The correct option is 2 only.
Explanation
In the original Constitution of India (1950), local self-government was recognized but not granted the status of a mandatory third tier of federalism. Its implementation was largely left to the discretion of State legislatures based on the division of powers and directive principles.
Statement-wise Analysis:
- Statement 1 is Incorrect. In the original Constitution, 'Local Government' was a subject enumerated in the State List (List II, Entry 5) of the Seventh Schedule, not the Union List. This meant that State Legislatures had the exclusive power to make laws regarding the constitution and powers of local authorities.
- Statement 2 is Correct. The organization of village panchayats was included in Article 40 under Part IV of the Constitution, which deals with the Directive Principles of State Policy (DPSP). It directed the State to take steps to organize village panchayats and endow them with powers to function as units of self-government.
- Statement 3 is Incorrect. Since the provision for local bodies (Article 40) was part of the Directive Principles of State Policy, it was governed by Article 37. Article 37 explicitly states that the provisions of Part IV are non-justiciable, meaning they are not enforceable by any court. Consequently, the formation of local bodies was not legally binding until the 73rd and 74th Constitutional Amendment Acts (1992).
Key Takeaway:
Originally, local government was exclusively a State subject and a non-justiciable Directive Principle (Article 40), lacking mandatory constitutional status or uniform implementation across India.