74TH AMENDMENT ACT 1992

At the Central Level, the Subject of Urban Local Government is dealt with the
following three ministries
• Ministry of Housing and Urban Affairs

• Ministry of Defence in case of Cantonment Boards

• Ministry of Home Affairs in case of Union Territories

 CONSTITUTIONALISATION

• August 1989 65th Constitutional Amendment Bill

• September 1990 V.P. Singh Government Revised Nagarpalika Bill

• September 1991 Municipalities Bill

• December 1992 Passed by both Lok Sabha and Rajya Sabha

• April 1993 Signed by the President

• Emerged as the 74th Constitutional Amendment Act of 1992 and came into force on 1st June 1993
 THREE TYPES OF MUNICIPALITIES

• A Nagar Panchayat (By whatever name called) for a transitional area, i.e. an area
in transition from a rural to urban area
• A Municipal Council for a smaller Urban Area

• A Municipal Corporation for a larger Urban Area

 CONTD.
A Transitional Area , a smaller urban area or a larger urban area means such area as the Governor may
specify by public notification for this purpose with regard to following factors

• Population of that Area

• Density of the Population

• Revenue generated for local Administration

• Percentage of employment in Non-Agricultural Activities

• Economic Importance or such other factors as the Governor may deems fit.
 MUNICIPAL GOVERNANCE - MAIN FEATURES

 Similar to the Panchayati Raj system, the Nagar Palika Act or the Municipalities Act, 1992 set
up through the 74th Amendment Act also provides for a three tier municipal system in the urban
centres.
 The size and criteria of these municipal bodies are decided by the state legislature as it is set up
under an Act of the state legislature. The Twelfth Schedule of Constitution (Article 243 w)
provides an illustrative list of eighteen functions, that may be entrusted to the municipalities.
 Reservation of seats for ST,SC,OBC & women are similarly provided as is for the Panchayati
Raj system. The Nagar Palikas /Municipals are to work as instruments of development and
planning and also to handle funds for local activities.
 STRUCTURE OF MUNICIPAL GOVERNANCE OF A METROPOLIS
1. Municipal Corporation
• i) Municipal Corporation - It is the topmost of urban local government and is for an urban area/centre with
population above 3 lacs. As an institution it is more respectable and enjoys a greater measure of autonomy than
other forms of local government.
It is set up under a special statute passed by the respective state's legislature. However, in an exception, in Delhi
( due to it being the National Capital Territory), the power to set up a Municipal Corporation lies with the Union
Parliament.

ii) Councillors - Members of the Municipal Corporation are elected on the basis of universal adult suffrage for a
period of five years and they are called Councillors.
These Councillors, collectively called the Municipal Council, exercise deliberative functions and the executive
functions are performed by the Municipal Commissioner.

iii) Municipal Commissioner & Mayor - He is an Indian Administrative Services official appointed by the state
government and has the executive powers of the government of Municipal Corporations. The other executives
known as the Mayor and Deputy Mayor are political executives elected by the members of the Corporation. The
Mayor is the titular head of the corporation and presides over the meetings of the corporation.
 CONTD.

 These Municipal Corporations are in charge of Wards ( subdivision or district of

a town/city) according to its population and representatives are elected from
each Ward. The Municipal Corporation of Greater Mumbai which is the civic
body that governs Mumbai city. Individual wards or collections of wards within
a corporation sometimes have their own administrative body known as ward
committees.
 Functions of Municipal Corporations

• Obligatory -  Supply of wholesome water and construction and maintenance of water works,
supply of electricity, road transport services, construction, maintenance ,naming and numbering
of public streets, lighting, watering and cleaning public streets, etc.
Discretionary - Construction of public parks, gardens, libraries, museums, theatres and stadiums,
public housing, planting of trees on road sides and elsewhere, provision of relief to destitute and
disabled persons ,civil reception of VIPs ,registration of marriages, organisation and management
of fairs and exhibitions.
The Delhi Municipal Corporation was recently trifurcated citing better administration as the
reason, in to North Delhi Municipal Corporation, South Delhi Municipal Corporation and the
East Delhi Municipal Corporation
 2. MUNICIPALITY
 Members of the Municipality are elected representatives for a period of five years. The
town is further divided into Wards ( subdivision or district of a municipality/town)
according to its population and representatives are elected from each ward. Wards may
be grouped together into ward councils.
 One or more representatives are elected to represent each ward.The members elect a
President among themselves to preside over and conduct meetings of the Municipality.
 A Chief Officer along with other officers like an Engineer, Sanitary Inspector, Health
officer and education officer who come from the State Public service and are appointed
by the state government to control the executive and administrative affairs of the
Municipality.
 FUNCTIONS OF MUNICIPALITIES
 Water supply

