74th Amendment Act of 1992
This Act has added Part IX-A to the Constitution of India. It is entitled as "The Municipalities' and consists of provisions from articles 243-P to 243-ZG. In addition, the Act has also added Twelfth Schedule to the Constitution. It contains 18 functional items of municipalities and deals with Article 243-W.
The Act gave constitutional status to the municipalities. It has brought them uder the purview of justiciable part of the Constitution. In other words, state governments are under constitutional obligation to adopt the new system of municipalities in accordance with the provisions of the Act.
The Act aims at revitalising and strengthening the urban governments so that they function effectively as units of local government.
The salient features of the Act are:
Three Types of Municipalities The Act provides for the constitution of the following three types of municipalities in every state.
(i) A Nagar Panchayat (by whatever name called) for a transitional area, that is, an area in transition from a rural area to an urban area.
(ii) A Municipal Council for a smaller urban area.
(iii) A Municipal Corporation for a larger urban area.
A transitional area, a smaller urban area or a larger urban area means such area as the Governor may specify by public notification for this purpose with regard to the following factors.
(a) Population of the area
(b) Density of population
(c) Revenue generated for local administration
(d) Percentage of employment in non-agricultural activities
(e) Economic importance or such other factors as the Governor may deem fit
Composition
All the members of a municipality shall be elected directly by the people of the municipal
area. For this purpose, each municipal area shall be divided into territorial constituencies to be known as wards. The state legislature may provide the manner of election of the chairperson of a municipality. It may also provide for the representation of the following persons in a municipality.
(i) Persons having special knowledge or experience in municipal administration without the right to vote in the meetings of municipality.
(ii) The members of the Lok Sabha and the state Legislative Assembly representing constituencies which comprise wholly or partly the municipal area.
(iii) The members of the Rajya Sabha and the State Legislative Council registered as electors within the municipal area.
(iv) The chairpersons of committees (other than wards committees).
Wards Committees
There shall be constituted a wards committe, consisting of one or more wards, within the territorial area of municipality having population of three lack or more . The state legislature may make provision with respect to the composion and the territorial area of a wards committee and the manner in which seats in a wards committee shall be filled. it may also make any provision for the constitution of committees in addition to the ward committees.
Reservation of Seats
The Act provides for the reservartion of seats for the scheduled castes and the scheduled tribes in every municipality in proportion of their population to the total population in the municipal arta Further, it provides for the reservation of not less than one-third of the total number of seats focal (including the number of seats reserved for women belonging to the SCs and the STs).
The state legislature may provide for the manner of reservation of offices of chairpersons in the municipalities for the SCs the STs and the women. It may also make any provision for the reservation of seats in any municipality or offices of chairpersons in municipalities in favour of backward classes
Duration of Municipalities
The Act provides for a five-year term of office for every municipality However, it can be dissolved before the completion of its term. Further, the fresh election to constitute a municipality shall be completed (i) before the expiry of its duration of five years; or (ii) in case of dissolution, before the expiry of a period of six months form the date of its dissolution.
Disqualifications
A person shall be disqualified for being chosen as or for being a member of a municipality if he is so disqualified (i) under any law for the time being in force for the purposes of elections to the Legislature of the state concerned; or (ii) under any law made by the state legislature. However, no person shall be disqualified on the ground that he is less than 25 years of age if he has attained the age of 21 years. Further, all questions of disqualifications shall be referred to such authority as the state legislature determines.
State Election Commission
The superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the municipalities shall be vested in the State Election Commission
Powers and Functions
The state legislature may endow the municipalities with such powers and authority as may be 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 (i) the preparation of plans for economic develpoment and social justice; (ii) the implementation of schemes for economic development and and social justice as may be entrusted to them, including those in relation to the 18 matters listed in the Twelfth Schedule.
Finances
The state legislature may (i) authorise a municipality to levy, collect and appropriate taxes, duties, tolls and fees; (ii) assign to a municipality taxes, duties, tolls and fees levied and collected by state povernment; (iii) provide for making grants-in-aid to the municipalities from the Consolidated Found of the state, and (iv) provide for constitution of funds for crediting all moneys of the municipalities.
