The Constitution (Seventy-First Amendment) Act of 1992 added a new Part IXA to the Constitution, which includes articles 243 P to 243 ZG that deal with municipalities. On June 1, 1993, this modification, commonly known as the Nagarpalika Act, went into effect. It has given municipalities constitutional status and placed them within the justified section of the constitution. The UPSC Indian Polity and Governance Syllabus include the Salient Features of the 74th Constitutional amendments which are described in this article.

Features of 74th Amendment Act,1992

The following were the main provisions introduced by the above Act: -

Constitution of Municipalities

The Act establishes three different types of municipalities, based on the size and area of each state.

1. Nagar Panchayat (for an area in transition from rural to the urban area);
2. Municipal Council for the smaller urban area; and
3. Municipal Corporation for a larger urban area.

Composition of Municipalities

• Direct elections will be used to fill the seats. Each municipal region will be divided into territorial constituencies known as wards for this purpose.
• The manner in which a municipality's chairperson is elected may be determined by the state legislature.
• It may also ensure that the following individuals are represented in a municipality.
  • Persons with unique expertise and experience in municipal administration who do not have the right to vote in municipal meetings.
  • Members of the Lok Sabha and state legislatures that represent constituencies that encompass the municipal area in whole or in part.
  • Within the municipal area, members of the Rajya Sabha and the State Legislative Council registered as voters.
  • Committee chairpersons are those who are in charge of a group of people (other than ward committees).

Constitution of Wards Committees

Ward Committees must be formed in all municipalities with a population of 3 lakhs or more, according to this law.

Reservation of seats

• The Act mandates that seats be reserved for scheduled castes and scheduled tribes in every municipality based on their population percentage to the overall population of the municipality.
• It also stipulates that at least one-third of the total number of seats be designated for women (including the number of seats reserved for women belonging to the SCs and the STs).
• The state legislature may establish a method for reserving chairperson ships in municipalities for SCs, STs, and women.
• It may also create any provision for the reservation of seats or chairperson ships in municipalities for members of the backward classes.

Duration of Municipalities

• From the date of its first meeting, the municipality has a fixed term of 5 years.
• Elections to form a municipality must be performed before the municipality's duration expires.
• If the municipality is dissolved before the 5-year period has expired, the elections to form a new municipality must be conducted within 6 months of the date of dissolution.

Powers and functions of Municipalities

• All municipalities would be given the authorities and responsibilities they need to function as efficient self-government organizations.
• The State Legislature may establish by law what authorities and obligations the municipalities will have in developing plans for economic development and social justice, as well as implementing schemes entrusted to them.
• The Twelfth Schedule of the Constitution contains an example list of functions that may be entrusted to municipalities.

Finances of Municipalities

The Finance Commission, which was established under Article 243-I to examine the financial standing of Panchayati Raj Institutions, will now examine the financial standing of municipalities and offer recommendations to the Governor.

The recommendations of the Finance Commission will cover the following:

• The net earnings of the State's levied taxes, charges, tolls, and fees are distributed between the State Government and Municipalities.
• Distribution of a portion of the earnings to municipalities at all levels of government in the state.
• Municipalities assign or appropriate taxes, duties, tolls, and fees.
• Grants-in-aid from the State's Consolidated Fund to municipalities.
• Municipalities must take steps to improve their financial situation.

The governor must present the commission's recommendations, as well as the action is taken report, to the state legislature.

Election to Municipalities

The State Election Commissions are in charge of supervising, directing, and controlling the production of electoral rolls for, and the conduct of, all elections to panchayats and municipalities.

Audit and Accounts

Municipal accounting must be kept up to date, and additional audits must be performed in compliance with state legislation. State legislatures shall be allowed to establish suitable laws in this regard, based on local needs and available institutional structure.

Committee for District Planning

• Every state must establish a district planning committee at the district level to aggregate the plans developed by panchayats and municipalities in the district and to draft a district-wide development plan.
• The Zila Parishad is in charge of planning and allocating resources for Panchayati Raj institutions at the district level.

Metropolitan Planning Committees

A metropolitan planning committee is required in every metropolitan region to prepare a draft development plan.

Continuance of Existing Laws and Municipalities

• All state legislation relating to municipalities must remain in effect for one year following the date of enactment of this act.
• In other words, states must adopt the new municipal system based on this legislation within one year of the date of its enactment, which is June 1, 1993.
• All municipalities that existed before the passage of this act will continue to exist until their terms expire unless the state legislature dissolves them sooner.

