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7.1 The constitutionality-issue that the petitioners raise has a legislative setting. Panchayats have been units of local government from time immemorial in India. As time glided through the pages of history, they gained statutory status, with statutes governing their constitution, existence and powers. Then descended on the Indian Constitutional panorama, the Constitution 73rd and 74th Amendments, commonly referred to as Panchayati Raj Amendments, creating tectonic shifts in the conceptualisation of the local bodies from a prevailing understanding as units of local governance to an empowered, self-governing Constitutional institutions. These amendments introduced Part IX and IX-A to the Constitution, the former concerning the Panchayats and the latter with the Municipalities. Through its 73rd Amendment, Constitution has made a declaration that the Panchayats be endowed with powers of self-governance and directed that it be accomplished through the legislative process of the State legislatures. Article 243-G in Part IX of the Constitution requires the State legislature to make law to endow the Panchayats with powers of self-governance which may provide for the devolution of powers and responsibilities upon the Panchayats subject to such conditions as the State Legislature may impose. Such powers so granted may include matters listed in the Eleventh Schedule. 243-W is worded in pari materia but deal with the Municipalities, and there the power which the State enactment may endow the Municipalities with, may include matters listed in the Twelfth Schedule. The ensuant consequence is that it has now become mandatory for the State legislatures to make laws to translate the Constitutional idea of endowing powers of self-governance into a functional reality.

26.1 Where then, does the inconsistency sprout from? Article 243-N, may not be the fountain head of the alleged inconsistency since it provides only the consequence, an inconsistency that it deals with invites. Article 243-G is significantly relevant here. It reads:

243-G. Powers, authority and responsibilities of Panchayats:- Subject to the provisions of the Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to
(a) the preparation of plans for economic development and social justice;
(b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. Article 243-G in essence provides: (a) The State legislature may make law for endowing the Panchayats with power of Self-governance; and (b) that a law legislated in terms of Article 243-G, may contain provision for devolution of powers and responsibilities upon Panchayats.

29. Guided by an understanding of this judicial interpretation, an integrated reading of Sec.49 of the TCP Act, the Panchayat Act, 1994 with its Rules, and Article 243-G of the Constitution may now be attempted. It then would leave an inference that Rule 25 of the Building Rules is a statutory contrivance devised for the limited devolution of State's authority on the subject of Town Planning upon the Panchayat, as an inevitable derivative. It is a legislatorial statement that resonates to the rhythm of the Constitution. This devolution of powers may not be absolute, still it is not a symbolism; nor are they pretensions. This transfer of power is real and functional, as it is driven by the Constitutional quest for constituting self-governing Panchayats.