Jonah Patel
The 74th Constitutional Amendment Act of 1992, also known as the Nagarpalika Act, is a significant piece of legislation in India that came into force on 1 June 1993. The act introduced a new Part IX-A to the Constitution, dealing with municipalities and granting them constitutional status. This amendment played a crucial role in decentralising power by transferring authority from central and state governments to local bodies, specifically Urban Local Bodies (ULBs) or Urban Local Governments (ULGs). It outlines the structure and functions of municipalities, including the establishment of a State Election Commission and various types of municipalities such as Nagar Panchayats, Municipal Councils, and Municipal Corporations. The act also addresses the distribution of finances between the state and municipalities through the formation of a Finance Commission. Overall, the 74th Constitutional Amendment Act strengthens local governance and transparency while outlining the scheme for implementation by the states.
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![H.R. 8870, 74th Congress, 1st session, [Report No. 1542]; A Bill](https://m.media-amazon.com/images/I/51zgHCnmbdL._AC_UY218_.jpg)
What You'll Learn
Decentralisation of power
The Amendment Act has provided a fundamental basis for the decentralisation of rights and authorities to municipal organisations at various levels. It has also granted Urban Local Bodies (ULBs) the authority to carry out the 18 tasks stated in the Indian Constitution's 12th Schedule.
The Act has brought the state governments under the constitutional obligation to adopt the new system of Panchayati Raj. Panchayats are now able to levy and collect certain taxes, duties, and fees, and the state must provide grants-in-aid to them. The governor appoints a finance panel to assess the financial standing of municipalities and advise on how taxes should be split between the state and municipalities.
The 74th Amendment Act has also introduced a new Part IXA in the Constitution, which deals with municipalities in Article 243 P to 243 ZG. This part outlines the scheme to be implemented by the states, providing a framework for the decentralisation of power.
The Act has attempted to make local bodies stronger and more transparent, giving them the power to enhance employment facilities and undertake development activities in their areas. It has also prohibited courts from interfering in municipality elections, further empowering local bodies.
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Municipalities given constitutional status
The 74th Amendment Act of 1992, also known as the Nagarpalika Act, came into force on 1 June 1993. It introduced a new Part IX-A to the Constitution, dealing specifically with Municipalities in Articles 243 P to 243 ZG.
This amendment granted municipalities constitutional status, bringing them under the purview of the Constitution's justiciable provisions. This means that municipalities now fall under the protection of the Constitution, and state governments must implement the new municipal system in compliance with the Act's requirements.
The Act outlines the establishment of three kinds of Municipalities in every state: Nagar Panchayat, Municipal Council, and Municipal Corporation. A Nagar Panchayat is for areas transitioning from rural to urban, a Municipal Council is for smaller urban areas, and a Municipal Corporation is for larger urban areas. The Governor defines these areas based on factors such as population, density, revenue generated for local administration, and the percentage of employment in non-agricultural activities.
The 74th Amendment Act also provides for the creation of Finance Commissions to advise on the distribution of finances between the state and municipalities and to determine aid subsidies. It establishes a State Election Commission, independent of the Election Commission of India, to conduct elections for Municipal Corporations every five years.
The Act plays a crucial role in decentralising power in India by transferring power from central and state governments to local bodies, making them stronger and more transparent. It gives municipalities the authority to carry out the 18 tasks stated in the 12th Schedule of the Constitution, including the power to enhance employment facilities and undertake development activities in their areas.
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Courts prohibited from interfering in municipality elections
The 74th Amendment of the Indian Constitution came into force on 1 June 1993, playing a significant role in decentralising power by transferring it from central and state governments to local bodies. The act granted municipalities constitutional status and brought them under the purview of the Constitution's justiciable provisions.
Article 243R of the Constitution of India (COI) states that all members of municipalities are directly elected by the people of the municipal area, which is divided into territorial constituencies known as wards. Article 243S discusses the constitution and composition of ward committees, consisting of wards and members representing the ward in the municipality.
