GRASS ROOT DEMOCRACY IN INDIA

The essence of democracy is decentralisation of power and allowing governance

to reach to the grass-roots level for welfare of people. Local government elected
by the people thus imbibes democratic functioning of the society involving
residents of the area. The concept of local government has been in India ever
since the dawn of civilisation in various forms including that of Sabhas and Samitis
at the village level. It was in the year 1882 when Lord Ripon issued a resolution on
Local Self-Government. Objections were raised by the bureaucracy of those days
against any extension of the powers of local bodies and giving them a democratic
character. It was a comprehensive resolution which dealt with administrative
areas, the constitution of local bodies, their functions, finances and powers. This
was an important landmark in the evolution of local self- government in India.
This led to the strengthening of local institution over a period of time leading to
its incorporation in PART IV of the Constitution.

Constitution of India
Article 40 of the Constitution provides for organisation of village panchayats and
also endows them with such powers and authority to enable them to function as
units of self-government. But Article 40 being part of Directive Principles of State
Policy could not be judicially imposed. Consequently Government of India
constituted various committees for the proper functioning and devolution of
power at the ground level. The government accepted the recommendations of
Balwant Rai Mehta Committee which proposed to set up a three-tier structure of
panchayats in India having gram panchayats at the village level, Panchayat Samiti
at the block level and Zilla Parishad at the district level. It was also considered that
there is an imperative need to enshrine in the Constitution certain basic and
essential features of Panchayati Raj Institutions to impart strength, certainty and
continuity to it. Thus, accordingly the Constitution (Seventy-Third Amendment)
Act, 1992 and Constitution (Seventy-Fourth Amendment) Act, 1992 were enacted
by the government.

PART IX and IXA were added to the Constitution after the amendment to the
Constitution. It provides for constitution of Panchayat at the village, intermediate
and district level; Gram Sabha at the village level consisting of persons registered
in the electoral rolls of the village; reservation of seats for Scheduled Caste,
Scheduled Tribes, women; constitution of Finance Commission to review financial
position of panchayats and make suitable recommendations for devolution of
funds to panchayats; elections to be conducted for panchayats by State Election
Commission. PART IXA provides for the constitution and composition of
Municipalities; ward committees; power to impose tax by municipalities; Finance
Commission to review financial position of municipalities and allocate taxes;
election to Municipalities; District Planning Committee and Metropolitan Planning
Committee.

Issues with Panchayats in India

Though the Panchayati Raj Institutions have been in existence for a long time, the
participation of people at the grass-roots levels has become more of a
bureaucratic and mechanical exercise. There have been various instances in the
past where approval from Gram Sabha has been either forced or forged for
acquisition of land for various commercial purposes including mining. Even the
local bureaucracy has not helped much in nurturing the institution to grow and
sustain at ground level. Merely by making panchayats a part of the Constitution
will not solve the case of grass root democracy unless its limbs are empowered.
Thus, the core issues of local self-governance involves the principle of subsidiarity
which means that what can best be done at the lower levels of government
should not be centralised at higher levels; a clear delineation of functions
entrusted to the local bodies; effective devolution of financial powers and
functions and convergence of services for the citizens as well as citizen centric
governance structures. The Second Administrative Reform Commission (2nd ARC)
on Local Governance has suggested various measures to address these core
issues. Let us understand each of those issues and probable solutions suggested
by the 2nd ARC.

Principles of Subsidiarity
Constitutional status to panchayats and municipalities aimed at a fundamental
shift in the nature of governance. However, experience of the past suggests that
creating structures of elected local governments and ensuring regular elections
do not necessarily guarantee effective local empowerment. While Panchayats,
Nagarpalikas and Municipalities have come into existence and elections are being
held, this has not always translated into real decentralisation of power because
the Constitution left the issue of degree of empowerment and devolution to the
State Legislature. State Governments and their bureaucracy are not always in
favour to effectively empower local governments because they view it as
diminishing of their power and hold. Even mandatory provisions like the
constitution of District Planning Committees and Metropolitan Planning
Committees have been ignored in many States. Thus, compulsory empowerment
of panchayats and municipalities by the State having a dedicated bureaucracy at
ground level is necessary for effective local empowerment.

Autonomy
While framing laws on Panchayats under Article 243G, State Legislatures should
endow these institutions ‘with such power and authority as may be necessary to
enable them to function as institutions of self-government’. Thus, Panchayats are
‘governments at their own level’ and have autonomous jurisdiction of their own.
However, the problem arises when we find government functioning at various
levels thereby creating overlapping jurisdiction and autonomy. In such a case,
autonomy of one may rub against autonomy of another in similar jurisdictions.
Thus, providing autonomy to panchayats will also mean withdrawal of certain
activities or functions from the State Government and transferring them to local
bodies. This will give panchayats a true independent and autonomous identity
independent from the State government to perform their powers and functions.

