THE CONSTITUTION (SEVENTY-FOURTH AMENDMENT) ACT, 1992
SECTION OF: 1-6
SEVENTY-FOURTH AMENDMENT
Statement of Objects and Reasons appended to the Constitution(Seventy-third Amendment) Bill, 1991 which was enacted asthe Constitution (Seventy-fourth Amendment) Act, 1992
STATEMENT OF OBJECTS AND REASONS
In many States local bodies have become weak and ineffective onaccount of a variety of reasons, including the failure to hold regularelections, prolonged supersessions and inadequate devolution of powersand functions. As a result, Urban Local Bodies are not able toperform effectively as vibrant democratic units of self-government.
2. Having regard to these inadequacies, it is considered necessarythat provisions relating to Urban Local Bodies are incorporated in theConstitution particularly for-
(i) putting on a firmer footing the relationship between the StateGovernment and the Urban Local Bodies with respect to-
(a) the functions and taxation powers; and
(a) the functions and taxation powers; and
(ii) Ensuring regular conduct of elections;
(iii) ensuring timely elections in the case of supersession; and
(iv) providing adequate representation for the weaker sections likeScheduled Castes, Scheduled Tribes and women.
3. Accordingly, it is proposed to add a new part relating to theUrban Local Bodies in the Constitution to provide for-
(a) constitution of three types of Municipalities:
(i) Nagar Panchayats for areas in transition from a rural area tourban area;
(ii) Municipal Councils for smaller urban areas;
(iii) Municipal Corporations for larger urban areas.
The broad criteria for specifying the said areas is being provided inthe proposed article 243-0;
(b) composition of Municipalities, which will be decided by theLegislature of a State, having the following features:
(i) persons to be chosen by direct election;
(ii) representation of Chairpersons of Committees, if any, at wardor other levels in the Municipalities;
(iii) representation of persons having special knowledge or experienceof Municipal Administration in Municipalities (without voting rights);
(c) election of Chairpersons of a Municipality in the mannerspecified in the State law;
(d) constitution of Committees at ward level or other level or levelswithin the territorial area of a Municipality as may be provided inthe State law;
(e) reservation of seats in every Municipality-
(i) for Scheduled Castes and Scheduled Tribes in proportion to theirpopulation of which not less than one-third shall be for women;
(ii) for women which shall not less than one-third of the total numberof seats;
(iii) in favour of backward class of citizens if so provided by theLegislature of the State;
(iv) for Scheduled Castes, Scheduled Tribes and women in the office ofChairpersons as may be specified in the State law;
(f) fixed tenure of 5 years for the Municipality and re-electionwithin six months of end of tenure. If a Municipality is dissolvedbefore expiration of its duration, elections to be held within aperiod of six months of its dissolution;
(g) devolution by the State Legislature of powers and responsibilitiesupon the Municipalities with respect to preparation of plans foreconomic development and social justice, and for the implementation ofdevelopment schemes as may be required to enable them to function asinstitutions of self-government;
(h) levy of taxes and duties by Municipalities, assigning of suchtaxes and duties to Municipalities by State Governments and for makinggrants-in-aid by the State to the Municipalities as may be provided inthe State law;
(i) a Finance Commission to review the finances of the Municipalitiesand to recommend principles for-
(1) determining the taxes which may be assigned to the Municipalities;
(2) Sharing of taxes between the State and Municipalities;
(3) grants-in-aid to the Municipalities from the Consolidated Fund ofthe State;
(j) audit of accounts of the Municipal Corporations by the Comptrollerand Auditor-General of India and laying of reports before theLegislature of the State and the Municipal Corporation concerned;
(k) making of law by a State Legislature with respect to elections tothe Municipalities to be conducted under the superintendence,direction and control of the chief electoral officer of the State;
(l) application of the provisions of the Bill to any Union territoryor part thereof with such modifications as may be specified by thePresident;
(m) exempting Scheduled areas referred to in clause (1), and tribalareas referred to in clause (2), of article 244, from the applicationof the provisions of the Bill. Extension of provisions of the Bill tosuch areas may be done by Parliament by law;
(n) disqualifications for membership of a Municipality;
(o) bar of jurisdiction of Courts in matters relating to elections tothe Municipalities.
