74th Constitutional Amendment | Public Administration Optional for UPSC (Notes) PDF Download

Introduction

In 1992, a landmark legislation, the 74^th Constitutional Amendment Act, was enacted in India, ushering in a new era for urban governance. This act established Municipalities or Urban Local Governments as constitutional entities, granting them constitutional status and justiciable provisions. The objective was to decentralize powers and authorities to Urban Local Bodies (ULBs) and revitalize the institutional structure of urban governance. In this article, we delve into the details of the 74^th Amendment Act, exploring its constitutional provisions, salient features, and the significance of urban local bodies in India.

Constitutional Provisions of the 74^th Constitutional Amendment Act

The 74th Constitutional Amendment Act, passed by the Parliament in December 1992, introduced Part IXA (Articles 243-P to 243-ZG) and the 12th Schedule in the Constitution. It provided a uniform law for all municipalities across the nation, laying the foundation for a robust urban governance framework.

Salient Features of the 74^th Constitutional Amendment Act

• Composition: The Act mandates that every member of a municipality must be chosen directly by the residents of that area. The municipal region is divided into territorial constituencies known as wards, and the state legislature regulates the selection process for the chairperson of the municipality.
• Wards Committees: For municipalities with a population of at least three lakh, the Act requires the establishment of ward committees. These committees, comprising one or more wards, serve as important local decision-making bodies. State legislatures have the power to form additional committees, and the chairs of these committees may become elected municipal officials.
• Reservation of Seats: The Act ensures reservation of seats for Scheduled Castes (SC) and Scheduled Tribes (ST) in proportion to their population in every municipality. It also provides for the reservation of one-third of the total number of seats for women. The state legislature has the authority to make provisions for reservation in favor of the backward class at any level in the municipality.
• Duration of Municipalities: Municipalities are granted a five-year term in office by every level of government. However, they can be dissolved before the completion of their tenure. If a municipality is re-elected after dissolution, it continues its existence for the remaining duration of its original term.
• Disqualifications: The Act specifies grounds for disqualification, including disqualification under any existing election law or state legislation. However, a person cannot be disqualified on the basis of age if they have attained the age of 21 years.
• State Election Commission: The State Election Commission is established under the Act and holds responsibilities such as oversight, direction, and control over the creation of electoral rolls. It also supervises the organization of elections for municipalities, ensuring transparency and fairness.
• Powers and Functions: The Act empowers municipalities to prepare plans for economic development and social justice. Municipalities implement schemes of the Central and State governments, focusing on improving the lives of the people at the grassroots level. They have the authority to enhance employment facilities and undertake development activities in their respective areas.
• Finances: State legislatures are authorized to levy and collect taxes, duties, and fees through the municipalities. They can also assign taxes collected by the state government to the municipalities, provide grants-in-aid, and establish funds to manage the finances of the municipalities effectively.
• Finance Commission: The Act mandates the appointment of a finance commission by the governor to assess the financial status of municipalities. This commission advises the governor on tax distribution between the state and municipalities and determines the taxes, levies, tolls, and charges that can be imposed on municipalities.
• Audit of Accounts: State legislatures are responsible for making provisions regarding the maintenance and auditing of municipalities' accounts, ensuring transparency and accountability in financial matters.
• Application to Union Territories: The provisions of the 74^th Constitutional Amendment Act extend to the Union Territories. However, the president has the authority to specify exceptions or modifications as necessary.
• Exempted Areas: The Act does not apply to scheduled areas and tribal areas in certain states. It also does not affect the functions and powers of specific local bodies, such as the Darjeeling Gorkha Hill Council of West Bengal.
• District Planning Committee: Each state must establish a district planning committee at the district level to coordinate plans created by panchayats and municipalities. The committee plays a crucial role in drafting a comprehensive development plan for the district as a whole.
• Metropolitan Planning Committee: The Act mandates the formation of a metropolitan planning committee for every metropolitan area with a population of 10 lakh or more. This committee prepares a draft development plan, with two-thirds of its members elected by the municipalities and panchayats within the metropolitan area.
• Continuance of Existing Laws and Panchayats: State legislation related to municipalities remains in force for one year following the implementation of the Act. Existing municipalities continue their operations until the end of their terms, unless dissolved earlier by the state legislature.
• Bar to Interference by Courts in Electoral Matters: The Act prevents courts from interfering in local elections. It prohibits the contestation of laws governing the definition of constituencies or the distribution of seats within those constituencies. Moreover, elections for municipalities can only be contested through election petitions submitted according to the rules established by the state legislature.

Types of Urban Governments under the 74^th Constitutional Amendment Act

Article 243Q of the Act provides for the establishment of three types of municipalities in every state, based on various factors such as population, density, revenue generation, and employment activities. These municipalities include:

• Nagar Panchayat: Nagar Panchayats are meant for transitional areas transitioning from rural to urban status.
• Municipal Council: Municipal Councils are established for smaller urban areas.
• Municipal Corporation: Municipal Corporations are designated for larger urban areas.

Significance of Urban Local Bodies

• Cities and towns play a vital role in the economic expansion of a country, acting as catalysts for growth in rural hinterlands. The establishment of robust urban local bodies ensures active participation of people and their representatives in planning and implementing programs that align with local needs. Strong and stable democracy requires the involvement of citizens at the grassroots level, extending the reach of governance to towns, villages, and cities.

Conclusion

The 74^th Constitutional Amendment Act of 1992 stands as a watershed moment in India's urban governance landscape. By providing constitutional status to municipalities and decentralizing powers to Urban Local Bodies, the Act empowers citizens and enhances local decision-making. With its salient features and comprehensive provisions, this legislation paves the way for effective and efficient urban governance, contributing to the overall development and progress of the nation.