Municipalities
- Urban Local Government in India refers to the governance of cities and towns by elected representatives of the people. Unlike rural areas governed by Panchayati Raj Institutions, urban areas are managed by various forms of municipal bodies. The jurisdiction of an urban local government is confined to a specific urban area notified by the state government.
- The system of urban local government was given constitutional status through the 74th Constitutional Amendment Act, 1992, which established municipalities as institutions of self-government.
- India has eight types of urban local governments, each serving different urban needs:
- Municipal Corporation
- Municipality
- Notified Area Committee
- Town Area Committee
- Cantonment Board
- Township
- Port Trust
- Special Purpose Agency
Constitutionalisation through the 74th Amendment Act, 1992
- The 74th Constitutional Amendment Act (1992) gave constitutional status to municipalities.
- It added Part IXA (Articles 243P to 243ZG) to the Constitution and the 12th Schedule, listing 18 functional areas like urban planning, water supply, sanitation, and slum improvement.
Central Ministries Responsible
At the Union level, the subject of urban local government is shared among three ministries:
- Ministry of Housing and Urban Affairs – overall urban development and municipalities.
- Ministry of Defence – for Cantonment Boards.
- Ministry of Home Affairs – for Union Territories.
74th Constitutional Amendment Act, 1992
The 74th Constitutional Amendment Act (1992) provided constitutional status to municipalities in India, making them an integral part of the country’s democratic governance system.
Key Features of the 74th Amendment Act
- New Part IX-A Added
- Introduced Part IX-A in the Constitution titled “The Municipalities”.
- Covers Articles 243-P to 243-ZG.
- Twelfth Schedule
- Inserted the 12th Schedule to the Constitution.
- Contains 18 functional items of municipalities, linked to Article 243-W.
- These functions include urban planning, water supply, sanitation, slum improvement, public health, fire services, and urban poverty alleviation, among others.
- Constitutional Status to Municipalities
- Brought municipalities under the justiciable part of the Constitution.
- State governments now have a constitutional obligation to establish and follow the new system of urban local bodies in line with the Act.
- Purpose of the Amendment
- To revitalise and strengthen urban local governments.
- To enable them to function effectively as units of local self-government.
- To promote democratic decentralisation in urban areas.
The salient features of the act are given below:
Three Types of Municipalities
The Act mandates the constitution of three categories of municipalities in every state to cater to different types of urban areas:
1. Nagar Panchayat
2. Municipal Council
3. Municipal Corporation
- Set up for a larger urban area.
- Governs big cities with large populations, higher density, and greater economic activity.
Exception: Industrial Township
- If municipal services in an urban area are being provided by an industrial establishment, the Governor may notify it as an industrial township.
- In such cases, a separate municipality need not be constituted.
Criteria for Classification of Urban Areas
While designating an area as transitional, smaller, or larger urban area, the Governor considers:
- Population size of the area.
- Population density.
- Revenue generated for local administration.
- Share of employment in non-agricultural activities.
- Economic importance of the area.
- Any other factors deemed relevant by the Governor.
Composition
- Direct Election:All members of a municipality are directly elected by the people of the municipal area.
- For this purpose, the municipal area is divided into territorial constituencies called wards.
- Chairperson:The state legislature may provide the manner of election of the chairperson of a municipality.
- Additional Representation:The state legislature may also provide for the representation of the following persons in a municipality:
- Experts: Persons with special knowledge or experience in municipal administration (without voting rights in municipal meetings).
- Lok Sabha Members: MPs of the Lok Sabha representing constituencies wholly or partly within the municipal area.
- State Assembly Members: MLAs representing constituencies wholly or partly within the municipal area.
- Rajya Sabha Members: MPs of the Rajya Sabha registered as electors within the municipal area.
- State Legislative Council Members: Members of the State Legislative Council (where it exists) registered as electors in the municipal area.
- Committee Chairpersons: Chairpersons of committees (other than wards committees).
Wards Committees
- A wards committee must be constituted in every municipality with a population of three lakh or more.
- The wards committee will consist of one or more wards within the territorial area of such a municipality.
- The state legislature may make provisions regarding the:
- The composition of the wards committee.
- The territorial area of the wards committee.
- The manner of filling seats in the wards committee.
Other Committees
- Apart from wards committees, the state legislature has the power to provide for the constitution of other committees .
- The chairpersons of such committees may also be made members of the municipality.
Reservation of Seats in Municipalities
- SCs and STs: The Act provides for the reservation of seats for the Scheduled Castes (SCs) and Scheduled Tribes (STs) in every municipality in proportion to their population in the municipal area.
