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20. Part IX of the Constitution of India was inserted by the Constitution (Seventy Third) Amendment Act 1992. The said amendment was brought to give effect to one of the Directive Principles of the State Policy (DPSP), namely Article 40 of the Constitution, whereby the State is required to take steps to organise village Panchayats and endow upon them with such powers and authority as may be necessary to enable them to function as units of self government. The instant proceedings relate primarily to the devolution of the powers of the State upon the Panchayats as mandated in Article 243G and Article 243H of the Constitution of India. Under such circumstances, it is Page No.# 29/41 necessary to deal with the said Articles of the Constitution. Article 243 G of the Constitution is reproduced hereinunder:

'243G. Powers, authority and responsibilities of Panchayats. - Subject to the provisions of this 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'.

21. A perusal of the above-quoted Article 243 G shows that the legislature of the 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 devolution of powers and responsibilities upon Panchayats at appropriate level subject to such conditions as may be specified therein. The conditions have been enumerated in Sub- Articles (a) and (b) of Article 243G of the Constitution. The conditions relate to preparation of plans for economic development and social justice as well as to implementation of schemes for economic development and social justice as may be entrusted to them, including those in relation to matters listed in the Eleventh Schedule. A further reading of Article 243 G read with the Eleventh Schedule to the Constitution would show that it is not a source of legislative power and it is only an enabling provision that empowers the State to endow functions and devolve powers and responsibilities to Panchayats by enacting Page No.# 30/41 relevant law. Article 243 H of the Constitution is reproduced hereinunder: