A

Case Study
On
“The Municipalities”
By
1. Kundan Sanjay Badgujar (18)
2. Mayur Ramesh Chavan (46)

Department of Electronics And

Telecommunication Engineering
The Shirpur Education Society’s

R. C. Patel Institute of Technology, Shirpur - 425405.

[2022-23]
 The Shirpur Education Society’s

R. C. Patel Institute of Technology

Shirpur, Dist. Dhule (M.S.)
Department of Electronics And Telecommunication
Engineering

CERTIFICATE
This is to certify that the Audit Course Constitution of
India entitled “ The Municipalities ” has been carried out by
team:

1. Kundan Sanjay Badgujar (18)

2. Mayur Ramesh Chavan (46)

Under the guidance of Prof.J.P.Patil in partial fulfillment of

the requirement for the degree of Bachelor of Technology in
Electronics and Telecommunication Engineering (Semester-III)
of Dr. Babasaheb Ambedkar Technological University, Lonere
during the academic year 2022-23.
Date:
Place: Shirpur
Audit Course Coordinator
Prof. J. P. Patil

H.O.D. Director
Prof. Dr. P. J. Deore Prof. J. P. Patil
Municipality

A Municipality is usually a single administrative division having corporate status and

powers of self-government or jurisdiction as granted by national and regional laws to which it
is subordinate.

The term municipality may also mean the governing body of a given municipality. A
municipality is a general-purpose administrative subdivision, as opposed to a special-purpose
district.

The term is derived

from French municipalité and Latin municipalis.The English word municipality derives from
the Latin social contract municipium (derived from a word meaning "duty holders"), referring
to the Latin communities that supplied Rome with troops in exchange for their own
incorporation into the Roman state (granting Roman citizenship to the inhabitants) while
permitting the communities to retain their own local governments.

Political Powers

Powers of municipalities range from virtual autonomy to complete subordination to the state.
Municipalities may have the right to tax individuals and corporations with income
tax, property tax, and corporate income tax, but may also receive substantial funding from the
state. In some European countries, such as Germany, municipalities have the constitutional
right to supply public services through municipally-owned public utility companies.
Municipal governance in India

Municipal or local governance refers to the third tier of governance in India, at the level of
the municipality or urban local body.

History

Municipal governance in India in its current form has existed since the year 1664. In 1664,
Fort Kochi Municipality was established by Dutch, making it the first municipality in Indian
subcontinent, which got dissolved when Dutch authority got weaker in the 18th century.
British followed with the formation of Madras Municipal Corporation in 1687, and then
Calcutta and Bombay Municipal Corporation in 1726. In the early part of the nineteenth
century almost all towns in India had experienced some form of municipal governance. In
1882 the then Viceroy of India, Lord Ripon, known as the Father of Local Self Government,
passed a resolution of local self-government which lead the democratic forms of municipal
governance in India.

In 1919, a Government of India Act incorporated the need of the resolution and the powers of
democratically elected government were formulated. In 1935 another Government of India
act brought local government under the preview of the state or provincial government and
specific powers were given.

In order to provide for a common framework for urban local bodies and help to strengthen the
functioning of the bodies as effective democratic units of self-government, Parliament
enacted the Constitution (74th Amendment) Act, 1992 relating to municipalities in 1992. The
Act received the assent of the President on 20 April 1993. The Government of India notified
1 June 1993 as the date from which the said Act came into force. A new part IX-A relating to
the Municipalities has been incorporated in the Constitution to provide for among other
things, constitution of three types of Municipalities, i.e., Nagar Panchayats for areas in
transition from a rural area to urban area, Municipal Councils for smaller urban areas and
Municipal Corporation for large urban areas, fixed duration of municipalities, appointment of
state election commission, appointment of state finance commission and constitution of
metropolitan and district planning committees. State/UTs have set-up their election
Commissions.
74th Contitutional Amendment Act

It was the 74th amendment to the Constitution of India in 1992 that brought constitutional
validity to municipal or local governments. Until amendments were made in respective state
municipal legislations as well, municipal authorities were organised on an ultra vires (beyond
the authority) basis and the state governments were free to extend or control the functional
sphere through executive decisions without an amendment to the legislative provisions.

As per the 2011 Census, the key urbanised areas were classified as follows.

1. Statutory Towns: All areas under statutory urban administrative units like Municipal
Corporation, Municipality, Cantonment Board, Notified Town Area Committee,
Town Panchayat, Nagar Palika, etc., are known as Statutory Towns. According to
2011 Census of India, there were 4041 statutory urban local bodies (ULBs) in the
country as compared to 3799 as per Census of 2001.
2. Census Towns: All Administrative units satisfying the following three criteria
simultaneously: i) A minimum population of 5,000 persons; ii) 75 percent and above
of the male main working population being engaged in non–agricultural pursuits, and
iii) A density of population of at least 400 persons per km2. As per the 2011 Census,
there were 3,784 Census Towns against 1,362 in 2001.

