The Municipalities are the local self-government units in the urban areas. The term urban local government in India signifies the governance of an urban area by the people through their elected representative. The jurisdiction of an urban local government is limited to specific urban areas which is demarcated for this purpose by the state government. Subject of ‘urban local government’ is dealt with by the Ministry of Housing and Urban Affairs (States), Ministry of Defence (cantonment boards), and Ministry of Home Affairs (Union Territories). The UPSC Indian Polity and Governance Syllabus includes Municipality which is described in this article.

Municipality - Historical Background

• The system of local self-government was well established before the invasion of the British in India.
• The old system of self-contained village Panchayats was dismantled in the modern administrative setup based on the British model.
• The first municipal corporation in India was established in Madras in 1688. Later Municipal corporations were established in Bombay and Calcutta in 1726.
• The viceroy of India, Lord Rippon, issued a resolution of Local Self-Government in 1882.
• In India, Lord Rippon is known as the "Father of Local Self Government."
• In the Government of India Act of 1935, the local self-government was declared a provincial subject Under the provincial autonomy scheme.
• Mahatma Gandhi strongly believed in Gram Swaraj and he pleaded for the transfer of power to the rural masses.

Municipality - Constitutional Provisions

• In the Constitution of India, no provision was made for the establishment of local self-government, except the incorporation of Article 40 in the Directive Principles of State Policy.
• The 74th Amendment Act, 1992 has inserted a new Part IX A into the Constitution which deals with the administration of Municipalities and Nagar Palikas.
• It consists of Article 243P to 243ZG. It also added a new twelfth schedule to the Constitution. The 12th schedule consists of 18 items.
• The Act gave constitutional status to the Municipalities.
• Apart from giving Constitutional recognition to Municipalities, the 74th Amendment lays down that in every State two committees shall be constituted.At the district level a District Planning Committee [Article 243ZD]
• In every metropolitan area a Metropolitan Planning Committee [Article 243 ZB]

Evolution Of Municipality

• The Community Development Programme was started on 2nd October 1952. The second experiment was the launch of the National Extension Scheme in 1953. However, this program was not successful.
• Few committees were set up to look after the problem of democratic decentralization in India.
• Examples: Balwant Rai Mehta Committee, 1957; Ashok Mehta Committee, 1977; GVK Rao Committee, 1985 and L.M Singhvi Committee, 1986.
• Based on the committee's reports, the Government of India introduced the 64th Amendment Bill on local government in 1989 in the Parliament, but it failed to get the required support.
• A second attempt was made in 1990 to pass the bill, however, lapsed due to the dissolution of the Parliament.
• Finally, the Bill was passed in 1992 as the 73rd and 74th Amendment Act, 1992. It was passed during the term of P.V. Narasimha Rao as the Prime Minister.

Constitution Of Municipalities

• Clause 234K provides that in every State, institutions of self-government, called by a general name “municipalities” will be constituted. There are three Types of Municipalities:
• Nagar Panchayat, for a transitional area, i.e., an area that is being transformed from a rural to an urban area.
• Municipal Council for a smaller urban area.
• Municipal Corporation for a larger urban area.
• Article 243Q makes it obligatory for every state to constitute such units.
• The terms “a transitional area”, “a smaller urban area” or “a larger urban area” means such area as the Governor may determine.
• This can be determined with regards to the population of the area, the density of the population, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors.

Composition Of Municipalities (Article 243R)

• All the members of a municipality would generally be elected directly by the people of the municipal area from territorial constituencies.
• The Chairman shall be elected in a manner provided by the Legislature. The legislature of a State may by law provide for representation in the municipality, without right to vote in the meetings of the Municipality, of the following people:
• Persons of special knowledge or experience in Municipal administration.
• Members of Lok Sabha, Rajya Sabha; state legislative assembly, state legislative council.
• The Chairpersons of committees constituted other than ward committees.

Ward Committee

Article 243S provides for the formation of ward committees consisting of one or more wards having a population of three lakh or more. The State legislature shall make provision with respect to its composition, the territorial area of award committee, and the manner in which the seats in award committee shall be filled.