Delineation of Functions
Powers to panchayats and municipalities have been provided to enable them to
function as institutions of self-governance under Article 243(G) and 243(W)
respectively. For this, they may also be empowered to prepare local plans for
economic development and social justice and to implement schemes and perform
functions including those listed in the Eleventh and Twelfth Schedules. However,
the past experience suggests that progress of devolution of powers and
responsibilities to local governments at various levels has been poor and uneven.
The implementation space at local levels is thus occupied by a multiplicity of
governmental agencies leading to confusion, unnecessary duplication and
wastage of funds. Thus, there should be clear delineation of functions for each
level of local government. It has to be done continuously by restructuring
organisations and framing subject-matter laws so as to avoid overlapping of
functions. The 2nd ARC has suggested adding subjects on education, public health
including community health centres/area hospitals, traffic management and civic
policing activities, urban environment management and heritage and land
management including registration in the 12th Schedule.
Devolution of Funds
The local bodies rely heavily on their respective State governments for financial
inflows. The major sources of income for local governments like property tax are
not properly collected due to lack of a proper mechanism of levying and collection
of such tax. This makes the coffers of local bodies extremely inadequate to meet
their operational needs. Provision of civic amenities falls short of expectations
due to inadequacy of funds. Thus, the local governments have to stay at the
mercy of their State government for allocation of funds through grants to meet
their needs including salary of the staff. In this respect, Article 243H and 243X
make it obligatory for the State government to authorise the local bodies by law
to impose taxes, duties, etc. and assign to the local bodies such taxes/duties
levied and collected by the State government.

State Finance Commission (SFC) under Article 243I and 243Y recommends
principles for distribution of funds between the urban local bodies and different
panchayats. Thus, the role of State Finance Commission becomes important
regarding devolution of financial resources for panchayats and municipalities.
However, devolution of finance to local bodies depends upon the revenue
generated by each State which is never same. While some States have followed
the concept of pooling of all revenues and then sharing, others follow different
percentages of devolution for different taxes. Thus, apart from principles of
devolution of taxes, even fiscal administration of every State needs to be
improved as it involves levy and collection of taxes at local level. State
governments generally take a long time to implement the reports of SFCs which
further delays the process of devolution of funds.

Capacity Building for Self-Governance

The crucial issue of capacity building in urban and rural local bodies remains a
largely neglected area in decentralised self-governance. Lack of training of
personnel has resulted in capacity deficit within the Panchayat and Municipal
Institutions. Thus, a proper exercise needs to be undertaken for capacity building
which includes individual development along with organisational development
through various schemes. Individual development involves the development of
human resources including enhancement of an individual’s knowledge, skills and
access to information. It enables them to improve their performance and that of
their organisation. State government should encourage holistic training
programmes involving expertise in different fields. This can be best achieved by
‘networking’ of institutions concerned with various subjects such as financial
management, rural development, disaster management and general
management, etc.

Conclusion:
Empowering local bodies at ground level is very important as it involves people at
local level which helps in strengthening democratic decentralisation. However, for
the local bodies to function efficiently, they must be provided autonomy in their
functioning. Local bodies having administrative, legislative and financial autonomy
with a dedicated bureaucracy at the lower level will help in realising the dream of
Mahatma Gandhi.

“In this structure composed of innumerable villages, there will be ever widening,
never ascending, circles. Life will not be a pyramid with the apex sustained by the
bottom. But, it will be an oceanic circle, whose centre will be the individual,
always ready to perish for the village, the latter ready to perish for the circle of
the villages, till at last the whole becomes one life composed of individuals, never
aggressive in their arrogance, but ever humble, sharing the majesty of the oceanic
circle of which they are integrated units. Therefore, the outermost circumference
will not wield power to crush the inner circle, but will give strength to all within
and will derive its own strength from it.”

-Mahatma Gandhi
 GRAM SABHA (VILLAGE ASSEMBLY)
What is Gram Sabha (Village Council or Assembly)

Article 243(b) of the Constitution of India defines Gram Sabha as a body consisting of persons registered
in the electoral rolls relating to a village comprised within the area of the Panchayat at the village level."
According to Art. 243(g) of the Constitution of India, village means a village specified by the Governor by
public notification to be a village for the purpose of Part IX, the Panchayats and includes a group of
villages so specified.

Gram Sabha is the body consisting of all persons registered in the electoral rolls of a Gram Panchayat.
The Gram Sabha is a meeting of all adults who live in the area covered by a Panchayat. Anyone who is 18
years old or more and who has the right to vote is a member of the Gram Sabha.

Gram Sabha is an organ of direct democracy. Its members are all adult residents of the village. It has
been envisaged as the foundation of the Panchayat Raj System. A village or villages having a fixed
population as enacted by the States forms Gram Sabha and every adult of the village is member of Gram
Sabha. All States invariably provide for the institution of Gram Sabha. The Gram Sabha is a means to
solve people's problems and felt needs and decides how to use the available resources optimally in ways
desired by them to benefit the poorest in the village through direct democratic and participatory
planning. The Gram Sabha plays a vital role in bringing good governance in the local government.

Members of Gram Sabha

In Uttar Pradesh, West Bengal, Maharashtra, Gujarat, Madhya Pradesh, Andhra Pradesh, Punjab, etc.
the State Governments enacted that those voters featuring on the electoral roll are members of Gram
Sabha. But, in Rajasthan, Bihar, Karnataka, the State Governments confer membership in Gram Sabha
on all the residents. The membership of the Gram Sabha varies from state to state ranging from 250 to
5,000.

Meetings of the Gram Sabha

Every Gram Sabha should meet as many times as the State Government prescribes in the State Act. The
frequency of meeting in different states is different. For example :

(1). -In West Bengal, Madhya Pradesh, the Gram Sabha meets at least once a year

(2) In Andhra Pradesh, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Karnataka, Kerala, Gram Sabha
meets two times a year.

(3) In Tamil Nadu, Gram Sabha meets three times a year.

(4) In Bihar and Madhya Pradesh, Gram Sabha meets four times a year.

Functions of the Gram Sabha

Article 243(A) of the Constitution of India provides that "a Gram Sabha may exercise such powers and
perform such functions at the village level as the Legislature of a State may, by law, provide.
Accordingly, all the states formed Gram Sabhas through village Panchayat Acts.
The States confer the following functions on Gram Sabha as empowered by the Constitution.