Statutory towns are of various kinds and the major categories include

1. Municipal corporation (Nagar Nigam) (नगर ननगम)

2. Municipality (municipal council, municipal board, municipal committee) (Nagar

Parishad)(नगर पररषद)्

3. Town area committee

4. Notified area committee

The municipal corporations and municipalities are fully representative bodies, while the
notified area committees and town area committees are either fully or partially nominated
bodies. As per the Constitution of India, 74th Amendment Act of 1992, the latter two
categories of towns are to be designated as municipalities or Nagar panchayats with elected
bodies.

After the 74th Amendment was enacted there are only three categories of urban local bodies:
 • Mahanagar Nigam (Municipal Corporation) (महानगर ननगम)

• Nagar Palika (Municipality)(नगर पानिका)

• Nagar Panchayat (Notified Area Council or Town Panchayat)(नगर पंचायत)

Among all urban local governments, municipal corporations enjoy a greater degree of fiscal
autonomy and functions, although the specific fiscal and functional powers vary across the
states. These local governments have larger populations, a more diversified economic base,
and deal with the state governments directly. On the other hand, municipalities or Nagar
panchayats have less autonomy, smaller jurisdictions, and have to deal with the state
governments through the Directorate of Municipalities or through the collector of a district.
These local bodies are subject to detailed supervisory control and guidance by the state
governments.

State Municipal Acts

State Municipal Acts are legislations enacted by state governments to establish municipal
governments, administer them, and provide a framework of governance for cities within the
state. Every state has its own municipal act and some states have more than one municipal
act, governing larger and smaller municipalities under different acts. Various processes
including rules for elections, recruitment of staff, and demarcation of urban areas derived
from the state municipal acts. Most Municipal Acts are enforced across all statutory urban
areas in the respective states except the cantonment areas. The Government of India had
issued a Model Municipal Law in 2003 which aimed to consolidate and amend the laws
relating to the municipal governments in the various states and bring them into conformity
with the provisions of the 74th CAA.

Municipal Acts are legislations brought about by state governments to establish

municipal governments, administer them, and provide a framework of governance for
cities within the state. Various processes including rules for elections, recruitment of
staff, and demarcation of urban areas derive from the state municipal acts. Municipal
acts existed in India before the introduction of the 74th CAA, but the Constitution did
not mandate the creation of local governments.

The responsibility of local governance was placed under state governments through the
State List. The 74th CAA addressed these concerns by mandating the formation of local
governments and the creation of institutions such as the State Finance Commission and
State Election Commission.
Municipal Carporation

Nagar Nigam and other names in different states (translated as "Municipal Corporation/City
Corporation") in India are state government formed departments that work for the
development of a metropolitan city, which has a population of more than 1 million. The
growing population and urbanisation in various cities of India were in need of a local
governing body that can work for providing necessary community services like health
centres, educational institutes, and housing and property tax. They also replace street lights.

They are formed under the Corporations Act of 1835 which mainly deals in providing
essential services in a major city. Their elections are held once in five-year and the people
choose the candidates. The largest corporations are in the eight metropolitan cities of India,
namely Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Surat,
and Pune. These cities not only have a large population but are also the administrative as well
as commercial centres of the country.

Article 243Q ( Constitution of Municipalities )

1. There shall be constituted in every State,

a. a Nagar Panchayat (by whatever name called) for a transitional area, that is to
say, an area in transition from a rural area to an urban 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:

i. Provided that a Municipality under this clause may not be constituted

in such urban area or part thereof as the Governor may, having regard
to the size of the area and the municipal services being provided or
proposed to be provided by an industrial establishment in that area and
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, 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 non-agricultural activities, the economic importance or
such other factors as he may deem fit, specify by public notification for the purposes
of this Part.
Member of Municipal Council

The municipal council is the highest governing body of a municipality. Members of the
council make all the major decisions affecting the municipality. This includes decisions on
education, the construction of new buildings or tax levels.

Municipal councils are elected every 4 years by the residents of the municipality. The number
of members depends on the municipality’s population. Municipalities are divided into
categories. The smallest category of municipality has 9 council members and the biggest has
45.

Reference

1. "Nagrika - The Constitution and the 74th Constitutional Amendment Act". Nagrika.
2. ^ "Good municipal governance key to improve quality of life". The Times of India.
Retrieved 19 December 2019.
3. ^ "Census 2011 Meta Data" (PDF). Census India.
4. ^ Jump up to:a b "Handbook of Urban Statistics, India" (PDF). MoHUA. Retrieved 8
October 2020.
5. ^ "74th Amendment Act of 1992". Retrieved 18 January 2009.
6. ^ "Nagrika - What is a Municipal Act?". Nagrika. Retrieved 8 October 2020.
7. ^ "Model Municipal Law, 2003" (PDF). International Environmental Law Research
Center.