Finance Commission
The Finance Commission (which is constituted for the Panchayats) shall also, for every five years, review the financial position of municipalities and make recommendation to the Governor as to
(1) The principles which should govern:
(a) The distribution between the state and the municipalities, the net proceeds of the taxes, duties, tolls and fees levied by the state.
(b) The determination of the taxes, duties, tolls and fees which may be assigned to the municipalities.
(c) The grants-in-aid to the municipalities from the Consolidated Fund of the state.
(ii) The measures needed to improve the financial position of the municipalities,
(iii) Any other matter referred to the Finance Commission 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).
Audit of Accounts
The state legislature may make provisions with respect to the maintenance of accounts by municipalities and the auditing of such accounts.
Application to Union Territories
The President of India may direct that the provisions of this Act shall apply to any union territory subject to such exceptions and modifications as he may specify.
Areas Kept Out
The Act does not apply to the scheduled areas and tribal areas referred in Article 244 of the Indian Constitution. It shall also not affect the functions and powers of the Darjeeling Gorkha Hill Council of the West Bengal.
District Planning Committee
Every state shall constitute at the district level, a District Planning Committee to consolidate the plans prepared by Panchayats and municipalities in the district, and to prepare a draft development plan for the district as a whole. The state legislature may make provision with respect to the following points.
(i) The composition of such committees;
(ii) The manner of election of members of such committees;
(iii) The functions of such committees in relation to district planning; and
(iv) The manner of the election of the chairpersons of such committees.
The Act lays down that four-fifths of the members of a District Planning Committee should be elected by the elected members of the district panchayat and municipalities in the district from amongst themselves. The representation of these members in the committee should be in proportion to the ratio between the rural and urban populations in the district.
The chairpersons of such committees shall forward the development plan to the state government.
Metropolitan Planning Committee
Every metropolitan area shall have a Metropolitan Planning Committee to prepare a draft development plan. Metropolitan area means an area having a population of 10 lakhs or more, comprised in one or more districts and consisting of two or more municipalities or Panchayats or other contiguous areas. The state legislature may make provision with respect to:
(i) The composition of such committees;
(ii) The manner of election of members to such committees;
(iii) The representation in such committees of the Central Government, state government and other organisations;
(iv) The functions of such committees in relation to planning and coordination for the metropolitan area; and
(v) The manner of election of chairpersons of such committees.
The Act lays down that two-thirds of the members of a Metropolitan planning committee should be elected by the elected members of the municipalities and chair persons of the panchayats in the metropolitan area from amongst themselves. The representation of these members in the committee should be in proportion to the ratio between the population of the municipalities and the panchayats in that metropolitan area.
The chairpersons of such committees shall forward the development plan to the state government.
Continuance of Existing Laws and Municipalities
All the state laws relating to municipalities shall continue to be in force until the expiry of one year from the commencement of this Act. In other words, the states have to adopt the new system of municipalities based on this Act within the maximum period of one year from 1st June, 1993, which is the date of commencement of this Act. However, all municipalities existing immediately before the commencement of this Act shall continue till the expiry of their term, unless dissolved by the state legislature sooner.
Bar to Interference by Courts
The Act bars the interference by courts in the electoral matters of municipalities. It declares that the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies 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
It contains the following 18 functional items placed within the purview of municipalities.
