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ABSTRACT Town Panchayats - Conversion of 566 Town Panchayats as Village Panchayats - Orders - Issued. MUNICIPAL ADMINISTRATION & WATER SUPPLY (Election) DEPARTMENT G.O.(Ms)
NO: 270 READ: G.O.(Ms)No.139, Municipal Administration and Water Supply Department, dated 31.5.1994. G.O.(Ms)No.142, Municipal Administration and Water Supply Department, dated 31.5.1994. G.O.(Ms)No. 203, Municipal Administration and Water Supply Department, dated 13.8.1997. G.O.(Ms)No. 204, Municipal Administration and Water Supply Department, dated 13.8.1997. Govt. Lr.No.6242/Elec/2002-4, Municipal Administration and Water Supply Department, dated 17.12.2003. From the Director of Town Panchayats Lr.Na.Ka.No.3603/02/E.1 Dated27.1.2004 .... ORDER:- Prior to the Constitution (74th Amendment) Act,1992, the town panchayats were governed under the Tamil Nadu Panchayats Act,1958. After the adoption of the Constitution amendments in the year 1994 in this State, the town panchayats were brought under the Tamil Nadu District Municipalities Act,1920 (Tamil Nadu Act V of 1920). According to section 3-B of the Tamil Nadu District Municipalities Act,1920, any local area having a population of not less than 5,000 and an annual income of not less than 1 lakh of rupees shall be constituted as a town panchayat. Since most of the town panchayats are financially weak, and rural in character, the Government considered that the town panchayats having a population of less than 30,000 may be reclassified as village panchayats so as to enable them to receive more funds from the Government of India and State Government under various grants and assistance. It is found that out of 611 town panchayats in the State, 568 town panchayats are having a population of less than 30,000. 2. In the Government letter fifth read above, the views of the 568 town panchayats which are having a population of not more than 30,000 were called for on the proposed reclassification, under clause (d) of sub-section (3) of section 3-B of the Tamil Nadu District Municipalities Act,1920. The chairmen of the town panchayats were requested to obtain the resolution of the town panchayats as to why the notification constituting the town panchayat shall not be cancelled so as to constitute it as a panchayat under the Tamil Nadu Panchayats Act,1994 and send the same through the Director of Town Panchayats. 3. The Director of Town Panchayats in his letter sixth read above has forwarded the resolution of the 568 town panchayats together with this remarks. The Director of Town Panchayats has reported that out of the 568 town panchayats, 182 town panchayats have agreed to reclassify them as village panchayats, Vadipatti town panchayat in Madurai District has resolved to reclassify it as 5 village panchayats or otherwise it may continue as a town panchayat, 358 town panchayats have opposed their reclassification and resolved to continue them as town panchayats, 27 town panchayats have resolved to upgrade them as municipalities. The main points put forth by the above 385 town panchayats (358+27) for their resolution against their reclassification as village panchayats are (i) the present set up of administration is essential to attend to the public needs and (ii) revenues from tax and other sources may decline. The Director of Town Panchayats has reported that the characteristics of the town panchayats which have opposed the reclassification are identical to the characteristics of the town panchayats which have agreed to the reclassification. The Director of Town Panchayats has therefore suggested that all the 568 town panchayats may be reclassified as village panchayats. 4. According to clause (a), of sub-section (1) of section 4-A of the Tamil Nadu Panchayats Act,1994 the elected chairman and members of a Town Panchayat who are holding office as such immediately before the date of constitution of such town panchayats as village panchayats shall be deemed to be the elected president and members of such village panchayats and continue to hold office upto a date notified by the Government or if no date is notified upto next general elections. Further according to clause (b) of the said section, all the employees, other than the provincialised employees, of the town panchayat immediately before its constitution as village panchayat shall be the employees of such village panchayat. Levy of House Tax and other revenues from buildings, markets etc. will be continued to be collected under the provisions of the Tamil Nadu Panchayats Act,1994. Revenues from Entertainment Tax and Surcharge on Stamp Duty will also continue. Therefore the contention of the town panchayats which are opposing their reclassification are not acceptable. The Government, have, therefore decided to overrule the objections raised in the resolutions of the town panchayats. 5. In the High Court of Madras, Writ Petitions have been filed against the reclassification of Narasingapuram town panchayat of Salem District (W.P.No.38738/2003) and Punjai Puliyampatti town panchayat of Erode District (W.P.No.38800/2003) and the High Court has granted interim stay in the writ petitions. The Government, therefore direct the reclassification of 566 town panchayats as village panchayats except the above said town panchayats with effect on and from the 14th day of June, 2004. 6. The Government further direct that the assets of the above said 566 town panchayats shall be transferred in the name of village panchayat concerned for proper upkeep and maintenance. As regards liabilities are concerned, orders on discharging the liabilities by the local bodies will be issued separately. 7. As regards, the absorption of staff, orders will be issued separately. 8. The appended Notifications to cancel the notifications constituting the 566 Town Panchayats will be published in the Tamil Nadu Government Gazette Extraordinary, dated the 14th June, 2004. 9. The Collectors of the District concerned are directed to take action under the Tamil Nadu Panchayats Act, 1994 to constitute them as Village Panchayats with effect on and from the 14th June, 2004. (BY ORDER OF THE GOVERNOR) L.N.VIJAYARAGHAVAN To The Works Manager, Government Central Press, Chennai-79 (for publication of the notification in the Tamil Nadu Government Gazette Extraordinary and to send 100 copies to Government) The Director of Town Panchayats, Chennai-108 The Director of Rural Development, Chennai-15 The Director of Local Fund Audit, Chennai-108 The Commissioner of Municipal Administration, Chennai-5. All District Collectors (except Chennai) The Rural Development Department, Chennai-9. Copy to: The Secretary, Tamil Nadu State Election Commission, Chennai-26. Public (Elections) Department,Chennai-9. All sections in MAWS Department, Chennai-9. Law (MA&WS / Scrutiny) Department, Chennai-9. APPENDIX NOTIFICATION-I. In exercise of the powers conferred by sub-clause (ii) of clause (c) of sub-section (3) of section 3-B of the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920), the Governor of Tamil Nadu hereby cancels the Municipal Administration and Water Supply Department, Notification No.II (2)/MW/1929 (e-3)/94, dated the 31st May 1994, published at pages (2) to 12 of Part II - Section 2 of the Tamil Nadu Government Gazette, Extraordinary, dated the 31st May 1994, in so far as it relates to the following town panchayats with effect on and from the 14th day of June, 2004, in order to constitute the said town panchayats as village panchayats under the Tamil Nadu Panchayats Act, 1994 (Tamil Nadu Act 21 of 1994):-
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