Municipalities & Urban Local Bodies

Subject: Polity | Unit: Local Governance | Topic: Municipalities Exam: AP Group 2 (APPSC) — Paper I, Indian Polity Prerequisites: 73rd & 74th Amendments, Panchayati Raj

Introduction

Municipalities are the constitutional framework for urban self-governance in India. The 74th Constitutional Amendment Act, 1992 gave municipalities constitutional status by adding Part IXA (Articles 243P-243ZG) and the Twelfth Schedule (18 functional items) to the Constitution. Before this amendment, municipalities existed entirely at the mercy of state governments — they could be created, dissolved, or starved of funds without any constitutional protection.

For APPSC Group 2 aspirants, this topic has direct professional relevance. The post of Municipal Commissioner is one of the key Group 2 positions, and understanding municipal governance is essential for that role. Expect 2-3 questions on the three types of municipalities, Twelfth Schedule subjects, Wards Committees, and the DPC/MPC planning structures.

Historical Context

Urban local governance in India has ancient roots — the Arthashastra mentions Nagaradhyaksha (city superintendent) as a key administrative officer. During British rule, the first municipal corporation was established in Madras in 1688, followed by Bombay and Calcutta. Lord Ripon's Resolution of 1882 is often called the "Magna Carta of local self-government" for its emphasis on elected local bodies.

However, throughout the post-independence period until 1993, municipalities remained creatures of state legislation with no constitutional backing. State governments could postpone municipal elections, supersede elected bodies, and replace them with appointed administrators — often for years at a time. The 74th Amendment changed this by providing constitutional guarantees for regular elections, reserved representation, and financial devolution.

The 74th Amendment came into force on 1 June 1993, following closely after the 73rd Amendment (24 April 1993) for Panchayats. Together, these two amendments constitute India's most significant democratic decentralization initiative.

Core Content

Constitutional Framework — Articles 243P to 243ZG

Three Types of Municipalities (Article 243Q)

The 74th Amendment mandates three types of municipalities in every state:

The Governor specifies which type applies to a given area based on: population, density of population, revenue generated, percentage of employment in non-agricultural activities, and other factors as the Governor considers fit.

Composition (Article 243R)

• All seats filled by direct election from territorial constituencies (wards)
• State Legislature may provide for representation of:
  • Persons with special knowledge or experience in municipal administration
  • MPs, MLAs, and MLCs of the area
  • Chairpersons of Ward Committees
• Manner of election of Chairperson: As prescribed by State Legislature (either direct or indirect)

Wards Committees (Article 243S)

Wards Committees must be constituted in municipalities with population of 3 lakhs or more. Their composition and territorial jurisdiction are prescribed by State Legislature. The purpose is to bring governance closer to the people in large municipalities by creating smaller, more accessible units of governance.

Reservations (Article 243T) — Mandatory

The reservation provisions mirror those of Panchayats:

1. Seats reserved for SC and ST in proportion to their population
2. Not less than 1/3 of SC/ST reserved seats must go to SC/ST women
3. Not less than 1/3 of total seats (including SC/ST) reserved for women
4. State may provide reservation for Backward Classes
5. Chairperson reservations for SC, ST, and women as State Legislature prescribes

Duration (Article 243U)

• Every municipality continues for 5 years from the date of its first meeting
• Can be dissolved earlier as per State law
• If dissolved, elections must be held within 6 months
• Reconstituted municipality serves only the remainder of the original term

Disqualifications (Article 243V)

• Same as disqualifications for State Legislature membership
• Minimum age: 21 years (not 25 as for State Legislature)

Powers and Functions (Article 243W)

State Legislature may endow municipalities with powers for:

• Preparation of plans for economic development and social justice
• Performance of functions and implementation of schemes as entrusted
• Including matters listed in the Twelfth Schedule (18 subjects)

The Twelfth Schedule — 18 Functional Items

1. Urban planning including town planning
2. Regulation of land-use and construction of buildings
3. Planning for economic and social development
4. Roads and bridges
5. Water supply for domestic, industrial, and commercial purposes
6. Public health, sanitation, conservancy, and solid waste management
7. Fire services
8. Urban forestry, protection of environment, and promotion of ecological aspects
9. Safeguarding interests of weaker sections including handicapped and mentally retarded
10. Slum improvement and upgradation
11. Urban poverty alleviation
12. Provision of urban amenities and facilities (parks, gardens, playgrounds)
13. Promotion of cultural, educational, and aesthetic aspects
14. Burials and burial grounds; cremations and cremation grounds; electric crematoriums
15. Cattle pounds; prevention of cruelty to animals
16. Vital statistics including registration of births and deaths
17. Public amenities including street lighting, parking lots, bus stops, public conveniences
18. Regulation of slaughter houses and tanneries

