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"5. Local Government, that is to say, the Constitution and powers of Municipal Corporations, Improvement Trusts, District Boards, mining settlement authorities and other local authorities for the purpose of local self-Government or Village administration".

9. Article 40 of the Constitution which enshrines one of the Directive Principles of State Policy lays down that the State shall take steps to organise village Panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-Government. Notwithstanding the directive in Article 40 not much attention was paid in establishing the Panchayat Raj Institutions. It was observed that in spite of the existence of Panchayat Raj Institutions for a long time, these institutions had not acquired the status and dignity of viable and responsive people's bodies due to a number of reasons including absence of regular elections, prolonged supersessions, insufficient representation of weaker sections like Scheduled Castes, Scheduled Tribes and women, inadequate devolution of powers and lack of financial resources. In the light of the experience in the last forty years and in view of the short-comings observed, the Parliament considered the imperative need to enshrine in the Constitution certain basic and essential features of Panchayat Raj Institutions to impart certainty, continuity and strength to them. Accordingly, by 73rd Amendment it was proposed to add Part IX relating to Panchayats in the Constitution to provide for among other things, Grama Sabha in a village or group of villages, constitution of Panchayats at village and other level or levels; direct elections to all seats in Panchayats at the village and intermediate level, if any, and to the offices of Chairpersons of such Panchayats at such levels; reservation of seats for the Scheduled Castes and Scheduled Tribes in proportion to their population for membership of Panchayats and office of Chairpersons in Panchayats at each level; reservations of not less than one-third of the seats for women; fixing tenure of 5 years for Panchayats and holding elections within a period of 6 months in the event of supersession of any Panchayat; disqualification for membership of Panchayats; devolution by the State Legislature of powers and responsibilities upon the Panchayats with respect to the preparation of plans for economic development and social justice and for the implementation of development schemes; sound finance of the Panchayats for securing authorisation from State Legislatures for grants-in-aid to the Panchayat from the Consolidated Fund of the State, as also assignment to, or appropriation by, the Panchayats of the revenues of designated taxes, duties, tolls and fees; setting up of a Finance Commission within one year of the proposed amendment and thereafter every 5 years to review the financial position of Panchayats; auditing of accounts of the Panchayats; powers of State Legislatures to make provisions with respect to elections to Panchayats under the superintendence, direction and control of the Chief Electoral Officer of the State. State Governments were required to pass laws to bring their laws in conformity with Part IX of the Constitution inserted by the 73rd Amendment which came into force with effect from 24th April, 1993. State of Karnataka enacted Karnataka Panchayat Raj Act, 1993 (for short, 'the Act') in order to incorporate and give effect to the provisions of Part IX of the Constitution of India.