🟦 1. INTRODUCTION
The 74th Constitutional Amendment Act, 1992 came into force on 1st June 1993. It provided constitutional status to urban local bodies (ULBs), making them an integral part of the democratic governance system in India.
- Aimed at strengthening urban governance.
- Provided a uniform structure for municipalities.
- Empowered municipalities with constitutional authority, election mandates, financial powers, and functional responsibilities.
📝 It added a new Part IXA to the Constitution titled “The Municipalities” (Articles 243P to 243ZG) and inserted the Twelfth Schedule containing 18 functional items.
🟦 2. BACKGROUND
🔹 Need for the Amendment:
Before 1992, Urban Local Bodies were governed by state-specific laws:
- No uniformity across states.
- Urban bodies were often weak, lacked funds and real powers.
- Elections were irregular, with nominated members dominating.
📈 With rapid urbanization, a need was felt to:
- Democratize local urban administration.
- Empower municipalities with real authority and accountability.
- Improve public service delivery in urban areas.
🔹 Steps Leading to the Amendment:
- 1985: National Commission on Urbanisation under C.M. Correa.
- 1988: Draft bill on municipalities prepared.
- 1992: 74th Amendment Bill passed by Parliament.
- 1993: Came into force on 1st June 1993.
🟦 3. CONSTITUTIONAL PROVISIONS (Articles 243P to 243ZG Explained)
The 74th Amendment inserted Part IXA – “The Municipalities” into the Constitution.
✅ Article 243P – Definitions
Defines key terms:
- Municipality: Institution of self-government in urban areas.
- Metropolitan area: Population >10 lakh with urban continuity.
- District Planning Committee, Ward Committee, etc.
✅ Article 243Q – Constitution of Municipalities
Three types of Municipalities based on population and urban nature:
| Type | Area Type | Function |
|---|---|---|
| Nagar Panchayat | Transitional area (rural → urban) | Local governance in developing areas |
| Municipal Council | Smaller urban areas | Civic administration of towns |
| Municipal Corporation | Larger urban areas | Full-fledged governance for cities |
✅ Article 243R – Composition of Municipalities
- Members elected directly by the people.
- State may allow nominated members with special knowledge (non-voting).
- Each municipality divided into wards.
✅ Article 243S – Wards Committees
- In cities >3 lakh population, Wards Committees to be formed.
- Represents sub-urban areas.
- Enhances local participation.
✅ Article 243T – Reservation of Seats
- SCs/STs – Proportional reservation.
- Women – At least 1/3rd of total seats (including women from SC/ST).
- State may provide OBC reservation (not constitutionally mandated).
✅ Article 243U – Duration of Municipalities
- 5-year term for all municipalities.
- Re-election before expiry or within 6 months of dissolution.
✅ Article 243V – Disqualifications for Membership
- Follows state legislature rules for disqualification.
- State Election Commission (SEC) decides doubts/disputes.
✅ Article 243W – Powers, Authority and Responsibilities
- Legislature of state may assign municipalities:
- Preparation of plans for economic development.
- Implementation of schemes for social justice.
- Responsibilities listed in Twelfth Schedule.
✅ Article 243X – Power to Impose Taxes
- State may authorize municipalities to:
- Levy and collect taxes, duties, fees, tolls.
- Get grants-in-aid from state government.
- Use funds as per law.
✅ Article 243Y – Finance Commission
- State Finance Commission to be formed every 5 years.
- Recommends:
- Division of taxes between state and ULBs.
- Grants to municipalities.
- Measures to improve finances.
✅ Article 243Z – Audit of Accounts
- State legislature may make law for auditing accounts of municipalities.
✅ Article 243ZA – Elections
- Conducted by State Election Commission.
- SEC ensures:
- Free and fair elections.
- Timely polls.
✅ Article 243ZB to 243ZG – Miscellaneous
- 243ZB: Not applicable to Scheduled Areas (Fifth/Sixth Schedule).
- 243ZC: Exemptions for Darjeeling and other hill councils.
- 243ZD: Formation of District Planning Committees (DPC).
- 243ZE: Metropolitan Planning Committees (MPC) in large urban areas.
- 243ZF: Existing laws to continue till amended.
- 243ZG: Courts cannot interfere in election matters unless through election petition.
✅ Twelfth Schedule – Functional Areas of ULBs (18 items)
| Functions include: |
|---|
| Urban planning and land use regulation |
| Roads, water supply, sanitation |
| Public health and slum improvement |
| Fire services |
| Urban forestry, environment |
| Burials, street lighting |
| Markets, slaughterhouses |
| Transport, public amenities |
| Vital statistics, heritage protection |
🟦 4. THREE-TIER STRUCTURE OF URBAN LOCAL BODIES
| Tier | Municipality Type | Population Range |
|---|---|---|
| First | Nagar Panchayat | Transitional area (small towns) |
| Second | Municipal Council | Medium-size towns |
| Third | Municipal Corporation | Large cities (metropolitan areas) |
Each municipality is governed by:
- Elected body: Mayor/Chairperson + Councillors.
- Executive wing: Municipal Commissioner (appointed by State).
🟦 5. LANDMARK JUDGMENTS
🔹 1. Municipal Council, Ratlam v. Vardhichand (1980)
Facts: Ratlam municipality failed to clean roads, provide drainage. Verdict: SC directed it to fulfill statutory duties under health laws. 📌 Significance: Municipalities cannot neglect basic civic duties.
🔹 2. Ahmedabad Municipal Corporation v. Nawab Khan Gulab Khan (1997)
Facts: Eviction of slum dwellers. Verdict: Due process must be followed; even poor have right to housing under Article 21. 📌 Importance: Emphasized human rights in urban governance.
🔹 3. State of U.P. v. Pradhan Sangh Kshettra Samiti (1995)
Context: Powers of local bodies post 73rd/74th Amendments. Ruling: Local bodies have constitutional protection and must not be undermined.
🔹 4. K. Rajendran v. State of Tamil Nadu (1982)
Context: Dissolution of municipal councils. Ruling: Arbitrary dissolution without valid grounds violates democratic principles.
🔹 5. Female Workers (Muster Roll) v. MCD (2000)
Facts: Denial of maternity benefits to daily wage workers. Verdict: MCD must follow Article 42; even temporary workers deserve maternity leave. 📌 Importance: Reaffirmed constitutional duties of ULBs.
🔹 6. Rajendra Singh Rana v. Swami Prasad Maurya (2007)
Though not directly on ULBs, this case upheld democratic values and anti-defection principles, which apply equally to municipalities.
🟦 CONCLUSION
The 74th Amendment was a major milestone in India's journey towards grassroots democracy, this time in urban India. It laid the groundwork for:
- Democratic decentralization
- Citizen participation
- Accountable and empowered local governance
Despite challenges like lack of capacity, financial dependency, and political interference, the amendment created a constitutional framework for cities to become engines of growth and service delivery.
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