(i) sanitation, conservancy and prevention and abatement of nuisance;

(ii) construction, repair and maintenance of public wells, ponds and tanks and supply of water for
domestic use;

(iii) construction and maintenance of sources of water for bathing and washing and supply of water for
domestic use;

(iv) construction and maintenance of village roads, culverts, bridges, bunds and other works and building
of public utility:

(v) construction and maintenance and clearing of public streets, latrines, drains, tanks, wells and other
public places:

(vi) filling in of disused wells, unsanitary ponds, pools, ditches and pits and conversion of step wells into
sanitary wells;

(vii) lighting of village streets and other public places;

(viii) removing of obstructions and projections in public streets and places and sites not being private
property or which are open to use of public, whether such sites are vested in the Panchayat or belong to
the State Government;

(ix) regulating and control over entertainment shows, shops, eating houses and vendors of drinks, sweet
meats, fruits, milk and of other similar articles;

(x) regulating the construction of house, latrines, urinals, drains and water closets;

(xi) management of public land and management, extension and development of village site;

(xii) (i) regulating places for disposal of dead bodies, carcasses and other offensive matters;

(ii) disposal of unclaimed corpses and carcasses;

(xiii) earmarking places for dumping refuse;

(xiv) regulation of sale and preservation of meat;

(xv) maintenance of Gram Sabha property:

(xvi) establishment and management of cattle ponds and maintenance of records relating to cattle;

(xvii) maintenance of ancient and historical monuments other than those declared by or under law
made by parliament to be of national importance, grazing lands and other lands vesting in or under the
control of the Gram Sabha;

(xviii) maintenance of records of births, deaths and marriages;

(xix) rendering assistance in the census operation and in the surveys conducted by the State
Government or Central Government or any other local authority lawfully constituted;

(xx) rendering assistance in prevention of contagious diseases; (xxi) rendering assistance in inoculation
and vaccination and enforcement of other preventive measure for safety of human being and cattle
prescribed by Government Department concerned;
(xxii) rendering assistance to the disabled and destitutes; bod promotion of youth welfare, family
welfare and sports;

(xxiv) establishment of Raksha Samiti for :-

(a) safety of life and property:

(b) prevention of fire and extinguishing fire and safety of property during outbreak of such fires;

(xxv) plantation and preservation of village forest;

(xxvi) removal of social evils like dowry;

(xxvii) granting loans for the purposes of-

(a) providing medical assistance to indigent persons in serious and emergency cases;

(b) disposal of dead body of an indigent person or any member of his family; or

(c) any other purpose for the benefit of an indigent person as may be notified by the State
Government from time to time subject to such terms and conditions as may be prescribed;

(xxviii) carrying out the directions or orders given or issued by the State Government, the Collector or
any other Officer authorised by the State Government in this behalf with respect to the measures for
amelioration of the condition of the Scheduled Castes and Scheduled Tribes and other backward classes
and in particular in regard to the removal of untouchability

(b) perform such functions as may be entrusted to it by Zilla Panchayat or Janapad Panchayat by general
or special orders;

(c) to exercise and perform such powers and functions as the State Government may confer on of
entrust to under this Act or any other law for the time being in force in the State;

(d) with prior approval of Janapad Panchayat may also perform other functions as it may desire to
perform :

Provided that where any such function is entrusted to the Gram Sabha, it shall act as an agent of the
State Government, Zilla Panchayat or Janapad Panchayat, as the case may be, and necessary funds and
other assistance for the purpose shall be provided to it by the State Government, Zilla Panchayat or
Janapad Panchayat, as the case may be:

(xxix) plan and manage basic amenities;

(xxx) select beneficiaries under various programmes;

(xxxi) implement, execute and supervise development schemes and construction work within the Gram
Sabha area;

(xxxii) control and monitor beneficiary oriented schemes and programmes;

(xxxiii) promote general awareness amongst the people at large;

(xxxiv) organise voluntary labour and contribution for community work and promote the concept of
community ownership;

(xxxv) to plan, own and manage minor water bodies up to a specified water area situated within its
territorial jurisdiction;

(xxxvi) to lease out any minor water body up to a specified area for the purpose of fishing and other
commercial purposes;

(xxxvii) to regulate the use of water or rivers, streams, minor water bodies for irrigation purposes;

(xxxviii) to exercise control over institutions and functionaries in all social sectors transferred to or
appointed by the Gram Sabha."

Functions or Role of Gram Sabha in Scheduled Area

The provisions of A.P. Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) provides special
place and the following roles for Gram Sabha in Scheduled Areas:

• Establishment of a Gram Sabha for every village comprising of persons whose names figure in
the electoral rolls.
• Empowering the Gram Sabha to safeguard and preserve the traditions, customs and cultural
identity of the people, community resources and to settle local disputes by customary methods.
 Approval of plans, programmes and projects for social and economic development of the village
Panchayat by the Gram Sabha.
 The Gram Sabha should identify and select beneficiaries for poverty alleviation and other
programmes.
 Every village Panchayat must obtain a certificate of utilisation of funds from the Gram Sabha for
the projects and programmes of social and economic development under the state poverty
alleviation and other programmes.
 The acquisition of land for development projects and rehabilitation or resettlement of persons
affected by such projects in the Scheduled Area has to be done in consultation with either the
Gram Sabha or the Panchayat at the appropriate level. Planning and implementation of the
projects will be coordinated at the state level.

Thus PESA has mandated provisions for empowerment of Gram Sabha, a forum for deliberative
democracy and decision-making body by the people themselves.

