PESA ACT OF 1996 (EXTENSION ACT)

        The provisions of Part IX of the constitution relating to the Panchayats are not applicable to the Fifth Schedule areas. However, the Parliament may extend these provisions to such areas, subject to such exceptions and modifications as it may specify. Under this provision, the Parliament has enacted the “Provisions of the Panchayats (Extension to the Scheduled Areas) Act”, 1996, popularly known as the PESA Act or the Extension Act.

        At present (2013), nine states have Fifth Schedule Areas. These are: Andhra Pradesh, Chhatisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Rajasthan. All the nine states have enacted requisite compliance legislations by amending the respective Panchayati Raj Acts.

Objectives of the Act
         The objectives of the PESA Act are as follows6:

1. To extend the provisions of Part IX of the Constitution relating to the panchayats to the scheduled areas with certain modifications.
2. To provide self-rule for the bulk of the tribal population.
3. To have village governance with participatory democracy and to make the gram sabha a nucleus of all activities.
4. To evolve a suitable administrative framework consistent with traditional practices
5. To safeguard and to preserve the traditions and customs of tribal communities.
6. To empower panchayats at the appropriate levels with specific powers conducive to tribal requirements.
7. To prevent panchayats at the higher level from assuming the powers and authority of panchayats at the lower level of the gram sabha

Features of the Act
         The features (or the provisions) of the PESA Act are as follows:

1. A state legislation on the Panchayats in the Scheduled Areas shall be in consonance with the
   customary law, social and religious practices and traditional management practices of community resources.
2. A village shall ordinarily consist of a habitation or a group of habitations or a hamlet or a group of hamlets comprising a community and managing its affairs in accordance with traditions and customs.
3. Every village shall have a Gram Sabha consisting of persons whose names are included in the
   electoral rolls for the Panchayat at the village level.
4. Every Gram Sabha shall be competent to safeguard and preserve the traditions and customs
   of the people, their cultural identity, community resources and the customary mode of dispute
   resolution.
5. Every Gram Sabha shall—
   (i) approve of the plans, programmes and projects for social and economic development before they are taken up for implementation by the Panchayat at the village level; and
   (ii) be responsible for the identification of beneficiaries under the poverty alleviation and other programmes.
6. Every Panchayat at the village level shall be required to obtain from the Gram Sabha a certification of utilisation of funds for the above plans, programmes and projects.
7. The reservation of seats in the Scheduled Areas in every Panchayat shall be in proportion to the population of the communities for whom reservation is sought to be given under Part IX of the Constitution. However, the reservation for the Scheduled Tribes shall not be less than one-half of the total number of seats. Further, all seats of Chairpersons of Panchayats at all levels shall be reserved for the Scheduled Tribes.
8. The state government may nominate such Scheduled Tribes which have no representation in
   the Panchayat at the intermediate level or the Panchayat at the district level. But such nomination shall not exceed one-tenth of the total members to be elected in that Panchayat.
9. The Gram Sabha or the Panchayats at the appropriate level shall be consulted before making
   the acquisition of land in the Scheduled Areas for development projects and before resettling
   or rehabilitating persons affected by such projects in the Scheduled Areas. However, the actual planning and implementation of the projects in the Scheduled Areas shall be coordinated at the state level.
10. Planning and management of minor water bodies in the Scheduled Areas shall be entrusted to
    Panchayats at the appropriate level.
11. The recommendations of the Gram Sabha or the Panchayats at the appropriate level shall be
    mandatory for grant of prospecting licence or mining lease for minor minerals in the Scheduled Areas.
12. The prior recommendation of the Gram Sabha or the Panchayats at the appropriate level shall
    be mandatory for grant of concession for the exploitation of minor minerals by auction.
13. While endowing Panchayats in the Scheduled Areas with such powers and authority as may
    be necessary to enable them to function as institutions of self-government, a State Legislature
    shall ensure that the Panchayats at the appropriate level and the Gram Sabha are endowed specifically with –
    (i) the power to enforce prohibition or to regulate or restrict the sale and consumption of any
    intoxicant
    (ii) the ownership of minor forest produce
    (iii) the power to prevent alienation of land in the Scheduled Areas and to take appropriate action to restore any unlawfully alienated land of a Scheduled Tribe
    (iv) the power to manage village markets
    (v) the power to exercise control over money lending to the Scheduled Tribes
    (vi) the power to exercise control over institutions and functionaries in all social sectors
    (vii) the power to control local plans and resources for such plans including tribal sub-plans 
14. The State Legislations shall contain safeguards to ensure that Panchayats at the higher level do not assume the powers and authority of any Panchayat at the lower level or of the Gram Sabha.
15. The State Legislature shall endeavour to follow the pattern of the Sixth Schedule to the Constitution while designing the administrative arrangements in the Panchayats at district levels in the Scheduled Areas.
16. Any provision of any law (relating to Panchayats in the Scheduled Areas) which is inconsistent with the provisions of this Act shall cease to be in force at the expiry of one year from the date on which this Act receives the assent of the President7. However, all the Panchayats existing immediately before such date shall continue till the expiry of their term, unless dissolved by the State Legislature sooner.