Municipalities, also known as Urban Local Bodies, are institutions of urban local self-government in India.
They govern urban areas through representatives elected by the people.
Municipalities form the third tier of government in urban areas and help bring democracy closer to citizens living in towns and cities.
They deal with local matters such as sanitation, water supply, town planning, roads, birth and death registration, public health, and other urban services.
Table of Contents
Constitutional Status Of Municipalities
Municipalities received constitutional status through the 74th Constitutional Amendment Act, 1992.
This amendment added:
- Part IX-A to the Constitution.
- Articles 243P to 243ZG.
- 12th Schedule to the Constitution.
The 12th Schedule contains 18 functions that may be devolved to Municipalities.
Meaning Of Urban Local Self-Government
Urban local self-government means governance of urban areas by locally elected bodies.
Instead of every local issue being handled only by the State Government, Municipalities allow urban citizens to participate directly in local decision-making.
This improves:
- Local accountability.
- Urban planning.
- Public service delivery.
- Citizen participation.
- Local development.
History Of Urban Local Government In India
Urban local government in India has a long history.
First Municipal Corporation
The first Municipal Corporation in India was established at Madras in 1688.
Municipal Corporations In Bombay And Calcutta
In 1726, Municipal Corporations were established in Bombay and Calcutta.
Lord Mayo’s Resolution, 1870
In 1870, Lord Mayo introduced a resolution on financial decentralisation.
It aimed to develop local self-government institutions to manage municipal finances more effectively.
Lord Ripon’s Resolution, 1882
In 1882, Lord Ripon’s Resolution laid the foundation for modern local self-government in India.
It is often called the Magna Carta of Local Self-Government.
For this reason, Lord Ripon is called the Father of Local Self-Government in India.
Royal Commission On Decentralisation
The Royal Commission on Decentralisation was appointed in 1907 and submitted its report in 1909.
It was chaired by C.E.H. Hobhouse.
The Commission focused on strengthening local self-government structures.
Government Of India Act, 1919
The Government of India Act, 1919 introduced the dyarchical scheme.
Local self-government became a transferred subject under the control of Indian ministers.
This helped promote greater local autonomy.
Cantonments Act, 1924
The Cantonments Act, 1924 was enacted to govern the administration of cantonment areas.
Government Of India Act, 1935
The Government of India Act, 1935 made local self-government a provincial subject.
This increased the role of provincial governments in local administration.
Post-Independence Developments
After independence, the Government of India appointed several committees and commissions to improve urban local governance.
In 1992, the 74th Constitutional Amendment Act was passed.
It gave constitutional status to Municipalities and brought a uniform structure for urban local government across the country.
Types Of Municipalities
The 74th Constitutional Amendment Act provides for three types of Municipalities.
| Type of Municipality | Area |
|---|---|
| Nagar Panchayat | Transitional area from rural to urban |
| Municipal Council | Smaller urban area |
| Municipal Corporation | Larger urban area |
Factors Considered By Governor
The Governor specifies whether an area is transitional, smaller urban or larger urban.
While doing this, the Governor considers:
- Population of the area.
- Density of population.
- Revenue generated for local administration.
- Percentage of employment in non-agricultural activities.
- Economic importance.
- Any other relevant factor.
Nagar Panchayat
A Nagar Panchayat is created for an area that is moving from rural character to urban character.
It is meant for transitional areas.
Municipal Council
A Municipal Council is created for a smaller urban area.
It usually governs medium-sized towns.
Municipal Corporation
A Municipal Corporation is created for a larger urban area.
It usually governs big cities.
The head of a Municipal Corporation is commonly known as the Mayor.
Composition Of Municipality
A Municipality usually consists of:
- Chairperson.
- Other members.
The Chairperson and other members have the right to vote in the meetings of the Municipality.
Representation In Municipality
The State Legislature may provide representation to the following persons:
- Persons having special knowledge or experience in municipal administration, but without voting rights.
- Members of Lok Sabha and State Legislative Assembly representing constituencies that include the municipal area.
- Members of Rajya Sabha and State Legislative Council registered as electors in the municipal area.
