Municipalities in India: Evolution, Constitutional Provisions, and Functions

Introduction

Municipalities also known as Urban local self-government refers to the system of governance at the local level within urban areas. It encompasses municipalities, municipal corporations, and other local bodies responsible for administering cities and towns. Urban local self-government bodies are typically headed by elected representatives, such as mayors or chairpersons, and function under the framework established by state governments. They play a vital role in addressing the needs and challenges of urban populations, promoting development, and enhancing the quality of life in urban areas across India.

Evolution of Municipalities in India

• 1687 – Madras: first municipal corporation.
• 1726 – Municipal Corporation of Bombay and Calcutta.
• 1870 – Lord Mayo’s resolution on financial decentralization.
• 1882 – Lord Ripon resolution (Father of Local Self Govt.): Magna Carta of Local Self Government.
• 1907 – Royal Commission on Decentralization. Its chairman was C.E.H. Hobhouse.
• 1919 – Govt of India Act 1919, Local Self Govt. become a transferred subject.
• 1924 – Cantonments Acts were passed.
• 1935 – Government of India Act 1935:  Local govt. become a provincial subject.

Municipality (74th Amendment Act, 1992)

The constitutionalizing of the urban government system was achieved through the 74th Constitutional Amendment Act of 1992.

• Constitutional Provisions
  • Added twelfth Schedule, which contains 18 functional items; 
  • Added Part IX A, which consists of provision from Article 243P-243 ZG.
• Important article
  • 243Q: Constitution of municipalities
  • 243R: Composition of municipalities
  • 243S: Constitution and composition of wards committees,
  • 243 W: Powers, authority and responsibilities of Municipalities.
  • 243 X: Power to impose taxes by, and Funds of, the Municipalities.
  • 243 Y: State Finance Commission.
  • 243 T: Reservation of seats
  • 243 ZA: Elections to the municipalities
  • 243 ZD: Committee for District planning
  • 243 ZE: Committee for Metropolitan Planning
• Constitutionalizing of Municipalities
  • Rajiv Gandhi government in 1985 and National Front Government under V P Singh in September 1990 tried to introduce the bill, but it was not passed due to non-consensus on the bill.
  • The modified Municipalities Bill was introduced in the Lok Sabha in September 1991 during P V Narasimha Rao’s government which later  evolved into the 74th Constitutional Amendment Act of 1992 and was enacted on 1 June 1993.

• Exception: If there is an urban area where an industrial establishment is providing municipal services, then the governor may specify that area to be an industrial township. In such a case, a municipality may not be constituted.

Composition (Article 243 R)

• Direct Election: All the members of a munici­pality shall be elected directly by the people of the municipal area. 
  • Wards: For this purpose, each municipal area shall be divided into territo­rial constituencies to be known as wards. 
• Election of Chairperson: The state legislature may provide the manner of election of the chairperson of a municipality. It may also provide for the representation of the following persons in a municipality. 
  • Persons having special knowledge or experience in municipal administration without the right to vote in the meetings of a municipality.
  • The members of the Lok Sabha and the state legislative assembly representing constituencies that comprise wholly or partly the municipal area.
  • The members of the Rajya Sabha and the state legislative council registered as electors within the municipal area.
  • The chairpersons of committees (other than wards committees).
• Ward Committee: It exists if the population of the municipality is 3 lakhs or more. 
  • It consists of one or more wards, 
  • The state legislature may make provisions concerning the composition and the territorial area of a wards committee and how the seats in a wards committee shall be filled.
• Other Committees: The state legislature can make any provision for the constitution of other committees.
• Ministries: Ministry of Housing and Urban Affairs, Defence in the case of cantonment boards, Home Affairs in the case of Union Territories.

Election to the Municipalities: Article 243 ZA

• Superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the municipalities shall be vested in the State Election Commission (Article 243 K).
• The state legislature may make provisions with respect to all matters relating to elections to the municipalities.
• State legislature decides upon nominated members in Municipalities.

