Laxmikanth Summary Municipality - Indian Polity for UPSC CSE PDF Download

Table of Contents
1. Introduction
2. Evolution of Urban Bodies
3. The 74th Constitutional Amendment Act, 1992
4. Types of Urban Government (Detailed)
5. Municipal Personnel
6. National-Level Training Institutions for Municipal Personnel
7. Municipal Revenue
8. Central Council of Local Government
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Introduction

The term urban local government in India denotes the system by which urban areas are governed by representatives elected by the local population. The jurisdiction of an urban local body is confined to the area demarcated as urban by the state government.

India recognises eight broad categories of urban local bodies:

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

Urban Local Government

The system of urban government was constitutionalised by the 74th Constitutional Amendment Act, 1992. At the Central level, the subject of urban local government is administered by the following ministries depending on the nature of the area:

• Ministry of Housing and Urban Affairs
• Ministry of Defence (responsible for cantonment boards)
• Ministry of Home Affairs (for matters relating to Union Territories)

Evolution of Urban Bodies

Historical perspective

The institutions of urban local government in modern India developed primarily during British rule. Key milestones are:

• In 1687-88, the first municipal corporation in India was established at Madras (Chennai).
• In 1726, municipal corporations were set up at Bombay (Mumbai) and Calcutta (Kolkata).
• The Mayor's Resolution of 1870 (sometimes referred to as Lord Mayo's/Government of India efforts on financial decentralisation) emphasised greater local financial autonomy.
• The Lord Ripon Resolution of 1882 is widely hailed as the "Magna Carta" of local self-government in India; Lord Ripon is often called the father of local self-government in India.
• Under the provincial autonomy provisions of the Government of India Act, 1935, local self-government became a provincial subject.

Constitutionalisation: events leading to the 74th Amendment

• In August 1989, the Rajiv Gandhi government introduced the Nagarpalika Bill (proposed as the 65th Constitutional Amendment Bill) in the Lok Sabha to provide constitutional status to municipal bodies.
• The National Front government under V. P. Singh reintroduced a revised Nagarpalika Bill in September 1990, but it lapsed on dissolution of the Lok Sabha.
• P. V. Narasimha Rao's government introduced a modified Municipalities Bill in September 1991, which ultimately became the 74th Constitutional Amendment Act, 1992. The Act came into force on 1 June 1993.

Committees and commissions

The Central Government has appointed several committees and commissions over time to improve urban governance and municipal administration. (Reference table / illustration)

Various Committees and Commissions

The 74th Constitutional Amendment Act, 1992

The Act inserted a new Part IX-A titled "The Municipalities" into the Constitution and added a new Twelfth Schedule. Part IX-A contains provisions from Articles 243P to 243ZG, while the Twelfth Schedule enumerates the functions that may be entrusted to municipalities (Article 243W).

• The Act aimed to revitalise municipal institutions and make them effective units of self-government with defined powers, responsibilities and financial resources.

Salient features of the 74th Amendment

Classification of municipalities

The Act provides for three types of urban local bodies in each state:

• Nagar Panchayat (or whatever name called) for a transitional area - an area in transition from rural to urban.
• Municipal Council for a smaller urban area.
• Municipal Corporation for a larger urban area.

Composition and elections

All members of a municipality are to be elected directly by the people of the municipal area. The Act also provides for the constitution of wards committees in municipalities with a population of 300,000 (three lakh) or more.

Administrative Structure of India

Committees and representation

• State legislatures may provide for the creation of additional committees and for the inclusion of committee chairpersons as members of the municipality.
• The Act mandates reservation of seats for the Scheduled Castes and Scheduled Tribes in proportion to their population in the municipal area, and reservation of one-third of seats for women (including reservation in seats reserved for SC/ST).

Seat Reservation

Duration and disqualifications

• Every municipality is to have a term of office of five years, unless dissolved earlier by the state government in accordance with the law.
• A person is disqualified for being a member of a municipality if disqualified for election to the state legislature by law; however, no person shall be disqualified on the ground that he or she is less than 25 years of age if they have attained the age of 21 years.

