Article 243ZS

Article 243ZS of the Indian Constitution provides for the application of provisions relating to local governance and co-operative societies to Union Territories (UTs). It was introduced through the 97th Constitutional Amendment Act, 2011, as part of Part IXB, which deals with co-operative societies. The article ensures that the principles of democratic decentralisation, accountability, and participatory governance—as applicable to states—are also extended to Union Territories, with necessary adaptations to suit their distinct administrative structures.

Constitutional Context and Background

India’s Union Territories have diverse governance models. Some, like Delhi and Puducherry, have Legislative Assemblies and function similarly to states, while others—such as Chandigarh, Lakshadweep, and Andaman and Nicobar Islands—are administered directly by the President through Administrators under Article 239.
Recognising this diversity, Article 243ZS was incorporated to ensure that the provisions of Part IX (Panchayats), Part IXA (Municipalities), and Part IXB (Co-operative Societies) could be adapted and applied to Union Territories, maintaining the spirit of self-governance while respecting their administrative uniqueness.

Key Provisions of Article 243ZS

1. Applicability to Union Territories

• Article 243ZS applies the provisions of Part IXB, which governs co-operative societies, to all Union Territories.
• It ensures that Union Territories, like the states, adhere to constitutional principles of democratic functioning, transparency, and accountability in the management of co-operative societies and local self-governance.

2. Interpretation of References to Legislative and Executive AuthoritiesSince Union Territories do not have uniform administrative structures, Article 243ZS clarifies how constitutional references to state institutions should be understood:

• In Union Territories without a Legislative Assembly, all references to the State Legislature or Governor are construed as references to the Administrator appointed by the President under Article 239.
• In Union Territories with a Legislative Assembly, such as Delhi and Puducherry, references to the State Legislature or Governor are interpreted as references to the Legislative Assembly and Lieutenant Governor of that Union Territory.

This substitution ensures seamless governance and legal clarity, enabling the provisions of local self-government to operate effectively in different UT frameworks.
3. Power of the President through Notification

• The President of India is empowered to exempt any Union Territory or part thereof from the application of Part IXB or specify modifications in its application.
• Such exemption or modification must be issued through a notification published in the Official Gazette.
• This power provides the flexibility to tailor governance structures to the specific administrative, geographical, and socio-economic conditions of each Union Territory.

Related Constitutional Provisions

• Article 239: Provides for the administration of Union Territories by the President through Administrators.
• Article 239A and 239AA: Provide special provisions for the creation of Legislative Assemblies in certain Union Territories, such as Puducherry and Delhi.
• Articles 243A to 243ZG: Cover the structure, powers, and functioning of Panchayats and Municipalities.
• Articles 243ZH to 243ZT: Under Part IXB, regulate the governance of co-operative societies.

Together, these provisions ensure that both rural and urban local governance, as well as co-operative institutions, function democratically within Union Territories, with appropriate constitutional oversight.

Administrative and Legislative Framework

The application of Article 243ZS varies according to the governance model of each Union Territory:

This distinction allows for administrative uniformity while recognising constitutional differences among UTs.

Role of the President and Central Government

The President of India, acting on the advice of the Central Government, holds discretionary powers to:

• Modify the application of Part IXB provisions to Union Territories;
• Issue exemptions for specific regions where the co-operative movement or local governance mechanisms may not yet be fully developed;
• Ensure administrative efficiency while maintaining democratic governance principles.

These powers are exercised through Presidential Notifications, ensuring flexibility and responsiveness to the administrative realities of each Union Territory.

Significance of Article 243ZS

1. Extension of Local Self-Governance to Union TerritoriesArticle 243ZS extends the benefits of decentralised governance—a key feature of the 73rd and 74th Amendments—to Union Territories. It ensures that citizens in UTs also enjoy the same democratic rights as those in the states, particularly in the functioning of co-operatives, Panchayats, and Municipalities.
2. Promotes Administrative FlexibilityThe provision allows the Central Government and President to adapt constitutional norms to the unique administrative conditions of each UT, enabling efficient governance without compromising on democratic principles.
3. Ensures Uniformity with StatesBy applying the provisions of Part IXB to Union Territories, Article 243ZS brings consistency in the governance of co-operatives across the country, ensuring similar accountability standards in both states and UTs.
4. Strengthens Democratic InstitutionsIt reinforces the constitutional vision of grassroots democracy, ensuring that citizens of Union Territories actively participate in decision-making processes through their local bodies and co-operative societies.

Union Territories and Their Governance Structures

This table highlights the varying degrees of autonomy and legislative authority among UTs, all of which fall under the purview of Article 243ZS.

Judicial Perspective and Interpretation

As of 2025, there are no major Supreme Court judgments specifically interpreting Article 243ZS. However, judicial principles from broader cases concerning Union Territories and federalism provide interpretative guidance:

• NDMC v. State of Punjab (1997): Clarified that Union Territories are directly administered by the President unless they possess their own legislature.
• Government of NCT of Delhi v. Union of India (2018 & 2023): Emphasised that even in Union Territories with legislatures, the ultimate administrative authority rests with the Union, except in matters specifically delegated.

These interpretations reinforce the principle that while local governance provisions apply to UTs, their implementation must respect the central administrative structure defined under Article 239.

Challenges in Implementation

• Jurisdictional Overlaps: Ambiguity may arise between the roles of the Administrator, Legislative Assembly, and Central Government in governance matters.
• Uneven Development of Co-operative Movements: Smaller UTs may lack the institutional capacity to implement co-operative or Panchayati structures effectively.
• Administrative Centralisation: Direct control by the Centre may limit the degree of local autonomy in certain UTs.
• Delayed Notifications: Flexibility under Presidential powers sometimes results in delayed adaptation of governance provisions.