon as may be and the sum so recoveree! by him shall be sent to the (Jr,\J1) Panchuyut or Zilla Punchayat concerned and the same shall be credited to the Fund of the Gram Punchayat and or the Zilla Palolc!wyat concerned.

(1) All expenses incurred by the Gram Panchayat or the Zilla Panchayat con- ccrned jn complying with any requisition of the auditor under section 88 and in prosecuting an offender under section 89 shall be paid from the Fund of the Gram Panchayat or the Zilla Panchayat concerned, (2) All expenses incurred by the District Collector in connection with the pro- ceedings for recovery of any slim under sub-section (3) of section 94 from a person, if not recoveree! from the person, shnl.ibe paid from the Fund of the Gram Panchay!H or the Zilla Panchayat concerned,

In this Chapter " Commission" means the State Finance Commission constituted by the Governor in pursuance of clause (1) of Article 243 I of the Constitution.

The Chairman of tile Commission shall be selected from among persons who have had experience in public affairs of the State and the two other members shall be selectee! from among persons who- (a) arc, or have been or are qualified to be appointed as Judges of a High Court: or (bjhave special knowledge of the finances and accounts of the State Government; or (c) have lwei wiele experience ill financial matrers and in administration; or (d) have special knowledge of economics.

Before appointing a person to be a member of the Commission, the Governor shall satisfy himself that the person will have.no such financial or other interest as is likely to affect prejudicially his 'funcrions as a member of the Commission, and the Governor shall also satisfy himself from time to time with respect to every member of the Commission that he has no such interest and any person who is, or whom the Governor proposes to appoint to be a member of the Commission shall, whenever required by the Governor to do so, furnish to him such information as the Governor considers necessary for the performance by him of his duties under this section.

A person shall be disqualified for being appointed as or for being a member of the Commission if he - (a) is of unsound mind; Cb) is an undischarged insolvent; (c) h:ls been convicted of an offence involving moral turpitude; (eI) has such financial or other interest as is likely to affect prejudicially his functions as a member of the Commission.

Every member of the Commission shall hold office for such period as may be specified in the order of the Governor appointing him, but shall be eligible Iur re-appointment: Provided that he may, by a letter addressed to the Governor, resign his olfice.

The members of the Commission shall render whole-rime or part-time service to the Commission as the Governor m.iy in each else specify, and there shall be paid to the members of the Commission such salaries ane! such allowances as may be prescribed.

The Conrmission skill determine their procedure and in the perform:1J1Ceoftheir function shall have (Ill the pOWCI·Sofn Civil COLIrt under tile Code of sot Civil Procedure, 1c)()S while tryill!; a suit ill respect of the following matters, 1908 n~\me] y:- (a) summoning and enforcing the atrend.mcc of witnesses: (b) requiring the production 01" <In)' documents; (c) requisitioning (lilY public record from any COLIrt or office. (d) such other powers as may be prescribed

Every mcm bel' 01' a G rum P:\ nch uyat or 01' Zi Ilu h\ nchay.u other than a member referred to in CI:lllSC (c) or sub-section (I) 01' section SO shal: before taking his office make and subscribe before such authority ,ISmay be specified by the State GOVCI'Il1111ellt ill this behalf an o.uh or nffirmation uccording to the Form set out for the purposein the Schedule.

No net or proceeding of a Gram Panchayut or Zilla Panchayat shall be deemed to be invalid merely byreason ofrhe exisrence ofany vacancy in the Gram Punchaynt or Zi lln Panchuyat, ,ISthe case may be, or any defect or irregularityin the constitution thereof.

All members, officers and employees of the Gram Pnnchnynt and Zilla Panchayat shal! be deemed when acting 01' purporting to act in pursuance of the discharge of their duties, or ill the exercise of their powers under this Act or under the rules mack thereunder, to be public servants within the meaning of section 21 5 of of the Indian Penal Cocie. 1860

No su it or other legal proceedings shall Iie ,lg:li nst a Gram Panchnyat or Zilla Panchnayur or against allY member thereof or <lny officer or any employee for ,lnything in good faith clone or inrendcd io be clone in pursuance of this Act 01' any rules ninde thereunder.

