The Supreme Court (SC) ruled that the establishment of industrial townships in areas belonging to village panchayats was in accordance with the Constitution. The 73rd and 74th Constitution amendments dealing with panchayats and municipalities were not in conflict with the declaration of villages as industrial townships, the judgement said. The court was responding to the petitions filed by some panchayat representatives from villages in Gujarat against the notification that their territories fall under the Gujarat Industrial Development Act. The panchayat leaders argued that the notifications violated the constitutional provisions giving greater autonomy to local governments in 1993. But the court said that the industrial area would be a self-sufficient township in itself.

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