Taxes, Fees etc. to be Imposed By Gram Sabha

1. A tax on building not covered under Item 1 of Schedule 1-A;

2. A tax on animals used for riding, driving, drought or burden or on dogs or pigs payable by the
owners thereof;

3. Fees for the use of sarais, dharamshalas, rest houses, slaughter houses and encamping grounds;

4. A water rate where arrangements are made by the Gram Sabha for regular supply of water

5. A tax on persons carrying on the profession of purchaser, agents, commission agent, weighman,
or a measure within the meaning of Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972, in the area of
Gram Sabha excluding the area of a Mandi;

6. A temporary tax for special works of public utility;

 7. A tax for the construction or maintenance of public latrines and a general scavenging tax for
removal and disposal or refuse;

8. Fees for temporary structure or any projection over any public place or temporary occupation
thereof; public place

9, Fees for temporary structure of any projection over any or temporary occupation thereof;

10. Fees for grazing cattle over the grazing grounds vested in the Gram Sabha

11. Any other tax, which the State legislature has power to impose under the Constitution of India.

Evaluation of the Working of Gram Sabha

The ground reality reveals that the way the Gram Sabhas are conducted is not accordance with
expectations. There appears to be several reasons for this situation.

The main reasons for failure of Gram Sabhas seems to be the lack of awareness amongst the elected
representatives of PRIS, ritualistic conduct of the Gram Sabha, information about the Gram Sabha
meeting not reaching the people well in advance, sparse attendance at the Gram Sabha, and a lack of
clear understanding amongst the people about the importance and the functions of Gram Sabha.

The Gram Sabha has not been an active body. Its attendance is generally thin probably because of low
level of political education of the members and too much diffusive character of its membership.

In fact, Gram Sabha is as yet in an infant stage and necessitates constant nurture before it can develop
into a basic organ of Panchayat Raj. Through the political education of the masses, large participation in
development programmes, more effective control over panchayat leadership and better mobilization of
resources Gram Sabha can be made more effective centres of political energy.

Central Ministry of Panchayati Raj has since been urging State Governments for adoption of a variety of
steps including

(a) Activation of the Gram Sabha, preferably by statutory endowing in Gram Sabha with the duty of:

(i) approving all projects and programmes and plans of the Panchayat;

(ii) authorising the issue of utilisation certificates by the Panchayat bureaucracy; and

(iii) formation of the sub-committees of the Gram Sabhas to liaise with the counterpart standing
committees of the Panchayat;

(b) The constitution of Ward Sabhas to facilitate participative social audit;

(c) The convening of Mahila Sabhas immediately prior to meetings of Ward Sabhas/Gram Sabhas; and

(d) Involving the Right to Information Act, and associating public-spirited NGOs, to make Gram Sabhas
truly a people's parliament to furnish the checks and balances, advice and consent on which depends
the success of the democratic functioning of an elected executive authority.
 and LOCAL GOVERNMENT IN URBAN AREAS IN INDIA

Local government means the administration of the affairs of a locality in urban and rural areas by the
people through their elected representatives. Local governments are of two types: urban local
governments and rural local governments. The urban local government operates in towns and cities
through Municipal Committees or Councils, Municipal Corporations, Cantonment Boards, Town and
Notified Area Committees.

Nature and Scope of Urban Government

The scope of urban local government extends to the study of the phenomenon of urbanization and its
problem, urban planning, structure of urban governments and their classification, municipal legislation,
personnel management, financial administration, state local relations, special purpose agencies,
organisation and function of the union Ministry of Urban Affairs and Employment and its subordinate
and attached offices, as also that of the State departments of urban local government; Reports of
various commissions and committees appointed from time to time by the Central and State
Governments to study the various aspects of the working of urban local governments and the
recommendation made by them, municipal bureaucracy, role of political parties, research and
evaluation and comparative urban local governments.

(i) Urbanisation and Urban Problems

The process of urbanization in India is going on at an accelerated pace due to industrialization, migration
from rural areas and the natural increase in population due to population explosion with the result that
the urban population which constituted 50 million at the time of independence had reached 350
millions by the end of last century. The growth of urbanization on such an unprecedented scale has
confronted urban governments with gigantic urban problems such as unplanned and haphazard growth
of towns and cities, unbearable strain on urban governments for provision of civil amenifies, traffic
congestion, growth of slums, shortage of houses, scourge of urban poverty, menace of pollution, lack of
employment opportunities etc.

(ii) Structure of Urban Governments

The local affairs of cities/towns are to be administered by local institution of various forms such as
Nagar Panchayats, Municipal Committees, Municipal Corporations and Cantonment Boards, each urban
areas to be assigned the form of local government it deserves by virtue of the criteria laid down in terms
of its population, territorial dimensions and revenue resources, depending on the size of their
population and the financial viability as provided in the constitution (74th Amendment) Act, 1992.

(iii) Municipal Legislation

Local government being a state subject is created by the concerned state legislature, which enacts
appropriate laws determining its status and providing for the constitution of the elected council, co-
option and nomination of members, procedure of election, term of the council, election and removal of
office bearers, their powers and functions, finances, state control etc. The various Acts are also
amended from time to time in the light of the changing need, of the urban government

(iv) Municipal Personnel Management

The urban governments with their enlarged responsibilities and complicated financial, technical and
administrative problems require efficient and well qualified personnel to various positions. They can be
attracted to municipal services only when they are selected on merit, given salaries, avenues of
promotion and other conditions of service comparable to those available to their counterparts in other
government departments, the provincialisation of municipal services in various states has no doubt,
improved matters to a great extent but it would be desirable to merge the state cadres of municipal
services in corresponding state cadres. This would not only give a psychological boost to the local bodies
personnel but the homogeneity between the state government and local government source will also
raise the level of local performance.
(v) Municipal Finance Administration

Municipal governments in order to be viable require finances commensurate with their responsibilities
and obligation, but unfortunately they suffer from acute paucity of funds. The urban governments have
not shown much aptitude for efficient financial management and control-there is wastage, there are
leakages of revenues, there is extensive under assessment, several source of income have not been
tapped, inability has been shown to impose new taxes or increase the existing ones. The state finance
commission provided in the constitution (74th Amendment) Act, 1992 will ensure the financial viability
of the urban local bodies on their recommendation being accepted by state government.

