Local Bodies: Municipalities

Historical Traces

• First municipal corporation in India – At Madras
• Bombay and Calcutta Municipal corporations – In 1726
• Lord Mayo’s Resolution of 1870 – on financial decentralisation visualised the development of local self-government institutions.
• Lord Ripon’s Resolution of 1882 – ‘Magna Carta’ of local self-government. Ripon father of local self-government in India.
• Royal Commission on decentralisation in 1907. Its chairman was Hob-house.
• Government of India Act of 1919 – Under the dyarchical scheme, local self-government became a transferred subject under the charge of a responsible Indian minister.
• Cantonments Act was passed – In 1924.
• Government of India Act of 1935 – Under the provincial autonomy scheme, local self-government was declared a provincial subject.

Key Step for Local Governance in Urban Area – 74th Constitutional Amendment Act, 1992

• Act aims at revitalising and strengthening the urban governments so that they function effectively as “units of local government”.
• Added new part that Part IX A which contain Article 243 P To Article 243 ZG that deal with Municipalities.
• Article 243 P To Article 243 ZG placed under twelfth schedule which is also added by 74th Amendment , 1992.

Salient features of 74th amendment act

• Three Types of Municipalities
  • A nagar panchayat (by whatever name called) for a transitional area .
  • A municipal council for a smaller urban area.
  • A municipal corporation for a larger urban area. 

Composition of Municipalities

• The seats shall be filled by direct elections. For this purpose, each municipal area shall be divided into territorial constituencies to be known as wards. 
• The state legislature may provide the manner of election of the chairperson of a municipality.

Constitution of Wards Committees

• This provides for the constitution of Ward Committees in all municipalities with a population of 3 lakhs or more. 

Reservation of seats

• The Act provides for the reservation of seats for the scheduled castes and the scheduled tribes in every municipality in the proportion of their population to the total population in the municipal area. 
• Further, it provides for the reservation of not less than one-third of the total number of seats for women (including the number of seats reserved for women belonging to the SCs and the STs). 
• The state legislature may provide for the manner of reservation of offices of chairpersons in the municipalities for SCs, STs and women. 
• It may also make any provision for the reservation of seats in any Municipality or offices of chairpersons in municipalities in favour of backward classes.

Duration of Municipalities

• The municipality has a fixed term of 5 years from the date appointed for its first meeting.
• If the municipality is dissolved before the expiry of 5 years, the elections for constituting a new municipality are required to be completed within a period of 6 months from the date of its dissolution. 

Minimum Age of Contesting and Election

• Minimum Age for Contesting – 21 years
• Election – The 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.

Finances of Municipalities

• Taxes, duties, fees, etc. which could be levied and collected by the Municipalities, as per the procedure to be laid down in the State law. 
• Taxes, duties, fees, etc. which would be levied and collected by the State Government and a share passed on to the Municipalities.
• Grant-in-aid that would be given to the Municipalities from the State.
• Constitution of funds for crediting and withdrawal of money by the Municipality.

Types of Urban Government

1. Municipal Corporation
   • Municipal corporations are usually found in big cities such as Bangalore, Delhi, Mumbai, Kolkata, etc.
2. Municipality
   • The smaller cities tend to have the provision of municipalities.
   • The Municipalities are often called upon by other names such as the municipal council, municipal committee, municipal board, etc.
3. Notified Area Committee
   • Notified area committees are set up for the fast-developing towns and the towns lacking the basic amenities.
   • All the members of the notified area committee are nominated by the state government.
4. Town Area Committee
   • The town area committee is found in the small towns.
   • It has minimal authority such as street lighting, drainage roads, and conservancy.
5. Cantonment Board
   • It is usually set up for a civilian population living in the cantonment area.
   • It is created and run by the central government.
6. Township
   • Township is another form of urban government to provide basic facilities to the staff and workers living in the colonies established near the plant.
   • It has no elected members and is merely an extension of the bureaucratic structure.
7. Port Trust
   • Port trusts are established in the port areas such as Mumbai, Chennai, Kolkata, etc.
   • It manages and takes care of the port.
   • It also provides basic civic amenities to the people living in that area.
8. Special Purpose Agency
   • These agencies undertake the designated activities or specific functions belonging to the municipal corporations or municipalities.