4. The Bill seeks to achieve the aforesaid objectives.
NEW DELHI; SHEILE KAUL.
The 11th September, 1991.
THE CONSTITUTION (SEVENTY-FOURTH AMENDMENT) ACT, 1992
ACT, 1992
[20th April, 1993.]
An Act further to amend the Constitution of India.
BE it enacted by Parliament in the Forty-third Year of the Republic ofIndia as follows:-
1. Short title and commencement.-(1) This Act may be called theConstitution (Seventy-fourth Amendment) Act, 1992.
(2) It shall come into force on such date_681 as the CentralGovernment may, by notification in the Official Gazette, appoint.
2. Insertion of new Part IXA.-After Part IX of the Constitution, thefollowing Part shall be inserted, namely:-
PART IXATHE MUNICIPALITIES243P. DEFINITIONS.-IN THIS PART, UNLESS THE CONTEXT OTHERWISE REQUIRES,
(a) "Committee" means a Committee constituted under article 243S;
(b) "district" means a district in a State;
(c) "Metropolitan area" means an area having a population of ten lakhsor more, comprised in one or more districts and consisting of two ormore Municipalities or Panchayats or other contiguous areas, specifiedby the Governor by public notification to be a Metropolitan area forthe purposes of this Part;
(d) "Municipal area" means the territorial area of a Municipality asis notified by the Governor;
(e) "Municipality" means an institution of self-government constitutedunder article 243Q;
(f) "Panchayat" means a Panchayat constituted under article 243B;
(g) "population" means the population as ascertained at the lastpreceding census of which the relevant figures have been published.
243Q. Constitution of Municipalities.-(1) There shall be constitutedin every State,-
(a) a Nagar Panchayat (by whatever name called) for a transitionalarea, that is to say, an area in transition from a rural area to anurban area;
(b) a Municipal Council for a smaller urban area; and
(c) a Municipal Corporation for a larger urban area,
in accordance with the provisions of this Part:
Provided that a Municipality under this clause may not be constitutedin such urban area or part thereof as the Governor may, having regardto the size of the area and the municipal services being provided orproposed to be provided by an industrial establishment in that areaand such other factors as he may deem fit, by public notification,specify to be an industrial township.
(2) In this article, "a transitional area", "a smaller urban area" or"a larger urban area" means such area as the Governor may, havingregard to the population of the area, the density of the populationtherein, the revenue generated for local administration, thepercentage of employment in non-agricultural activities, the economicimportance or such other factors as he may deem fit, specify by publicnotification for the purposes of this Part.
243R. Composition of Municipalities.- (1) Save as provided in clause(2), all the seats in a Municipality shall be filled by persons chosenby direct election from the territorial constituencies in theMunicipal area and for this purpose each Municipal area shall bedivided into territorial constituencies to be known as wards.
(2) The Legislature of a State may, by law, provide-
(a) for the representation in a Municipality of-
(i) persons having special knowledge or experience in Municipaladministration;
(ii) the members of the House of the People and the members of theLegislative Assembly of the State representing constituencies whichcomprise wholly or partly the Municipal area;
(iii) the members of the Council of States and the members of theLegislative Council of the State registered as electors within theMunicipal area;
(iv) the Chairpersons of the Committees constituted under clause (5)of article 243S:
Provided that the persons referred to in paragraph (i) shall not havethe right to vote in the meetings of the Municipality;
(b) the manner of election of the Chairperson of a Municipality.
243S. Constitution and composition of Wards Committees, etc.-(1)There shall be constituted Wards Committees, consisting of one or morewards, within the territorial area of a Municipality having apopulation of three lakhs or more.
(2) The Legislature of a State may, by law, make provision withrespect to-
(a) the composition and the territorial area of a Wards Committee;
(b) the manner in which the seats in a Wards Committee shall befilled.
(3) A member of a Municipality representing a ward within theterritorial area of the Wards Committee shall be a member of thatCommittee.
(4) Where a Wards Committee consists of-
(a) one ward, the member representing that ward in the Municipality;or
(b) two or more wards, one of the members representing such wards inthe Municipality elected by the members of the Wards Committee,
shall be the Chairperson of that Committee.