Financial Powers (Article 243X)

State Legislature may authorize municipalities to:

• Levy, collect taxes, duties, tolls, and fees
• Receive State-assigned taxes and duties
• Receive grants-in-aid from the Consolidated Fund of State

State Finance Commission (Article 243Y)

The same Finance Commission constituted under Article 243I (for Panchayats) also reviews the financial position of municipalities and recommends:

• Distribution of tax proceeds between State and municipalities
• Grants-in-aid for municipalities

Elections (Article 243ZA)

The State Election Commission (the same SEC that conducts Panchayat elections) conducts all municipal elections. This ensures a unified and independent election machinery for all local body elections.

Planning Committees — Unique to 74th Amendment

District Planning Committee (Article 243ZD)

• Every State shall constitute a DPC at district level
• 4/5 of DPC members elected by and from among elected Panchayat and Municipality members in the district
• DPC prepares a draft development plan for the district as a whole, integrating rural and urban plans

Metropolitan Planning Committee (Article 243ZE)

• Constitution of MPC for every metropolitan area (population 10 lakhs or more)
• 2/3 of MPC members elected by and from among elected municipality and Panchayat members
• MPC prepares a draft development plan for the metropolitan area

These planning committees are unique to the 74th Amendment — the 73rd Amendment does not have equivalent provisions. They represent the Constitution's recognition that urban and rural planning must be integrated at the district level.

AP Connection

AP has a significant urban local body network with direct relevance to Group 2 posts:

• 123 Urban Local Bodies in AP: 17 Municipal Corporations, 78 Municipalities, 28 Nagar Panchayats
• Major Municipal Corporations: GVMC (Greater Visakhapatnam), VMC (Vijayawada), Guntur, Tirupati, Nellore
• Governed under AP Municipal Corporation Act and AP Municipalities Act
• Commissioner & Director of Municipal Administration (CDMA) oversees all ULBs
• The post of Municipal Commissioner (a Group 2 post) involves heading a municipality and overseeing all 18 Twelfth Schedule functions within that jurisdiction
• CAG has conducted performance audits of AP's implementation of the 74th Amendment (2023 report on AP municipalities)

Key Points

1. 74th Amendment (1992): Added Part IXA (Articles 243P-243ZG) and Twelfth Schedule; effective 1 June 1993
2. Three types: Nagar Panchayat (transitional), Municipal Council (smaller urban), Municipal Corporation (larger urban)
3. Governor determines municipality type based on population, density, revenue, and non-agricultural employment
4. All seats filled by direct election from wards; minimum age 21 years
5. Wards Committees mandatory for municipalities with population 3 lakhs or more
6. Mandatory reservation: SC/ST proportional to population; 1/3 of all seats for women
7. 5-year term; if dissolved, elections within 6 months
8. Twelfth Schedule: 18 functional items (vs 29 in Eleventh Schedule for Panchayats)
9. DPC (Article 243ZD): 4/5 members elected; prepares district development plan
10. MPC (Article 243ZE): For metropolitan areas with 10 lakh+ population; 2/3 members elected
11. Same State Election Commission conducts both Panchayat and municipal elections
12. Same State Finance Commission reviews finances of both Panchayats and municipalities
13. Article 243ZG: Courts cannot interfere in municipal electoral matters
14. Municipalities were given constitutional status for the first time by 74th Amendment
15. AP has 123 ULBs: 17 Municipal Corporations, 78 Municipalities, 28 Nagar Panchayats
16. CDMA oversees all ULBs in AP; Municipal Commissioner is a Group 2 post

Exam Strategy

High-Probability Question Types:

1. 73rd vs 74th comparison — Eleventh vs Twelfth Schedule, 29 vs 18 subjects, DPC/MPC only in 74th
2. Three types of municipalities — Nagar Panchayat (transitional), Council (smaller), Corporation (larger)
3. Wards Committees — Mandatory for 3 lakh+ population
4. DPC and MPC — DPC (4/5 elected), MPC (2/3 elected, 10 lakh+ metro)
5. Twelfth Schedule subjects — Know at least 8-10 key subjects

Memory Technique — Compare 73rd and 74th:

Common Traps:

• 74th Amendment came into force on 1 June 1993 (not 24 April 1993 — that's the 73rd)
• Twelfth Schedule has 18 subjects (not 29 — that's the Eleventh)
• Wards Committees for 3 lakhs population (not 3 crores or 30 lakhs)
• MPC is for 10 lakhs+ metropolitan areas (not all cities)
• DPC has 4/5 elected members; MPC has 2/3 elected members

Key Terms Glossary