- Chairpersons of committees other than Ward Committees.
Election Of Members And Chairperson
All members of a Municipality or Urban Local Body are elected directly by the people of the municipal area.
For this purpose, the municipal area is divided into territorial constituencies called Wards.
The State Legislature may provide the method for election of the Chairperson.
Ward Committees
Ward Committees are important for decentralised urban governance.
There must be a Ward Committee in Municipalities having a population of 3 lakh or more.
The State Legislature may provide rules regarding:
- Composition of Ward Committees.
- Territorial area of Ward Committees.
- Manner of functioning of Ward Committees.
Duration Of Municipalities
Every Municipality has a term of 5 years from the date of its first meeting.
However, a Municipality may be dissolved before the completion of its term.
Fresh Elections
Fresh elections must be completed:
- Before the expiry of the 5-year term.
- Within 6 months from the date of dissolution, if the Municipality is dissolved earlier.
If the remaining period of the dissolved Municipality is less than 6 months, it is not necessary to hold a fresh election for that short remaining period.
A Municipality formed after early dissolution continues only for the remaining period of the dissolved Municipality.
Reservation Of Seats
The 74th Constitutional Amendment Act provides reservation in Municipalities.
Reservation For SCs And STs
Seats are reserved for Scheduled Castes and Scheduled Tribes in every Municipality.
The reservation is in proportion to their population in the municipal area.
The State Legislature also provides reservation of offices of Chairpersons for SCs and STs.
The reservation for SCs and STs is linked with the period specified in Article 334.
At present, this reservation is to last till 2030.
Reservation For Women
Not less than one-third of the total number of seats are reserved for women.
This includes seats reserved for women belonging to Scheduled Castes and Scheduled Tribes.
The State Legislature also provides for reservation of offices of Chairpersons in Municipalities for women.
Reservation For Other Backward Classes
The State Legislature may provide reservation of seats or offices of Chairpersons in favour of Backward Classes.
Disqualification Of Members
A person is disqualified from being chosen as, or from being, a member of a Municipality if he is disqualified:
- Under any law in force for elections to the State Legislature.
- Under any law made by the State Legislature.
All questions of disqualification are referred to the authority determined by the State Legislature.
State Election Commission
The State Election Commission is a constitutional body at the State level.
It is responsible for:
- Superintendence of municipal elections.
- Direction of municipal elections.
- Control of municipal elections.
- Preparation of electoral rolls.
The State Election Commissioner is appointed by the Governor.
Protection Of State Election Commissioner
The State Election Commissioner enjoys important safeguards.
- Conditions of service and tenure are determined by the Governor.
- He cannot be removed except in the manner and on the grounds prescribed for removal of a High Court judge.
- His conditions of service cannot be varied to his disadvantage after appointment.
Powers And Functions Of Municipalities
The State Legislature may give Municipalities the powers and authority needed to function as institutions of self-government.
Municipalities may be entrusted with:
- Preparation of plans for economic development.
- Preparation of plans for social justice.
- Implementation of schemes for economic development.
- Implementation of schemes for social justice.
- Functions related to the 18 matters listed in the 12th Schedule.
12th Schedule
The 12th Schedule was added by the 74th Constitutional Amendment Act.
It contains 18 functions related to Municipalities.
These functions provide a framework for urban governance and local development.
Finances Of Municipalities
The State Legislature may make provisions for strengthening municipal finances.
It may:
- Authorise a Municipality to levy, collect and appropriate taxes, duties, tolls and fees.
- Assign to a Municipality taxes, duties, tolls and fees levied and collected by the State Government.
- Provide grants-in-aid to Municipalities from the Consolidated Fund of the State.
- Provide for constitution of funds for crediting all money of Municipalities.
State Finance Commission
The Governor constitutes a State Finance Commission after every 5 years.
Its purpose is to review the financial position of local bodies.
Recommendations Of State Finance Commission
The State Finance Commission recommends:
- Principles governing distribution between the State and local bodies of the net proceeds of taxes, duties, tolls and fees.