(5) Nothing in this article shall be deemed to prevent the Legislatureof a State from making any provision for the constitution ofCommittees in addition to the Wards Committees.
243T. Reservation of seats.-(1) Seats shall be reserved for theScheduled Castes and the Scheduled Tribes in every Municipally and thenumber of seats so reserved shall bear, as nearly as may be, the sameproportion to the total number of seats to be filled by directelection in that Municipality as the population of the ScheduledCastes in the Municipal area or of the Scheduled Tribes in theMunicipal area bears to the total population of that area and suchseats may be allotted by rotation to different constituencies in aMunicipality.
(2) Not less than one-third of the total number of seats reservedunder clause (1) shall be reserved for women belonging to the Sche-duled Castes or, as the case may be, the Scheduled Tribes.
(3) Not less than one-third (including the number of seats reservedfor women belonging to the Scheduled Castes and the Scheduled Tribes)of the total number of seats to be filled by direct election in everyMunicipality shall be reserved for women and such seats may beallotted by rotation to different constituencies in a Municipality.
(4) The officers of Chairpersons in the Municipalities shall bereserved for the Scheduled Castes, the Scheduled Tribes and women insuch manner as the Legislature of a State may, by law, provide.
(5) The reservation of seats under clauses (1) and (2) and thereservation of offices of Chairpersons (other than the reservation forwomen) under clause (4) shall cease to have effect on the expirationof the period specified in article 334.
(6) Nothing in this Part shall prevent the Legislature of a State frommaking any provision for reservation of seats in any Municipality oroffices of Chairpersons in the Municipalities in favour of backwardclass of citizens.
243U. Duration of Municipalities, etc.-(1) Every Municipality,unless sooner dissolved under any law for the time being in force,shall continue for five years from the date appointed for its firstmeeting and no longer:
Provided that a Municipality shall be given a reasonable opportunityof being heard before its dissolution.
(3) An election to constitute a Municipality shall be completed,-
(a) before the expiry of its duration specified in clause (1);
(b) before the expiration of a period of six months from the date ofits dissolution:
Provided that where the remainder of the period for which thedissolved Municipality would have continued is less than six months,it shall not be necessary to hold any election under this clause forconstituting the Municipality for such period.
(4) A Municipality constituted upon the dissolution of a Muni-cipality before the expiration of its duration shall continue only forthe remainder of the period for which the dissolved Municipality wouldhave continued under clause (1) had it not been so dissolved.
243V. Disqualifications for membership.-(1) A person shall bedisqualified for being chosen as, and for being, a member of aMunicipality-
(a) if he is so disqualified by or under any law for the time being inforce for the purposes of elections to the Legislature of the Stateconcerned:
Provided that no person shall be disqualified on the ground that he isless than twenty-five years of age, if he has attained the age oftwenty-one years;
(b) if he is so disqualified by or under any law made by theLegislature of the State.
(2) If any question arises as to whether a member of a Municipalityhas become subject to any of the disqualifications mentioned in clause(1), the question shall be referred for the decision of such authorityand in such manner as the Legislature of a State may, by law, provide.
243W. Powers, authority and responsibilities of Municipalities, etc.-Subject to the provisions of this Constitution, the Legislature of aState may, by law, endow-
(a) the Municipalities with such powers and authority as may benecessary to enable them to function as institutions ofself-government and such law may contain provisions for the devolutionof powers and responsibilities upon Municipalities, subject to suchconditions as may be specified therein, with respect to-
(i) the preparation of plans for economic development and socialjustice;
(b) the Committees with such powers and authority as may be necessaryto enable them to carry out the responsibilities conferred upon themincluding those in relation to the matters listed in the TwelfthSchedule.
243X. Power to impose taxes by, and Funds of, the Municipalities.-TheLegislature of a State may, by law,-
(a) authorise a Municipality to levy, collect and appropriate suchtaxes, duties, tolls and fees in accordance with such procedure andsubject to such limits;
(b) assign to a Municipality such taxes, duties, tolls and fees leviedand collected by the State Government for such purposes and subject tosuch conditions and limits;
(c) provide for making such grants-in-aid to the Municipalities fromthe Consolidated Fund of the State; and
(d) provide for constitution of such Funds for crediting all moneysreceived, respectively, by or on behalf of the Municipalities and alsofor the withdrawal of such moneys therefrom.
as may be specified in the law.