State Election Commission

The State Election Commission is entrusted with the superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the municipalities.

Powers and functions of municipalities

Municipalities are to perform functions that include:

• Preparation of plans for economic development and social justice within their area.
• Implementation of schemes for economic development and social justice as entrusted to them, including those related to the matters specified in the Twelfth Schedule.

Finances of municipalities

The state legislature may:

• Authorise a municipality to levy, collect and appropriate taxes, duties, tolls and fees.
• Assign to a municipality certain taxes, duties, tolls and fees levied and collected by the state government.
• Provide for making grants-in-aid to municipalities from the consolidated fund of the state.
• Provide for the constitution of funds for crediting all monies of municipalities.

Finance Commission for municipalities

The Act requires a finance commission to be constituted every five years to review the financial position of municipalities and to make recommendations to the governor on:

• Principles governing the distribution between the state and municipalities of the net proceeds of taxes, duties, tolls and fees levied by the state.
• Determination of taxes, duties, tolls and fees that may be assigned to municipalities.
• Measures needed to improve the financial position of municipalities.

Audit of accounts

The state legislature may make provisions regarding the maintenance of accounts by municipalities and their audit.

Application to Union Territories and exemptions

• The President may direct that the provisions of the Act apply to any Union Territory with such exceptions and modifications as specified.
• The Act does not apply to scheduled areas and tribal areas of states; it also does not affect special arrangements such as the functions of the Darjeeling Gorkha Hill Council. Parliament may extend the Act to scheduled and tribal areas with specified exceptions and modifications.

District Planning Committee

• Each state is required to constitute a District Planning Committee (DPC) to consolidate plans prepared by panchayats and municipalities for the district and to prepare a draft development plan for the district.

Metropolitan Planning Committee

• Every metropolitan area is required to establish a Metropolitan Planning Committee (MPC) to prepare draft development plans for the metropolitan area as a whole.
• Two-thirds of the MPC members are to be elected by the municipalities and the chairpersons of panchayats in the metropolitan area; representation should be proportional to the population of municipalities and panchayats in that area.

Continuance of existing laws and municipal bodies

• State laws relating to municipalities in force immediately before the commencement of the Act remain in effect for up to one year from the commencement date; states are expected to conform their laws to the provisions of the Act within that time.
• Existing municipalities as of the commencement of the Act continue until the end of their term unless dissolved earlier under law.

Bar on judicial interference in municipal electoral matters

• The Act restricts courts from entertaining challenges to laws related to constituency delimitation or seat allotment for municipalities; elections can be questioned only by an election petition to the authority specified by state law.

Twelfth Schedule - functional items of municipalities

The Twelfth Schedule lists eighteen functions that may be entrusted to municipalities. These are commonly studied and applied in municipal law and practice:

1. Urban planning including town planning.
2. Regulation of land-use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally ill.
10. Slum improvement and upgradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facilities such as parks, gardens, playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums.
15. Cattle pounds; prevention of cruelty to animals.
16. Vital statistics including registration of births and deaths.
17. Public amenities including street lighting, parking lots, bus stops and public conveniences.
18. Regulation of slaughterhouses and tanneries.

Types of Urban Government (Detailed)

India uses a variety of urban bodies to administer different kinds of urban settlements. The eight main types are described below.

1. Municipal Corporation
2. Municipality (Municipal Council)
3. Notified Area Committee
4. Town Area Committee
5. Cantonment Board
6. Township
7. Port Trust
8. Special Purpose Agency

1. Municipal Corporation

• Municipal corporations are the urban local bodies for large metropolitan cities such as Delhi, Mumbai, Kolkata and Bengaluru. They are constituted by state legislation (and by Parliament for Union Territories where applicable).
• The three principal authorities in a municipal corporation are the council, various standing committees, and the commissioner.
• The Municipal Commissioner is the chief executive responsible for implementing decisions of the council and its committees; commissioners are normally appointed by the state government and are often officers of the Indian Administrative Service (IAS) or a state civil service.

2. Municipality (Municipal Council)

• Municipalities administer smaller cities and large towns. Their structure resembles that of municipal corporations: a council, standing committees and a chief executive officer (appointed by the state government).