 Hospitals

 Roads

 Street lighting

 Drainage

 Fire brigade

 Market places and

 Records of births and deaths

 Solid waste management

 Its sources of income are taxes on water, houses, markets, entertainment and vehicles paid by residents of the town and
grants from the state government.
 3. NOTIFIED AREA COMMITTEE

 In urban planning, a Notified area is any land area earmarked by legal provision for
future development. The term is used in the Hindi belt region of North India.
The term also describes a village or settlement with a population between 10,000 and
20,000. A community of over 20,000 is considered a town under Indian law.
 Each notified area elects a notified area committee for its administration where all
members as well as the chairman are nominated by the state government, which
function like municipality.
 There have been various recommendations asking to stop such centralisation in the
state govt. hands by setting up these areas when they should actually be under the PRIs.
 4. TOWN AREA COMMITTEE

• It is a semi municipal authority constituted for small towns, and it exists in several states out of
which Uttar Pradesh has the largest number.
• The members may be partly elected and partly nominated by the state govt. or wholly nominated
or wholly elected.
• It is assigned a number of functions like street lighting, drainage, roads, conservancy, etc. The
District Collector in some states has been given powers of surveillance and control over the TAC.
Following recommendations of the Rural Urban Relationship Committee,1966, that smaller TACs
be merged with Panchayati Raj bodies, Madhya Pradesh and Haryana have done so.
 5. TOWNSHIPS

 PSUs are set up by the govt. and housing colonies have been set up around them for the staff and
workers. These draw people from rural as well as urban areas and this develops into a kind of a very
small town, therefore it is named as a Township. These townships are administered by the Municipal
corporation or Municipality under which it falls which appoints a Town Administrator for this area
who is assisted by a few engineers and technicians that handle functions like water, electricity ,roads,
drainage, markets ,parks, etc. The expenditure on such townships are shared equally by the urban
local govt. as well as the respective Industry. 
 They are broadly of three types
 Single Industry Townships e.g. Rourkela, Bhilai, Jamshedpur
 Multiple Industry Townships e.g Durgapur
 Small Townships near large cities: e.e ITI and HAL Townships near Bangalore
 6. CANTONMENT BOARDS

 When a Military station is established in an area, military personnel move in and to provide
them facilities for everyday life the civilian population move in like markets, colonies,etc. To
administer such areas, the Cantonment boards were set up.
 These Boards were created under the Cantonments Act 1924. There are 63 cantonment boards
in India at the moment.
 These boards are centrally administered by the Defence Ministry. Board consists of elected and
nominated members and the officer commanding the station is the President of the Board. An
elected member holds office for three years whereas the nominated ones continue as long as
they hold office in that station.
 3 CLASSES OF CANTONMENT BOARDS

• Class I Civilian Population is more than 10,000

• Class II Civilian Population is between 2500 to 10,000
• Class III Civilian Population is less than 2500
 CANTONMENT BOARDS

• Cantonment Boards consists of partly elected and Partly nominated members

• The elected members hold the Office for 3 years and nominated members continue till they hold
the Office in that Station
• The Military Officer commanding the station is the ex-officio President of the Board and
presides over the meetings
• The Vice President of the Board is elected from amongst the members for a period of three years
 CLASS I CANTONMENT BOARD
Cantonment Boards consists of partly elected and Partly nominated members
• The elected members hold the Office for 3 years and nominated members continue till they hold the Office in
that Station
• The Military Officer commanding the station is the ex-officio President of the Board and presides over the
meetings
• The Vice President of the Board is elected from amongst the members for a period of three years\
• A Military Office commanding the Station
• An executive engineer in the Cantonment
• A Health Officer in the Cantonment
• A First Class Magistrate nominated by the District Magistrate
• Four Military Officers nominated by the Officer commanding the Station
• Seven Members elected by the people of the Cantonment Area
 7. PORT TRUSTS
• Port Trusts are established in Port Areas like Mumbai, Kolkata and Chennai
Purposes
1) To Manage and protect the Ports
2) To provide civil amenities
• It consists of both Elected and Nominated members
• Its chairman is an Official
• Its civil functions are more or less similar to those of a Municipality
 8. SPECIAL PURPOSE AGENCY
• In addition to area based urban bodies, the state government has set up certain agencies to undertake
designated activities or specific certain activities or specific functions which legitimately, belong to the
domain to municipal corporations or municipalities or other local governments. In fact these are function
based and not area based. They are known as ‘single purpose’ or ‘uni-purpose’ or special purpose’ agencies
or functional local bodies.
• Town Improvement Trusts
• Urban Development Authorities
• Water Supply and Sewerage Boards
• Housing Boards
• Pollution Control Boards
• Electricity Supply Boards
• City Transport Boards
• These functional local bodies are established as statutory bodies by an act of
state legislature or as departments by an executive resolution. They function as
autonomous bodies and deal with the functions allotted to them independently of
the local urban government, i.e. municipal corporations and municipalities and
so forth. They are not subordinate agencies of the local municipal bodies.
 LIST OF 18 ITEMS COVERED UNDER THE
TWELFTH SCHEDULE OF THE INDIAN

CONSTITUTION
1. Regulation of land use and construction of land buildings.