(i) Urban planning including town planning
(ii) Regulation of land use and construction of buildings
(iii) Planning for economic and social development
(iv) Roads and bridges
(v) Water supply for domestic, industrial and commercial purposes
(vi) Public health, sanitation, conservancy and solid waste management
(vii) Fire services
(viii) Urban forestry, protection of the environment and promotion of ecological aspects
(ix) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded
(x) Slum improvement and upgradation
(xi) Urban poverty alleviation
(xii) Provision of urban amenities and facilities such as parks, gardens, playgrounds
(xiii) Promotion of cultural, educational and aesthetic aspects
(xiv) Burials and burial grounds, cremations, cremation grounds and electric crematoriums
(xv) Cattle ponds, prevention of cruelty to animals
(xvi) Vital statistics including registration of births and deaths
(xvii) Public amenities including street lighting, parking lots, bus stops and public conveniences
(xviii) Regulation of slaughter houses and tanneries
Sl no. Article subject
1 243P Defination
2 243Q Constitution of municipalities
3 243R Composion of municipalities
4 243S Constitution and composion of wards committees, and so on
5 243T Reservation of seats
6 243U Duration of municipalities, and so on
7 243V Disqualification for membership
8 243W Powers, authorities and responsibilities of municipalities, and so on
9 243X Power to impose taxes by and funds of the municipalities
10 243Y Finance commissior
11 243Z Audit of accounts of municipalities
12 243ZA Election to the municipalities
13 243ZB Application to union territories
14 243ZC Part not to applu to certain areas
15 243ZD Committee for district planning
16 243ZE Committee for metropolitan planning
17 243ZF Continuance of existing laws and minicipalities
18 243ZG Bar to interfference by court in electoral matters
Types
The following eight types of urban local bodies are created in India for the administration of urban areas.
1.Municipal Corporation
2.Municipality
3.Notified Area Committee
4.Town Area Committee
5.Cantonment Board
6.Township
7.Port Trust
8.Special Purpose Agency
Municipal Corporation
Municipal corporations are created for the administration of big cities like Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and others. They are established in the states by the acts of the concerned state legislatures, and in the union territories by the acts of the Parliament of India. There may be one common act for the municipal corporation or a separate act for each municipal corporation.
A municipal corporation has three authorities, namely, the Council, the Standing Committees and the Commissioner.
The Corporation Council consists of the Councillors directly elected by the people, as well as a few nominated persons having knowledge or experience of municipal administration. In brief, the composition of Council including the reservation for SCs, STs and women is governed by the 74th Constitutional Amendment Act.
The Corporation Council is headed by a Mayor. He is assisted by a Deputy Mayor. He is elected in majority of the states for a one-year renewable term. He is basically an ornamental figure and a formal head of the corporation. His main function is to preside over the meetings of the Council which is the deliberative and legislative wing of the corporation.
The Standing Committees are created to facilitate the working of the corporation which is too large in size. They deal with public works, education, health, taxation, finance and so on. They take decisions in their fields.
The Municipal Commissioner is responsible for the implementation of the decisions taken by the Council and its Standing Committees. Thus, he is the chief executive authority of the corporation. He is appointed by the state government and is generally a member of the IAS.
Municipality
The municipalities are established for the administration of towns and smaller cities. Like the corporations, they are also set up in the states by the acts of the concerned state legislatures and in he union territory by the Acts of the Parliament of India. They are also known by various other names like Municipal Council, Municipal Committee, Municipal Board, Borough Municipality, City Municipality and others
Like a municipal corporation, a municipality also has three authorities, namely, the Council, the Standing Committees and the Chief Executive Officer.
The composition of the Council including the reservation of seats for SCS, STs and women is governed by the 74th Constitutional Amendment Act. The Council is the deliberative and legislative wing of the municipality. The Council is headed by a President/Chairman. He is assisted by a Vice-President/Vice-Chairman. Unlike the Mayor of a municipal corporation, he plays a significant role and is the pivot of the municipal administration. Apart from presiding over the meetings of the Council, he enjoys executive powers.
The Standing Committees are created to facilitate the working of the Council. They deal with public works, taxation, health, finance and so on.
The Chief Executive Officer/Chief Municipal Officer is responsible for day-to-day general administration of the municipality. He is appointed by the state government.
Notified Area Committee
A notified area committee is created for the administration of two types of areas a fast developing town due to industrialisation, and a town which does not yet fulfil all the conditions necessary for the constitution of a municipality, but which otherwise is considered important by the state government Since it is established by a notification in the government gazette, it called as notified area committee. Though it functions within the framework of the State Municipal Act, only those provisions of the Act apply to it which are notified in the government gazette by which it is created. It may also be entrusted to exercise powers under any other act. Its powers are almost equivalent to those of a municipality. But unlike the municipality, it is an entirely nominated body, that is, all the members of a notified area committee including the Chairman are nominated by the state government. Thus, it is neither an elected body nor a statutory body.