- Allocation of shares among local bodies.
- Taxes, duties, tolls and fees that may be assigned to local bodies.
- Grants-in-aid from the Consolidated Fund of the State.
- Measures needed to improve the financial position of local bodies.
- Any other matter referred to it by the Governor in the interest of sound finance.
The Governor places the recommendations of the Commission, along with the action taken report, before the State Legislature.
The Central Finance Commission also suggests measures to augment the Consolidated Fund of a State to supplement local body resources.
Audit Of Accounts
The State Legislature may make provisions regarding:
- Maintenance of accounts by Municipalities.
- Audit of municipal accounts.
This ensures financial accountability in urban local governance.
Application To Union Territories
The provisions relating to Municipalities apply to Union Territories.
However, the President may direct that they will apply to a Union Territory with exceptions and modifications.
Exempted Areas
The Municipalities provisions do not apply to:
- Scheduled Areas.
- Tribal Areas in the States.
However, Parliament may extend these provisions to Scheduled Areas and Tribal Areas with exceptions and modifications.
District Planning Committee
Every State must constitute a District Planning Committee at the district level.
Function Of District Planning Committee
The District Planning Committee consolidates the plans prepared by Panchayats and Municipalities in the district.
It prepares a draft development plan for the district as a whole.
State Legislature’s Role In DPC
The State Legislature may provide rules regarding:
- Composition of District Planning Committees.
- Election of members and chairpersons.
- Functions related to district planning.
Metropolitan Planning Committee
Every Metropolitan Area must have a Metropolitan Planning Committee.
Function Of Metropolitan Planning Committee
The Metropolitan Planning Committee prepares a Draft Development Plan and forwards it to the State Government.
State Legislature’s Role In MPC
The State Legislature may provide rules regarding:
- Composition of Metropolitan Planning Committees.
- Election of members and chairpersons.
- Representation of Central Government, State Government and other organisations.
- Functions related to planning and coordination for the Metropolitan Area.
Bar To Interference By Courts In Electoral Matters
The Act bars court interference in municipal electoral matters.
This means:
- The validity of laws related to delimitation of constituencies cannot be questioned in court.
- The allotment of seats to constituencies cannot be questioned in court.
- No municipal election can be questioned except through an election petition.
- The election petition must be presented to the authority and in the manner provided by the State Legislature.
Municipalities At A Glance
| Topic | Detail |
|---|---|
| Chapter | Municipality |
| Also known as | Urban Local Bodies |
| Constitutional Amendment | 74th Constitutional Amendment Act, 1992 |
| Constitutional Part | Part IX-A |
| Articles | Articles 243P to 243ZG |
| Schedule added | 12th Schedule |
| Functions in 12th Schedule | 18 |
| Types of Municipalities | Nagar Panchayat, Municipal Council, Municipal Corporation |
| Nagar Panchayat | Transitional rural-to-urban area |
| Municipal Council | Smaller urban area |
| Municipal Corporation | Larger urban area |
| Ward Committee | Required for population of 3 lakh or more |
| Term | 5 years |
| Election authority | State Election Commission |
| SEC appointed by | Governor |
| Finance review | State Finance Commission |
| DPC | District Planning Committee |
| MPC | Metropolitan Planning Committee |
Important Articles At A Glance
| Article | Subject |
|---|---|
| Article 243P | Definitions |
| Article 243Q | Constitution of Municipalities |
| Article 243R | Composition of Municipalities |
| Article 243S | Ward Committees |
| Article 243T | Reservation of seats |
| Article 243U | Duration of Municipalities |
| Article 243V | Disqualifications |
| Article 243W | Powers, authority and responsibilities |
| Article 243X | Power to impose taxes and municipal funds |
| Article 243Y | Finance Commission |
| Article 243Z | Audit of accounts |
| Article 243ZA | Elections to Municipalities |
| Article 243ZD | District Planning Committee |
| Article 243ZE | Metropolitan Planning Committee |
| Article 243ZG | Bar to court interference in electoral matters |
FAQs On Municipalities In India
What are Municipalities in India?