 2. Urban planning including the town planning.

 3. Planning for economic and social development

 4. Urban poverty alleviation

 5. Water supply for domestic, industrial and commercial purposes

 6. Fire services

 7. Public health sanitation, conservancy and solid waste management

 8. Slum improvement and up-gradation

 9. Safeguarding the interests of the weaker sections of society, including the physically handicapped and mentally unsound

 10. Urban forestry, protection of environment and promotion of ecological aspects

 11. Construction of roads and bridges

 12. Provision of urban amenities and facilities such as parks, gardens and playgrounds

 13. Promotion of cultural, educational and aesthetic aspects

 14.  Burials and burials grounds, cremation and cremation grounds and electric crematoriums

 15. Cattle ponds, prevention of cruelty to animals

 16. Regulation of slaughter houses and tanneries

 17. Public amenities including street lighting, parking spaces, bus stops and public conveniences

 18. Vital statistics including registration of births and deaths

Critical Analysis of Experiences, Issues, Challenges and Opportunities
after 25 Years of the Landmark Amendments

 1)Finance Scarcity– The one of the most common problem which is faced by the local bodies is the
scarcity of finance and funds. When compared to their functions, their source of income is insignificant.
Their main sources of income includes different type of taxes. However, most of the income generating
taxes is levied by the union and state governments and, the taxes collected by the urban bodies are not
sufficient to cover the expenses of the services provided.

 2)Unplanned urbanization -Urbanization is the facet of the development and it is on the ascendance. The
municipal authorities are not able to cope with the increasing demands of the people, both quantitatively
and qualitatively. The situation is deteriorating due to the rural inrush in cities and hence, at times these
has converted in slums. The development of populace and enterprises displays an extraordinary test of
environmental debasement and contamination of water, air and land.
 3)Excessive State Control- Although the Act of 1993 guarantees higher autonomy than the pre- 1992 condition,
but still the de facto relationship-control over local bodies has not changed in considerable amount, excluding
corporations. The department of local government and the state director of local bodies of various states did not
seems to have taken any significant initiative for relaxation of control or devolution of powers in this account.
The state governments have the ability to supersede and break up metropolitan bodies in specific situations. The
legal aspect i.e. the Indian Constitution is the gatekeeper of national’s rights and different types of writs can be
issued to keep the local organization inside their limits.

 4) Low Effectiveness-In perspective of insufficient accounts, the local bodies does not possess the capacity to
satisfy their necessities. Therefore, they face a continuous outcry from the government as well as public. The
necessity i.e., water cannot be supplied properly, drainage facilities is improper, unplanned colonies along with
slums are on ascendance, danger of stray cattle on the streets continues, traffic is unplanned, streets are not
legitimately kept up and risky structures are permitted, notwithstanding the conspicuous risk to the inmates and
the tenants of the territory. Summing up, poor sanitation, poor cleanliness and lack of essential necessities make
urban communities dangerous.
 5)Multiplicity of Agencies- A huge criticism is leveled against the introduction of single purpose
agencies. These are influenced by bureaucrats, which goes against the basic principle of democracy. The
examples are- state transport corporation, water supply department, state electricity board etc. These
bodies function directly under the supervision of the state government and are not accountable to local
government. The functions that have been assigned to them belong really to the elected urban bodies. This
lowers the powers and prestige of the local bodies. The civil bodies need to add the monetary allowance to
these offices while having no influence over them. Their functions shall not overlap. For example, in few
states, the role of water supply has been endowed to the municipal bodies as well as improvement trusts.
This arrangement of double control has weakened the obligation of each. The ordinary national likewise
get confounded, when he needs to approach these associations. [1]
 6) Low level of People’s Participation-In India, people experience a lot of disappointment and
inconvenience in obtaining the civic amenities. As  it  is,  most  of  them  are  so  used  to  facing water,
electricity and sanitation problems, that they feel that it is futile to look up to the urban bodies  for  any 
solution. Add to that, the assortment of special purpose agencies and other urban bodies confounds the
general population about their limits.

 7) Unscientific distribution of functions-Local self-government plan is imperfect in so far as the

appropriation of capacities between the structures at various levels has not been made along logical lines.
The mixing of development and Local self-government functions has essentially abridged the self-
sufficiency of the local self-government foundations. It has, for all intents and purposes changed over them
into administrative offices.

 8) Lack of cordial relation between officials and people- By and large there is absence of legitimate
collaboration and coordination between the general population and the authorities like Block Development
Officers, the District Officers and so on. Again the officers neglect to release the improvement obligations
all the more effectively and genuinely.