(vi) State Control over Urban Governments

The State governments exercise supervision and control over urban governments to ensure minimum
standard of services and proper performance of their functions through legislative, administrative and
financial control. The urban governments are subject to judicial control, also for their acts or omission
and commission. Urban centers contribute immensely to national prosperity. The central and state
governments should therefore act as their friends and benefactors and not as their powerful rivals or
disinterested spectation.

(vii) Special Purpose Agencies

The state governments on the pretext of inadequacies of financial resources. lack of technical expertise
and inefficiency in the performance of the obligatory function by urban local governments, create
certain special uni-purpose or multi purpose agencies to perform functions which legitimately belong to
the domain of urban local governments. These agencies include Improvement Trusts, Water Supply and
Sewage Boards, Housing Boards, Pollution Control Boards etc. The study of these urban institutions
regarding their constitution, functions, powers, finances and their relationship with the urban
governments and their performance forms an important segment of the scope of urban local
governments.

(viii) Urban Town Planning

The phenomenon of urban growth has resulted, in unplanned, haphazard and ugly urban settlements.
Planning is therefore necessary to combat the menace of urbanization and its resultant problems. An
important function of planning in purely physical terms is the judicious use of land, a scarce commodity
in most urban areas, and its rational and timely reservation for future use. Roads have to be widened,
new ones built, sites are required for schools, hospitals, parks and play grounds, housing, industry,
shopping, community facilities and a number of other uses. Land planning is thus a very essential need.

(ix) Municipal Bureaucracy

The state bureaucracy is endowed with vast power in the administration of urban local bodies. Deputy
Commissioners despite the creation of Directorate of Local Bodies and the office of Regional Deputy
Directors still play a predominant role in the management of urban affairs. The administrator is
appointed to administer a superseded local bodies as the deliberative and executive authority. The
municipal bureaucracy especially the Municipal Commissioner in municipal corporation is key figure in
their administration and enjoys greater authority in comparison to the elected Mayor who represents
the elected body of the city.

(x) Associations and Unions of Municipal Employees

Municipal employees organize themselves in union at the local, state and national levels for the
furtherance of their interests and hold protest meetings and demonstrations to put forth their demands
in a forceful way and to get these accepted by the concerned municipal and state authorities by
resorting to strikes, causing unavoidable inconveniences to the public. The agitational approach has
proved to be successful, many a time, in getting their demands accepted the latest ones being the grant
of pensionery benefits and gratuity to them.

The president of municipal committees and Mayors of municipal corporations also constitute their
association for the promotion of their interests.
(xi) Role of Political Parties

Despite the fact that local issues should not be decided on partisan basis, political parties participate in
urban governments by putting up their candidates Despite the fact that local issues should not be
decided on partisan basis, in election and party symbols are allotted to them by the election authorities,
for elections as to municipal corporations and municipal committees in some states and the winning
political parties elect their own mayors and chairman of municipal corporation/committee.

URBAN LOCAL BODIES IN INDIA AND THEIR ADMINISTRATION

Municipal governance in India has existed since the year 1687, with the formation of Madras Municipal
Corporation, and then Calcutta and Bombay Municipal Corporation in 1726. In the early part of the
nineteenth century almost all towns in India had experienced some form of municipal governance. In
1882 the then Viceroy of India, Lord Ripon's resolution of local self-government laid the democratic
forms of municipal governance in India.

In 1919, a Government of India Act incorporated the need of the resolution and the powers of
democratically elected government were formulated. In 1935 another Government of India Act brought
local government under the purview of the state or provincial government and specific powers were
given.

History

According to the 1991 Census of India, there were 3255 urban local bodies (ULBS) in the country;
classified into the four major categories of :

1. Municipal corporation;

2. Municipality (municipal council, municipal board, municipal committee;

3. Town area committee;

4. Notified area committee.

The municipal corporations and municipalities are fully representative bodies, while the notified area
committees and town area committees are either fully or partially nominated bodies.

As per the Constitution of India, 74th Amendment Act of 1992, the latter two categories of towns are to
be designated as municipalities or nagar panchayats with elected bodies. Until the amendments in state
municipal legislations, which were mostly made in 1994, municipal authorities were organised on an
ultra vires (beyond the authority) basis and the state governments were free to extend or control the
functional sphere through executive decisions without an amendment to the legislative provisions.

After the 74th Amendment was enacted, there are only three categories of urban local bodies:

• Mahanagar nigam (municipal corporation)

• Nagar palika (municipality)

• Nagar panchayat (notified area council, city council)

There is a nagar panchayat for transitional areas i.e., an area in transitional from rural to urban, a
municipality for a smaller urban area, and a municipal corporation for a larger urban area. Article 243-Q
of the 74th Amendment requires that municipal areas shall be declared having regard to the population
of the area, the density of population therein, the revenue generated for local administration, the
percentage of employment in non-agricultural activities, the economic importance or such other factors
as may be specified by the state government by public notification for this purpose.