243Y. Finance Commission.-(1) The Finance Commission constitutedunder article 243-I shall also review the financial position of theMunicipalities and make recommendations to the Governor as to-
(a) the principles which should govern-
(i) the distribution between the State and the Municipalities of thenet proceeds of the taxes, duties, tolls and fees leviable by theState, which may be divided between them under this Part and theallocation between the Municipalities at all levels of theirrespective shares of such proceeds;
(ii) the determination of the taxes, duties, tolls and fees which maybe assigned to, or appropriated by, the Municipalities;
(iii) the grants-in-aid to the Municipalities from the ConsolidatedFund of the State;
(b) the measures needed to improve the financial position of theMunicipalities;
(c) any other matter referred to the Finance Commission by theGovernor in the interests of sound finance of the Municipalities.
(2) The Governor shall cause every recommendation made by theCommission under this article together with an explanatory memorandumas to the action taken thereon to be laid before the Legislature ofthe State.
243Z. Audit of accounts of Municipalities.-The Legislature of a Statemay, by law, make provisions with respect to the maintenance ofaccounts by the Municipalities and the auditing of such accounts.
243ZA. Elections to the Municipalities.-(1) The superintendence,direction and control of the preparation of electoral rolls for, andthe conduct of, all elections to the Municipalities shall be vested inthe State Election Commission referred to in article 243K.
(2) Subject to the provisions of this Constitution, the Legislature ofa State may, by law, make provision with respect to all mattersrelating to, or in connection 243ZB. Application to Union territories.-The provisions of this Partshall apply to the Union territories and shall, in their applicationto a Union territory, have effect as if the references to the Governorof a State were references to the Administrator of the Union territoryappointed under article 239 and references to the Legislature or theLegislative Assembly of a State were references in relation to a Unionterritory having a Legislative Assembly, to that Legislative Assembly:
Provided that the President may, by public notification, direct thatthe provisions of this Part shall apply to any Union territory or partthereof subject to such exceptions and modifications as he may specifyin the notification.
243ZC. Part not to apply to certain areas.-(1) Nothing in this Partshall apply to the Scheduled Areas referred to in clause (1), and thetribal areas referred to in clause (2), of article 244.
(2) Nothing in this Part shall be construed to affect the functionsand powers of the Darjeeling Gorkha Hill Council constituted under anylaw for the time being in force for the hill areas of the district ofDarjeeling in the State of West Bengal.
(3) Notwithstanding anything in this Constitution, Parliament may, bylaw, extend the provisions of this Part to the Scheduled Areas and thetribal areas referred to in clause (1) subject to such exceptions andmodifications as may be specified in such law, and no such law shallbe deemed to be an amendment of this Constitution for the purposes ofarticle 368.
243ZD. Committee for district planning.-(1) There shall beconstituted in every State at the district level a District PlanningCommittee to consolidate the plans prepared by the Panchayats and theMunicipalitiies in the district and to prepare a draft developmentplan for the district as a whole.
(2) The Legislature of a State may, by law, make provision withrespect to-
(a) the composition of the District Planning Committees;
(b) the manner in which the seats in such Committees shall be filled:
Provided that not less than four-fifths of the total number of membersof such Committee shall be elected by, and from amongst, the electedmambers of the Panchayat at the district level and of theMunicipalities in the district in proportion to the ratio between thepopulation of the rural areas and of the urban areas in the district;
(c) the functions relating to district planning which may be assignedto such Committees;
(d) the manner in which the Chairpersons of such Committees shall bechosen.
(3) Every District Planning Committee shall, in preparing the draftdevelopment plan,-
(a) have regard to-
(i) matters of common interest between the Panchayats and theMunicipalities including spatial planning, sharing of water and otherphysical and natural resources, the integrated development ofinfrastructure and environmental conservation;
(ii) the extent and type of available resources whether financial orotherwise;
(b) consult such institutions and organisations as the Governor may,by order, specify.