AI)), officer of the State Government nurhorised by the State Government in this behalf, shall be entitled to attend meetings of the Gram Panchayat or the Zilla Panchayat, as the case may be, for the purpose of furnishilli:;, facts, information and technical advice but shall not be entitled to vote at any such meeting.

In the discharge of their functions the GI\ln1 Panchayat and the Zilla Panchayat shall be guided by such instructions or directions as may be given to them by the State Government from time to rimein conformity with the provisions of this Act..

If, in the opinion of the State Government, any Gram Panchayat or Zilla Panchayat- (u) has shown its incompetence to perform or has persistently made default in the performance of the dutiesimposed on it by or under this Act or any other law; or (b) has exceeded or abused its powers, the State Government may; by order, to be published jn the Official Gazette stating the reasons therefor, supersede the Gram Panchayat or Zilla Panchayat, as the case may be, and direct that it be reconstituted within such period not exceeding the maximum period of one year as may be specified in the orders: Provided that the Slate Government shall, before making any order give the Gram Panchaynt or the Zilla Panchayat, as the case may be, an opportunity of making a representation against the proposed order,

If a.Subhnputi or an Up-Snbhapari, or Sachivu or a member of it Gram Panchayut or an Adhakshya or ,1n Up-Adhakshya or member of Zilla Panchayat becomes a member of either house of Parliament or a member of Leg-islative Assembly, he shall be deemed to have vacated his office as Sabhapati or Up-Sabhapati or Suchiva or member of a Gram Panchaynt or Adhnkshya or Up-Adhnkshynor member of a Zilla Panchayat, as the case may be, with effect from the date of his becoming such member and a casual vacancy shall be deemed to have occurred in such .office.

Any act of commission or omission which is an electoral offence in relation to elections to the Legislative Assembly under Chapter VII of the Repre- sentarion of the Peoples Act, 1951 or under any In w for the time beingin force shall be deerucd to be an electoral offence in relation to the elections to the Gram Panchayats under t'ilis Act.

The State Governmentshull have the same powers in the matter of. requisition of premises, vehiclesand animals for the purpose of the conduct of elections to the Gram Panchnyats as in the case of elections to the Legislative Assembly.

lf any question arises us to whether a person has become subject to any clisqual i ficutiou.thc C] uest ion shall be referred to I he prcscri bed au rhoriry for his decision 'and his decision shall, subject to the result or any appe,II ,IS may be prescribed, be final: .,. . Provided that 110 order shull k· P'\L'c.\unclcr this section unless the person so d ixqua lificd is giwn:lll opportunity (>I !":i,,.!.' !',::Irci -.

Adhakshaya or an Up-Adhakshya of a Zilla Pnnchayat may, during the continuance of the outbreak, wi thour notice and at any time, inspect and disinfect any well or other place from which water is, or is likely to be, taken for the purpose of drinking and may further take such steps as he deems fit to prevent the drawing of water therefrom.

The Cram Panchnyat or Zilla Panchaynt concerned shall prepare ane! submit annually a report on work clone cluri ng the prev ious year and the work proposed to be clone during the following year to the prescribed authority within such period as may be specified by the State Government.

The Slate Government may, by notification, place at the disposal of a Gram Panchny.u or Zilla Punchayut services of xuch officers or other employees serving under it on such terms and conditions as may be fixed by the State Government: Provide ..d that the Suue Government shall have disciplinary control over such officers and employees.

27. In the Principal Act, after section 123, the following section shall be inserted namely:- "123A. Pool of experts and specialists.- A pool of experts and specialists (e.g. Engineers, Planner, Accountants etc.) may be maintained by State Government or District Panchayat. This common pool could be then accessed by the Panchayats whenever required for specific tasks on payment".

(1) Where parties to a dispute appronch the Gram Panchnyat or as the case may be, the Zilla Pnnchayat for settlement of dispute, then the Gram Panchayat or the Zilla Panchayut may settle such dispute if any law in force.permits such settlement outside courts. (2) Without prejudice to the powers conferred under sub-section (1), the dispute which a Gram Panchnyat, or as the case may be, thc Zilla Panchayar may take cognizance may be:- (a) dispute relating to-; (a) irrigation channel in the Gram; (b) cattle trespass; (c) d.unuges of crops caused by cattle trespass; (d) g,\l1lbling; (e) encroachment of one's land by another: (f) theft ol' property where. the vnlue of such property docs not exceed five hundred Rs. 500; and (g) such other petty Iumily und social disputes.

