Municipalities and Urban Local Governance: Evolution, Role and Impact of the 74th Amendment Act- (Part 01)

Urban local bodies play a crucial role in managing and developing cities in India. The 74th Constitutional Amendment Act of 1992 established a framework for local self-government in urban areas, granting municipalities constitutional status. This act empowers urban local bodies to deliver essential services and fosters community participation in governance. By recognizing the importance of urban areas for economic growth, the amendment aims to enhance local democracy and improve urban governance.

Evolution and Impact of the 74th Constitutional Amendment Act on Urban Local Governance in India

Role and Framework of Urban Local Bodies in India’s Governance Structure

• Importance of Urban Local Bodies: Urban local bodies serve as the backbone of urban governance, overseeing the administration and development of cities.  
  • These urban local authorities have the primary duty of delivering essential public services and developing infrastructure.
• Constitutional Background: Originally, the Indian Constitution did not explicitly mandate local self-government in urban areas. 
  • Although the Directive Principles of State Policy mention village Panchayats, there is no direct mention of Municipalities, except for an implicit reference in Entry 5 of the State List, which designates local self-governance as a State responsibility.

Evolution of Urban Governance

Urban local governance institutions in modern India have their roots in the period of British rule. Here are the key milestones in this historical context:

• Establishment of the First Municipal Corporation: The first municipal corporation in India was established in Madras in 1688.

• Municipal Corporations in Bombay and Calcutta (1726): Municipal corporations were subsequently set up in Bombay and Calcutta in 1726.
• Lord Mayo’s 1870 Resolution on Financial Decentralization: Lord Mayo’s 1870 resolution on financial decentralization envisioned the growth of local self-government bodies.
• The ‘Magna Carta’ of Local Self-Government: Lord Ripon’s 1882 resolution is celebrated as the ‘Magna Carta’ of local self-government, earning him the title of the father of local self-government in India.
• Formation of the Royal Commission on Decentralisation (1907): In 1907, the Royal Commission on Decentralisation was formed and presented its report in 1909, with Hobhouse as its chairman.
• Government of India Act of 1919 
  • Dyarchial Scheme: The Government of India Act of 1919 introduced the dyarchial scheme in Provinces, making local self-government a transferred subject under the supervision of a responsible Indian minister.
  • Provincial Autonomy: The Government of India Act of 1935, with the introduction of provincial autonomy, declared local self-government a provincial subject.
• Passage of the Cantonments Act (1924): In 1924, the Central legislature passed the Cantonments Act.
• Introduction of the 65th Constitutional Amendment Bill (1989): After independence, the 65th Constitutional Amendment Bill (known as the Nagarpalika Bill) was introduced in the Lok Sabha in August 1989 to constitutionalize, strengthen, and reorganize municipal bodies but was not passed by the Rajya Sabha during Rajiv Gandhi’s government.
• Enactment of the 74th Constitutional Amendment Act (1992): Eventually, the 65th Constitutional Amendment Bill evolved into the 74th Constitutional Amendment Act of 1992 and became effective on June 1, 1993, during the prime ministership of P.V. Narasimha Rao.

74th Amendment Act of 1992

Introduction and Effectiveness of the 74th Constitutional Amendment Act (1992): The 74th Constitutional Amendment Act, 1992 (74th CAA) came into effect on 1 June 1993.

• • Addition of Part IX-A: The Municipalities: The 74th CAA introduced Part IX-A, titled ‘The Municipalities,’ which encompasses Articles 243-P to 243-ZG and deals with issues relating to municipalities.
  • Constitutional Status to Urban Local Bodies (ULBs): The Act provided constitutional status to Urban Local Bodies (ULBs), bringing them under the justiciable part of the Constitution. This means that State governments are constitutionally obligated to implement the provisions of the Act.

• Article 243W: Empowering State Legislatures: Article 243W of the 74th CAA authorized the State Legislatures to enact laws to endow local bodies with the powers and authority necessary to enable them to function as institutions of self-government.

• • Devolution of Powers and Responsibilities: The 74th CAA mandated the State Legislatures to make provisions for the devolution of powers and responsibilities to local bodies.

• Introduction of the Twelfth Schedule: The Act introduced the Twelfth Schedule to the Constitution, comprising eighteen functional items related to municipalities, as addressed in Article 243W.

Types of Municipalities

The Act provides for the establishment of three types of municipalities in every State (Article 243Q):

• Nagar Panchayat for transitional areas.
• Municipal Council for smaller urban areas.
• Municipal Corporation for larger urban areas.

Composition(Article 243R)

• Direct Election of Municipality Members: All members of a municipality are to be directly elected by the residents of the municipal area, divided into territorial constituencies called wards. 
• State Legislature’s Authority: The State legislature can determine the election process for the chairperson of a municipality and the representation of specific individuals in the municipality, including those with expertise in municipal administration and elected representatives at various levels

Wards Committees(Article 243S)

• Establishment of Wards Committees: Wards committees, consisting of one or more wards, must be established within municipalities with a population of three lakh or more.
• State Legislature’s Role: The State legislature can decide the composition and territorial area of these ward committees and the process for filling their seats.