(4) The Chairperson of every District Planning Committee shall forwardthe development plan, as recommended by such Committee, to theGovernment of the State.
243ZE. Committee for Metropolitan planning.-(I) There shall beconstituted in every Metropolitan area a Metropolitan PlanningCommittee to prepare a draft development plan for the Metropolitanarea as a whole.
(2) The Legislature of a State may, by law, make provision withrespect to-
(a) the composition of the Metropolitan Planning Committees;
(b) the manner in which the seats in such Committees shall be filled:
Provided that not less than two-thirds of the members of suchCommittee shall be elected by, and from amongst, the elected membersof the Municipalities and Chairpersons of the Panchayats in theMetropolitan area in proportion to the ratio between the population ofthe Municipalities and of the Panchayats in that area;
(c) the representation in such Committees of the Government of Indiaand the Government of the State and of such organisations andinstitutions as may be deemed necessary for carrying out the functionsassigned to such Committees;
(d) the functions relating to planning and coordination for theMetropolitan area which may be assigned to such Committees;
(e) the manner in which the Chairpersons of such Committees shall bechosen.
(3) Every Metropolitan Planning Committee shall, in preparing thedraft development plan,-
(a) have regard to-
(i) the plans prepared by the Municipalities and the Panchayats in theMetropolitan area;
(ii) matters of common interest between the Municipalities and thePanchayats, including co-ordinated spatial planning of the area,sharing of water and other physical and natural resources, theintegrated development of infrastructure and environmentalconservation;
(iii) the overall objectives and priorities set by the Government ofIndia and the Government of the State;
(iv) the extent and nature of investments likely to be made in theMetropolitan area by agencies of the Government of India and of theGovernment of the State and other available resources whetherfinancial or otherwise;
(b) consult such institutions and organisations as the Governor may,by order, specify.
(4) The Chairperson of every Metropolitan Planning Committee shallforward the development plan, as recommended by such Committee, to theGovernment of the State.
243ZF. Continuance of existing laws and Municipalities.-Notwithstanding anything in this Part, any provision of any lawrelating to Municipalities in force in a State immediately before thecommencement of THE CONSTITUTION (Seventy-fourth Amendment) Act, 1992,which is inconsistent with the provisions of this Part, shall continueto be in force until amended or repealed by a competent Legislature orother competent authority or until the expiration of one year fromsuch commencement, whichever is earlier:
Provided that all the Municipalities existing immediately before suchcommencement shall continue till the expiration of their duration,unless sooner dissolved by a resolution passed to that effect by theLegislative Assembly of that State or, in the case of a State having aLegislative Council, by each House of the Legislature of that State.
243ZG. Bar to interference by courts in electoral matters.-Notwithstanding anything in this Constitution,-
(a) the validity of any law relating to the delimitation ofconstituencies or the allotment of seats to such constituencies, madeor purporting to be made under article 243ZA shall not be called inquestion in any court;
(b) no election to any Municipality shall be called in question exceptby an election petition presented to such authority and in such manneras is provided for by or under any law made by the Legislature of aState.'.
(b) no election to any Municipality shall be called in question exceptby an election petition presented to such authority and in such manneras is provided for by or under any law made by the Legislature of aState.'.
3. Amendment of article 280.- In clause (3) of article 280 of theConstitution, sub-clause (c) shall be relettered as sub-clause (d) andbefore sub-clause (d) as so relettered, the following sub-clause shallbe inserted, namely:-
"(c) the measures needed to augment the Consolidated Fund of a Stateto supplement the resources of the Municipalities in the State on thebasis of the recommendations made by the Finance Commission of theState;".
4. Addition of Twelfth Schedule.-After the Eleventh Schedule to theConstitution, the following Schedule shall be added, namely:-
"TWELFTH SCHEDULE
(Article 243W)
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 manage-ment.
7. Fire services.
8. Urban forestry, protection of the environment and promotion ofecological aspects.
9. Safeguarding the interests of weaker sections of society,including the handicapped and mentally retarded.
10. Slum improvement and upgradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facilities such as parks,gardens, playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds andelectric 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, busstops and public conveniences.
18. Regulation of slaughter houses and tanneries.''.
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