The Slate. Government may, by notification, delegate, subject to such conditions as it m.iy specify, all or any of its powers under th is Act except the power under section 130 to any person or authority subordinate to it.

The members of the Gram Panchuyat or the Zilla Panchuynt shall be entitled to such siltling allowances fur unending meetings of the Gram Panchayat or the Zilla Panchny.u and ll·avclling allowances that may '1'011\ from time to time be fixed by the State Government: Provided th.u such silting allowances ,Ile! travelling allowances arc' paid from the Gram Panchaynt Fund 01' Zi.II~1Panch.iyat Fund.

28. In the Principal Act, in section 127:- (i) in the marginal heading the word after "Constitution" and before the word "of' the words "Function" shall be inserted. (ii) for section 127 and the entries relating thereto, the following shall be substituted, namely:- "127. (1)The State Government shall constitute District Planning Committees (District Planning Committees) in every District within three months of completion of elections to Panchayats. The District Planning Committee shall have a planning office with a full time District Planning Officer. The District Planning Committees shall be constituted to consolidate the plans prepared by the Panchayats and the Municipalities in the District and to prepare a draft development plan for the District as a whole. EXPLANA TION - DPO means any substantive officer appointed by the State Government trained and monitored by the DPER & NECA Department. (2) The District Planning Committee shall consist of such number of members as may be specified by the State Government from time to time by Notification in the Official Gazette and in so fixing the total number of members of the District Planning Committee, the State Government shall specify the number respectively of the nominated members and elected members: Provided that not less than four-fifth of the total number of members of the District Planning Committee shall be elected by and from amongst, the elected members of the District Panchayat and the Municipalities in the District in proportion to the ratio between the population of the rural and urban area in the District. (3) the nominated members may consist of :- (a) persons representing the State Government; . (b) members of the Legislative Assembly who represent a constituency comprising the whole or part of the District. (c) members representing such organizations and institutions as may be deemed necessary by the State Government. (4) The District Planning Committee shall have- a) such functions relating to District planning as may be assigned to it by the State Government; (b) such powers as may be conferred on it by the State Government. (5) The Chairperson of the District Planning Committee shall be the Chairperson of the District Panchayat concerned. (6) Every District Planning Committee shall, in preparing the draft development plan, have regard to- (i) Matters of common interest between the Panchayat and the Municipalities including spatial planning, sharing of water and other physical and natural resources, the integrated development of the infrastructure and environmental conservation; (ii) The extent and type of available resources whether financial or otherwise. and (iii) Consult such institutions and organizations as the State Government may by order, specify. (7) The Chairperson of every District Planning Committee shall forward the development plan, as recommended by the District Planning Committee, to the State Government. (8) There shall be a planning office headed by the District Planning Officer to assist the District Planning Committee. The appointment of the staff and officers of the planning office shall be made according to the rules made by the State Government'".

(1) Any person who soon after the expiry of his term or resigning fr0111he office or removal from the office of Subhapati orUp-Sabhapari or Sachiva of Gram Panchayat 01' Adhakshya or Up-Adhukshya of Zilla Panchayat as the case may be, fails to hand over any. document or, any money or other properties vested in or belonging to, the Gram Panchayar or ZillaPanchayar, 'IS the case may be, which are in his possession or control, to his successor-in-office, shall Oil conviction, be punished with ~1fine which may extend to five hundred Rs. 500 and in the case of a continuing failure or contravention with an additional finewhich.may extend to fifty Rs. 50 for everyday after the first conviction during which he has persisted in tile failure or conrravenrion. (2) Any person who wil Iu 11)1 obstructs any member or-office bearer or servant of all Gram Panchaya t or a Zi lla Panchuyur, as the case may be, in the discharge of his duties or any thing which he is empowered to do shall, 01nconviction, be punished with a fine which may extend to five hundred Rs. 500. (3) Any person required by this Act or rules made thereunder to fun-ish any informarion fails to furnish such information or knowingly furnishes wrong information shall, on conviction, be punished witha fine which may extend to five hundred Rs. 500. (4) Any person who contravenes the provisions of this Act or rules made thereunder for which-no penally is provided for under this Act shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to two hundred Rs. 200, or with both.