- Women: Not less than one-third of the total number of seats are reserved for women.
- This includes seats reserved for women belonging to SCs and STs.
- Chairpersons: The state legislature may provide for the manner of reservation of offices of chairpersons in municipalities for SCs, STs, and women.
- Backward classes: The state legislature may also make provisions for the reservation of seats in any municipality or offices of chairpersons in municipalities in favour of backward classes.
- Time Limit:
- The reservation of seats and chairperson offices for SCs and STs in municipalities will cease to have effect after the expiration of the period mentioned in Article 334 of the Constitution.
- Currently, this period is eighty years, i.e., till 2030.
Duration of Municipalities
- Before the expiry of its five-year duration; or
- In case of dissolution, before the expiry of a period of six months from the date of its dissolution.
Disqualifications for Membership of Municipalities
A person is disqualified from being chosen as, or for being, a member of a municipality if:
- State Legislature Rules: He/she is disqualified under any law in force for elections to the legislature of the concerned state.
- Municipal Laws: He/she is disqualified under any law made by the state legislature.
Age Exception
Authority to Decide
State Election Commission and Municipal Elections
- The superintendence, direction, and control of the preparation of electoral rolls and the conduct of all elections to the municipalities is vested in the State Election Commission (SEC).
- The State Legislature is empowered to make provisions regarding all matters related to elections to the municipalities.
Powers and Functions of Municipalities
- The State Legislature may endow municipalities with such powers and authority as are necessary to enable them to function as institutions of self-government.
- Such a scheme may contain provisions for the devolution of powers and responsibilities upon municipalities at the appropriate level with respect to
- the preparation of plans for economic development and social justice and
- the implementation of schemes for economic development and social justice as may be entrusted to them, including those in relation to the eighteen matters listed in the Twelfth Schedule.
Finances of Municipalities
The Constitution empowers the state legislature to provide financial authority and resources to municipalities. It may:
- Authorize Municipal Taxation –authorise a municipality to levy, collect and appropriate taxes, duties, tolls and fees
- Assign State Taxes – assign to a municipality taxes, duties, tolls and fees levied and collected by state government
- Grants-in-Aid –provide for making grants-in-aid to the municipalities from the consolidated fund of the state;
- Municipal Funds –provide for constitution of funds for crediting all moneys of the municipalities.
Key Idea: These provisions ensure that municipalities have financial autonomy and resources to function as institutions of self-government.
Finance Commission
The State Finance Commission (constituted every five years) also reviews the financial position of municipalities and makes recommendations to the Governor regarding:
- The principles that should govern:
- The distribution between the state and the municipalities of the net proceeds of the taxes, duties, tolls and fees levied by the state and allocation of shares amongst the municipalities at all levels.
- The determination of the taxes, duties, tolls and fees that may be assigned to the municipalities.
- The grants-in-aid to the municipalities from the consolidated fund of the state.
- The measures needed to improve the financial position of the municipalities.
- Any other matter referred to it by the governor in the interests of sound finance of municipalities.
The governor shall place the recommendations of the commission along with the action taken report before the state legislature.
The central finance commission shall also suggest the measures needed to augment the consolidated fund of a state to supplement the resources of the municipalities in the state (on the basis of the recommendations made by the finance commission of the state).
Key Idea: The Finance Commission ensures financial devolution and stability for municipalities, making them viable units of urban self-governance.
Audit of Accounts
The state legislature may make provisions for:
- The maintenance of accounts by municipalities.
- The auditing of such accounts
Application to Union Territories
- The provisions of Part IX-A (Municipalities) also apply to Union Territories.
- However, the President may direct that these provisions apply with exceptions and modifications as specified.
- In 2001, the President directed that Article 243ZD (District Planning Committee) and Article 243ZE (Metropolitan Planning Committee) shall not apply to the National Capital Territory (NCT) of Delhi.
Exempted Areas
The 74th Constitutional Amendment Act does not apply to:
- Scheduled Areas and Tribal Areas in the states.
- The Darjeeling Gorkha Hill Council of West Bengal.
However, Parliament may extend the provisions of this Part to Scheduled Areas and Tribal Areas, subject to exceptions and modifications as it deems fit.
District Planning Committee
- Mandate: Every state must constitute a District Planning Committee (DPC) at the district level.
- Purpose:
- To consolidate the plans prepared by panchayats and municipalities in the district.
- To prepare a draft development plan for the district as a whole.
- State Legislature’s Role: It may provide for:
- Composition of DPCs.
- Manner of election of members.