Reservation Of Seats For Scheduled Castes, Scheduled Tribes And Women (Article 243T)

• Women: Out of the total number of seats to be filled by direct election at least 1/3rd seats would be reserved for women, including the number of seats reserved for the women belonging to SC and ST. The 112th Constitutional Amendment Bill, 2009 seeks to increase the percentage of reservation for women in Municipalities from 33% to 50% at all levels is pending in the Parliament.
• SCs and STs: As in Part IX reservations of seats are to be made in favor of the Scheduled Castes and Scheduled Tribes in every Municipality in the proportion of their population.
• Chairperson: it has been left to the State legislature to prescribe by law the manner of reservation of the offices of the Chairpersons of Municipalities.
• Backward Classes: The state legislature may make provisions for reservation of seats or offices of the chairpersons in favour of the backward classes.

Duration Of Municipalities (Article 243Q)

• Every Municipality has a term of five years and every municipality is given a reasonable opportunity to be heard before its dissolution.
• Elections to constitute a Municipality shall be completed before the expiry of the period of 5 years, and in case of dissolution earlier the elections must be conducted within 6 months of the dissolution.

Qualification For Membership Of Municipalities

• Article 243V provides that all the persons who are qualified to be chosen to the state legislature shall be qualified for being a member of a Municipality.
• The minimum age for contesting elections is 21 years.
• Disqualification: All the questions of disqualification shall be referred to such authority as the state legislature determines.

Powers, Authority And Responsibilities Of Municipalities

• According to Article 243W of the Constitution, the Legislatures of States have been conferred the power on Municipalities all such powers and authority as may be necessary to enable them to function as institutions of self-government. It has specifically been mentioned that they may be given the responsibility of:
• Preparation of plans for economic development and social justice
• Implementation of schemes as may be entrusted to them
• In regard to matters listed in the 12th schedule of the Indian Constitution.
• Power to impose taxes and financial resources: A State Legislature may by law authorise a Municipality to levy, collect and appropriate taxes, duties, tolls etc. It can also assign to a Municipality various tax, duties, etc collected by the state government. Grants-in-aid to the Municipalities from the Consolidated Fund of a State.

State Finance Commission

• The Finance Commission constituted under Article 243I shall also review the financial position of the Municipalities (Article 234Y) and make recommendation as to:
• The distribution between the State and the Municipalities of the net proceeds of taxes, duties, tolls and fee by the State which may be divided between them and how allocation of shares amongst various levels of Municipalities.
• The taxes, duties, tolls, and fees may be assigned to the Municipalities.
• Grants-in-aid to be given to the Municipalities.
• The measures needed to improve the financial position of the Municipalities.
• Any other matter that may be referred to by the Governor.
• Article 234Z provides for the audit of accounts of Municipalities.

Election Of Municipalities

• The State Election Commission appointed under Article 243K shall have the power of superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the municipalities. The state legislature may make provision with respect to all matters relating to elections to the municipalities.
• Bar to interference by courts in electoral matters: The courts shall have no jurisdiction to examine the validity of a law, relating to delimitation of constituencies or the allotment of seats made under Article 243ZA. An election to the Municipality can be called in question only by an election petition which should be presented to such authority and in such manner as may be prescribed by or under any law made by the State Legislature.

Types Of Urban Government

There are eight types of urban governments in India.

Municipal Corporation

• Municipal Corporations are created for the administration of big cities.
• A Municipal Corporation consists of three different authorities.
• Municipal Council, Standing committees, and Municipal Commissioner
• The council consists of councilors directly elected by people and is headed by a Mayor while the Commissioner is appointed by the state government and is generally an IAS officer.

Municipality

• Municipalities are responsible for the administration of small towns and cities. They are structured similarly to municipal corporations, with the exception that the president/chairman is the head of council, and instead of a commissioner, they have a chief executive officer/chief municipal officer.
• It has various other names like the municipal council, municipal committee, municipal board, borough municipality, city municipality and others.

Notified Area Committee

The Notified Area Committee was established to oversee the administration of rapidly emerging towns and towns that do not yet meet all of the requirements for the formation of a municipality. Unlike the municipality, it was established as a result of a notification. It's neither a statutory nor a democratically elected authority. The state administration has nominated the entire body.

Town Area Committee

A separate act of the state legislature establishes it for the administration of a small town. It is a semi-municipal entity with a limited set of civic responsibilities. It can be entirely elected, entirely nominated, or partially elected and partly nominated, depending on state law.

