CHENNAI: The delay in conducting rural local body elections in Tamil Nadu is holding up the release of more than Rs 1,500 crore in grants from the Union government, affecting the delivery of essential services and infrastructure development in rural areas.

The funds meant for rural local bodies in 28 districts have remained pending since January 5, 2025, due to the absence of elected representatives. The Centre recently released Rs 127.586 crore as the second instalment of the 15th Finance Commission grants, but the allocation was restricted to eligible local bodies comprising nine district panchayats, 74 panchayat unions and 2,901 village panchayats.

The delay has continued under two successive governments. The previous DMK government remained in office for 15 months after the tenure of rural local bodies in 28 districts ended without conducting elections. It cited ward delimitation and reorganisation as reasons for postponing the polls. However, the exercise made little progress.|

The present TVK-led government has also failed to make significant progress in conducting the long-pending elections. In its submission to the Madras High Court, the State government said elections would be held after 240 days, citing the Census exercise and ward delimitation.

The absence of elected representatives could also increase the financial burden on the State government, as having duly elected councils is a key eligibility condition for local bodies to receive Finance Commission grants.

"If the State does not receive the Finance Commission grants meant for local bodies, the government will have to spend its own funds to meet their basic requirements. Once elected representatives take charge, the funds will be reimbursed to the State government," said G Palanithurai, former professor of the Gandhigram Rural Institute.