The 74th amendment (1993) has changed the whole local urban administration, giving a new structure and a new orientation to its organization, functions and finances. The amendment has added 12th Schedule in the Constitution. Part IX A, in Articles from 243P to 243ZA deals with municipal institutions. Articles 243P defines municipalities, committees etc:
By ‘committee’ means committee as constituted under Article 243S; ‘metropolitan’ area means area having a population of ten lakhs or more comprising one or more districts and consisting of two or more municipalities or panchayats; ‘municipal area’ means the territorial area of municipalities; ‘municipalities’ mean institutions of self-government; ‘nagar panchayat’ means a transitional area, an area in transition from a rural area to an urban area. ‘Municipal council’ is for a smaller urban area and ‘corporation’, for a larger urban area. Some major articles relating to the urban institution are: 243Q.
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: 243R.
(a) For the representation in a Municipality of
(i) persons having special knowledge or experience in Municipal administration;
(ii) the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies which comprise wholly or partly the municipal area;
(iii) the member of the Council of States and the members of the Legislative Council of the State registered as electors within the Municipal area;
(iv) the Chairpersons of the Committees constituted under clause (5) of article 243S provided that the persons referred to in paragraph (i) shall not have the right to vote in the meetings of the Municipalities;
(b) the manner of election of the Chairperson of a Municipality.
There shall be constituted Wards Committee, consisting of one or more wards, within the territorial area of a Municipality having a population of three lakhs or more. The Legislature of a State may, by law, make provision with respect to:
(a) the composition and the territorial area of a Wards Committee;
(b) the manner in which the seats in a Ward Committee shall be filled.
A member of a Municipality representing a ward within the territorial area of the Wards Committee shall be a member of that Committee.
Where a Wards Committee consists of: (a) One ward, the member representing that ward in the Municipality; or (b) Two or more wards, one of the members representing such wards in the Municipality elected by the members of the Wards Committee, shall be the Chairperson of that Committee. 243T.
Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow:
(a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to: (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule;
(b) Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the 12th Schedule. 243X. Power to impose taxes by and functions of Municipalities’The Legislature of a State may, by law, authorize a Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and limit laid down the legislature; or, assign to a municipality certain taxes, duties, tolls and fees levied and collected by State Government subject to such conditions and limits laid down by the government; the state legislature may: (a) provide for making such grants-in-aid to the Municipalities from the Consolidated Fund of the State; and (b) provide for constitution of such funds for crediting all moneys received, respectively, by or on behalf of the Municipalities and also for withdrawal of such moneys therefrom, as may be specified in the law.