74th Constitutional Amendment Act
🏛️ 74th Constitutional Amendment Act, 1992
(Effective from 1st June 1993)
✅ Objective:
The 74th Amendment aimed to provide constitutional status to urban local bodies (Municipalities) in India to strengthen democratic decentralization at the urban level, just as the 73rd Amendment did for rural local governance (Panchayats).
It introduced Part IX-A to the Constitution, titled "The Municipalities", and added the Twelfth Schedule, which contains 18 functional items for municipalities.
🔹 Background
Before this amendment, municipalities existed under state laws, and their structure, powers, and functions varied widely. They lacked uniformity, autonomy, and financial independence. The 74th Amendment sought to standardize their governance and make them a formal part of India's constitutional setup.
🧩 Key Features of the 74th Amendment Act
1. Constitutional Recognition
Municipalities are now constitutional bodies, not just statutory.
Ensures their existence and regular elections.
2. Types of Urban Local Bodies (ULBs) — Article 243Q
Three types of municipalities were created:
Nagar Panchayat – For transitional areas (rural to urban)
Municipal Council – For smaller urban areas
Municipal Corporation – For larger urban areas
3. Composition of Municipalities — Article 243R
Members are directly elected by people from wards.
May include nominated members (without voting rights).
Legislature can determine composition, seats, and reservation.
4. Reservation of Seats — Article 243T
Reservation for Scheduled Castes (SCs) and Scheduled Tribes (STs) based on population.
One-third of the total seats (including SC/ST seats) reserved for women.
Provision for OBC reservation by state law (not mandatory under the Constitution).
5. Duration of Municipalities — Article 243U
5-year term for every municipality.
If dissolved earlier, elections must be held within 6 months.
6. Powers and Responsibilities — Article 243W
Legislature of a state may assign functions to municipalities, including:
Urban planning
Regulation of land use
Water supply, sanitation, solid waste management
Public health, slum improvement, etc.
These functions are listed in the Twelfth Schedule (18 items).
7. Finance Commission — Article 243Y
A State Finance Commission must be established every 5 years to recommend:
Distribution of finances between the state and municipalities.
Grants-in-aid to municipalities.
Ways to improve financial position of ULBs.
8. District and Metropolitan Planning Committees
Article 243ZD: District Planning Committee (DPC)
Article 243ZE: Metropolitan Planning Committee (MPC)
These bodies integrate plans made by panchayats and municipalities for district/metropolitan areas.
📘 Twelfth Schedule (Inserted by 74th Amendment)
Lists 18 functions of municipalities, such as:
Urban planning
Regulation of land use
Water supply
Roads and bridges
Public health, sanitation
Fire services
Urban forestry
Slum improvement, etc.
⚖️ Important Case Laws
1. Municipal Corporation of Greater Mumbai v. Kamla Mills Ltd. (2001)
The Supreme Court upheld the regulatory power of municipalities under the Twelfth Schedule and Part IX-A.
Emphasized that municipalities have statutory backing and are accountable to the people.
2. Ahmedabad Municipal Corporation v. Nawab Khan Gulab Khan (1997)
The Court highlighted the duty of municipalities to ensure health and sanitation services.
Upheld the constitutional responsibility of urban local bodies under Article 243W.
3. Union of India v. R.C. Jain (1981)
Although before the 74th Amendment, the Court explained what constitutes a "local authority".
This became a guiding principle for defining urban local bodies under the amendment.
🌆 Significance of the 74th Amendment
Gave democratic legitimacy to urban local governance.
Promoted decentralization and citizen participation.
Created a uniform structure across states.
Strengthened urban development planning and delivery.
Empowered women and marginalized communities through reservations.
🛠️ Challenges in Implementation
Lack of autonomy: States often control key functions.
Financial dependence: Municipalities lack their own revenue sources.
Political interference: Local bodies sometimes lack real power.
Poor capacity: Many urban bodies lack skilled staff and infrastructure.
📝 Conclusion
The 74th Constitutional Amendment is a landmark reform that constitutionally empowered urban local self-governments. It aimed to build grassroots democracy, ensure better urban governance, and promote inclusive development in India's rapidly urbanizing landscape.
However, for the amendment’s true spirit to be realized, it requires effective devolution of functions, finances, and functionaries from states to municipalities — often referred to as the 3Fs.
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