Among all urban local governments, municipal corporations enjoy a greater degree of fiscal autonomy
and functions although the specific fiscal and functional powers vary across the states, these local
governments have larger populations, a more diversified economic base and deal with the state
governments directly. On the other hand, municipalities have less autonomy, smaller jurisdictions and
have to deal with the state governments through the Directorate of Municipalities or through the
collector of a district. These local bodies are subject to detailed supervisory control and guidance by the
state governments.

Responsibilities of urban local bodies

The municipal bodies of India are vested with a long list of functions delegated to them by the state
govemments under the municipal legislation. These functions broadly relate to public health, welfare,
regulatory functions, public safety, public infrastructure works, and development activities.

Public health includes water supply, sewerage and sanitation, eradication of communicable diseases
etc.; welfare includes public facilities such as education, recreation, etc.; regulatory functions related to
prescribing and enforcing building regulations, encroachments on public land, birth registration and
death certificate, etc.; public safety includes fire protection, street lighting, etc.; public works measures
such as construction and maintenance of inner city roads, etc.; and development functions related to
town planning and development of commercial markets. In addition to the legally assigned functions,
the sectoral departments of the state government often assign unilaterally, and on an agency basis,
various functions such as family planning, nutrition and slum improvement, disease and epidemic
control, etc.

The Twelfth Schedule of Constitution (Article 243-w) provides an illustrative list of eighteen functions,
that may be entrusted to the municipalities.

Besides the traditional core functions of municipalities, it also includes development functions like
planning for economic development and social justice, urban poverty alleviation programs and
promotion of cultural, educational and aesthetic aspects. However, conformity legislation enacted by
the state governments indicate wide variations in this regard. Whereas Bihar, Gujarat, Himachal
Pradesh, Haryana, Manipur, Punjab and Rajasthan have included all the functions as enlisted in the
Twelfth Schedule in their amended state municipal laws, Andhra Pradesh has not made any changes in
the existing list of municipal functions. Kamataka, Kerala, Madhya Pradesh, Maharashtra, Odisha. Tamil
Nadu, Uttar Pradesh and West Bengal states have amended their municipal laws to add additional
functions in the list of municipal functions as suggested in the twelfth schedule.

There is a lot of difference in the assignment of obligatory nd discretionsary functions to the municipal
bodies among the states. Whereas functions like There is a lot of difference in the assignment of
obligatory and discretionary planning for the social and economic development, urban forestry and
protection for the municipalities of Maharashtra, in Kamataka these are discretionary functions.

Provision of water supply and sewerage in several states has either been taken over by the state
governments or transferred to state agencies. For example, in Tamil Nadu, Madhya Pradesh and Gujarat,
water supply and sewerage works are being carried out by the state level Public Health Engineering
Department or Water Supply and Sewerage Boards, while liability for repayment of loans and
maintenance are with the municipalities. Besides these state level agencies, City Improvement Trusts
and Urban Development Authorities, like Delhi Development Authority (DDA), have been set up in a
number of cities. These agencies usually undertake land acquisition and development works, and take
up remunerative projects such as markets and commercial complexes, etc. The Municipal bodies in most
cases have been left only with the functions of garbage collection, garbage disposal, street lighting,
construction and maintenance of roads, etc.

In terms of fiscal federalism, functions whose benefits largely confine to municipal jurisdictions may be
termed as the essentially municipal functions. Similarly, functions that involve substantial economics of
scale or are of national interest may not be assigned to small local bodies. For valid reasons, certain
functions of higher authorities are appropriate to be entrusted with the Municipalities as if under
principal-agent contracts and may be called agency functions that need to be financed by
intergovernmental revenues. Thus, instead of continuing the traditional distinction between obligatory
and discretionary functions the municipal responsibilities may be grouped into essentially municipal,
joint and agency functions.
Nagar Nigam/Mahanagar Palika (Municipal Corporation)

Nagar Nigam a.k.a Mahanagar Palika or by some other names in different states (translated in English as
Municipal Corporation) in India are state government formed departments that work for the
development of a metropolitan city, which has a population of more than 1 million. The growing
population and urbanisation in various cities of India were in need of a local governing body that can
work for providing necessary community services like health centres, educational institutes and housing
and property tax.

They are formed under the Corporations Act of 1935 of Panchayti Raj system which mainly deals in
providing essential services in every small town as well as village of a district/city. Their elections are
held once in five year and the people choose the candidates. The largest corporations are in the eight
metropolitan cities of India, namely Delhi, Mumbai, Kolkata, Chennai, Kalyan- Dombivali, Bangaluru,
Hyderabad, Pune and Ahmedabad. These cities not only have a large population, but are also the
administrative as well as commercial centres of the country.

Nagar Palika (Municipality)

In India, a Nagar Palika or Municipality is an urban local body that administers a city of population
1,00,000 but less than 10,00,000. However, there are exceptions to that, as previously nagar palikas
were constituted in urban centers with population over 20,000 so all the urban bodies which were
previously classified as Nagar Palika were reclassified as Nagar Palika even if their population was under
100,000. Under the Panchayati Raj system, it interacts directly with the state government, though it is
administratively part of the district it is located in. Generally, smaller district cities and bigger towns
have a Nagar Palika. Nagar Palikas are also a form of local self-government, entrusted with some duties
and responsibilities, as enshrined and guided upon by the Constitutional (74th Amendment) Act, 1992.

The members of the Nagar Palika are elected representatives for a term of five years. The town is
divided into wards according to its population, and representatives are elected from each ward. The
members elect a president among themselves to preside over and conduct meetings. A chief officer,
along with officers like an engineer, sanitary inspector, health officer and education officer who come
from the state public service are appointed by the state government to control the administrative affairs
of the Nagar Palika.

