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PESA and Gram Sabhas in Scheduled Areas

SyllabusGovernment policies: issues in design and implementation

PolityPublished 26 July 2026 · Updated 16 October 2026

The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996, commonly called PESA, extends the constitutional framework of Panchayati Raj to Fifth Schedule Areas with safeguards for tribal self-government. It makes the Gram Sabha a central institution for preserving traditions and community resources, approving local development and participating in decisions affecting land and displacement.

Constitutional and territorial basis

Article 243M permits Parliament to extend Part IX of the Constitution to Scheduled Areas subject to specified exceptions and modifications. PESA accordingly applies the Panchayati Raj framework to the Scheduled Areas referred to in Article 244(1), while requiring state laws to respect customary institutions and community control.

  • State legislation on Panchayats in Scheduled Areas must be consistent with customary law, social and religious practices, and traditional management of community resources.
  • Under PESA, a village may comprise a habitation, hamlet or group of hamlets whose community manages its affairs according to traditions and customs.
  • Every such village has a Gram Sabha consisting of persons whose names are included in the electoral rolls for the village-level Panchayat.

Preserving traditions and community life

PESA gives each Gram Sabha competence to safeguard and preserve tribal traditions and customs, cultural identity, community resources and customary modes of dispute resolution. This authority, together with the requirement that state Panchayat laws respect customary law and traditional resource management, provides the statutory basis for preserving the community's distinct social and cultural life.

  • The Gram Sabha must approve plans, programmes and projects for social and economic development before their implementation by the village-level Panchayat.
  • It is responsible for identifying or selecting beneficiaries under poverty-alleviation and other programmes.
  • The village-level Panchayat must obtain the Gram Sabha's certification of fund utilisation for approved plans, programmes and projects.
  • State laws must specifically endow Gram Sabhas and Panchayats at the appropriate level with powers concerning minor forest produce, prevention and restoration of unlawful land alienation, village markets, money-lending, social-sector institutions, and local plans and resources.

Minerals, land acquisition and displacement

PESA provides mandatory participation in decisions concerning minor minerals and a right of prior consultation in development-induced displacement. The consultation requirement does not, under PESA itself, amount to an express power of consent or veto.

  • The recommendations of the Gram Sabha or Panchayat at the appropriate level are mandatory before the grant of prospecting licences or mining leases for minor minerals.
  • Their prior recommendations are also mandatory before concessions for exploitation of minor minerals through auction.
  • The Gram Sabha or Panchayat at the appropriate level must be consulted before land is acquired for development projects in Scheduled Areas.
  • Consultation must also occur before persons affected by such projects are resettled or rehabilitated in Scheduled Areas.
  • PESA does not state that acquisition requires the Gram Sabha's consent or that its views constitute a legally binding veto.
  • The actual planning and implementation of projects are coordinated at the state level, while detailed procedures and institutional responsibilities are operationalised through the concerned state's Panchayat laws and rules.

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