Cheque Drawing Powers in Gram Panchayats vested with the Sarpanches

AP GO. 431 – Cheque Drawing Powers in Gram Panchayats vested with the Sarpanches: Government of Andhra Pradesh, Panchayat Raj Department has issued Government Order No. 431 on October 30, 2013. This Order for Cheque Drawing Powers in Gram Panchayats. This Government Order details as follows.

GOVERNMENT OF ANDHRA PRADESH PR&RD Department – Gram Panchayat Funds – Cheque Drawing Powers in Gram Panchayats vested with the Sarpanches – Restored-orders-Issued.

G.O.Ms.No. 431 Dated.30.10.2013

CategoryGovt Order
TitleCheque Drawing Powers in Gram Panchayats
SubjectGovernment of Andhra Pradesh, Panchayat Raj Department has issued Government Order for cheque Drawing Powers in Gram Panchayats
Name of the DepartmentPanchayat Raj Department
GO NoG.O.Ms.No. 431
GO DateDated.30.10.2013
StateAndhra Pradesh
Cheque Drawing Powers in Gram Panchayats

Read the following:
1.G.O.Ms.No.30, PR&RD (PTS.III) Dept, dated. 20.01.1995.
2.G.O.Ms.No.70, PR&RD (PTS.III) Dept, dated.9.02.1996.
3.G.O.Ms.No.137, PR&RD (PTS.III) Dept, dated.22.03.1996
4.Govt. Memo.No.10119/E&R/A1/2011-1, Dt. 19.05.2011.
5.From the CPR&RE, Lr.No.4055/DPR/C2/2011, dated.07.08.2013.
6. G.O.Ms.No.385, PR&RD (PTS.III) Dept, dated.19.08.2013.
7.Representation from Andhra Pradesh State Panchayat Sarpanches Association, Dt. 22.08.2013.
8.Representation from Andhra Pradesh State Backward Classes Welfare Association, Dt. 27.8.2013.


In reference 5th read above, the Commissioner of Panchayat Raj and Rural Employment, Andhra Pradesh, Hyderabad has reported that after the conclusion of 4th ordinary Elections to Gram Panchayats in the State the Sarpanches have taken charge of Gram Panchayat administration.

In the reference 6th read above, orders have been issued to the effect that “all Scheme Funds, as well as Gram Panchayat Funds, shall be operated by the Sarpanch with the Joint Signature of Panchayat Secretary”.

In the reference 7th and 8th read above, the Andhra Pradesh State Sarpanches Association and the Andhra Pradesh State Backward Classes Welfare Association have represented to the Government to cancel the orders issued in the reference 6th read above as these orders are contrary to the 73rd and 74th Constitutional Amendment Act and therefore requested to modify the orders to vest the cheque power only with Sarpanches who are elected representatives of people of the Gram Panchayat.

The government have examined the issue carefully and having regard to the fact that the executive instructions in the reference 4th read above were issued at the time when the term of the Grama Panchayats was coming to a close and there was an emergent need to associate the Grama Panchayat Secretaries for the purpose of continuity in financial management.

Since there are a large number of vacancies in the posts of Grama Panchayat Secretaries leading to a single Grama Panchayat Secretary being put in charge of much more than two Grama Panchayats at a time making the existing system of joint signatures of Sarpanches/Panchayat Secretaries for drawal of Gram Panchayat funds very complicated and adversely effecting the execution of works in time. Hence the Joint signature system may not serve the purpose for which it is meant.

Now in view of the above, and particularly the position stated in para-1 above, there is a need to restore the cheque drawing powers of Sarpanches. Hence, Government hereby rescind orders issued in the references 4th and 6th read above and consequently hereby reiterate the orders issued in the reference 1st read above for taking action in terms of Rule 40 of Rules relating to “Certain Taxes & Lodging of Moneys received by the Gram Panchayat and payment of Money from the Gram Panchayat Fund” issued in the G.O. 1st read above which read as follows:-

“Rule:40” “All orders or cheques against the Gram Panchayat Fund shall be signed by the Sarpanch of the Gram Panchayat”.

The Commissioner, Panchayat Raj & Rural Employment, Hyderabad shall take necessary action accordingly.

Download the GO.No.431-Cheque Drawing Powers to Sarpanch from here

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