Telangana races to hold panchayat polls amid Rs 3k cr grant risk
The Centre has already withheld ₹1,550 crore in grants to rural local bodies for 2024-25, with another ₹1,450 crore for the current year yet to be released. As per rules, these grants are issued only when elected gram panchayat bodies are in place. The term of the last elected panchayat bodies expired in Jan 2024.
Even if polls are completed, releasing the pending ₹1,550 crore from last year will be at the Centre's discretion.
However, panchayat raj officials remain hopeful, pointing to past instances where the Centre cleared withheld funds once polls were held.
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A senior official said, "The state govt will write to the Centre explaining that the delay in holding rural local body elections is due to the caste survey to fix 42% reservations, as well as two BC quota bills and an ordinance still pending with the President of India."
The 42% BC quota issue lies at the heart of the delay.
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BJP MP and National BC Welfare Association president R Krishnaiah warned that BCs would not tolerate further postponement. He urged the Congress govt to immediately issue a GO extending the quota, noting that Article 243D(6) of the Constitution gives states the power to do so.
"If anyone challenges it in court, the state can defend its order with caste survey data, a dedicated BC commission, and empirical evidence gathered through a scientific survey.
It can also pass a cabinet resolution to remove the 50% reservation cap under the Panchayat Raj Act, 2018, and send it to the governor again," Krishnaiah said.
Political, legal options
Telangana Congress president B Mahesh Kumar Goud told TOI that the party's political affairs committee, which includes CM A Revanth Reddy, AICC in-charge Meenakshi Natarajan, ministers, and senior leaders, will soon decide the way forward.
"There are two or three options. We can go ahead with elections after issuing a GO, extend the quota from the party side, or move court to explain the govt's efforts. All possibilities of giving a 42% quota to BCs will be discussed," Mahesh Goud said.
Sources said the govt could also approach the court seeking more time, arguing that the delay was due to quota-related legal and legislative steps, including the bills and the ordinance awaiting Presidential assent.
BC groups stand firm
Meanwhile, BC welfare associations insist that panchayat polls must be conducted only after the quota is legally extended. They argue that rushing polls without securing the 42% quota would betray the community's interests.
Political analysts said the Congress govt must balance legal hurdles, political pressures, and the risk of losing ₹3,000 crore in central funds, while keeping BC groups in good humour.
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