Section 3: Declaration of a village for the purposes of this Act

Section 3(1)

The Government may, by notification and in accordance with the rules made in this behalf, declare any revenue village or hamlet thereof or any part of a mandal to be a village for the purpose of this Act and specify the name of the village.

Explanation: For the purposes of this sub-section, the expressions “mandal” and “revenue village” shall mean respectively any local area which is recognised as a mandal or village in the revenue accounts of Government after excluding therefrom the area, if any, included in—

(a) a municipal corporation governed by the relevant law relating to Municipal Corporations for the time being in force in the State;

(b) a municipality governed by the law relating to Municipalities for the time being in force in the State;

(c) a mining settlement governed by the Andhra Pradesh (Telangana Area) Mining Settlements Act, 1956;

(d) a cantonment governed by the Cantonments Act, 1924.

Section 3(2)

The Government may, by notification and in accordance with such rules as may be prescribed in this behalf—

(a) form a new village by separation of local area from any village or by uniting two or more villages or parts of villages or by uniting any local area to a part of any village:

Provided that the Government shall take into consideration the financial viability of the Gram Panchayat, to be newly created before bifurcation of the said Gram Panchayat, for the purpose of providing a Panchayat Secretary.

(b) increase the local area of any village;

(c) diminish the local area of any village;

(d) alter the boundaries of any village;

(e) alter the name of any village;

(f) cancel a notification issued under sub-section (1).

Section 3(3)

The Government may pass such orders as it may deem fit—

(a) as to the disposal of the property vested in a Gram Panchayat which has ceased to exist, and the discharge of its liabilities; and

(b) as to the disposal of any part of the property vested in a Gram Panchayat which has ceased to exercise jurisdiction over any local area, and the discharge of the liabilities of the Gram Panchayat relating to such property or arising from such local area.

An order made under this sub-section may contain such supplemental, incidental and consequential provisions as the Commissioner may deem necessary, and in particular may direct—

(i) that any tax, fee or other sum due to the Gram Panchayat or, where a Gram Panchayat has ceased to exercise jurisdiction over any local area, such tax, fee, or other sum due to the Gram Panchayat as relates to that area, shall be payable to such authorities as may be specified in the order; and

(ii) that appeals, petitions, or other applications with reference to any such tax, fee or sum which are pending on the date on which the Gram Panchayat ceased to exist or, as the case may be, on the date on which the Gram Panchayat ceased to exercise jurisdiction over the local area, shall be disposed of by such authorities as may be specified in the order.

Explained:

Section 3 is titled “Declaration of a village for the purposes of this Act.” It empowers the Government to declare a village for the purposes of the legislation and to specify its name through a notification. It also authorises the Government, subject to the applicable statutory requirements, to create new villages, modify existing village areas, alter boundaries, change names, and cancel earlier notifications.

The section must be read alongside Section 4, which deals with the constitution and incorporation of Gram Panchayats. In general, Section 3 establishes the relevant village for statutory purposes, while Section 4 explains the legal consequences for the constitution of the Gram Panchayat.

1. Section 3(1): Declaration of a village

Under Section 3(1), the Government has the authority to declare a revenue village, a hamlet, or part of a mandal as a village for the purposes of the Act. This declaration is made through an official notification, which identifies the village by name.

The explanation to this sub-section clarifies the meaning of a revenue village and a mandal. It also excludes specified municipal corporations, municipalities, mining settlements, and cantonments from the relevant definitions.

For example, if a revenue village contains a distinct hamlet that requires separate local administration, the Government may consider declaring that hamlet as a separate village, subject to the applicable rules and legal requirements.

2. Section 3(2): Formation and alteration of villages

Section 3(2) authorises the Government to reorganise village areas through notifications made in accordance with the prescribed rules.

Its clauses cover six important actions:

• Clause (a): Formation of a new village by separating an area or combining villages or parts of villages. The financial viability of a newly created Gram Panchayat must be considered before bifurcation, particularly regarding the provision of a Panchayat Secretary.
• Clause (b): Increasing the local area of an existing village.
• Clause (c): Reducing the local area of a village.
• Clause (d): Altering village boundaries.
• Clause (e): Changing the name of a village.
• Clause (f): Cancelling an earlier notification issued under Section 3(1).

These powers allow the administration to respond to population changes, geographical conditions, and the practical requirements of local governance. However, the decision must comply with the Act and the applicable declaration-of-villages rules.

3. Section 3(3): Property, liabilities and pending matters

Section 3(3) addresses the administrative and financial consequences of village reorganisation.

When a Gram Panchayat ceases to exist or loses jurisdiction over an area, questions may arise regarding its assets, outstanding liabilities, taxes, fees, and pending proceedings.

This provision enables the Government to make appropriate consequential orders. Such orders may specify which authority will receive outstanding revenue and which authority will handle pending appeals, petitions, or applications relating to the affected area.

The purpose is to prevent uncertainty over public property and financial responsibilities following a territorial change.

Important Judgments Relating to Section 3

1. D. Venkata Rushi Reddy v. Divisional Panchayat Officer, Anantapur (1995)

The Andhra Pradesh High Court considered whether an individual villager could challenge a notification issued under Section 3 concerning village bifurcation. The judgment addressed the question of whether the petitioner was an aggrieved party entitled to challenge the notification. It is relevant when examining standing to challenge village-declaration decisions.

2. Ambati Sitaramayya Naidu v. Government of Andhra Pradesh (2004)

This case concerned the declaration of villages and the legal effect of a notification under Section 3. The Court discussed the relationship between Section 3 and Section 4, explaining that the statutory notification declaring an area as a village has consequences for the constitution of the Gram Panchayat. The decision also highlights that the relevant statutory rules must govern the exercise of the authority’s discretion.

3. Vaddepalli Narsimulu v. Government of Andhra Pradesh (2014)

The Andhra Pradesh High Court examined the legal framework governing the conversion of a Gram Panchayat into a Nagar Panchayat. The decision recognised that such administrative changes fall within the executive domain, subject to compliance with statutory provisions and constitutional requirements. It is useful when considering the relationship between rural local governance and the transition to urban local administration.

4. A. Jalaiah v. Government of Andhra Pradesh (2016)

This case dealt with Section 3 of the Act and the Andhra Pradesh Gram Panchayats (Declaration of Villages) Rules, 2007. The judgment discussed the importance of considering the financial viability of a newly created Gram Panchayat before bifurcation. It is particularly relevant to proposals involving the division of an existing village into separate administrative units.

Why Section 3 Is Important

Section 3 establishes the legal basis for identifying and reorganising villages for Panchayat Raj administration. It affects the geographical jurisdiction of Gram Panchayats and can have consequences for local representation, public assets, revenue collection, administrative staffing, and the delivery of public services.

Any proposal to create a new village or alter an existing boundary should therefore be examined against the statutory notification requirements, applicable rules, financial viability considerations, and relevant judicial decisions.

Conclusion

Section 3 of the Andhra Pradesh Panchayat Raj Act, 1994, is a fundamental provision governing the declaration and reorganisation of villages in Andhra Pradesh. Its three sub-sections deal with village declaration, territorial changes, and the resulting administrative and financial arrangements. Understanding these provisions is important for residents, Gram Panchayats, public officials, advocates, and anyone involved in disputes concerning village boundaries or local self-government.