Urban local bodies originated and developed in modern India during the period of British rule.
In 1687-88, the 1stmunicipalcorporation in India was set up at Madras.
In 1726, the municipal corporations were set up in Bombay and Calcutta.
Lord Mayo’s Resolution of 1870 on financial decentralization visualised development of local self-government institutions
LordRipon’s Resolution of 1882 has been hailed as the ‘Magna Carta’ of local self-government.
He is called as the fatheroflocalself-government in India.
The Royal Commission on decentralization was appointed in 1907, chairman was Hobhouse.
Under Government of India Actof1919, local self-government became a transferredsubject
In 1924, the CantonmentsAct was passed by the Central legislature.
Under Government of India Actof1935, local self-government was declared a provincialsubject.
P V Narasimha Rao’s Government introduced the modified Municipalities Bill in the Lok Sabha in September 1991.
It finally emerged as the 74th Constitutional Amendment Act of 1992 and came into force on 1 June 1993
Salient Features of Municipalities
3 Tiers of Urban Local Bodies
Nagar panchayat for a transitional area
Municipal council for a smaller urban area
Municipal corporation for a larger urban area
There shall be constituted a wards committee, consisting of one or more wards, within the territorial area of a municipality having population of 3 lakh or more.
Reservation of Seats
The act provides for the reservationofseats for SCs and STs in every municipality in proportionof their population
It provides for the reservation of notlessthan1/3 of the total number of seatsforwomen (including the number of seats reserved for woman belonging to the SCs and the STs)
Duration of Urban Local Bodies
The act provides for a 5 yearterm
It can be dissolved before the completion of its term.
Freshelections shall be completed within6months from the date of its dissolution.
Municipality constituted upon the dissolution, shall continueonlyfor the remainder of the period
Powers and Functions
Preparation of plans for economic development and social justice
Implementation of schemes including 18 matters listed in the 12th Schedule.
Application to Union Territories
President of India maydirectprovisions of this act shall apply to any union territory subject to such exceptions and modifications as he may specify.
The act doesnotapply to the scheduledareas and tribalareas in the states.
It shall also notaffect the functions and powers of the DarjeelingGorkhaHillCouncil of the West Bengal.
District Planning Committee
Every state shall constitute a district planning committee
It consolidate the plans prepared by panchayats and municipalities
Then prepare a draftdevelopmentplanfor the districtasawhole.
The statelegislaturemakeprovisionsforcomposition, election ofmembers, functions of the committee
4/5th of the members of a district planning committee should be elected.
They must be elected among the elected members of the district panchayat and municipalities in the district.
The representation of these members in the committee should be inproportionto the ratio between the rural and urbanpopulations in the district.
The chairperson of such committee shall forward the developmentplanto the stategovernment.
Metropolitan Planning Committee
Metropolitan area having a population of 10lakh or more, one or more districts and consisting of two or more municipalities or panchayats or other contiguous areas.
2/3rd of the members of a metropolitan planning committee should be elected
They must be elected among the electedmembersof the municipalities and chairpersonsof the panchayats in the metropolitan area.
The representation of these members in the committee should be in proportion to the ratio between the population
Types of Urban Local Bodies
Municipal corporations are created for the administration of bigcities
Established in states by the acts of statelegislatures and in the UTs by the acts of the Parliament
A municipal corporation has three authorities
Council is the legislative wing of the corporation.
It consists of the Councilorsdirectlyelected by the people, and fewnominatedpersons
Council is headed by a Mayor, assisted by a DeputyMayor.
He is elected in a majority of the states for a one–yearrenewableterm.
He is a formalhead of the corporation.
Municipalcommissioner is responsiblefor the implementation of the decisions taken by the council
He is the chief executive authority of the corporation
He is appointed by the state government and is generally a member of the IAS.
Municipalities established for the administration of towns and smallercities
Council is headed by a president/chairman, assisted by a vice president / vice-chairman.
Chairman of municipality plays a significant role in the municipal administration.
He enjoys executivepowers.
Chief executive officer/chief municipal officer is responsible for day to-day general administration
He is appointed by the state government.
Notified Area Committee
It is created for the administration of two types of areas
a fast developing town
a town which does not fulfil conditions for a municipality
It is established by a notification in the government gazette
Entirely nominatedbodyby the stategovernment.
Town Area Committee
It is created by a separate act of a state legislature.
It maybewhollyelected or wholly nominated by the state government orpartly elected and partly nominated
A cantonment board is established for municipal administration forcivilianpopulation in the cantonment area.
It is set up under the provisions of the CantonmentsAct of 2006
Cantonment Board works under the administrative control of the defenceministry.
It is created and administered by the Central government.
There are 62 cantonment boards in the country
Cantonment board is partlyelected and partly nominated.
Electedmembers hold office for a term of 5years.
Nominatedmembers (ex-officio members) continue so longastheyhold the office in that station.
The militaryofficercommanding the station is the ex–officiopresident
Vicepresident is electedby the electedmembers from among themselves for a term of five years.
Executiveofficer of the cantonment board is appointedby the presidentofIndia.
Established by the largepublicenterprises to provide civic amenities to its staff who live in near the plant.
The enterprise appoints a townadministrator
He is assisted by some engineers and other technical and non-technical staff.
Thus, the township form of urban local bodies has noelectedmembers.
The port trusts are established in the portareas.
It manages and protect the ports and provide civic amenities.
A port trust is createdby an ActofParliament.
Port Trust consists of both elected and nominated members.
Its chairman is anofficial.
Special Purpose Agency
States have set up certain agencies to undertake designated activities or specific functions for local urban local bodies.
Functional local bodies are established as statutorybodies by an act of state legislature
They function as autonomous bodies
They are notsubordinate agencies oflocalmunicipalbodies.
Separate Personnel System
Under this system, each local body appoints, administers, and controls its own personnel.
They are nottransferabletootherlocalbodies.
It is the most widely prevalent system.
This system upholds the principle of local autonomy and promotes undivided loyalty.
Unified Personnel System
State–wideservices (cadres) are created for all the urban local bodies in the state.
They are transferable between the local bodies in the state.
Integrated Personnel System
Under this system, the personnel of the state government and those of the local bodies form part of the same service.
They are transferable not only between the local bodies in the state but also between departments of state government.
All-India Institute of Local Self-Government (Mumbai) constituted in 1927.
The revenue from the local taxes include propertytax, entertainmenttax, taxes on advertisements, professionaltax, watertax, tax on animals, lighting tax, pilgrim tax, markettax, toll on new bridges, octroi and so on.
In addition, the urban local bodies impose various cesses like library cess, education cess, beggary cess and so on.
Octroi (taxes on the entry of goods into a local area for consumption, use or sale therein) has been abolished in most of the states.
Propertytax is the most important tax revenue.
This source includes rent on municipal properties, fees and fines, royalty, profits and dividends, interest, user charges and miscellaneous receipts.
The user charges (payment for public utilities) include water charges, sanitation charges, sewerage charges and so on.
Central Council of Local Government
The Central Council of Local Government was setupin1954.
It was constituted under Article263 of the Constitution of India byanorder of the President of India.
The Council is an advisorybody.
It consists of the Minister of Housing and Urban Development and ministers for local self-government in states.
The Union minister acts as the Chairman of the Council.