The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA Act) is a landmark Act of the Parliament of India, enacted on December 24, 1996, with the citation No. 40 of 1996. Its primary purpose is to extend the provisions of Part IX of the Constitution, which deals with Panchayats, to the Scheduled Areas identified under the Fifth Schedule of the Constitution.
The Act was created because the 73rd Constitutional Amendment Act, 1992, which established the Panchayati Raj system nationwide, had specifically excluded the Scheduled Areas due to their unique tribal character and traditional governance systems. The problem PESA solved was the lack of a decentralized governance framework in these areas, which had historically suffered from exploitation and loss of access to forest land. The Act was based on the recommendations of the Bhuria Committee (1995) and aimed to enable tribal self-rule.
PESA works by making the Gram Sabha (village assembly) the cornerstone of self-governance, transforming it from a mere consultative body into a powerful institution. Key provisions in Section 4 mandate that state legislation must be in conformity with the customary law, social and religious practices, and traditional resource management practices of the tribal communities. The Gram Sabha is endowed with mandatory powers, including the ownership of Minor Forest Produce (MFP), the authority to prevent unlawful land alienation and restore illegally acquired tribal land, and the power to approve plans for social and economic development. Furthermore, the Act mandates that the reservation of seats for Scheduled Tribes (STs) in Panchayats must be at least one-half of the total seats, and all Chairperson positions at all levels must be reserved for ST candidates.
PESA connects directly to the Fifth Schedule of the Constitution and the 73rd Constitutional Amendment Act, 1992. It is also closely related to the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA), as both laws empower the Gram Sabha over forest resources. While the Act itself has not been replaced, its implementation has been uneven, with many states failing to bring their state laws in consonance with PESA's provisions for decades. For instance, Jharkhand only notified its PESA Rules in January 2026, 25 years after becoming a state. The core spirit of devolving power to the Gram Sabha remains the same, but the challenge lies in the harmonization of state laws with the central Act.