Reservation of Seats(Article 243T)

• Reservation of Seats for Scheduled Castes (SCs) and Scheduled Tribes (STs): The Act mandates the reservation of seats for scheduled castes (SCs) and scheduled tribes (STs) in every municipality in proportion to their population in the municipal area.
• Reservation of Seats for Women: It also requires the reservation of not less than one-third of the total seats for women, including women from SCs and STs.
• Provisions for Reservations for Other Backward Classes (OBCs): The State legislature can make provisions for reservations for other backward classes as well.

Duration of Municipalities(Article 243U)

• Standard Term of Office for Municipalities: Municipalities have a standard five-year term of office, but they can be dissolved before completing their term.

• • Protection from Dissolution Due to Law Amendments: No amendment of any law for the time being in force shall have the effect of causing the dissolution of a municipality at any level, which is functioning immediately before such amendment, until the expiration of its duration.

• Timing of Fresh Elections: Fresh elections to constitute a municipality must be completed either before the expiry of its five-year duration or within six months after dissolution.

• Provisions for Short Remaining Terms: If the remaining period for a dissolved municipality is less than six months, no election is required, and the new municipality’s term is limited to the remaining period.

Disqualifications(Article 243V)

• Disqualifications for Municipality Membership: A person is disqualified from being chosen as a member of a municipality based on specific disqualifications established by State law.
• Age Qualifications for Membership: Age qualifications may not be used to disqualify a person under 25 years of age if they have reached 21 years.

Powers and Functions(Article 243W):

• Empowerment of Municipalities: The State legislature can empower municipalities with the necessary authority to function as self-governing institutions.
• Devolution of Powers and Responsibilities: This includes devolving powers and responsibilities to municipalities concerning economic development, social justice, and the implementation of schemes in various areas listed in the Twelfth Schedule.

Application to Union Territories(Article 243ZB)

• The Act is applicable to Union territories, with the President having the authority to specify exceptions or modifications for its application in a particular Union territory.

Exempted Areas(Article 243ZC)

• Exemption of Scheduled Areas and Tribal Areas: The Act does not apply to scheduled areas and tribal areas within the States.
• Darjeeling Gorkha Hill Council Exemption: It also does not affect the functions and powers of the Darjeeling Gorkha Hill Council of West Bengal.
• Parliament’s Authority to Extend Provisions: However, Parliament can extend the provisions of this Act to scheduled and tribal areas with specified exceptions and modifications.

Bar to Court Interference(Article 243 ZG)

• Judicial Non-Interference: The Act prevents courts from interfering in municipal electoral matters, including the delimitation of constituencies and seat allotment.
• Election Challenges and Procedures: Challenges to municipal elections must be addressed through an election petition presented to the authority and in the manner prescribed by the State legislature.

Significance of the 74th Amendment Act

Economic Growth: The Act recognizes the significant role that cities and towns play in contributing to the nation’s economic growth. 

• Urban areas are hubs for economic activity and also serve as engines for the development of the surrounding rural areas. 
• Thus, strengthening Urban Local Governments is crucial for harnessing their potential.

• Local Participation: The Act emphasizes the involvement of local residents and their representatives in the planning and implementation of programs at the grassroots level. 
  • This local engagement is essential to align economic progress with the real needs and circumstances of the community. 
  • Example: Indore Municipal Corporation turned Swachh Bharat Mission into a Jan Andolan and raced to become India’s cleanest City.
• Democracy at the Local Level: The Act aims to extend the roots of democracy to towns, villages, and cities, ensuring that people have a say in the governance and development of their localities. 
  • This not only enhances local democracy but also contributes to the overall strength and stability of the political system in Parliament and State Legislatures.
• Professionalization of Municipal Administration: Some states, including Maharashtra and Gujarat, have taken steps to create a professional cadre for municipal administration, ensuring that qualified individuals are appointed to key positions. 
  • This professionalization enhances the efficiency and effectiveness of urban governance.

Critical Evaluation

Empowerment of Urban Local Government: The 74th Amendment Act was intended to empower urban local governments with decision-making authority, revenue generation capabilities, and financial autonomy. 

• While there has been progress in terms of financial independence, Indian cities still lag behind developed nations, even after more than two decades of the initial reform.

• Inconsistent Implementation: The implementation of the 74th Constitutional Amendment Act by State Governments has been inconsistent across the country. 
  • Some States, like Kerala and West Bengal, have made more substantial efforts to implement the provisions effectively, while others have fallen short. 
  • This variation in implementation has resulted in disparities in the functioning of urban local bodies. 

Conclusion

The 74th Amendment Act has significantly advanced urban governance in India, promoting local participation and accountability. 

• However, challenges remain, including inconsistent implementation and the need for greater financial autonomy for municipalities. 
• Ensuring that urban local bodies can effectively fulfill their roles is essential for sustainable urban development. Continued efforts are necessary to empower these institutions and address disparities in urban governance across different states.

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