No person shall contest the election to any Panchayatwith the support, direct or indirect, of any political party.

(1) The St

If any difficulty arises in giving effect to the provisions of this Act, the State Government may take such steps or issue such orders noti nconsisrent with the provisions of this Act as may appear to it to be necessary or expedient for the purpose of removing such difficulty: -Provided that no such order shall be made after the expiry ora period of two years 1'1'011\ the dare of COml11CllCCl11cnlof this Act.

On and from the date of commencement of this Act, the Srkkim Panchayat Act, 1982 shall stand repealed and all assets and liabilities of the Gram Panchaynrs constituted under the repealed Act, 1982 shall stand repealed and all assets and liabilities of the Gram Panchayuts or Zilla Punchnynrs constituted under the repealed Act shall continue to vest ill the respective Gram or Zilla Panchnyut, as the case may be: Provided that such repeal shall not effect- (a) the continuance of the existing Gram Panchayut or the Zilla Pnnchayat as the case may be, by virtue of the operation of the proviso to Article 243 N of the Constitution; or (b) the previous operarionof the repealed Act or anything duly clone or suffered thereunder; (c) any right, privilege, obligation or liability .cquired, accrued or incurred under the repealed Act; or (d) any penalty, forfeiture or punishment incurredin respect of-any offence committed ag~\III:,l the repealed I\C!; or (e) any investigation, legal proceeding or remedy ill respect of any such right, privilege, oblig.uion, liability, penalty, forfeiture orpunishment as aforesaid; and (f) any such invcsrigarion, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishmentmay be imposed asif this Act hac! not been passed: Provided further that subjecr to the preceding provision anything done or any action taken (including any appointment or deleg.uion madc, notification, notice, order, instructions or direction issued, rule, regulation.form or scheme framed, certificate obtai ncd, pcrmi t or Iiccnce gran red, tax imposed or fee or rates lev ied) under the repealed Act shall, in so far as it isin force immediately before commencement of this Act and is not inconsistent with the provisions of this Act be deemed to have been clone or taken under the corresponding provisions of this Act and shall continue to be in force accordingly, unless nnduntil they are repealed or amended or suspended.

29. In the Principal Act, after section 132, the following section shall be inserted. namely:- "133 - Powers and responsibilities of police in respect of offences and assistance to the Panchayats.- Every police officer posted within the territorial limit of the Panchayat shall give immediate information to the Panchayat of an offence coming to his knowledge which has been committed under this Act or any rule or by-law made thereunder and shall assist all the members, officers and servants of the Panchayat in the exercise of their lawful authority".

