The Constitution (74th Amendment) Act, 1992 added a new Part IXA to the Constitution, covering Articles 243P to 243ZG, specifically related to municipalities. This amendment, also known as the Municipalities Act, came into force on 1st June 1993. It granted constitutional status to municipalities and brought them within the purview of justiciable provisions. States are now constitutionally mandated to establish municipalities as per the framework laid out in the Constitution.

Definition of Metropolitan Area

As per Article 243P, a metropolitan area refers to an area where the population exceeds 10 lakh (1 million).

Three Types of Municipalities (Article 243Q)

  1. Nagar Panchayat – For areas in transition from rural to urban.
  2. Municipal Council – For smaller urban areas.
  3. Municipal Corporation – For larger urban areas.

The Governor determines these areas by public notification, considering factors like population, density, revenue potential, and employment patterns.

Composition of Municipalities (Article 243R)

  • Members are directly elected by people from territorial constituencies (wards).
  • Nominated members (with special knowledge/experience) may be included but do not have voting rights.
  • The State Legislature may allow representation of MLAs, MPs, and MLCs from constituencies within the municipal area.

Ward Committees (Article 243S)

  • In areas with a population of 3 lakh or more, ward committees must be constituted.

Reservation of Seats

  • SC/ST: Seats reserved proportionally to their population.
  • Women: One-third of total seats (including SC/ST women) are reserved.
  • Reservation applies only to elected seats, not nominated ones.
  • States may also provide for reservation of seats/posts for backward classes (optional provision).

Duration of Municipalities (Article 243U)

  • Fixed term of 5 years from the date of the first meeting.
  • Elections must be held before the expiry of the term or within 6 months of premature dissolution.

Disqualifications (Article 243V)

  • A person disqualified to be elected as an MLA is also disqualified for municipal membership.
  • Minimum age for municipal election is 21 years.

Powers, Authority, and Responsibilities (Article 243W)

  • Municipalities shall be empowered to function as institutions of self-government.
  • State legislatures determine their powers and responsibilities, including planning and implementation of schemes related to economic development and social justice.
  • The 12th Schedule lists 18 functions that may be assigned to municipalities.

12th Schedule Functions

  1. Urban planning (including town planning)
  2. Regulation of land use and buildings
  3. Economic and social development planning
  4. Roads and bridges
  5. Water supply
  6. Public health, sanitation, solid waste management
  7. Fire services
  8. Urban forestry and environmental protection
  9. Welfare of weaker sections, including disabled
  10. Slum improvement
  11. Urban poverty alleviation
  12. Parks, gardens, playgrounds
  13. Promotion of cultural, educational, and aesthetic aspects
  14. Burials, cremations
  15. Cattle pounds, prevention of cruelty to animals
  16. Vital statistics (births & deaths)
  17. Public amenities (street lighting, parking, bus stops)
  18. Regulation of slaughterhouses and tanneries

Financial Powers (Article 243X)

State Legislatures may:

  • Authorize municipalities to levy and collect taxes, duties, tolls, and fees.
  • Provide for sharing of state-collected revenues with municipalities.
  • Provide grants-in-aid to municipalities.
  • Establish funds for crediting and withdrawing money by municipalities.

Finance Commission (Article 243Y)

  • The State Finance Commission, constituted under Part IX for Panchayats, also reviews the financial position of municipalities and recommends:
    • Distribution of revenues between State and municipalities
    • Determination of taxes, duties, tolls to be assigned to municipalities
    • Grants-in-aid from the State Consolidated Fund
    • Measures to improve municipal finances

The Central Finance Commission may also recommend steps to supplement municipal resources through grants.

Audit and Accounts (Article 243Z)

  • States are responsible for maintaining accounts and auditing municipal finances, with freedom to design procedures as per local requirements and institutional frameworks.

State Election Commission (Article 243ZA)

  • The State Election Commission is responsible for supervising, directing, and controlling the preparation and conduct of elections to municipalities.

Applicability to Union Territories (Article 243ZB)

  • These provisions apply to Union Territories as well, with the President empowered to make modifications through a public notification.

Exclusions (Article 243ZC)

Part IXA does not apply to:

  • Scheduled areas under Article 244 (e.g., parts of Assam, Meghalaya, Tripura, Mizoram).
  • Darjeeling Gorkha Hill Council area unless Parliament legislates otherwise.

District Planning Committee (Article 243ZD)

  • A District Planning Committee (DPC) shall consolidate plans prepared by Panchayats and Municipalities and draft a development plan for the district.
  • The composition of the DPC is left to the states.
  • The DPC must consider:
    • Shared interests of Panchayats and municipalities
    • Distribution of resources (water, natural, and physical infrastructure)
    • Integrated development of infrastructure and environment
    • Resources available (financial and others)
  • The plan is submitted by the DPC Chairperson to the State Government.

Metropolitan Planning Committee (Article 243ZE)

  • In every metropolitan area, a Metropolitan Planning Committee (MPC) is to be formed to prepare a development plan for the whole area.
  • It must consider:
    • Plans prepared by municipalities and panchayats
    • Shared interests across jurisdictions
    • Allocation of resources
    • Investments by government agencies
    • National and state objectives
    • Available financial and other resources

Conclusion The 74th Amendment is a landmark reform in India’s urban governance. It constitutionally mandates the establishment of democratic local bodies, making them accountable, transparent, and efficient. It provides a uniform structure, particularly excluding only the tribal areas unless otherwise legislated. It also limits the discretion of state governments, ensuring rational, scientific formation of municipalities, and institutionalizing district and metropolitan planning as constitutional processes.