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Posted by on Mar 20, 2014 in Local Govt |

Municipality – Urban Local Self Government

The Municipality is also called Urban Local Self Govt and it signifies governance of an urban area through their elected representatives. The 74th amend 1992 added a new part in constitution and provides constitutional status to Municipality. Article 243-P to 243-ZG in Part IX A and Twelfth schedule of the Constitution deals with composition, election and powers of a Municipality or Urban Local Self Govt.

Types of Municipality

  • Nagar Panchayat – for a transitional area which is in transition from rural to urban area.
  • Municipal Council – for a smaller urban area (generally for area population b/w 1 to 5 lakh).
  • Municipal Corporation – for a larger urban area (generally for area population exceed 1 million). Also called MahaNagar Nigam or Nagar Nigam.
  • Each State shall constitute municipality in their states and to determine type of municipality the factors such as revenue generation, population density or % of employment in non agriculture activities can be used.

Composition and Ward Committees

  • All seats in a Municipality shall be filled by direct election and for this purpose Municipality shall be divided into territorial constituencies to be known as wards.
  • Ward Committee – There shall be constituted Wards Committees consisting of one or more wards in Municipality having a population of exceeding of 3 lakh or more.
  • The Legislature shall make provisions for composition and territorial area of Ward Committee. Also Legislature can create more committees other than ward committee.
  • Every elected member of Ward within territorial area of committee shall be a member of that committee. There shall be a Chairperson who is elected by members of ward committee if ward committee represents more than one ward.

Reservation of Seats

  • SC and STs – The Seats shall be reserved for SC and ST in every Municipality as per their population in Municipality area and such seats may be allotted by rotation to different constituencies. At least one third of total seats, reserved for SC/STs, shall be reserved for women belonging to SC or ST as case may be.
  • Women – At least one third of total number of seats (including seats reserved for women belongs to SC and STs) to be filled by direct election in every Municipality shall be reserved for women and such seats may be allotted by rotation to different constituencies.
  • Chairperson Office – The reservation of SC, ST or Women in office of Chairpersons shall be decided by State Legislature. Also legislature can make provisions for reservation of any backward classes.

Elections and Term of Municipality

  • Each Municipality shall continue for 5yrs from date of 1st meeting unless dissolved earlier under any law for time being in force. On dissolution, the fresh election shall be held within 6months after date of dissolution.
  • Also such new Municipality constituted after dissolution shall continue only for the remainder of period for which dissolved Municipality would have continued if not dissolved.
  • The superintendence, direction and control of preparation of electoral rolls and conduct of all elections shall be vested with State Election Commission as constituted for Panchayats.

Powers and Functions

  • Every State Legislature by law may endow a Municipality with such powers and authority as may be necessary to enable them to function as institutions of self-government. Such a law may contain provisions of devolution of powers and responsibilities upon Municipality in relation to a) preparation of plans for economic development and social justice and b) implementation of schemes for economic development and social justice in matters as decided including matters in Twelfth Schedule.
  • Twelfth Schedule – it includes 18 items within purview of Municipality such as Urban Planning, Planning for Economic & Social development, Roads & Bridges, Water Supply, Fire Services, Public Health, Sanitation, Solid Waste Mgt, Slum development, Urban Poverty Alleviation, Burial & Cremation, Regulation of land use, Urban Forestry and Public Amenities including street lighting, parking, bus stops and public conveniences.
  • Finances – The State legislature may by law authorizes Panchayat to levy, collect and appropriate such taxes, tolls and fees as may be determined. Also provide grants in aid to Panchayats as required for development or social justice.

State Finance Commission

  • The Finance Commission (constituted for Panchayats) shall also review financial position of Municipalities and to make recommendations in relation to
    • The distribution b/w State and Municipalities of net proceeds of taxes, duties or fees leviable by state and allocation of funds b/w Municipality at all levels of their respective shares.
    • determination of taxes, duties, fees or tolls may be assigned to a Municipality;
    • grants in aid to Municipality;
    • measures need to improve the financial position of Municipalities;
    • Any other matter referred to commission by governor in interests of sound finance.


  • Disqualifications – A person can be disqualified from being chosen as a Member of Municipality if he is so disqualified under any law made by Legislature of the State either generally or for purpose of elections. But he can’t be disqualified on grounds that he is < 25yrs of age if he has attained age of 21yrs.
  • Accounts & Audit – The Legislature may by law make provisions related with respect to maintenance of accounts of Municipality and auditing of such accounts.
  • Union Territory – The President may direct that provisions of this part shall apply to UT subject to such exceptions or modifications.
  • Exempted Area – Nothing in this chapter shall apply to scheduled areas in clause 1 (include all state except Assam, Meghalaya, Tripura and Mizoram) and tribal areas in clause 2 (includes Assam, Meghalaya, Mizoram or Tripura) of Article 244 and Darjeeling Gorkha Hill Council of West Bengal.
  • However Parliament may by law extend the provisions of this part to scheduled and tribal areas with exceptions or modifications.
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