The act prohibits courts from interfering in municipality elections. This means that no election to a municipality may be challenged unless accompanied by an election petition filed with the appropriate authority and in the manner prescribed by the state legislature. The writ court must also adopt a hands-off policy while the election process is ongoing, only interfering before the process commences or after it is completed unless doing so facilitates the progress of the election.
The Supreme Court reiterated the law relating to the bar to interference by courts in electoral matters, specifically in the context of municipal elections. This includes the delimitation and allocation of seats, with Article 243ZG(a) barring all courts from interfering with state statutes dealing with these issues.
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Finance Commission to advise on distribution of finances
The 74th Constitutional Amendment Act of 1992 established the Municipalities or Urban Local Governments system as a constitutional entity. It granted constitutional status to municipalities, bringing them under the protection of the Constitution's justiciable provisions. This act also added Part IX-A to the Constitution, which contains provisions for the constitution and composition of municipalities, as well as the formation of committees.
The Amendment Act played a significant role in decentralising power in India by transferring power from central and state governments to local bodies. It provided a uniform law for all municipalities in the nation, requiring each member of a municipality to be directly chosen by the residents of that area.
The 74th Amendment also mandates the constitution of a Finance Commission, which will advise on the distribution of finances between the state and municipalities. This commission will review the financial position of the Panchayats and make recommendations to the Governor on the following:
- The distribution of net proceeds from taxes, duties, tolls and fees leviable by the state between the state and the Panchayats, and how this allocation would be made among various levels of Panchayats.
- What taxes, duties, tolls and fees may be assigned to the Panchayats.
- The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats, based on the recommendations made by the Finance Commission of the State.
The State Legislature may also provide for the composition of the commission, the qualifications required for appointment as members, and the manner in which they are selected. The report of the Commission, along with a memorandum of action taken, is laid before the State Legislature.
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Planning committees to be established
The 74th Amendment Act of 1992, also known as the Nagarpalika Act, played a significant role in decentralising power in India by transferring authority from central and state governments to local bodies. This amendment brought about important changes, particularly regarding municipalities and urban development.
One of the key implications of the 74th Amendment Act is the establishment of Planning Committees at different levels to streamline development plans and improve governance. The Act mandates the creation of two types of Planning Committees in each state: District Planning Committees and Metropolitan Planning Committees.
District Planning Committees are formed at the district level and are responsible for consolidating the plans prepared by the Panchayats and Municipalities within their jurisdiction. They play a crucial role in preparing a comprehensive development plan for the entire district. This ensures that the various local governments and municipalities work in harmony towards the overall development of the district.
On the other hand, Metropolitan Planning Committees are established in metropolitan regions or areas with a population of over 10 lakhs. These committees are tasked with creating a draft improvement plan for the metropolitan region, taking into account the multiple municipalities, panchayats, or other contiguous areas within their purview. By having a dedicated planning committee for metropolitan areas, the 74th Amendment Act recognises the unique challenges and complexities of urban planning and governance.
The introduction of Planning Committees through the 74th Amendment Act is a significant step towards strengthening local governance and ensuring that development plans are executed effectively. These committees provide a platform for consolidation and coordination, ensuring that the efforts of various local bodies are aligned with the broader development goals of the district or metropolitan region.
Furthermore, the establishment of Planning Committees enhances transparency and accountability in the decision-making process. By involving representatives from different local bodies and municipalities, these committees facilitate a more inclusive and participatory approach to governance. This not only improves the efficiency of planning but also ensures that the diverse needs and aspirations of the local communities are taken into account.
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Frequently asked questions
The 74th Constitutional Amendment Act of 1992 established the Municipalities or Urban Local Governments system as a constitutional entity.
The act granted municipalities constitutional status and brought them under the purview of the Constitution's justiciable provisions. It also mandated the decentralisation of powers and authorities to Municipal organisations at various levels.
The act introduced a new Part IX-A in the Constitution, which deals with Municipalities in Article 243 P to 243 ZG. It also added the 12th schedule to the Constitution, containing 18 functional items to be placed within the purview of municipalities.
The 74th Amendment Act brought the State Governments under the constitutional obligation to adopt the new system of Panchayati Raj. It also added the 11th schedule to the Constitution, which contained 29 subject matters of the Panchayats.