Cantonment Board

Its purpose is to provide municipal administration for civilians living in cantonment zones (area where military forces and troops are permanently stationed). It was established by the central government under the provisions of the Cantonment Act, 2006, and is administered by the central government's Defense Ministry. It is a partially elected and partly nominated body whose ex-officio President is the military officer commanding the station. The vice president is chosen from among the board's elected members. The President of India appoints the executive officer of the cantonment board.

Township

Large public corporations construct it to provide municipal facilities to their employees and workers who reside in housing colonies built near the company. It is not an elected body; instead, the enterprise appoints all members, including the town administrator.

Port Trust

• The port trusts are established in the port areas like Mumbai, Kolkata, Chennai and so on for two purposes:
• to manage and protect the ports;
• to provide civic amenities.
• It is created by an Act of Parliament and it consists of both elected and nominated members.

Special Purpose Agency

• These are established by a state legislature act or a department's executive order. They have a specific function and perform it in a specific area, independent of civic bodies.
• These are function-based, not area-based.
• They are established as statutory bodies by an act of state legislature or as departments by an executive resolution. They function as an autonomous body and are not subordinate agencies to local municipal bodies.
• Example: Delhi Metro Rail Corporation.

Note: Urban Local Bodies do not exist in Arunachal Pradesh.

Conclusion

As Mahatma Gandhi said "The future of India lies in its villages" local-government is the first step to fulfilling the dreams of Gandhi Ji. Governments should make sufficient efforts to devolve funding, powers, and officials to local authorities in order for them to organize economic growth and social justice for everyone.

FAQs

MCQs

1. Which Amendment of the Indian Constitution deals with the establishment of municipalities?

A. 42nd Amendment
B. 44th Amendment
C. 73rd Amendment
D. 74th Amendment

2. Which of the following is NOT a type of municipality in India?

A. Nagar Panchayat
B. Municipal Council
C. Zila Parishad
D. Municipal Corporation

3. What is the term of office for a municipality?

A. 4 years
B. 5 years
C. 6 years
D. 7 years

4. Who appoints the State Finance Commission?

A. Governor
B. Chief Minister
C. President
D. Prime Minister

5. Which article of the Constitution deals with the powers of municipalities?

A. Article 243W
B. Article 243G
C. Article 40
D. Article 370

GS Mains Questions and Model Answers

Q1: Examine the role of the 74th Constitutional Amendment in strengthening urban governance in India.

Answer: The 74th Constitutional Amendment was pivotal in granting constitutional status to urban local bodies (municipalities). It ensured democratic decentralization, giving municipalities autonomy in urban planning, taxation, and public welfare services. The establishment of the State Finance Commission helped improve financial autonomy, while the creation of elected urban bodies strengthened grassroots democracy in cities and towns.

Q2: Discuss the challenges faced by municipalities in India in fulfilling their constitutional responsibilities.

Answer: Despite constitutional recognition, municipalities in India face several challenges, including financial constraints, inadequate infrastructure, and political interference. The lack of trained personnel, delayed elections, and dependence on state governments for funds further limit their efficiency in urban governance. Ensuring the devolution of powers and financial resources is essential for municipalities to function effectively.

Q3: Analyze the significance of the State Finance Commission in enhancing the fiscal capacity of municipalities.

Answer: The State Finance Commission plays a crucial role in reviewing the financial position of municipalities and recommending measures for resource allocation. It helps distribute state revenues between the state and urban local bodies, ensuring adequate funding for urban planning, infrastructure development, and social welfare programs. Strengthening the fiscal autonomy of municipalities is vital for the efficient delivery of urban services.

Previous Year Questions on Municipalities

1. UPSC CSE Prelims 2016

Question: Which of the following is a type of municipality provided under the 74th Constitutional Amendment?
A. Zila Parishad
B. Municipal Corporation
C. Gram Panchayat
D. Nyaya Panchayat

Answer: B

Explanation: The 74th Constitutional Amendment recognizes Municipal Corporations, Municipal Councils, and Nagar Panchayats as the types of municipalities in urban governance.

2. UPSC CSE Mains 2017 (GS Paper 2)

Question: "The 74th Amendment Act aimed to strengthen urban local governance, but challenges remain." Discuss the significance and challenges of urban local bodies in India.

Answer: The 74th Amendment empowered municipalities to govern urban areas, providing them with authority in urban planning, taxation, and welfare. However, challenges such as financial dependency, political interference, and inadequate infrastructure persist. Addressing these issues is crucial for municipalities to deliver on their mandate and contribute effectively to urban development.