74 th CONSTITUTIONAL AMENDMENT ACT-1992.ppt

It was once said that," If ever there exists a possibility of revolution by law, then 73rd and 74 th Constitutional Amendment Ac, 1992 has that potential, power, possibility and capacity to do so". But despite 32 years have gone by when ULBs and Panchayat Raj Rural Instructions were made the integral part and 3rd tier of the Indian Constitution and given the status of a government, these institutions continue to be treated with impunity as one of the state line department.They are being weakened, treated with contempt, without permitting them to become a government in its own right. History demand that these local level institutions need to be strengthened and empowered to become , operate and function like a government at the local level. Cities and villages continue to suffer, because they are being run by state level institutions by proxy, rather than by effectively by local level institutions. Act needs review , revision and redefinition, to remove state power to make these institutions ineffective and in-efficient. Sooner it is done better it would be for the nation, communities and cities.

1. 74
th
Constitutional
Amendment Act,
1992
Ar. J.K.GUPTA, Ar. J.K.GUPTA,
Email---- Email---- [email protected], Mob- 90410-26414, Mob- 90410-26414

2. State of World’s CitiesState of World’s Cities
• UN Habitat Report, State of World’s Cities 2008/2009-
Harmonious Cities, defines cities in terms of --
•Cities contain both order and chaos.
•In them reside beauty and ugliness--virtue and vice.
• They can bring out best or worst in human kind.
• They are physical manifestation of history and culture
•They are incubators of innovations, industry, technology,
entrepreneurship and creativity.
• Cities are materialization of humanity’s noblest ideas, ambitions and
aspirations,
• but when not planned or governed properly, can be repository of
society’s ills.
•Cities drive national economies by creating wealth, enhancing social
development and providing employment but
• they can also be breeding grounds for poverty, exclusion and
environmental degradation.

3. Population Scenario- India-2011Population Scenario- India-2011
•Population of India reached
• 250 million in 1919
• 500 million in 1966 (47 yrs. Later)
• 1000 million in 2000 ( 34 yrs. Later)
• 1027 million in 2001 (1yr Later)
• 1210 million in 2011 (10 yrs. Later)
• 2050- Indian population- 1600 mil. -- 50% in Urban India.
•Metropolitan Centres -5 (1951)- -53 (2011)-68(2031)
•10 m plus- nil (1951)- 3 (2011) -7 (2031)-9 (2051)
•Urban India --first time added more persons(91m) than Rural
India(90m)in last decade
• During last 100 years, India witnessed—
--Urbanization level going up by 3 times
---Urban settlements growing merely 4 times
---Total Population multiplying 5 times
--Urban population increasing 15 times and
--Rural population increasing 3.5 times
massive shift of population -not simply a shift of demographics
• Shift places cities/towns at centre of India’s development

4. Indian UrbanizationIndian Urbanization
•Urban area are important because they are :
Areas of future concentration of population,
Providers of large employment.
Areas of large investment.
Housing major infrastructure & services.
Hub around which entire economy gravitates.
Promoters of higher order of productivity
•Major contributors to the national wealth/GDP
1950-51 - 29% (level of urbanization - 17.29%)
1970-71- 37% (level of urbanization - 19.91%)
1990-91- 50% (level of urbanization - 25.72%)
2001-02- 60% (level of urbanization - 27.78%)
2011- 12- 65% (level of urbanization - 31.1%)
10 Largest cities house 8%pop and produce 15%GDP
 53 Metro cities house 13 %pop and produce 33%GDP
100 Largest cities house 16%pop and produce 43%GDP

5. Urbanization-issuesUrbanization-issues
•Despite distinct advantages , Urban
centers:
Poorly managed and governed.
Failure to meet challenges of urban dynamism
Haphazard /Unplanned pattern of development.
Enormous growth of slums
Poor quality of life
Failure to meet basic needs of
1.Shelter
2.Services
3.Land ,Water/ Sanitation
•Population , Poverty , Pollution and traffic have emerged
as the greatest threat and challenge to Indian Cities.
•Indian Urbanization is rightly called :
Urbanization of Population
Urbanization of Poverty
Urbanization of Pollution

