Module 4
Urban Local Bodies
Urban Local Government
• The word ‘local’ relates to specific areas defined by locality, implying a definite area and population
living therein. The word ‘government’ refers to its representative character and the autonomy it
possesses in taking decisions on the subject matters as bestowed upon it under the Constitution.
• Thus, it can be stated that Urban Local Government refers to an institution of governance in a
statutory town, defined by a definite area and the population therein, deliberating, regulating and
implementing decisions on subject matters entrusted to it under the Constitution. These elected
bodies in urban areas are also called as Urban Local Bodies (ULBs).
• Urban local bodies in India, comprising municipal corporations, municipalities, and town panchayats,
are established by state governments. Municipal Corporations cater to 'larger urban areas', Municipal
Councils serve 'smaller urban areas', and Town Panchayats address areas that transition from rural to
urban. The classification of these areas is at the discretion of the states, considering factors such as
total population, population density, non-agricultural employment, annual revenue generation, among
other criteria.
• The system of Municipalities or Urban Local Governments was constitutionalized
through the 74th Constitutional Amendment Act of 1992.
• The provisions in this amendment are included in Part IXA which came into force on
June 1, 1993. Therefore, it gave a constitutional foundation to the local self-government
units in urban areas.
• This act added a new part IX-A to the Constitution entitled as ‘The Municipalities’ and a
new Twelfth Schedule containing 18 functional items for municipalities.
• The main provisions of this Act can be grouped under two categories–compulsory and voluntary. One of
the compulsory provisions which is binding on all States is:
• Constitution of Nagar panchayats, municipal councils and municipal corporations in transitional
areas (areas in transition from a rural area to urban area), smaller urban areas and larger urban areas
respectively. In accordance with the 74th Amendment, municipal corporations and municipalities
(municipal boards or municipal committees) are now regulated in a fairly uniform manner in all the
States. However, one must remember that local self-government continues to be a subject in the State
List.
• Thus, the 73rd and 74th amendments provide a framework for the States in respect of local
government. Thus, each State has its own Election Commission which conducts elections to all local
bodies after regular intervals of five years. Each State has its Finance Commission to regulate finances of
the local bodies. Seats are reserved in the corporations and municipalities for Scheduled Castes and
Tribes. One-third seats are reserved for women in all local bodies – urban and rural.
Significance of Urban Local Governments
• The rationale for having three-tier of government is to deal with regional variations in the political values,
economic development, and societal values and citizens participation. For example, the context of Assam is
different from Maharashtra or Gujarat. The needs of people living in Kerala may be different from those living in
Uttar Pradesh and similarly, willingness of people to pay taxes or user charges may be different in Delhi to those
living in Amritsar.
• Even within the state, the ULBs in a bigger town may be having greater sources of income as compared to the
smaller towns and will be in a better position to offer or provide many more services. Thus, the local
governments respond to the needs and aspirations of the inhabitants at the local level on matters, which
concern them in their daily lives. It also implies that level of services differs from one town to the other within a
state as well as within the country.
• Good urban governance demands that these institutions of self-governance be vibrant, especially in view of the
increasing urbanisation and the role of cities in the economy. As Indian cities grow in number and size, the
pressure for better urban governance will also increase. The estimates indicate that by early 2030s, majority of
the population would be living in urban areas.
Constitution of municipalities.
• The Governor shall, by notification, constitute—
• a Nagar Panchayat for a transitional area, that is to say, an area in transition from a rural area to an
urban area;
• a Municipal Council for a smaller urban area; and
• a Municipal Corporation for a larger urban area, in accordance with the provisions of the Act: "a
transitional area", "a smaller urban area" or "a larger urban area" means such areas as the
Governor may, having regard to the population of the area, the density of the population therein,
the revenue generated for local administration, the percentage of employment in nonagricultural
activities, the economic importance or such other factors as it may deem fit, specify by notification
for the purposes of the Act.