Bar to interference by Courts in Electoral Matters

• The act prohibits judges from interfering in municipal election affairs.
• It declares that the constitutionality of any statute relating to the delimitation of constituencies or the allocation of seats to those constituencies cannot be challenged in any court.
• It also states that no election to any municipality may be challenged unless an election petition is filed with the appropriate authority and in the way prescribed by the state legislature.

Conclusion

The 74th Amendment gave states broad rules for creating urban local government control. The Indian government's historic initiative in 1993 was founded on the assumption that all "power" in a democracy belongs to the "people" by right. It ensures the regularity of elections, financial decentralization, tax collecting agencies, and other regular functions for these small communities.

FAQs

Q1: What is the 74th Constitutional Amendment?

Q2: What are the key features of the 74th Amendment?

Q3: How does the 74th Amendment impact urban governance?

Q4: What is the significance of the State Election Commission under the 74th Amendment?

Q5: What types of municipalities are recognized under the 74th Amendment?

MCQs

1. When was the 74th Constitutional Amendment enacted?

a) 1989

b) 1992

c) 1993

d) 1995

2. What is the minimum population requirement for the establishment of a Municipal Corporation?

a) 1 lakh

b) 5 lakh

c) 10 lakh

d) No specific requirement

3. Which of the following is NOT a feature of the 74th Amendment?

a) Constitutional status to municipalities

b) Three-tier system for urban governance

c) Reservation for women

d) Direct elections for state assemblies

4. What role does the State Election Commission play in urban governance?

a) Appoints municipal commissioners

b) Conducts elections for local bodies

c) Oversees state assembly elections

d) Implements government schemes

5. Which articles of the Indian Constitution were amended by the 74th Amendment?

a) Articles 243A to 243O

b) Articles 243B to 243Z

c) Articles 242 to 245

d) Articles 240 to 241

GS Mains Questions and Model Answers

Q1: Evaluate the impact of the 74th Constitutional Amendment on local governance in India.

Answer: The 74th Constitutional Amendment significantly transformed local governance in India by providing constitutional recognition to municipalities. It established a three-tier system, comprising Municipal Corporations, Municipal Councils, and Nagar Panchayats, which enhanced administrative efficiency and local accountability. By mandating the reservation of seats for women, Scheduled Castes, and Scheduled Tribes, it also promoted inclusive representation. The establishment of the State Election Commission ensured that elections to local bodies are conducted fairly, thus strengthening democracy at the grassroots level. Overall, the amendment has empowered citizens, improved service delivery, and facilitated better urban planning.

Q2: Discuss the significance of urban local bodies as per the 74th Constitutional Amendment.

Answer: Urban local bodies, as established by the 74th Constitutional Amendment, play a crucial role in governance and development in urban areas. They serve as the primary institutions for local self-governance, allowing residents to participate in decision-making processes that directly affect their lives. The amendment has led to enhanced accountability, as local bodies are now empowered to manage civic amenities, infrastructure, and urban planning. Furthermore, the provision for the reservation of seats for women and marginalized communities has fostered greater social equity and representation in local governance. This transformation is essential for addressing urban challenges and ensuring sustainable development.

Q3: Analyze the challenges faced in implementing the provisions of the 74th Constitutional Amendment.

Answer: Despite the positive intent of the 74th Constitutional Amendment, its implementation has faced several challenges. One major issue is the lack of adequate financial resources for urban local bodies, which hampers their ability to deliver services effectively. Additionally, there is often a lack of political will at the state level, leading to insufficient support for the functioning of these bodies. Furthermore, bureaucratic hurdles and inadequate capacity building among local representatives can impede effective governance. There is also a need for better integration of urban planning and governance to address the complexities of urbanization. Addressing these challenges is essential for realizing the full potential of the amendment in enhancing local governance.

Previous Year Questions on  Salient Features of 74th Constitutional Amendment Act

1. UPSC CSE Prelims 2021

Question: Which of the following statements is correct regarding the 74th Constitutional Amendment?

Answer: The correct answer is It provides for the establishment of a three-tier system of urban governance. This statement underscores the constitutional recognition of urban local bodies, which include Municipal Corporations for large cities, Municipal Councils for smaller towns, and Nagar Panchayats for transitional areas. The amendment aims to decentralize power, enhance local self-governance, and facilitate greater participation of citizens in urban administration. By establishing this framework, the amendment seeks to ensure efficient service delivery, better urban planning, and accountability in governance, which are crucial for addressing the challenges of urbanization in India.