The Constitution (Seventy-Fourth Amendment) Act, 1992, introduced Part IX-A, encompassing Articles 243P to 243ZG, to provide a constitutional framework for urban local governance in India. This amendment aimed to strengthen municipalities as institutions of self-government, ensuring democratic decentralization and efficient urban administration.

DEFINITIONS (ARTICLE 243P)

Article 243P defines key terms related to municipalities:

• Committee: A committee constituted under Article 243S.
• District: A district in a state.
• Metropolitan Area: An area with a population of ten lakhs (one million) or more, comprising one or more districts and consisting of two or more municipalities or panchayats or other contiguous areas, specified by the Governor by public notification.
• Municipal Area: The territorial area of a municipality as notified by the Governor.
• Municipality: An institution of self-government constituted under Article 243Q.
• Panchayat: A panchayat constituted under Article 243B.
• Population: The population as ascertained at the last preceding census of which the relevant figures have been published.

CONSTITUTION OF MUNICIPALITIES (ARTICLE 243Q)

Article 243Q mandates the constitution of municipalities in urban areas:

• Nagar Panchayat: For transitional areas from rural to urban.
• Municipal Council: For smaller urban areas.
• Municipal Corporation: For larger urban areas.

The Governor, considering factors like population, density, revenue, and economic importance, specifies these areas.

COMPOSITION OF MUNICIPALITIES (ARTICLE 243R)

Article 243R outlines the composition:

• Elected Members: Directly elected from territorial constituencies in the municipal area.
• Nominated Members: Persons with special knowledge or experience in municipal administration, without voting rights.

The Legislature of a State may, by law, provide for the manner of election of the Chairperson of a Municipality.

WARDS COMMITTEES (ARTICLE 243S)

Article 243S provides for:

• Constitution: Wards Committees in municipalities with a population of three lakhs (300,000) or more.
• Composition: One or more wards, as determined by state legislation.

This ensures decentralized decision-making within large municipalities.

RESERVATION OF SEATS (ARTICLE 243T)

Article 243T ensures representation for marginalized groups:

• Scheduled Castes (SCs) and Scheduled Tribes (STs): Seats reserved in proportion to their population in the municipal area.
• Women: Not less than one-third of total seats reserved for women, including those from SCs and STs.
• Backward Classes: State legislatures may provide reservations for backward classes.

DURATION OF MUNICIPALITIES (ARTICLE 243U)

Article 243U stipulates:

• Term: Five years from the date of the first meeting.
• Elections: To be completed before the expiry of the term or within six months of dissolution.

This ensures regular elections and continuity in governance.

DISQUALIFICATIONS FOR MEMBERSHIP (ARTICLE 243V)

Article 243V specifies disqualifications:

• Criteria: As per state legislature laws, similar to disqualifications for state legislative assemblies.
• Age: Minimum age of 21 years for membership.

This maintains the integrity and eligibility of municipal members.

POWERS, AUTHORITY, AND RESPONSIBILITIES (ARTICLE 243W)

Article 243W empowers state legislatures to endow municipalities with necessary powers to function as self-governments, including:

• Preparation of Plans: For economic development and social justice.
• Implementation of Schemes: Related to matters in the Twelfth Schedule, such as urban planning, water supply, and public health.

FINANCIAL POWERS (ARTICLE 243X)

Article 243X grants municipalities authority to:

• Levy Taxes: Duties, tolls, and fees as authorized by state law.
• Receive Grants: From the state government.
• Loans: Raise funds through borrowing, subject to state conditions.

This financial autonomy enables municipalities to manage local affairs effectively.

FINANCE COMMISSION (ARTICLE 243Y)

Article 243Y mandates:

• State Finance Commission: Constitution every five years to review the financial position of municipalities.
• Recommendations: Distribution of taxes between the state and municipalities, grants-in-aid, and measures to improve financial health.

This ensures fiscal federalism and resource allocation.

AUDIT OF ACCOUNTS (ARTICLE 243Z)

Article 243Z requires:

• Maintenance: Of municipal accounts.
• Audit: Regular auditing as per state laws.

This promotes transparency and accountability in municipal finances.

ELECTIONS TO MUNICIPALITIES (ARTICLE 243ZA)

Article 243ZA provides:

• The State Election Commission is responsible for superintendence, direction, and control of municipal elections.
• Elections to municipalities must be conducted in a free and fair manner.