30. In the Principal Act, after section 133, the following new sections shall be inserted, namely:- "134. Standing Committees of Panchayats.- 1. (1) In every Panchayat at all levels Sectoral Standing Committees as stated below shall be constituted: (a) Standing Committee for Finance. (b) Standing Committee for Economic Development and Planning. (c) Standing Committee for Welfare and Social Justice. :> (d) Standing Committee for Health, Nutrition, Sanitation and Drinking water. (e) Standing Committee for Education and Skill Development. (f) Standing Committee for Agriculture, Forestry, Watershed and Allied Activities. (2) In the District Panchayat a Standing Committee for Public Works shall also be constituted. (3) Every Standing Committee shall consist of such number of members, including its Adhakshya or Sabhapati, as decided by the Panchayat, so that all elected members except the Adhakshya and Up-Adhakshya or Sabhapati and Up-Sabhapati shall be members in one of the Standing Committees and the number of members to each Standing Committee shall, as far as possible, be equal. (4) The number of members of each Standing Committee as decided by the Panchayat under sub-section (2) shall not be changed within the term of that Panchayat. (5) In every Standing Committee there shall be members appointed in accordance with the procedure prescribed by the Panchayat itself. No Panchayat representative shall be a member of more than one Standing Committee at a time. (6) The Chairperson of every Standing Committee, except the Standing Committee for Finance, shall be elected by the members of the respective Standing Committee from among themselves. (7) TheUp-Adhakshya or Up-Sabhapati of Panchayat shall be an ex-officio member and Chairperson of the Standing Committee for Finance and the Sabhapati of Panchayat shall be an ex-officio member of all Standing Committees without the right to vote. (8) A member other than an ex-officio member of a Standing Committee and the Chairperson of a Standing Committee other than the Standing Committee for Finance may resign the membership or Chairmanship of a Standing Committee, as the case may be by tendering resignation to the Sachiva of the Panchayat in the prescribed form and the resignation shall take effect from the date on which it was received by the Sachiva and the Sachiva shall inform the Chairperson and the Panchayat immediately of the fact. (9) The person who intends to resign from the membership or Chairmanship of the Standing Committee shall personally present such resignation letter to the Secretary who shall acknowledge the receipt of the same. (10) Except as otherwise provicfed in this Act, the term of the Chairperson of a Standing Committee or its members shall co-exists with the term of that Panchayat. (11) An election to fill up a casual vacancy of a member of a Standing Committee shall be conducted within thirty days of the occurrence of that vacancy: Provided that where the vacancy in a 3~::.:nding Committee could not be filled due to the vacancy of a member of Panchayat, the vacancy of Standing Committee shall be filled up within thirty days from the date of filling up of the vacancy of the member of Panchayat. (12) If a casual vacancy of the Chairperson of a Standing Committee other than the Standing Committee for Finance arises, one of its members shall be elected as its Chairperson in the next meeting of the Standing Committee. (13) A motion of no-confidence against the Chairperson of the Standing Committee other than the Standing Committee for Finance may be moved subject to the prescribed provisions and procedures and if such a motion is passed with the support of not less than the majority of the members of the Standing Committee, the Chairperson of that Standing Committee 'shall cease to hold office and shall be deemed to have vacated the office of the Chairperson of the Standing Committee immediately".

"135. Meetings of Standing Committees.- In regard to conduct of business at its meetings, a Standing Committee will follow such procedure as may be prescribed".

"136. Subject to be dealt with by the Standing Committees.- (1) The following subjects shall be dealt with by the Standing Committees of the Panchayat: (a) In a Gram Panchayat, - (i) The Standing Committee for Finance shall deal with the subjects of finance, tax, accounts, audit, budget, generaL administration, appeals relating to tax and subjects not allotted to other Standing Committees; (ii) The Standing Committee for Economic Development shall deal with the subjects of development planning, socio-economic planning, spatial planning, small-scale industry, housing, regulation of building construction, electricity, poverty alleviation programmes, slum improvement, food security including the public distribution system, markets etc; (iii) The Standing Committee for Welfare and Social Justice shall deal with the subjects of economic, social, educational, cultural and other interests of Scheduled Caste-Scheduled Tribe, protection of such castes and classes from social injustice and any form of exploitation, development of women and children, social welfare, social security etc. (iv) The Standing Committee for Health, Nutrition, Sanitation and Drinking Water shall deal with the subjects of public health, social hygiene, public works, sanitation, water supply, sewerage, environment etc; (v) The Standing Committee for Education and Skill Development shall deal with the subjects of education, art & culture and entertainment;, (vi) The Standing Committee for Agriculture, Forestry, Watershed and Allied Activities shall deal with the subjects of agriculture, soil' conservation. social forestry. animal husbandry. diary development, minor irrigation, fisheries, and other matters connected with development of agriculture and live-stock. (b) In the District Panchayat, - (i) The Standing Committee for Finance shall deal with the subjects like finance. accounts. audit. budget. gener21 administration and subjects not allotted to other standing committee; (ii) The Standing Committee. for Economic Development and Planning shall deal with the subjects like development planning. socio-economic planning, small scale industry, etc. (iii) The Standing Committee for Public Works shall deal with the subjects like public works. housing. spatial planning and environment; (iv) The Standing Committee for Health, Nutrition. Sanitation and Drinking Water shall deal with subjects like public health, rural water supply, sanitation and allied subjects. (v) The Standing Committee for Education and Skill Development shall deal with subjects like education; (vi) The Standing Committee for Welfare shall deal with subjects like social welfare, development of women and children and development of scheduled caste-scheduled tribe; (vii) The Standing Committee for Agriculture, Forestry, Watershed and Allied Activities shall deal with the subjects like agriculture, soil conservation, animal husbandry, mine: irrigation, fisheries and allied subjects. (2) The Standing Committees of the Panchayat may perform such other functions as may be entrusted to them by the Panchayat in addition to the powers and duties conferred on them by rules made in this behalf. (3) Every resolution passed by the Standing Committee shall be placed before the Panchayat in its next meeting and the Panchayat shall have power to modify such resolutions if considered necessary. (4) Experts in relevant subject matter shall be invited to attend the meetings of the respectlveBtandinp Committee and render necessary assistance to the committee in the discharge of its functions".