Municipalities are Urban Local Bodies that govern urban areas through elected representatives.
Which amendment gave constitutional status to Municipalities?
The 74th Constitutional Amendment Act, 1992 gave constitutional status to Municipalities.
Which Part of the Constitution deals with Municipalities?
Part IX-A deals with Municipalities.
Which Articles deal with Municipalities?
Articles 243P to 243ZG deal with Municipalities.
Which Schedule deals with Municipal functions?
The 12th Schedule deals with Municipal functions.
How many functions are listed in the 12th Schedule?
The 12th Schedule contains 18 functions.
What are the three types of Municipalities?
The three types are Nagar Panchayat, Municipal Council and Municipal Corporation.
What is a Nagar Panchayat?
A Nagar Panchayat is constituted for a transitional area moving from rural to urban character.
What is a Municipal Council?
A Municipal Council is constituted for a smaller urban area.
What is a Municipal Corporation?
A Municipal Corporation is constituted for a larger urban area.
Who conducts municipal elections?
The State Election Commission conducts municipal elections.
Who appoints the State Election Commissioner?
The Governor appoints the State Election Commissioner.
What is the term of a Municipality?
A Municipality has a term of 5 years.
When must elections be held after dissolution of a Municipality?
Fresh elections must be completed within 6 months from the date of dissolution.
What is the reservation for women in Municipalities?
Not less than one-third of total seats are reserved for women.
Which Article provides reservation in Municipalities?
Article 243T provides reservation of seats in Municipalities.
What is a Ward Committee?
A Ward Committee is a local committee required in Municipalities with a population of 3 lakh or more.
What is District Planning Committee?
A District Planning Committee consolidates plans prepared by Panchayats and Municipalities and prepares a draft development plan for the district.
What is Metropolitan Planning Committee?
A Metropolitan Planning Committee prepares a draft development plan for a Metropolitan Area and forwards it to the State Government.
Can courts interfere in municipal elections?
Courts cannot interfere in municipal electoral matters except through election petitions as provided by the State Legislature.
Last Moment Exam Cheat Sheet – Municipalities In India
- Municipalities – Urban Local Bodies.
- 74th Constitutional Amendment Act, 1992 – Gave constitutional status to Municipalities.
- Part IX-A – Municipalities.
- Articles 243P to 243ZG – Municipal provisions.
- 12th Schedule – Municipal functions.
- 12th Schedule items – 18 functions.
- 1688 – First Municipal Corporation established at Madras.
- 1726 – Municipal Corporations established in Bombay and Calcutta.
- 1882 – Lord Ripon’s Resolution, Magna Carta of Local Self-Government.
- Lord Ripon – Father of Local Self-Government in India.
- 1907–1909 – Royal Commission on Decentralisation, chaired by C.E.H. Hobhouse.
- 1919 Act – Local self-government became transferred subject.
- 1924 – Cantonments Act.
- 1935 Act – Local self-government became provincial subject.
- 3 types of Municipalities – Nagar Panchayat, Municipal Council, Municipal Corporation.
- Nagar Panchayat – Transitional area from rural to urban.
- Municipal Council – Smaller urban area.
- Municipal Corporation – Larger urban area.
- Area classification by – Governor.
- Wards – Territorial constituencies of Municipality.
- Ward Committee – Required where population is 3 lakh or more.
- Municipality term – 5 years.
- Fresh election after dissolution – Within 6 months.
- SC/ST reservation – In proportion to population.
- Women reservation – Not less than one-third of total seats.
- OBC reservation – State Legislature may provide.
- Article 243T – Reservation of seats.
- State Election Commission – Conducts municipal elections.
- State Election Commissioner appointed by – Governor.
- State Finance Commission – Constituted every 5 years.
- Municipal finances – Taxes, duties, tolls, fees, grants-in-aid and municipal funds.
- Audit of accounts – State Legislature may provide.
- DPC – Consolidates Panchayat and Municipality plans at district level.
- MPC – Prepares draft development plan for Metropolitan Area.
- Article 243ZG – Bars court interference in municipal electoral matters.