6. Urbanization-issuesUrbanization-issues

7. Evolution of UrbanEvolution of Urban
Local Bodies- in Local Bodies- in
Historical Historical
Perspective Perspective

8. Evolution of Local GovernanceEvolution of Local Governance
There exist two types of Human Settlements-Urban/Rural
Villages / cities contribute substantially to - economic
development of country.
Local Institutions best run by Local people / Institutions
Urban Centres - play important role in development-
housing more population, employment economy ,
infrastructures etc.
 Increase productivity /economic transformation requires -
local people / representatives - involved in
planning/implementation of programmes at local level.
For democratic institutions - to remain strong/stable, --its
roots must reach towns/villages-- where people live.

9. Evolution On Urban Local Bodies Evolution On Urban Local Bodies
 ULBs originated -during British rule
ULBs have history spanning over 336 years
In 1687-88, -- first ULB set up - in Presidency Town Madras.
In 1726- Bombay and Calcutta.
Lord Mayo’s Resolution 1870 - on financial decentralisation -
visualised development of local self-government institutions.
Lord Ripon’s Resolution 1882-- hailed as the ‘Magna Carta’ of local
self-government.
- called father o local-self government in India.
Under the dy-archical system under Government of India Act,
1919,- local self-government came under the charge of a
responsible Indian minister.
In 1924, the Cantonments Act was passed by the Central legislature.
Under Government of India Act, 1935, local self-government was
declared a provincial subject.

10. Challenges faced Challenges faced
by Urbanby Urban
Local Bodies-Local Bodies-

11. 7373
rdrd
/74 th Constitutional Amendment Act. 1992/74 th Constitutional Amendment Act. 1992
•At dawn of independence, - India-
•- conceived as federal structure
•- comprising of Centre / States.
•Institutions at local level- comprised of;
•Municipal bodies in urban areas/
•- Panchayats
  in rural areas
•- with no constitutional recognition
•--operated under state Govts/state laws
•--In many States local bodies- become weak /ineffective
•- State failed to hold regular elections, Prolonged supersession
-- Inadequate devolution of powers / functions
•.-- ULBs unable to perform as vibrant units
•-Had differential structure across nation
•To overcome emerging challenges and empowering ULBs-
CAA 1992- enacted by Indian Parliament.

12. 7474
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Constitutional Constitutional
Amendment In Amendment In
Historical Perspective Historical Perspective

13. 7373
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/74 th CAA- Historical Perspective /74 th CAA- Historical Perspective
•In 1989, Rajiv Gandhi government introduced the 65th
CAA (Nagarpalika bill) iN Lok Sabha- for strengthening/
revamping ULBs by conferring constitutional status
Bill passed in Lok Sabha-defeated Rajya Sabha - lapsed.
 Government under V P Singh reintroduced revised
Nagarpalika Bill in September 1990.
 bill failed/lapsed due to dissolution of Lok Sabha.
P V Narasimha Rao’s Government-- reintroduced modified
Bill in September 1991.
Which became 74th Constitutional Amendment Act of
1992
Act came into force on 1 June 1993.

14. 73 rd/74 th Constitutional Amendment Act. 199273 rd/74 th Constitutional Amendment Act. 1992
73rd /74th CAA, 1992 – granted Constitutional
recognition/ protection -to governance in rural /
urban areas
74th Amendment Act - added Part IX-A - ‘The
Municipalities’ - from Articles 243-P to 243-ZG.
 added - Twelfth Schedule –containing 18 functions for
municipalities.
 Gave Municipalities Constitution recognition
 Mandated State governments - to amend Municipal Act
Revitalize/ strengthen urban governments -;
Decentralization of powers to Municipal bodies
Ensure Governance of urban area by people- through
elected representatives.

