Case Note & Summary
The petitioner, a resident and voter of Village Waghunde (Khurd), filed an application under Section 14(g) of the Maharashtra Village Panchayats Act, 1959, seeking disqualification of respondent No.2, who was a member of the Gram Panchayat and former Sarpanch. The Collector had vested land Gut No.281 in the Gram Panchayat with conditions that it be used only for cemetery, plantation, and beautification, and could not be transferred without the Collector's permission. Respondent No.2, as Sarpanch, leased 30 R of this land to Shri Bhairavnath Vidya Prasarak Sanstha, a society of which he was President and Trustee. The petitioner alleged that respondent No.2 had an indirect interest in the contract and was liable for disqualification under Section 14(1)(g). The Collector disqualified respondent No.2, and the Divisional Commissioner upheld the order on appeal. Respondent No.2 admitted his position in the society but argued that the lease was for running a school for the benefit of villagers and that he received no pecuniary benefit. The High Court held that the object of Section 14(1)(g) is to prevent conflict of interest and misuse of office. The respondent, as President and Trustee, had an indirect interest in the contract, and the lease was executed under his influence. The court dismissed the writ petition, upholding the disqualification.
Headnote
A) Panchayati Raj - Disqualification of Members - Section 14(1)(g) Maharashtra Village Panchayats Act, 1959 - Indirect Interest in Contract - The petitioner challenged the disqualification of respondent No.2, a Sarpanch, who leased government land vested in the Gram Panchayat to a society where he was President and Trustee. The Collector and Divisional Commissioner disqualified him under Section 14(1)(g). The High Court upheld the disqualification, holding that the respondent had an indirect interest in the contract as the society's President and Trustee, and the lease was for the society's benefit. The court rejected the argument that no pecuniary benefit was received, stating that the object of the provision is to prevent conflict of interest and misuse of office. (Paras 1-15) B) Panchayati Raj - Disqualification - Section 14(1)(g) Maharashtra Village Panchayats Act, 1959 - Lease of Government Land - The court held that the lease of government land by the Sarpanch to a society where he was President and Trustee constituted an indirect interest in the contract, even if the lease was for a public purpose like running a school. The respondent's position as President and Trustee made him a beneficiary of the allotment, and the lease was executed under his influence. The disqualification was justified to maintain integrity in local self-government. (Paras 10-15)
Issue of Consideration
Whether a member of a Gram Panchayat who, as Sarpanch, leased government land vested in the Panchayat to a society of which he was President and Trustee, has an indirect interest in the contract and is liable to be disqualified under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1959.
Final Decision
The High Court dismissed the writ petition, upholding the orders of the Collector and Divisional Commissioner disqualifying respondent No.2 under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1959.
Law Points
- Disqualification under Section 14(1)(g) of Maharashtra Village Panchayats Act
- 1959
- Indirect interest in contract
- Lease of government land to society
- President and trustee as beneficiary
- No requirement of pecuniary benefit
- Object of provision to prevent conflict of interest