- Functions of the committee in relation to district planning.
- Manner of election of chairpersons.
- Composition Rule (as per the Act):
- Four-fifths of members must be elected by the elected members of the district panchayat and municipalities from among themselves.
- Representation of these member in the committee must be proportional to the ratio of rural and urban populations in the district.
- Functions of the District Planning Committee (DPC):
- While preparing the draft development plan, the DPC shall:
- Consider matters of common interest between Panchayats and Municipalities, including:
- Spatial planning
- Sharing of water and other physical and natural resources
- Integrated development of infrastructure
- Environmental conservation
- Take into account the extent and type of available resources whether financial or otherwise.
- Further the committee shall consult institutions and organisations as specified by the Governor.
- Submission:
- The Chairperson of the DPC forwards the draft development plan to the State Government.
Metropolitan Planning Committee
- Every metropolitan area must have a Metropolitan Planning Committee (MPC) to prepare a draft development plan for the area.
- The State Legislature may make provisions with respect to the following:
- Composition of the committee.
- Manner of election of its members.
- Representation of the Central Government, State Government, and other organisations in the committee.
- Functions of the committee in relation to planning and coordination for the metropolitan area.
- Manner of election of the Chairperson.
- Membership Rule:
- Two-thirds of MPC members must be elected by:
- Elected members of the municipalities, and Chairpersons of the panchayats in the metropolitan area from amongst themselves.
- Their representation should be proportionate to the ratio between the population of the municipalities and the panchayats in that metropolitan area.
- Functions of the Metropolitan Planning Committee (MPC)
- While preparing the draft development plan, the Metropolitan Planning Committee must take into account the following:
- Plans prepared by local bodies – Consider the plans of municipalities and panchayats within the metropolitan area.
- Matters of common interest – matters of common interest between the Municipalities and the Panchayats, including coordinated spatial planning of the area, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation;
- National and State priorities – the overall objectives and priorities set by the Government of India and the government of the state and
- Investment considerations – the extent and nature of investments likely to be made in the Metropolitan area by agencies of the Government of India and of the Government of the State and other available resources whether financial or otherwise.
- The Metropolitan Planning Committee (MPC) must also consult such institutions and organisations as the Governor may specify while preparing the draft plan.
- Once the draft development plan is finalized, the Chairperson of the MPC forwards it to the State Government for approval and implementation.
Bar to Interference by Courts in Municipal Electoral Matters
- The Act prohibits courts from interfering in the electoral matters of municipalities.
- The validity of laws relating to delimitation of constituencies or allotment of seats cannot be questioned in any court.
- It further lays down that no election to any municipality is to be questioned except by an election petition presented to such authority and in such manner as provided by the state legislature.
Twelfth Schedule
1. Urban planning including town planning;
2. Regulation of land use and construction of buildings;
3. Planning for economic and social development;
4. Roads and bridges;
5. Water supply for domestic, industrial and commercial purposes;
6. Public health, sanitation, conservancy and solid waste management;
7. Fire services;
8. Urban forestry, protection of the environment and promotion of ecological aspects;
9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally
retarded;
10. Slum improvement and upgradation;
11. Urban poverty alleviation;
12. Provision of urban amenities and facilities such as parks, gardens, playgrounds;
13. Promotion of cultural, educational and aesthetic aspects;
14. Burials and burial grounds, cremations and cremation grounds and electric crematoriums;
15. Cattle ponds, prevention of cruelty to animals;
16. Vital statistics including registration of births and deaths;
17. Public amenities including street lighting, parking lots, bus stops and public conveniences; and
18. Regulation of slaughter houses and tanneries.
FAQs
Q1. What is meant by Urban Local Government in India?
Urban Local Government refers to the governance of urban areas by elected representatives. Its jurisdiction is limited to a specific urban area demarcated by the state government.
Q2. How many types of Urban Local Governments exist in India?
There are eight types: Municipal Corporation, Municipality, Notified Area Committee, Town Area Committee, Cantonment Board, Township, Port Trust, and Special Purpose Agency.
Q3. Which Constitutional Amendment gave constitutional status to municipalities?
The 74th Constitutional Amendment Act, 1992. It inserted Part IXA (Articles 243P–243ZG) and the Twelfth Schedule with 18 functional items.
Q4. What are the three types of Municipalities?
Nagar Panchayat – for transitional areas.
Municipal Council – for smaller urban areas.
Municipal Corporation – for larger urban areas.
Q5. How are members of a Municipality elected?
All members are directly elected by the people of the municipal area. The State Legislature may decide the method of electing the Chairperson.
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