Reservation: Article 243 T

• Seats are reserved for SC/ST (based on population).
• Women: Not less than 1/3rd reservation (Including seats reserved for women of SC, ST) 
• Election of Chairperson: The manner of reservation of seats for chairpersons(SC, ST and Women) and OBCs is determined by the state legislature.
• Sunset Clause for Reservation of Seats: The reservation of seats as well as the reservation of offices of chairpersons in the municipalities for the scheduled castes and scheduled tribes, shall cease to have effect after the expiration of the period specified in Article 334  (which is presently eighty years, that is, till 2030).

Bar to Interference by Courts in Electoral Matters: Article 243 ZG

• Limitations on Judicial Interference: The Act bars the interference by courts in the electoral matters of municipalities.
• Election Dispute: No election to any municipality is to be questioned except by an election petition presented to such authority and in such manner as provided by the state legislature.
• Protection of Delimitation Laws: The validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies cannot be questioned in any court. 

Disqualification: Article 243 V

• Under any law for the time being in force for elections to the legislature of the state concerned.
• Under any law of the state legislature.
• Voting Age: No person shall be disqualified because he is less than 25 years of age if he has attained the age of 21 years.
• All questions of disqualifications shall be referred to such authority as the state legislature determines.

Duration: Article 243 U

• Tenure: The act provides for a five-year term of office for every municipality. However, it can be dissolved before the completion of its term.
• Fresh elections to constitute a municipality shall be completed
• Before the expiry of its duration of five years; or 
• In case of dissolution, before the expiry of a period of six months from the date of its dissolution.
• The municipality constituted upon the dissolution shall continue only for the  remainder of the period.
• Where the remainder of the period (for which the dissolved municipality would have continued) is less than six months, it shall not be necessary to hold any election.
• Municipality reconstituted after premature dissolution does not enjoy the full period of five years but remains in office only for the remainder of the period.
• The act also makes two more provisions concerning dissolution: 
  • A municipality must be given a reasonable opportunity of being heard before its dissolution;  
  • No amendment of any law for the time being in force shall cause the dissolution of a municipality before the expiry of the five-year term.

Powers, Functions, and Finances Determined by State Legislature

• Preparation of plans and implementation of plans for economic development and social justice.
• 12th schedule: 18 matters that can be transferred to the municipalities.

• Finances: State legislature may 
  • Authorize a municipality to levy, collect and appropriate taxes, duties, tolls and fees; 
  • Assign to a municipality taxes, duties, tolls and fees levied and collected by the state government; 
  • Provide for making grants-in-aid to the municipalities from the consolidated fund of the state; and 
  • Provide for the constitution of funds for crediting all money of the municipalities.

Other provisions

• Audit of Accounts (Article 243 Z): Provisions with respect to the maintenance of accounts by municipalities and the auditing of such accounts are made by the state legislature..
• Application to UTs (243 ZB: The provi­sions of this part are applicable to the Union territories. However, the President may direct that they would apply to a Union territory subject to such exceptions and modifications as he/she may specify.
  • In the exercise of the above power, the Presi­dent (in 2001) directed that the provisions of Article Article 243 ZD (Committee for District Planning) and Article 243 ZE (Committee for Metropolitan Planning) shall not apply to the National Capital Territory of Delhi.
• Exempted Areas: The act does not apply to the scheduled areas and tribal areas in the states. 
  • It shall also not affect the functions and powers of the Darjeeling Gorkha Hill Council of West Bengal. 
  • Parliament may extend the provisions of this part to the scheduled areas and tribal areas subject to such exceptions and modifications as it may specify.
• Continuance of Existing Laws and Municipalities: until the expiry of one year from the commencement of this act.

Conclusion

• Municipalities play a crucial role in local administration, providing essential services and infrastructure that directly impact citizens’ daily lives. 
• They serve as the forefront of democratic representation, addressing community needs and fostering development. 
• Effective management and collaboration within municipalities are key to ensuring efficient service delivery and sustainable growth.