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Municipalities Notes

  • 74th Constitutional Amendment Act, 1992 added Part IXA (Articles 243P to 243ZG) to the Constitution.
  • Gave constitutional status to urban local bodies (ULBs).
  • Introduced the 12th Schedule (18 functional items for municipalities).


Types of Municipalities (Article 243Q)

Type of Municipality Criteria Headed By
Headed By Large urban area (Metropolitan city) Mayor
Municipal Council Smaller urban area Chairperson
Nagar Panchayat Transitional area (rural → urban) Chairperson

State legislature decides the composition and structure of these bodies.



Composition (Article 243R)

  • Members:
    • Directly elected by the people of the municipal area.
    • Nominated members (max 5%): people with special knowledge in urban matters (no voting rights).
  • Seats divided into wards.
  • Reservation: For SCs/STs in proportion, 1/3rd for women, including SC/ST women.


Duration (Article 243U)

  • Term: 5 years.
  • If dissolved early → elections must be held within 6 months.
  • Newly elected body serves the remainder of original term.


Disqualifications (Article 243V)

  • State legislature prescribes qualifications/disqualifications of municipal members.
  • Disputes are decided by an authority prescribed by state legislature.


Powers and Responsibilities (Article 243W)

State legislature may give:


  • Authority to prepare plans for economic development.
  • Authority to implement schemes for urban development.


12th Schedule – Functional Areas (18)

Includes:


  • Urban planning
  • Regulation of land-use
  • Water supply
  • Fire services
  • Urban forestry
  • Slum improvement
  • Public amenities
  • Urban poverty alleviation
  • Burials and burial grounds, etc.


Finance (Article 243X)

  • Municipalities can levy taxes, duties, tolls, fees (as per state law).
  • Receive funds via:
    • State government
    • Finance Commission recommendations


Finance Commission (Article 243Y)

State Finance Commission:


  • Set up every 5 years.
  • Recommends:
    • Distribution of funds between state and municipalities.
    • Grants-in-aid.
    • Ways to improve finances of municipalities.


State Election Commission (Article 243ZA)

  • Conducts elections to municipalities.
  • Appointed by Governor; enjoys autonomy like Election Commission.


Metropolitan Planning Committee (Article 243ZE)

  • Required for metropolitan areas (pop > 10 lakh).
  • Prepares development plans for the area.
  • Majority of members to be elected from municipalities in the area.


Limitations and Challenges

  • Weak devolution of powers.
  • Lack of autonomy and funds.
  • Bureaucratic control undermines elected representatives.
  • Urban governance often lacks accountability and transparency.


Important Committees

Committee Recommendation
Balwantrai Mehta (1957) First suggested urban local bodies’ reform
74th CAA, 1992 Institutionalized urban self-government
Second ARC Stronger ULBs and 3Fs (Functions, Funds, Functionaries)


Quick Revision Table

Topic Key Details
Constitutional Basis 74th Amendment Act, 1992 – added Part IXA (Articles 243P–243ZG)
12th Schedule Lists 18 functional areas of municipalities (e.g., water supply, urban planning, slum improvement)
Types of ULBs (Article 243Q) 1 – Municipal Corporation (large cities)
2 – Municipal Council (smaller towns)
3 – Nagar Panchayat (transitional areas)
Composition (243R) 1 – Directly elected members
2 – 5% nominated (no voting rights)
3 – Ward-based elections
Reservation SC/ST in proportion + 1/3rd seats for women, including women from SC/ST
Term (243U) 1 – 5 years
2 – If dissolved early → re-election within 6 months
Disqualification (243V) Decided as per state law; disputes settled by state-appointed authority
Powers & Responsibilities (243W) State legislature assigns functions for urban development and planning
Finance (243X) 1 – Power to levy taxes, duties, tolls
2 – Financial support from state govt and grants
State Finance Commission (243Y) 1 – Set up every 5 years
2 – Recommends distribution of funds between state and ULBs
Elections (243ZA) Conducted by State Election Commission (appointed by Governor)
Metropolitan Planning Committee (243ZE) For metros (>10 lakh pop), prepares development plans; majority members from ULBs
Challenges 1 – Inadequate functions, funds, functionaries (3Fs)
2 – Excessive bureaucratic control
3 – Poor autonomy and accountability


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