Getting error:syntax error at or near "SELECT"

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PostgreSQL

I am getting error:syntax error at or near "SELECT"

 CREATE FUNCTION fngetlastcodeofvillage( IN districtname text,
    IN talukname text,
    IN villagenam text)  RETURNS setof text AS
    $BODY$ 
   BEGIN
    SELECT schcd FROM villagerural_school_form  where districtna=$1 and talukname=$2 and villagenam=$3 order by id desc limit 1
    IF schcd IS NULL THEN
       RETURN census2011||01  from villagerural where districtna=$1 and talukname=$2 and villagenam=$3 
       else
      return schcd+01 from villagerural_school_form where districtna=$1 and talukname=$2 and villagenam=$3 
     END IF;

   END;
  
 $BODY$
 LANGUAGE sql VOLATILE
 COST 100
  ROWS 1000;
ALTER FUNCTION fngetlastcodeofvillage(text, text, text)
  OWNER TO postgres;

can any one tell why i am getting that error.whtas is wrong

What I have tried:

i have tried with syntax missing and all but still getting same error