About Us


Tamil Nadu is the first State to have introduced a classification in the status of local bodies as ‘Town Panchayat’, which was planned as a transitional body between Rural and Urban Local Bodies.

The Town Panchayats were conferred with individual administrative powers and unique functional characters have been in existence for over a century. The Town Panchayats adopt well devised accounting and auditing procedures and the service delivery to the public has been better. Town Panchayats are under the administrative control Municipal Administration and Water Supply Department, at Govt. level.

The Town Panchayats are places of importance such as Division / Taluk headquarters, Tourist Spots, Pilgrim Centers and Commercial/Industrial towns. This has necessitated special attention to the civic needs of the Town Panchayats.

Importance of the Department

Town Panchayats are drivers of economic growth and offer opportunities for social and cultural development of people. The Total population of the Town Panchayats is 70,89,528, which accounts for 11.36% of the total population of the State as per 2001 Census and 25.80% in Urban Population. There has been huge flow of floating population to all these towns from adjoining rural areas. Many of the Town Panchayats are of Tourism, Pilgrim importance and heritage towns and also the economic, industrial clusters. It is therefore, necessary to provide adequate infrastructure facilities such as water supply, sanitation, roads, street lighting and other public amenities such as Slaughter houses, Burial / Cremation Ground, bus stands, Shandies. The Government proposes to adopt a holistic approach covering all civic amenities and infrastructure to these towns.

Activities of the Department

Town Panchayats Department formulates and implements responsive programmes, services and activities to facilitate urban communities to bring about positive change and strengthen their social and economic fabrics. In this effort the department has very effectively used all the available resources, funds and grants that have been provided under various schemes by Government of India, besides adding State Financial resources wherever needed, and funds and financial resources are ploughed into the developmental efforts of Town Panchayats for better delivery of cure amenities.

Objective and goal of Town Panchayat Department:

To ensure responsive, accountable, transparent and people-friendly civic administration.

To develop administration that takes the citizens into total confidence, in all the schemes implementation in Town Panchayats.

Administrative set up
I. State level

The Secretary to Government, Municipal Administration and Water Supply Department is in charge of Town Panchayats, as Administrative head at Secretariat and the Director of Town Panchayats is the Head of Department (HOD) at State level and he is also Inspector of Town Panchayats, to review and monitor the activities relating to the development programmes implemented through Town Panchayats.

II. District Level / Zone level

The Collectors are the administrative head of Town Panchayat Administration at District Level and he is assisted by a Zonal Assistant Director of Town Panchayats.

III. Town Panchayats Level

Executive Officer of the Town Panchayats is the Executive authority of the Town Panchayat. He is assisted by Head Clerk, Junior Assistant, Bill Collector, Typist for the maintenance of records, Collection of taxes, maintenance of assets and in ensuring the publicity and propaganda and in implementation of Government Programmes.

Functions of Town Panchayats:

The Town Panchayats are responsible in delivery of the following civic services:

  • Providing Basic Amenities
  • Roads
  • Street Lights
  • Water Supply
  • Public Health
  • Drainage
  • Granting of Building Licenses
  • Levying of Taxes
  • Property Tax
  • Vacant Land Tax
  • Profession Tax
  • Non Tax
  • Water Charges
  • Issuing Birth & Death Certificates
  • Issuing Dangerous & Offensive Trade Licenses
  • Implementation of State / Central Schemes
Sources of Revenue of Town Panchayats

The revenue of the Town Panchayats is derived from the sources as below:

  • Property Tax
  • Professional Tax
  • License Fees, Rents and other charges such as water charges
  • Surcharge on Stamp duty
  • Devolution grants from the Government
  • Other miscellaneous incomes such as interest on deposits
Functions of Accounts in Town Panchayats
  • Maintenance of Annual Accounts
  • Preparation of Annual Budget
  • Implementation of Annual plans and in case of any deficit, revised estimate is prepared
  • The Bills showing the expenditure details are scrutinized carefully and amount settled by issuing cheques
  • The loans and grants received from Government and non-Governmental organization are utilized for the Developmental works. Loans are also promptly repaid in due installments
  • The Funds distribution for the Town Panchayats by the 10th & 11th Finance Commissions are specifically spent under the respective Heads only for which it is allotted
  • The funds allotted under MLA funds, MP Fund , MP Fund are received and spent for the development works approved and sanctioned by them. The Bills submitted by the contractis for undertaking works are also scrutinized carefully and passed by issuing cheques
  • The grants for the particular plans and the loans taken for implementation of the plans are also utilized for passing of the Bills submitted by the contractors. This the amount is settled by issuing of cheques