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CSR and Social Governance · Local Self Governance

PESA Act 1996 and Governance of Scheduled Areas

Updated 11 October 2026 · Fact-checked

The Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) extends Part IX of the Constitution to Fifth Schedule areas with modifications. It makes the Gram Sabha central and gives it powers over resources, disputes and plans. Sixth Schedule areas in the North-East are governed separately through autonomous district and regional councils.

Understand Special Provisions: PESA and Scheduled Areas

The 73rd Amendment created Part IX of the Constitution on panchayats. Article 243M(1) says Part IX does not apply to the Scheduled Areas referred to in Article 244(1) or the tribal areas referred to in Article 244(2). Under Article 243M(4)(b), Parliament may extend Part IX to Scheduled Areas by law, with exceptions and modifications. PESA is that law. It was enacted in 1996.

Scheduled Areas are areas declared under the Fifth Schedule. The President declares them, and the Governor has special powers over administration and the application of laws there. These areas are found in several states, such as Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, Maharashtra, Gujarat, Rajasthan, Andhra Pradesh, Telangana and Himachal Pradesh.

The idea behind PESA is self-rule. Tribal communities have their own customs, community resources and ways of settling disputes. PESA says the state's panchayat law must not clash with these. The Gram Sabha is the core body. The state legislature must make its panchayat law consistent with the customary law, social and religious practices and traditional management of community resources.

The Sixth Schedule is a different arrangement. It applies to tribal areas in Assam, Meghalaya, Tripura and Mizoram. These areas are organised as Autonomous Districts with Autonomous District Councils, and Autonomous Regions with Regional Councils. Councils can make laws on subjects such as land use, village management and customary matters, and can levy certain taxes. These laws need the Governor's assent.

For CSR and social governance, this matters because projects in tribal areas depend on consulting the Gram Sabha and respecting local institutions. PESA requires the Gram Sabha or panchayats to be consulted before land acquisition and resettlement. It does not give a statutory consent or veto for acquisition. Seeking the Gram Sabha's consent is good CSR practice. A company that ignores local institutions risks conflict and failed projects.

Key rules to remember

Constitutional basis
Article 243M(1) excludes Scheduled Areas (Article 244(1)) and tribal areas (Article 244(2)) from Part IX; Article 243M(4)(b) lets Parliament extend Part IX to Scheduled Areas with exceptions and modifications
PESA 1996 is that extension. It applies to Fifth Schedule areas, not Sixth Schedule areas.
Consistency rule
State panchayat law must be consistent with customary law, social and religious practices and traditional management of community resources
This is the central principle of PESA. State laws inconsistent with PESA had to be amended within one year of its enactment, failing which they ceased to have effect.
Gram Sabha role
Every village has a Gram Sabha, competent to safeguard tradition and culture, community resources and customary dispute resolution
Gram Sabha must be consulted before land acquisition for development projects and resettlement of displaced persons.
Key Gram Sabha and panchayat powers
Approval of plans; identification of beneficiaries; control over minor forest produce, minor water bodies and minor minerals (as framed in state laws); control over village markets, local plans and institutions; prevention of land alienation; regulation of intoxicants and money lending
Learn these as a list. Powers are given through state laws, so exact wording varies by state.
Reservation rule
Seats in every panchayat reserved for Scheduled Tribes in proportion to population, but not less than one-half of the total seats; chairperson posts of panchayats at all levels reserved for Scheduled Tribes
Two parts to remember: proportional seat reservation with a floor of one-half of total seats in each panchayat, and chairpersons of all levels to be Scheduled Tribe members.
Sixth Schedule bodies
Each Autonomous District Council: not more than 30 members, of whom not more than 4 are nominated by the Governor and the rest elected, with a 5-year term
Applies to Assam, Meghalaya, Tripura and Mizoram. Regional Councils are constituted separately for autonomous regions within a district. The councils have legislative, judicial and financial powers within the limits of the Sixth Schedule.

How to solve Special Provisions: PESA and Scheduled Areas questions

Use this method for any question on PESA, Scheduled Areas or the Sixth Schedule. It keeps your answer in the provision, analysis, conclusion format.

  1. 1Identify the area in the facts. Is it a Fifth Schedule Scheduled Area or a Sixth Schedule tribal area? This decides the whole answer.
  2. 2State the constitutional basis: Article 243M for PESA, or the Sixth Schedule for autonomous councils.
  3. 3List the relevant provision. For PESA, name the Gram Sabha power involved. For the Sixth Schedule, name the council's power.
  4. 4Apply it to the facts. Say who must be consulted or who holds the power, such as the Gram Sabha or the District Council.
  5. 5Check state law. PESA works through state panchayat laws, so note that the exact power depends on the state's law and rules.
  6. 6Add the practical point for a company secretary, such as consulting the Gram Sabha, seeking its consent as good practice, and recording the community consultation in the CSR project file.
  7. 7Conclude in one clear sentence that answers the question asked.

Quickest way: Two-step area test

When to use it: Use when you have little time and the question mixes the Fifth and Sixth Schedules or asks you to name the authority.