Town (Nagar) Panchayat
• The Balwant Rai Mehta Committee was set up in 1957 to recommend the three-tier structure of the
Panchayati Raj—village level, block level, and district level. The constitution also divides the urban
governance of municipal institutions into three types in every municipality: municipal corporations or
Nagar Nigams; municipalities or Nagarpalikas and Nagar Panchayats
• A Nagar Panchayat or Notified Area Council (NAC) in India is a settlement in transition from rural to
urban and therefore a form of an urban political unit comparable to a municipality. An urban centre with
more than 12,000 and less than 40,000 inhabitants is classified as a Nagar Panchayat. Each Nagar
Panchayat has a committee consisting of a chairman with ward members. Membership consists of a
minimum of ten elected ward members and three nominated members.
• The NAC members of the Nagar Panchayat are elected from the several wards of the Nagar Panchayat on
the basis of adult franchise for a term of five years. There are seats reserved for Scheduled Castes,
Scheduled Tribes, backward classes and women. The Councillors or Ward Members are chosen by direct
election from electoral wards in the Nagar Panchayat.
Composition of Nagar Panchayat.
• For every Nagar Panchayat there shall be a Chairperson and a Vice-Chairperson.
• Every Nagar Panchayat shall consist of such number of Councillors as may be fixed by the
Government from time to time by notification.
• All the seats in a Nagar Panchayat shall be filled by persons chosen by direct election from the
territorial constituencies to be known as wards in the municipal area of Nagar Panchayat.
• The Government may appoint a person having special knowledge or experience in municipal
administration to be a Councillor of the Nagar Panchayat. Provided that such person shall not have
the right to vote in the meetings of the Nagar Panchayat.
Functions of Nagar panchayat
• Street light and water facility at all places.
• Survey and boundary marking of the municipality.
• Cleanliness and maintenance of the area to avoid any nuisance.
• Regulation of intercessory and objectionable practices.
• Sheltering and removal of stray animals.
• Removal of undesirable barriers and interpolation in public places for public safety, health and
convenience.
• Provision of a place for decantation of dead bodies and approval on the unclaimed bodies.
• Development and maintenance of public amenities, sewers, roads and market places.
• Water facility at residential, industrial and commercial places.
• Tree plantation along the roadsides for greener environment and their maintenance.
• To establish, maintain and assist the delivery of child welfare centers and birth control clinics, and to
improve family welfare and population control by promoting small family ideology.
• Giving immediate attention to government letters and preparing such details, statements and reports,
which the state government expects to submit to the municipality.
• To enable the Citizen's and other city stakeholders to understand the city’s problems better, and
constructively participate in the governance of the ULB.
• Protecting the interests of the weaker sections of society, under which there are disabled and mentally
retarded people.
• Maintaining the financial system of the municipality and completing the concerned duties.
• Construction and maintenance of the public utility services like library, museums, child day care,
orphanage, women care centers, public toilets, houses, wells and ponds.
MUNICIPAL CORPORATION v/s MUNICIPLAITY
• Municipal corporations are formed to manage the administration of large cities such as Delhi,
Mumbai, Kolkata, Hyderabad, and Bangalore, among others.
• They are established in the states by acts of the state legislatures concerned, and in the union
territories by acts of the Parliament of India.
• There may be a single act that applies to all municipal corporations in a state, or each municipal
corporation may have its own act.
• Municipalities are created to oversee the administration of towns and smaller cities.
• They, like corporations, are established in the states by acts of the respective state legislatures and
in the union territories by acts of the Parliament of India.
• Other names for them include municipal council, municipal committee, municipal board, borough
municipality, city municipality, and others.
COMPOSITION
• The Municipal bodies are constituted of persons chosen by direct election from the territorial constituencies
(known as wards) in the municipal area. However, the Legislature of a State may, by law, provide for the
representation in a municipal body of persons having special knowledge or experience of municipal
administration, the members of Rajya Sabha, Lok Sabha and the members of Legislative Council and Legislative
Assembly of the State, representing constituencies, which comprise wholly or partly the Municipal Area.
• The state legislature may also provide the manner of the election of the Chairpersons of a municipality.
Empowerment of weaker sections of society and women by reserving seats for such groups is one of the
important constitutional provisions of the Constitutional Amendment.
• The offices of chairperson are also reserved for SC/ST and women. Thus, at least one year, out of five year duration
of Municipal Corporation of Delhi, the office of Mayor is reserved for a woman, and for one year is reserved for a
Councilor of Scheduled Caste. It gives a term of five years to the municipalities and if any of them is to be
dissolved, it must be given an opportunity of being heard.
