Siwan Zila Mukhiya Sangh vs. The State Of Bihar

Facts

The petitioner, Siwan Zila Mukhiya Sangh, represented by its Chairman, filed a writ petition challenging a letter dated September 17, 2021, issued by the Principal Secretary, Panchayati Raj Department, Government of Bihar. This letter instructed the installation of Solar Street Lights in Gram Panchayats, vesting the power to select the agency for installation in the Bihar Renewable Energy Development Agency (BREDA). It also stipulated that 75% of the total cost would be managed from funds received by Panchayats on the recommendation of the 15th Finance Commission, and the remaining 25% from funds received on the recommendation of the State Finance Commission. The petitioner sought to quash this letter and declare it an interference with the autonomy of Panchayati Raj Institutions.

Held

The Court held that the impugned letter dated September 17, 2021, did not suffer from arbitrariness or illegality. The Court found substance in the State's submission that the directive was issued to put a check and balance on earlier irregularities and pilferage of public money in the implementation of solar schemes, which had led to their complete failure. The Court reasoned that the State, taking note of these issues, had introduced checks and balances to ensure the execution of the scheme meant for the Gram Panchayats. The Court also noted that the requirement of an expert agency like BREDA was inevitable to achieve better results in terms of quality, cost, and technical support. The apprehension that Panchayats were merely acting as post offices for administrative sanction was deemed misconceived, as the power to grant includes the power to refuse if the proposal suffers from illegality or appears unjustified. The Court concluded that the action of the respondents in carrying out the development scheme was in conformity with the amended provisions of the Amendment Act, 17 of 2017. Therefore, no case for interference was made out.

Key Issues

1. Whether the letter dated September 17, 2021, issued by the Principal Secretary, Panchayati Raj Department, Government of Bihar, which vests the power to select the agency for solar street light installation in BREDA and dictates fund management, is an arbitrary interference with the autonomy of Panchayati Raj Institutions as defined under Articles 243B and 243G of the Constitution, and thus liable to be quashed? Petitioner's arguments: The petitioner contended that the impugned notification directly interferes with the autonomy of Panchayati Raj Institutions concerning matters listed in the Eleventh Schedule, violating the spirit of the 73rd Constitutional Amendment and Articles 243(d) and 243G, which aim to empower Panchayats to function as institutions of self-government. They argued that the State Government's directive usurped the powers and functions constitutionally assigned to Panchayats. Revenue/State's arguments: The State argued that the impugned instruction was a necessary measure to ensure the successful implementation of the solar light scheme, citing earlier instances of corruption and pilferage of public money during the installation of solar lights by Panchayats. They submitted that the involvement of BREDA, an expert agency, was essential for achieving better quality and cost-effectiveness, and that the Panchayats still retained administrative sanction powers, albeit with checks and balances.