  1. Ask: Is it a Fifth Schedule area (most tribal states) or a Sixth Schedule area (Assam, Meghalaya, Tripura, Mizoram)?
  2. Fifth: write PESA, Gram Sabha, state panchayat law, Governor's role. Sixth: write Autonomous District Council, Regional Council, Governor's assent.
  3. Add one line on customary law and community resources.
  4. Close with the CSR link: consult the Gram Sabha or council before starting a project.

Common mistakes in Special Provisions: PESA and Scheduled Areas

  • Saying PESA applies to Sixth Schedule areas.

    Both deal with tribal governance, so they get mixed up.

    Fix: PESA covers Fifth Schedule Scheduled Areas. The Sixth Schedule has its own council system and sits outside PESA.

  • Treating PESA as a stand-alone code that gives powers directly.

    Students read PESA as complete in itself.

    Fix: PESA requires states to amend their panchayat laws. Powers reach the Gram Sabha through state laws and rules, so mention this.

  • Calling the Gram Sabha an advisory body only.

    Students assume it is just a village meeting.

    Fix: Under PESA it has real roles: approving plans, identifying beneficiaries, being consulted on land acquisition and safeguarding community resources.

  • Confusing Scheduled Areas with Scheduled Tribes.

    The words sound alike.

    Fix: Scheduled Areas are territories under the Fifth Schedule. Scheduled Tribes are communities notified under Article 342. Keep them separate.

  • Writing a theory answer with no CSR or compliance angle.

    The topic feels purely constitutional.

    Fix: Add a practical line on Gram Sabha consultation (and consent as good CSR practice), benefit sharing and respect for customary rights in CSR projects.

Worked examples

Example 1

Explain the salient features of the Panchayats (Extension to Scheduled Areas) Act, 1996.

Show the solution
  1. Basis: Part IX does not apply to Scheduled Areas unless Parliament extends it (Article 243M). PESA is that extension, enacted in 1996.
  2. Principle: the state panchayat law must be consistent with customary law, social and religious practices and traditional management of community resources.
  3. Gram Sabha: every village has a Gram Sabha that safeguards tradition, culture, community resources and customary dispute resolution.
  4. Powers: approval of plans and programmes, identification of beneficiaries, and control over minor forest produce, minor water bodies, minor minerals, village markets and local institutions, as framed in state law.
  5. Protection: prevent alienation of tribal land, regulate intoxicants and money lending, and consult the Gram Sabha before land acquisition and resettlement.
  6. Representation: seats for Scheduled Tribes in proportion to population, but not less than one-half of the total seats in each panchayat, with chairperson posts at all levels reserved for them.

Answer: PESA extends Part IX to Fifth Schedule areas with modifications. It makes the Gram Sabha the centre of village governance, protects customary law and community resources, and reserves panchayat leadership for Scheduled Tribes. States give effect to it through their panchayat laws.

Example 2

A company plans a CSR school project in a village in a Scheduled Area of Odisha. Advise the CSR committee on the governance requirements.

Show the solution
  1. Area: Odisha has Fifth Schedule areas, so PESA applies through the state panchayat law.
  2. Provision: the Gram Sabha has a role in approving local plans and identifying beneficiaries, and it safeguards community resources.
  3. Analysis: if the project needs community land, the Gram Sabha must be consulted before acquisition. The school should not lead to tribal land alienation.
  4. Practical steps: hold a Gram Sabha consultation, record its resolution in the project file, and align the project with the village plan. Seeking the Gram Sabha's consent is good CSR practice, but PESA requires only consultation for land acquisition.
  5. Check state rules: confirm any procedure under the state's panchayat law and rules.
  6. Link to CSR: education is an eligible activity under Schedule VII, so the project is permissible once the Gram Sabha has been consulted and state requirements are met.

Answer: The committee should consult the Gram Sabha before any land acquisition, and may seek its consent as good CSR practice, though PESA itself requires only consultation. It should avoid any land alienation, document the resolution, and follow the state's panchayat law. The project is a valid Schedule VII activity, and local participation reduces the risk of dispute.

Exam tips

  • Always name the schedule first. Marks are lost when the Fifth and Sixth Schedules are mixed up.
  • Write the PESA powers as a short list. Examiners reward complete lists.
  • Add a practical CSR or compliance line in case-based answers, such as consulting the Gram Sabha and recording it.
  • Say that PESA works through state laws. It shows you understand how it operates.
  • For Sixth Schedule questions, name the states and the councils, and mention the Governor's role.

Practice questions from Local Self Governance

Special Provisions: PESA and Scheduled Areas: frequently asked questions

What is the PESA Act 1996 in simple terms?

It is a central law that extends panchayat governance to Fifth Schedule Scheduled Areas with changes suited to tribal communities. It puts the Gram Sabha at the centre and protects customary law and community resources.

What is the difference between the Fifth and Sixth Schedule?

The Fifth Schedule covers administration and control of Scheduled Areas in many states, where PESA applies. The Sixth Schedule covers tribal areas in Assam, Meghalaya, Tripura and Mizoram through autonomous district and regional councils.

Who declares Scheduled Areas?

Scheduled Areas are declared by the President under the Fifth Schedule. The Governor of the state has special powers over their administration.

Why does PESA matter for CSR?

CSR projects in tribal areas need community support. PESA gives the Gram Sabha a say in plans, beneficiaries and land use, so companies should consult it and record the consultation.