FUNCTIONS
• It is a common practice to divide the organisation of a corporation or a municipality into two parts:
(a) deliberative and (b) executive part
• The corporation, council or municipal board or council consisting of the elected representatives of
the people constitutes the deliberative part. It acts like a legislature. It discusses and debates on
general municipal policies and performance, passes the budget of the urban local body, frames broad
policies relating to taxation, resources raising, pricing of services and other aspects of municipal
administration.
• It keeps an eye on municipal administration and holds the executive accountable for what is done or
not done. For instance, if water supply is not being properly managed, or there is an outbreak of an
epidemic, the deliberative wing criticizes the role of the administration and suggests measures for
improvement.
• The executive part of municipal administration is looked after by the municipal officers and other
permanent employees. In the corporations, the Municipal Commissioner is the executive head, and
all other departmental officers like engineers, finance officers, health officers etc. function under
his/her control and supervision.
• In a large corporation, such as Delhi or Mumbai Municipal Corporation, the Commissioner is usually
a senior IAS officer. In municipalities, the executive officer holds a similar position and looks after
the overall administration of a municipality.
• Municipal functions are generally classified into obligatory and discretionary types:
• The obligatory (compulsory) functions are those that the municipal body must perform. In this
category fall such functions as water supply; construction and maintenance of roads, streets,
bridges, subways and other public works, street lighting; drainage and sewerage; garbage collection
and disposal; prevention and control of epidemics.
• Some other obligatory functions are public vaccination and inoculation; maintenance of hospitals
and dispensaries including maternity and child welfare centres; checking food adulteration;
removal of slums; supply of electricity; maintenance of cremation and burial grounds; and town
planning. In some States some of these functions may be taken over by State Government.
• The discretionary functions are those that a municipal body may take up if funds permit. These are
given less priority. Some of the discretionary functions are construction and maintenance of rescue
homes and orphanages, housing for low income groups, organising public receptions, provision of
treatment facilities, etc.
ELECTIONS TO MUNICIPALITIES
The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of,
all elections to the panchayats and municipalities shall be vested in the State Election Commissions.
Audit and Accounts:
• The maintenance of the accounts of the municipalities and other audits shall be done in accordance with
the provisions in the State law. The State Legislatures will be free to make appropriate provisions in this
regard, depending upon the local needs and institutional framework available for this purpose.
Committee for District Planning:
• Every state shall constitute, at the district level, a district planning committee to consolidate the plans
prepared by panchayats and municipalities in the district, and to prepare a draft development plan for the
district as a whole.
• Planning and allocation of resources at the district level for the Panchayati Raj institutions are normally to
be done by the Zila Parishad.
DIFFERENCES BETWEEN MUNICIPAL CORPORATION AND
MUNICIPALITY
Municipal corporation Municipality
Are established for the administration of big cities like Delhi,
Are established for the administration of towns and smaller cities.
Bangalore, Hyderabad, Chennai, Mumbai, etc
Are established in the states by the acts of State Legislatures and in Are established in the states by the acts of state legislatures and in
the union territories by the acts of the Parliament. the union territory by the acts of the Parliament of India.
They have more power with more resources They have lesser power with lesser resources
Municipal corporation directly deal with the state government Work through the district administration
They deal with public works, education, health, taxation, finance etc.
They deal with public works, taxation, health, finance etc.
and take decisions in their fields.
The municipal corporation includes three authorities – A municipality has three authorities
The council The council
The standing committees The standing committees
The municipal commissioner. The chief executive officer
Municipal corporation Municipality
The council is headed by a mayor who is assisted by a The council is headed by a president or a chairman
Deputy Mayor. and assisted by a vice president or vice-chairman.
The President/Chairman plays a significant role and is
Mayor is primarily an ornamental figure and the
the main person of the municipal administration. He
corporation's formal head. His primary responsibility
has executive powers in addition to presiding over
is to preside over Council meetings.
Council meetings.
The municipal commissioner is in charge of
The chief executive officer/chief municipal officer is
implementing the decisions made by the council and
in charge of the municipality's day-to-day operations.
its standing committees.