Nagar Panchayat (Notified Area Council)

A Nagar Panchayat or Notified Area Council or City Council is a form of an urban political unit in India
comparable to a municipality. An urban centre with more than 11,000 and less than 25,000 inhabitants
is classified as a "Nagar Panchayat".

Each Nagar Panchayat has a committee consisting of a chairman with ward members. Membership
consists of a minimum of ten elected ward members and three nominated members. The N.A.C.
members of the Nagar Panchayat are elected from the several wards of the Nagar Panchayat on the
basis of adult franchise for a term of five years. There are seats reserved for Scheduled Castes,
Scheduled Tribes, backward classes and women. The Councillors or Ward Members are chosen by direct
election from electoral wards in the Nagar Panchayat.

Highlights of the Nagarpalika Bill, which was passed by the Parliament in December, 1992

(1) Three types of Nagar Palikas viz., Municipal Corporations, Municipal Councils and the Nagar
Panchayats have been set up in accordance with the population of the area.

(2) Nagar Nigam having population of more than 3 lakhs will have two- tier system-Ward Samiti and
Nigam Parishad.

(3) Ward Committees and Zonal Committees have been set up to enable the local bodies to prove to be
training ground for democratic institution in the country.

(4) Election Commission has been empowered to conduct Local Bodies Elections periodically in fair and
impartial matters.
(5) Thirty per cent seats have been reserved for women in all urban local bodies.

(6) Adequate representation has been accorded to the scheduled castes and tribes in proportion to the
population in the area concerned. The category of women will be entitled to 1/3 of seats allotted to
Scheduled Castes and Tribes.

(7) A finance commission will be appointed to look into the fiscal needs of the local bodies.

(8) The Comptroller and Auditor General has been empowered to audit the accounts of these local
bodies.

(9) Article 40 of the Constitution has been amended so as to grant constitutional status to the Urban
Local Bodies.

(10) A District Planning Committee will be constituted for implementing the developmental planning of
the area covered by the Panchayats and Nagar Palikas. It will consist of 21 members of which 7 will be
women.

It was wishfully hoped that it would strengthen the urban local bodies and usher in an era of properly
organised and suitably reinvigorated local government system which constitutes the bedrock of our
democratic system at the CentralState level.
 STRUCTURE OF LOCAL BODIES
Following 73rd and 74th constitutional amendments a three- tier structure has been envisaged for
urban and local bodies. Rural local bodies would in ascending order be, Gram Sabha(village level),
Panchayat Samiti (block level), and the Zilla Parishad (district level).

The Gram Sabha is meant to impart a social base for grass roots democracy. The executive body of the
gram sabha is the Gram Panchayat. Earlier the gram sabha used to be a body corporate with perpetual
succession and common seal, of suing or being sued in its corporate name, of acquiring, holding or
transferring property and of entering into contracts. After amendment this position of the gram sabha
has been taken over by the Gram Panchayat, which earlier used to be the committee of the gram sabha.
However, gram sabha still retains significant say in development matters. It is actively engaged in
preparation of audit and accounts, annual plans annual administration reports et al and its meetings are
presided over by the chairman of the gram panchayat. In some states, promotion of unity and harmony,
organizing voluntary labour and contributions for community welfare programmes, identification of
beneficiaries for the same are some of the important functions performed by the gram sabha. The
Panchayat Samiti is the nest tier. Most developmental works converge at this level. The third tier is the
Zilla Parishad at the block level. Membership details of these bodies shall be dealt with in a separate
Unit in the course.

Urban local bodies have also been given a uniform three-tier structure. However, these are not
hierarchically ordered as the rural bodies in that each function directly under the state. These bodies are
the Municipal Corporations, Municipal Councils and Nagar Panchayats. This would do away with much
confusion in the urban local scene. Prior to the passage of the 1992 Act, urban local government
comprised of Municipal Corporations, Municipal Councils, Town Area Committees and Notified Area
Committees, with lack of uniformity across states. In this context, the structure and composition of
municipalities varied considerably, with wide differences in definition and structure between states. The
1992 Act has attempted to instill some uniformity in the constitution of the municipal bodies by
classifying them as Municipal Corporations for large urban areas, Municipal Councils for smaller urban
areas and what are termed Nagar Panchayats as suburban government bodies.

However, the arrangements in practice are giving rise to unforeseen tensions. Reportedly, as per H.
Ramchandran, certain villages that will now be incorporated in municipal areas do not wish to part with
their rural status as that would deprive them of the benefits of many centrally sponsored rural
development schemes. There is another equally important issue that needs to be addressed. The issue
is a true federated arrangement at the local level, where a cabinet takes decisions and is accountable to
a duly elected legislature. Presently, the political executive, the Mayor is a figurehead with real power
vested in the commissioner who is appointed by the state. The Commissioner is appointed for a fixed
term as defined by state statute. The Commissioner’s term in office can be extended or reduced. The
powers of the Commissioner are those provided by statute and those delegated by the Corporation or
the Standing Committee. An alternative model to the prevailing Commissioner model is the one
implemented in Kolkata, West Bengal, introduced in 1984 and is known as the Mayor-in-Council form of
city governance that can be described as a cabinet government replicating the formula operating at the
state and national levels. This system is composed of a Mayor and a ten-member cabinet with individual
portfolios chosen from among the elected councilors ward system, rather than a multiple member ward
system. It is in essence a hybrid between a mayor-council CAO system and the integrated federated
framework. The Municipal Commissioner serves as the Principal Executive Officer subject to the control
and supervision of the Mayor as the Chief Executive Officer in this model. The Municipal Corporation
groups wards into boroughs with each one having a committee consisting of the councillors elected
from the respective wards of the borough. The councillors elect one among themselves as the
chairperson of the borough. The borough committees are subject to general supervision of the Mayor-
in-Council, and look after sub local functions such as water supply, drainage, collection and removal of
solid waste, disinfection and health services, housing services, lighting, repairs of certain categories of
roads, maintenance of parks, and drains