"137. Power to call for records from standing Committees.- A Panchayat may at any time call for any document including extracts from the proceedings of the meetings of any Standing Committee any return, account statement or report concerning or connected with any matter with which such Star,~ing Committee has been authorized or directed to deal. and every such requisition shall be complied with by the Standing Committee".

"138. Power to revise decisions of Standing Committees.- (1) A Panchayat may, on application made to it or otherwise, examine the record of any decision of any of its Standing Committees and may confirm, reverse or modify such decision: Provided that no action under this sub-section shall be initiated after the expiry of three months from the date of the decision sought to be revised. (2) The order of the Panchayat under sub-section (1) reversing or modifying a decision of its Standing Committee must be supported by a majority of the total number of its members, failing which the decision of the Standing Committee shall stand".

(4) Where the offices of both the Sabhapati and Up-Sabhapati are vacant, the Chairperson of the Standing Committee in the order mentioned in sub-section (1) of Section 134, shall pertorm the functions of the Sabhapati of the Panchayat till a new Sabhapati or Up-Sabhapati of the Panchayat assumes office and where there is no Sabhapati or Up-Sabhapati of the Panchayat or Chairperson of Standing Committee to hold the office of the Chairperson, the eldest among the elected members shall pertorm the functions of the Sabhapati of the Panchayat until the Sabhapati or Up-Sabhapati of the Panchayat or Chairperson of any Standing Committee assumes office. Explanation - The word "senior-most" within the meaning of this sub-section means the person who has been continuously holding the membership of the Panchayat for the maximum period. If more than one person become senior-most within the meaning of this Explanation, in the event, the person oldest in age among them will be the senior-most.

(5) Without prejudice to the generality of the foregoing provisions, the Sabhapati of the Panchayat shall, preside over and regulate the meetings of the Panchayat and Gram Sabha of which he is the Sabhapati; (a) to exercise supervision and control over the acts done and actions taken by all officers and employees of the Panchayat; (b) incur contingent expenditure up to such limit as may be fixed by the State Government from time to time; (c) authorize payment and refunds pertaining to the Panchayat; (d) to prepare all statements and reports required by or under this Act; (f) exercise such other powers and discharge such other functions as may be conferred or imposed upon him by this Act or rules made there under. (g) The Sabhapati may, in case of an emergency, direct the execution of any work or the doing of any act which requires the sanction of the Panchayat, and the immediate execution or doing of which is, in his opinion, necessary for the safety of the public and may direct that the expenses of executing such work or doing such act shall be paid from the funds of the Panchayat: Provided that, he shall not act under this sub-section in contravention of any decision of the Panchayat prohibiting the execution of any particular work or the doing of any particular act; (a) he shall report the action taken under this sub-section and the reason thereof to the Panchayat at its next meeting and obtain its approval thereof.