Town Area Committee
A town area committee is set up for the administration of a small town. It is a semi-municipal authority and is entrusted with a limited number of civic functions like drainage, roads, street lighting, conservancy. It is created by a separate act of a state legislature Its composition, functions and other matters are governed by the same act. It may be wholly elected or wholly nominated by the state government, or partly elected and partly nominated. The Rural Urban Relationship Committee (1963-66) headed by A.P. Jain recommended that small town area committees should be merged with the Panchayati Raj institutions to avoid multiplicity in the pattern of local bodies
Cantonment Board
A cantonment board is established for municipal administration for civilian population in the cantonment area. It is a delimited area where the military forces and troops are permanently stationed. It is setup under the Cantonments Act of 1924-a legislation enacted by the Central Government It works under the administrative control of the Defence Ministry of the Central Government. Thus, unlike other types of urban local bodies which are created and administered by the state government, a cantonment board is created as well as administered by the Central Governinnet. At present, there are 63 cantonment boards in the country. They are grouped into the following three classes.
(i) Class-1-Civilian population is more than 10,000
(ii) Class-II-Civilian population is between 2,500 and 10,000
(iii) Class-III-Civilian population is less than 2,500
A cantonment board consists of partly elected and partly nominated members. The elected members hold office for a term of three years while the nominated members (i.e. ex-officio members) continue so long as
they hold the office in that station. The military officer commanding the station is the ex-officio president of the board and presides over its meetings. The Vice-President of the board is elected by the elected members from amongst themselves for a term of three years. The Class I cantonment board consists of the following members
(i)A military officer commanding the station
(ii) An executive engineer in the cantonment
(iii) A health officer in the cantonment
(iv) A first class magistrate nominated by the district magistrate
(v) Four military officers nominated by the officer commanding the station
(vi) Seven members elected by the people of the cantonment area
The functions performed by a cantonment board are similar to those of a municipality. These are statutorily catagorised into obligatory functions and discretionary functions. The sources of income include both, tax revenue and non-tax revenue.
The executive officer of the cantonment board is appointed by the President of India. He implements all the resolutions and decisions of the board and its committees. He belongs to the Central cadre established for the purpose.
Township This type of urban government is established by the large public enterprises to provide civic amenities to its staff and workers who live in the housing colonies built near the plants. The enterprise appoints a Town Administrator to look after the administration of the township. He is assisted by some engineers and other technical and non-technical staff. Thus, the township form of urban government has no elected members. In fact, it is an extension of the bureaucratic structure of the enterprise.
Port Trust
The port trusts are established in the port areas like Mumbai, Kolkata, Chennai and so on. for two purposes: (i) to manage and protect the ports; and (ii) to provide civil amenities. A port trust is created by an Act of Parliament. It consists of both elected and nominated members. Its Chairman is an official. Its civic functions are more or less similar to those of a Municipality.
Special Purpose Agency
In addition to the area-based urban bodies (or multi-purpose agencies. that is, municipal corporations, municipalities, notified area committees, town area committees, cantonment boards, townships and port trusts), the state governments have set up certain agencies to undertake designated activities or specific functions which legitimately, belong to the domain of municipal corporations or municipalities or other local urban governments. In other words, these are function-based and not area- based. They are known as 'single purpose' or 'uni-purpose' or 'special purpose' agencies or 'functional" local bodies. Some such bodies are:
(i) Town Improvement Trusts.
(ii) Urban Development Authorities.
(iii) Water Supply and Sewerage Boards.
(iv) Housing Boards.
(v) Pollution Control Boards.
(vi) Electricity Supply Boards.
(vii) City Transport Boards, and so on.
These functional local bodies are established as statutory bodies by an act of State Legislature or as departments by an executive resolution. They function as autonomous bodies and deal with the functions alloted to them independently of the local urban government, that is, municipal corporations or municipalities and so forth. Thus, they are not subordinate agencies of the local municipal bodies.