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I see geth code skips the validation of the local transactions https://github.com/ethereum/go-ethereum/blob/master/core/tx_pool.go#L528

// Drop non-local transactions under our own minimal accepted gas price
    local = local || pool.locals.contains(from) // account may be local even if the transaction arrived from the network
    if !local && pool.gasPrice.Cmp(tx.GasPrice()) > 0 {
        return ErrUnderpriced
    }

Geth has txpool.nolocals which is optional and false unless specify. This flag is used to send variable flag 'local' as true

TRANSACTION POOL OPTIONS:
  --txpool.nolocals            Disables price exemptions for locally submitted transactions

Need to understand its fully. In our local nodes setup, we don't use txpool.nolocals flag and hence, a transaction with gasPrice = 0 (or very low number) is getting mined without any error. As per the expected behavior, the transaction should fail with "transaction underpriced" error. This is not the case.

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