(7) The Sabhapati of the Panchayat shall also have the following powers :- (a) to ensure the attendance of the employees under the control of the Panchayat including the employees of the State Government transferred to the Panchayat in the meetings of the Panchayat; (b) to report against if necessary, any employee or officer under the control of the Panchayat and State Government Officers, in the Gazetted rank who are transferred to the service of the Panchayat, when disciplinary proceedings are to be taken against them for dereliction of duty or insubordination or for violation of rules or standing orders to the Prescribed Authority, (c) to refer immediately to the State Government any resolution passed by the Panchayat, which, in his opinion has not been passed in accordance with law or is in excess of power conferred by this Act, or any other law or if carried out, is likely to endanger human life, health or public safety"

13. In the PrincipalAct, section 32 and 33 shall be omitted.

16. In the Principal Act, after section 39,the following new sections shall be inserted, namely:- "39 A. Transfer of Funds to the Panchayat :- The State Government shall release funds to the Panchayats in such a manner that these institutions get adequate time to use the allocation during the year itself. The fund release could be in the form of equally spaced installments. It could be done in two installments, one at the beginning of the financial year and the other by the end of September of that year. 39 B. Grants and Shares of Taxes.- (1) The State 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, duties, cess and fees as are necessary to the Panchayats for the proper discharge of their functions under this Act. (2) The shares of taxes collected by the State Government shall be distributed among Panchayats at all levels in an equitable manner according to the formula fixed by the State Government to this effect".

24. In the Principal Act, after section 76, the following new sections shall be inserted namely:- "76 A. Transfer of Funds to the Panchayat.- The State Government should release funds to the Panchayats in such a manner that these institutions get adequate time to use the allocation during the year itself. The fund release could be in the form of equally spaced installments. It could be done in two installments; one at the beginning of the financial year and the other by the end of September of that year. 76 B. Grants and Shares of Taxes.- (1) The State 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, duties, cess and fees as are necessary to the Panchayats for the proper discharge of their functions under, this Act. (2) The shares of taxes collected by the State Government shall be distributed among Panchayats at all levels in an equitable manner according to the formula fixed by the State Government in this behalf ".

(1) if such taxes, rates or fees have already been levied by the State Government or nny other authority under any law for the time being in force or by any other local authority nuthorised by the SUIte Government. 7R. (1) The Stare Government 111"y make rules to regulate the impos'ition, assessment to, and collection of taxes, rates and fees under section 77. (2) Subject to the provisions of this Act or rules made thereunder, no person shall object in respect of his liability to any assessment mack or tax imposed under this Act.

(1) The superintendence, direction and control of the preparation of electoral rolls for and conduct of, all elections to the Gram Panchayat and Zilla Panchnyat shall be vested in the State Election Commission consisting of a State Election Commissioner to be appointed by the Governor. (2) The cond ilions of service and tenure of office of the State Election Com- missioner shall be such as the Governor may by rule, determine: Provided that the SUIte Election Commissioner shall not be removed from his office except in like manner anci on the like grounds as a Judge of a High Court and the conditions of service of the Stale Election Commissioner shall not be varied to his disadvanrnge after hls appointmcnr. (3) The Governor shall, when so requested by the State Election Commis- sion, make avuiluble to the State Election Commission such staff as may be necessary for the discharge of the functions conferred on it under sub-section (1).

If any dispute arises between two or more Grum Panchayat, within the jurisdiction of the same Zilla Pnnnhuyur, it shall be referred to the Zilla Panchayat concerned by any parry to the dispute and the decision of the Zilla Panchayat thereon shall be final. (2) If any d ispu te arises- (a) between a Gram Panchayat within a district on the one side and the Zilla Pnnchayat of the same district on the other; or (b) between two or more Zilla Punchnyats; or (c) between one or more Gram Panchayars i n one district 011 tile one side and one or more Cram Punchayuts ill nnother district 011 the other; or (d) bet ween one or more Gram Punchuyats ill one d isrrict 011 the one side and the Zilla Punchayut or another district 011 the other; such dispute shall be referred to the State Govcrument by any party to the dispute. and the decision of the State Government thereon shall be fined.

