74th Amendment Act, 1992, and Municipalities (Articles 243P–243ZG)

At a Glance

• What it is The constitutional status given to urban local government
• Articles Part IX-A, Articles 243P to 243ZG; Twelfth Schedule (18 items)
• In force 1 June 1993
• Types Nagar panchayat, municipal council, municipal corporation
• Exam link UPSC Prelims, Polity: Local Government: Panchayats and Municipalities

Where Does It Fit?

This is the seventh topic of the category on Local Government. Urban local government signifies the governance of an urban area by the people through their elected representatives, within an area demarcated by the state government. The system was constitutionalised through the 74th Amendment Act of 1992.

Background

Urban local institutions originated under British rule: the first municipal corporation was set up at Madras in 1688, followed by Bombay and Calcutta in 1726; Lord Mayo’s Resolution of 1870 envisaged local self-government; Lord Ripon’s Resolution of 1882 is hailed as the Magna Carta of local self-government and he is called the father of local self-government in India; the Montagu-Chelmsford Reforms, that introduced dyarchy in the provinces and…">Government of India Act of 1919 made local self-government a transferred subject; the Cantonments Act was passed in 1924; and the Government of India Act of 1935 declared it a provincial subject. Committees such as the Local Finance Enquiry Committee (P.K. Wattal, 1949-51), the Taxation Enquiry Commission (John Matthai, 1953-54), the Rafiq Zakaria committee on finances (1963) and the National Commission on Urbanisation (C.M. Correa, 1985-88) examined urban bodies. The Rajiv Gandhi government introduced the 65th Amendment Bill (Nagarpalika Bill) in 1989, defeated in the Rajya Sabha; the V.P. Singh government introduced a revised bill in 1990, which lapsed; the Narasimha Rao government introduced a modified bill in 1991, which became the 74th Amendment Act of 1992 and came into force on 1 June 1993.

Salient Features

1. Three types of municipalities: a nagar panchayat for a transitional area, a municipal council for a smaller urban area and a municipal corporation for a larger urban area. If municipal services are provided by an industrial establishment, the Governor may specify an industrial township, where a municipality need not be constituted. The Governor specifies the area keeping in view population, density, revenue generated, percentage of non-agricultural employment and economic importance.
2. Composition: all members elected directly from wards; the state legislature decides the manner of electing the chairperson and may provide representation of persons with municipal administration expertise (without vote), MPs and MLAs of the area, Rajya Sabha and council members registered as electors, and chairpersons of committees.
3. Wards committees: in municipalities with population of three lakh or more.
4. Reservation: SCs and STs in proportion to population; not less than one-third seats for women; reservation of offices of chairpersons as the state decides; backward classes by state choice; SC/ST reservation until 2030.
5. Duration: five years; fresh election before expiry or within six months of dissolution; a municipality must get a reasonable opportunity to be heard before dissolution.
6. Disqualifications: as for the state legislature; minimum age 21.
7. State Election Commission conducts all municipal elections.
8. Powers and functions: devolution of planning and implementation for economic development and social justice, including the 18 matters of the Twelfth Schedule.
9. Finances: taxes, duties, tolls and fees; assigned taxes; grants-in-aid; funds. The State Finance Commission also reviews the municipalities every five years, and the Central Finance Commission supplements state funds.
10. Audit, district and metropolitan planning committees, and a bar on court interference.

The Twelfth Schedule

It lists 18 matters (Article 243W): urban planning including town planning; regulation of land use and construction of buildings; planning for economic and social development; roads and bridges; water supply; public health, sanitation, conservancy and solid waste management; fire services; urban forestry and environment; safeguarding interests of weaker sections including the handicapped; slum improvement and upgradation; urban poverty alleviation; urban amenities such as parks and playgrounds; promotion of cultural, educational and aesthetic aspects; burials and cremations; cattle ponds and prevention of cruelty to animals; vital statistics including registration of births and deaths; public amenities such as street lighting, parking lots and bus stops; and regulation of slaughter houses and tanneries.

Exemptions and Application

The Act applies to Union territories but the President may modify; in 2001 the President directed that Articles 243ZD and 243ZE do not apply to the National Capital Territory of Delhi. It does not apply to the Scheduled Areas and tribal areas and does not affect the functions of the Darjeeling Gorkha Hill Council, though Parliament may extend it. All existing state laws on municipalities continued for one year from commencement, so states had to adopt the new system by 1 June 1994, and existing municipalities continued till the end of their term. The bar on courts in electoral matters is the same as for panchayats.

Why Is This Topic Important?

• Comparison with 73rd Frequent comparative question
• Twelfth Schedule 18 items
• Three types Standard

What Came Next?

The next topic covers the types of urban local bodies.

Key People and Terms

• Part IX-A The Municipalities
• Twelfth Schedule 18 functional items
• Nagar panchayat For a transitional area
• Wards committee For population above three lakh
• Industrial township Where an industry provides services

Exam Corner

Mains Angle

Questions on this topic usually ask about urban governance reform. Use these points to add depth.

• Constitutional status Parity with panchayats
• Elections State Election Commission
• Functions Twelfth Schedule
• Planning committees District and metropolitan