The correct option is Only two.
Explanation
Scheduled Areas in India are constitutionally recognised under Article 244(1) of the Constitution, which applies the provisions of the Fifth Schedule to the administration of Scheduled Areas. The Fifth Schedule contains detailed provisions regarding the declaration, administration, and oversight of these areas.
- Statement 1 — Notification of Scheduled Area through an Order of the President: Correct
Under Paragraph 6 of the Fifth Schedule, the power to declare an area as a Scheduled Area, increase or decrease its boundaries, or rescind such a declaration vests with the President of India by a public notification (Order). The Governor of the concerned State may make recommendations, but the formal declaration is made through a Presidential Order. This provision ensures central oversight over the designation of Scheduled Areas. - Statement 2 — Largest administrative unit is the District and the lowest is the cluster of villages in the Block: Correct
The criteria for declaring Scheduled Areas, as recommended by the Dhebar Commission (1960–61) and subsequently followed, specify that the administrative units constituting a Scheduled Area range from the District at the highest level down to talukas/tehsils and further to clusters of villages within a Block at the lowest level. This hierarchical framework reflects the contiguous and compact nature required for Scheduled Area designation. - Statement 3 — Chief Ministers required to submit annual reports to the Union Home Ministry: Incorrect
Under Paragraph 3 of the Fifth Schedule, it is the Governor of each State having Scheduled Areas — not the Chief Minister — who is required to make an annual report to the President of India regarding the administration of Scheduled Areas in the State. The Union Home Ministry is not the designated recipient of these reports; the reports are addressed to the President. This is a significant constitutional distinction.
Key Takeaway: Under the Fifth Schedule, it is the Governor (not the Chief Minister) who submits annual reports on Scheduled Areas administration to the President of India (not the Union Home Ministry) — a frequently tested constitutional distinction. Statements 1 and 2 are correct.