(1) The State Government shall empower the Sccrcrnry to the Government in the Rural Development Department aile! such other officers as it may consider necessary for the purpose of inspection or superintending the works of all, or any class of, Gram Panchayats or Zilla Panchayars, (2) Ail officer so empowered to inspect or superintend. lite works of a Gram Panchayat 0'1' Zilla Panchayut may at any time- (arinspect orcause to be lnspecred any immovable property used or occupied by the GI~111lPanchaynt or Zilla Pnnchnyat or any work In progress under the direction of Gram Panchayat or Zilla Panchayat; (b) inspect or examine any work or thing under the control of the Gram Panchaynt or Zilla Panchayat; (c) require, for the purposes of inspection or examination, the Gram Panchayat- (i) to produce any book, record, correspondence, plan or other document; or (ii) to furnish any return, plan, estimate, statement, accounts or statistics; or (iii) to furnish or obtain any report or information. (3) When an inspecrionof a Gram Panchuyat or Zilla Pnnchayat is undertaken by any officer referred to in sub-section (1), a report of such inspection shall be submitted by such officer [0 the State Government as soon as possible but not beyond a period of thirty clays after the date of completion of inspection.

(1) The State Government may, by order in writing, rescind any resolution passed by a GrnmPanchayat orZilla Pnnchayar, if in its opinion such resolution- (a) has not been legally passed; or (b) is in excess or abuse of the powers conferred by or under this Act or any rules made thereunder; or (c) is likely to cause, if executed, danger to human life, health, or safety or is likely to lead to breach of the peace. (2) The State Government shall, before laking any action under sub-section (1) give the Gram Panclrayat orZilla Pnnchnyat concerned nn opportunity of making anyrep- resenration :lg,liJls~ the proposed order.

(1) The State Government may, notwithstanding anything contained in sub- section (2) of section 17; sub-section (4) of section 31 and sub-section (2) of section 54, by an order in writing remove with effect from a elate to be specified in the order any Sabhapati or U p-Sabhapari or any Sachivu of Gram Pnnchayat, any Adhakshaya Or Up-Adhukshya of Zilla Panchayar from his office, if in its opinion, he wilfully omits or refuses to carry out the provisions of this Act or of any rules or orders made thereunder or abuses the powers vested in him under this Act. (2) The State Government shall, before making any order under sub-section (1), give to the person concerned an opportunity of making a representation against the proposed order.

(1) When an order of supersession has been passed under section 114 then with effect from the clare of the order- en) all the members of the Gram Pauchayat or the Zilla Panchayat, as the case may be, shall vacate their offices; (b) allthe powers.du ties and functions which, under the provisions of this Act or any rule made thereunder orany law for the time being in force may be exercised, dischargco or performed by the Gram Pnnchayut or Zilla Panchnyat, as the case may be, shall be exercised, discharged or performed by such authority; person or persons as may be appointed by the State Government in this behalf; (c) all properties vested in the Gram Panchnyut orZilla Punchayat, as the case mily be, shall remain vcsrcdin the Stille Government until the reconstitution of such Gram Panchnyat or Zilla Pnnchnyur. (2) On the reconstitution ofrhe Gram Panchayat.orZilla Panchayat, as the case may be, the authority, person or persons appointed under clause (b) of sub- section (I) shall cease to exercise his functions.

(1) The election of a person HS a member of it Gram Panchayat or Zilla Panchayar shall not be calledin question except by an application presented to such nuthoriry within such time ~1J1din suchmanner as may be prescribed on the ground that- (~l) the election has not been a free election by reason that the corrupt practice of bribery or under influence has extensively prevailed at the election; or (b) that the result of the elect-ion hns becnmarerially affected- (i) by the improper nccepiunce or rejection {If any nomination; (ii) by gross failure to comply with the provisions of this Act or the rules fr: ncd thereunder. (2) The following shall be deemed to be corrupt practices of bribery or undue influence for the purposes of this Act. (1) Bribery, that is to say- (A) an)' gift, offer or promise by a cnndidate or by any other person with the connivance of a candidate of any gratification to any person whomsoever, with the object, directly or indirectly of inducing- (a). a person to stand or not to stand as, or to withdraw from being a candidate at \I1y election; or (b) an elector to vote or refrain from voting ar an ejection; or as u reward to- (i) a person for having stood or not stood or having withdrawn his candidature, or (ii) an elector for having voted or refrainedfrom voting. (13) Undueinfluence, tlrut is to say, any direct or indirect interference or attempt to interfere on the part of a candidate or 0·1' any othe- person with the connivance of the candidate with till: free exercise of any electoral right: Provided ih.u without prejudice to tile generality of the provisions of this clause any such person as is referred to therein who- (i) threatens ;111)' candidate