G.O. Ms No.55 Dated 14.7.2006, Municipal Administration and Water Supply Department, Tamil Nadu, India

Town Panchayats – Reconstitution of 561 Special Village Panchayats as Town Panchayats under the Tamil Nadu District Municipalities Act, 1920 – Orders issued.

1. G.O.(Ms)No.270, Municipal Administration and Water Supply Department dated 11.6.2004

2. From the Secretary to Government, Rural Development Department, D.O.Letter No.15924/C4/2006 dated 5.6.2006.

3. From the Director of Special Village Panchayats letters Roc.No.8546/06/C1 dated 3.7.2006 and dated 12.7.2006.

In the G.O. first read above, orders were issued for the reclassification of 566 out of the 611 Town Panchayats, which were governed by the Tamil Nadu District Municipalities Act, 1920, as Village Panchayats under Tamil Nadu Panchayats Act, 1994 with effect from 14.6.2004. The Village Panchayats so reclassified from Town Panchayats are called as Special Village Panchayats as per section 6 (4) of the Tamil Nadu Panchayats Act, 1994. The remaining Town Panchayats are continued as such, with a changed nomenclature as Third Grade Municipalities by amendments to the Tamil Nadu District Municipalities Act, 1920. Subsequently, certain Special Village Panchayats were reclassified as Third Grade Municipalities. At present, there are 561 Special Village Panchayats in the State.

2. Representations were received about the practical difficulties being faced by the Special Village Panchayats under the new set-up and requesting to reclassify them again as Town Panchayats under the Tamil Nadu District Municipalities Act, 1920. In the Government letter second read above, the District Collectors as Inspectors of Special Village Panchayats, were requested to issue notice and obtain the resolution of the councils of the Special Village Panchayats as to whether the Special Village Panchayats would like to revert to the status of erstwhile Town Panchayats under Tamil Nadu District Municipalities Act, 1920, or, whether the Special Village Panchayats would like to be treated as (ordinary) village Panchayats under Sec.4(1) (a) of the Tamil Nadu Panchayats Act, 1994. The Special Village Panchayats were informed that this notice was issued under section 4 (2) (d) read with section 4-A of Tamil Nadu Panchayats Act, 1994.

3. The Director of Special Village Panchayats in the letter third read above, has informed the following position :

Sl.No.	Details of Resolution passed by Special Village Panchayats	Number of Special Village Panchayats
1	To become Town Panchayats	506
2	To remain as special village panchayats	17
3	To become Municipalities	02
4	To leave the decision to Government	07
5	To become village panchayats	11
6	Did not conduct meeting and pass resolution	18
	TOTAL	561

The Special Village Panchayats were informed that they could choose only between becoming Town Panchayats or (ordinary) Village Panchayats and that if they failed to pass any resolution, it will be construed that they have no objection to being reclassified as Town Panchayats. Out of the 561 Special Village Panchayats, 26 Special Village Panchayats have passed resolutions which are not in accordance with the above option (Sl. Nos. 2,3 and 4 of the Table above). Therefore, the said 26 Special Village Panchayats and the 18 Special Village Panchayats which did not pass any resolution are deemed to have opted to become Town Panchayats. Thus, 550 out of the 561 Special Village Panchayats have opted or deemed to have opted to become Town panchayats. The remaining 11 have opted to become (ordinary) Village Panchayats. The Director of Special Village Panchayats has requested to issue notification constituting 561 Special Village Panchayats as Town Panchayats under Tamil Nadu District Municipalities Act, 1920.

4. The Government, after considering the views of the various Special Village Panchayats, have decided that all the 561 Special Village Panchayats be reconstituted as Town Panchayats and that necessary amendments to the Tamil Nadu Panchayats Act, 1994, the Tamil Nadu District Municipalities Act, 1920 and Rules be brought forth immediately. The Government accordingly direct that all the 561 Special Village Panchayats be reconstituted as Town Panchayats. Consequently, a new Chapter namely “ CHAPTER 1-B TOWN PANCHAYATS” has been inserted in the Tamil Nadu District Municipalities Act, 1920 by the Tamil Nadu Municipal Laws (Amendment) Ordinance, 2006, for governing the Town Panchayats to be reconstituted from the Special Village Panchayats, under the said Act.

5. According to clause (a) of Section 3-CC (1) of the Tamil Nadu District Municipalities Act, 1920, as inserted by the Tamil Nadu Municipal Laws (Amendment) Ordinance, 2006, the President and members of a Special Village Panchayat who are holding office as such, immediately before the date of constitution of such Special Village Panchayats as town panchayats, shall be deemed to be the Chairman and members of such Town Panchayats elected under this Act and such Chairman and members shall continue to hold office up to the date on which their term of office would expire. According to clause (b) of the said section, all the employees, other than the provincialised employees, of the Special Village Panchayat, immediately before its constitution as Town Panchayat, shall be the employees of such Town Panchayat under this Act. The provincialised employees shall continue to serve under the Town Panchayat.

6. The appended Notification for the constitution of the 561 Special Village Panchayats as Town Panchayats will be published in the Tamil Nadu Government Gazette Extraordinary, dated the 14^th July 2006.

(for publication of the notification in the Tamil Nadu Government Gazette Extraordinary and to send 100 copies to Government)