As opined by scholars, desired future state of affairs would be local governments enjoying the right as
their counterparts in Brazil, South Africa and Nigeria, to decide the form of its political executive and
appoint the same independently. Regarding municipal staff, ideally, it should be under complete control
of local governments, cut substantially in numbers through private participation, contractual
employment etc and made accountable for results.

POWERS AND FUNCTIONS OF LOCAL INSTITUTIONS

The newly introduced Seventy-Fourth Constitutional Amendment Act (CAA) of 1992 has acted upon the
recommendations of the Rural-Urban Relationship Committee and seeks to provide more power and
authority to urban local bodies. It is the first serious attempt to develop democratic municipal
government as planning bodies through constitutional provisions that strengthen and stabilise them.

The main features are:

Structural Reforms: Resources, Finances, Powers and Funtions

• Introduction of the Twelfth Schedule which lists the functions of the urban local bodies, covering
planning, regulation and developmental aspects;

• Establishment of District and Metropolitan Planning responsible for the election of representatives for
the preparation of development plans at district and metropolitan levels;

• Proposed establishment of ward committees in areas having a population of over three hundred
thousand;

• Specification by law of the powers and responsibilities entrusted to municipalities and ward
committees;

• Holding of periodical and timely elections; if a municipality is dissolved for any reason it should be
reconstituted within 6 months;

• Specifying by law the sources of municipal finance and their periodic review by a statutorily
constituted State Finance Commission and by making it obligatory on the part of the Central Finance
Commission to recommend measures needed to augment state resources to assist the municipal
governments;

• Restrictions on the power of state governments to do away with democratically elected municipal
governments;

• Reservation of one-third of seats for women and weaker sections in municipal bodies for minorities
there are no reservations .

The 73rd amendment act prescribes the domain of powers and functions for rural local self-government.
The 11 th schedule lists 29 (see Annexure) subjects with respect to which rural local governments have
been vested responsibility. However the same could be reduced to an academic exercise if most powers
regarding the same remain concentrated in the bureaucracy and state or central legislatures. A shift to
bottom -up policies would be imperative to affect real decentralisation at the local level.
Before the 73rd amendment, 1993, functions assigned to local bodies pertained to general welfare
matters like public hygiene, sanitation etc. to which development concerns such as agriculture, animal
husbandry, social forestry et al could be added. Evaluation studies have shown that local bodies have
been more inclined to perform ‘agency ‘functions more than ‘statutory’ ones (Report of the committee
on Democratic Decentralisation, 1961).

Now the accent is on developmental planning. It is therefore a paradigm shift as far as local bodies are
concerned as they are sought to be developed in a true sense as institutions of “self government.” The
act enjoins on the state governments to devolve powers and responsibilities with regard to preparation
of plans for economic development and social justice and the implementation of schemes for economic
development and social justice as may be entrusted to them including those in relation to the matters
listed in the Eleventh Schedule. It is however left to the state governments to decide what all functions
are transferred and what powers are delegated. Broadly the principle seems to be, what can be tackled
at a lower level should be left to it. Brief perusal of acts in different states brings out the following
pattern in the devolution of powers and functions:

Category A

States, viz. Uttar Pradesh, Bihar, Rajsathan, Punjab, Haryana, Assam, and Karnataka,

Emerging Issues and Trends which have not prioritised activities but assigned subjects listed in the 11th
schedule in addition to certain other general ones like preparation of plans and budget, maintenance of
unity and harmony, relief in natural calamities etc.

Category B

States, viz. Orissa, Gujarat, Tamil Nadu and West Bengal, which have divided functions into obligatory
and mandatory. In the former category are functions, which are performed subject to the availability of
funds.

Category C

States which have drawn their own list following specifications in the 11th schedule. Such states are
Himachal Pradesh, Madhya Pradesh, Maharashtra and Andhra Pradesh.

However the exercise needs to be imparted better rationality than as obtains at present, which can be
provided by constitution of expert groups and not leading the matter solely to the department
concerned . Development effort presently is left to the convenience and priority of different state
governments since they are free to choose their own mode of decentralisaton. However, leaving
matters to state governments provides scope for lackadaisical initiatives in this regard, which however
would have to be accepted as a constraint of a federal polity. AS per Ramchandran, even after the
amendments considerable mount of ambivalence persists regarding the powers and functions of these
bodies at different tiers. The ambivalence is evident/articulate in the number of court cases that have
been coming up between district and lower level elected bodies on the one hand, and that of the state
government and its executives, on the other. In Haryana, for example, Zilla Parishad members have
threatened to resign enmasse, in protest against the government failure to enforce Zilla Parishad Act
effectively. Similarly, in Orissa and Maharashtra, presidents of Zilla Parishad have demonstrated over
the powerless status of the Panchayat bodies. In Andhra Pradesh, Mandal Parishad chiefs resent curbs
on their power, after the state government appointed nodal officers by-passing the elected bodies
through the janmabhoomi scheme. Hence incongruities remain and surface on occasions, in actual
implementation of the structural reform that is being brought about through the amendments acts.