3. Notified Area Committee

• Notified Area Committees (NACs) are established in areas undergoing rapid development (for example, due to industrialisation) or where a full municipal structure is not yet justified but local administration is necessary. They are created by state governments and may be wholly or partly nominated.

4. Town Area Committee

• Town Area Committees are semi-municipal bodies for small towns and are entrusted with a limited set of civic functions such as roads, street lighting, drainage and conservancy. Members may be wholly nominated by the state government or partly elected and partly nominated.

5. Cantonment Board

• Cantonment Boards provide municipal administration in cantonment areas (areas with a significant defence presence) for the civilian population. They are constituted under the Cantonments Act, 2006 and administered by the Central Government through the Ministry of Defence.
• As of 2016, there were 62 cantonment boards in India, categorised into classes based on civilian population.

6. Township

• Townships are urban entities created by large public sector undertakings or industrial enterprises to provide civic amenities to employees and residents in company-owned housing colonies. Administration is usually carried out by a town administrator appointed by the enterprise.

7. Port Trust

• Port trusts are statutory bodies established to manage major ports (for example Mumbai, Kolkata, Chennai). Their functions include port management and providing civic amenities in port areas.

8. Special Purpose Agency

• Special purpose or functional local bodies handle specific urban functions. Examples include:

• Town improvement trusts
• Urban development authorities
• Water supply and sewerage boards
• Housing boards
• Pollution control boards
• Electricity supply boards
• City transport authorities

Municipal Personnel

Municipal personnel may be organised under one of three systems. A single municipal organisation may employ personnel under more than one of these systems:

• Separate personnel system: Each local body appoints, administers and controls its own staff. Officers are not ordinarily transferable between local bodies. This is the most common system.
• Unified personnel system: The state government appoints, administers and controls the personnel of municipalities.
• Integrated personnel system: Personnel serving the state government and local bodies form part of a common service and may be interchangeable under prescribed conditions.

National-Level Training Institutions for Municipal Personnel

1. All-India Institute of Local Self-Government (Mumbai): Constituted in 1927, it is a private registered society focused on training and research in local governance.
2. Centre for Urban and Environmental Studies (New Delhi): Established in 1967 following recommendations of the Nur-ud-din Ahmed Committee (1963-1965) on training municipal employees.
3. Regional Centres for Urban and Environmental Studies (Kolkata, Lucknow, Hyderabad and Mumbai): Set up in 1968 on the recommendation of the Nur-ud-din Ahmed Committee to provide regional training and research support.
4. National Institute of Urban Affairs (New Delhi): Established in 1976 as a national think-tank and training institution for urban governance and policy.
5. Human Settlement Management Institute (New Delhi): Established in 1985 to focus on training, capacity building and research in human settlements and urban management.

Municipal Revenue

Urban local bodies derive income from multiple sources. The major categories are:

• Tax revenue: Property tax, entertainment tax, tax on advertisements, professional tax, water tax, lighting tax, market tax, tolls, octroi (where applicable), and similar local taxes.
• Non-tax revenue: Rent from municipal properties, user charges, fees and fines, royalties, dividends and profits from municipal enterprises, interest receipts and miscellaneous receipts.
• Grants: Financial grants from the Central and State Governments for specific programmes, infrastructure projects and urban reforms.
• Devolution: Transfer of funds from the State Government to municipalities as per constitutional or statutory arrangements.
• Loans: Borrowings from the State Government, public financial institutions and markets for capital expenditure.

Central Council of Local Government

The Central Council of Local Government was established in 1954 under Article 263 of the Constitution by an order of the President. Initially called the Central Council of Local Self-Government, the Council serves as a forum for cooperation between the Centre and the states on matters relating to local government. Its principal functions include:

• Considering and recommending policy matters concerning local government.
• Making proposals for legislation affecting local bodies.
• Examining avenues for cooperation between the Centre and the states on local government matters.
• Drawing up common programmes of action for strengthening local governance.
• Recommending Central financial assistance to states for supporting local bodies.
• Reviewing projects and programmes undertaken by local bodies with Central financial assistance.

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