15. 7474
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Constitutional Constitutional
Amendment Act , 1992- Amendment Act , 1992-
Objectives Objectives

16. CAA –Preamble & Objectives CAA –Preamble & Objectives
•STATEMENT OF OBJECTS AND REASONS-
•In many States local bodies have become weak and ineffective
•- on account of a variety of reasons including
•-- failure to hold regular elections,
•--prolonged supersessions and
•-inadequate devolution of powers and functions.
• As a result, Urban Local Bodies are not able to perform effectively-- as vibrant
democratic units of self-government.
•2. Having regard to these inadequacies-- it is considered necessary
•that provisions relating to ULBs are incorporated in the Constitution for-
•(i) putting on a firmer footing the relationship between State
•Government & Urban Local Bodies with respect to-
•(a) functions and taxation powers; and
•(b) arrangements for revenue sharing;
•(ii) Ensuring regular conduct of elections;
•(iii) ensuring timely elections in case of supersession; and
•(iv) providing adequate representation for the weaker sections like
•Scheduled Castes, Scheduled Tribes and women.

17. 74 th CAA 1992- Objectives74 th CAA 1992- Objectives
-Empowering urban local bodies by vesting ;
•- adequate powers, authority, resources, duties/
responsibility to perform functions
•Ensuring regular conduct of elections;
•Ensuring timely elections in case of supersession;
• Representation for women/ weaker sections
• Strengthening democratic decentralisation
•Defining functions/taxation powers;
•Arrangements for revenue sharing
•Promoting planning at local level through ULBs
•Promoting better governance of urban areas

18. 7474
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Constitutional Constitutional
Amendment Act, 1992- Amendment Act, 1992-
Features Features

19. 74 th CAA 1992- Features74 th CAA 1992- Features
•Constitution of Municipalities
•Composition of Municipalities
Filling seats at Municipal level
Reservations for women , SC/STs
 Election of chairperson of a municipality.
Representation of following persons in municipality.
--Persons having special knowledge / experience in municipal
administration --without right to vote
-Members of Lok Sabha & state legislative assembly -representing
constituencies
Members of Rajya Sabha & State Legislative Council- registered as
electors
Chairpersons of committees (other than ward committees).
Constitution of Ward Committees -in all municipalities --with a
population of 3 lakhs or more-

20. 7474
thth
CAA,1992- CAA,1992-
Typologies of ULBs & Typologies of ULBs &
factors to be factors to be
considered for considered for
creation of ULBscreation of ULBs

21. 74 th CAA- Types of ULBs74 th CAA- Types of ULBs
•Eight types of urban local bodies exist in India;
Municipal corporation
Municipality
Notified Area Committee/Nagar Panchayat
Town Area Committee
Cantonment Board
Township
Port Trust
Special Purpose Agency
•Constitution of three types of municipalities:
•Nagar Panchayats -- for a transitional areas ( area which is
fast changing from rural to urban area)/ very small urban areas
•Municipal councils --for smaller urban areas--
•Municipal corporations -- for larger urban areas.-

22. 74 th CAA- Factors to be 74 th CAA- Factors to be
considered for creating ULBsconsidered for creating ULBs
•population -
•density of population,
•percentage of employment in non-
agricultural activities,
•revenue generated for local administration,
• economic importance
•Any other factor considered Relevant

23. 7474
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CAA,1992- CAA,1992-
Typologies of ULBs & Typologies of ULBs &
Composition & Composition &
ReservationsReservations

24. ULBs- Composition/Election ULBs- Composition/Election
• all seats in Municipality - filled by
•- Persons directly elected from Municipal wards.
•- Include as per state law, -
• (i) persons having special knowledge / experience in
Municipal administration; with no voting Right
•(ii) MP/MLA representing wholly /partly Municipal area;
•(iii) Member Rajya Sabha/MLC- registered as electors
within Municipal area;
•(iv) Chairpersons of Committees constituted under clause
(5) of article 243S:
•(b) the manner of election of Chairperson of a
Municipality.
•Ward Committee--Constitution and composition of Wards
Committees, etc.- consisting of one / more wards in a
Municipality having population of three lakhs or more.

25. ULBs- Reservations ULBs- Reservations
• Number of Seats shall be reserved for
•(1)SC/ST- in proportion to their population-- allotted by
rotation to different constituencies
•(2) Not less than one-third of the SC/ST seats reserved for
women belonging to the SC/ST
•(3) Not less than one-third (including number of seats
reserved
•for SC/ST women ) reserved for women- seats allotted by
rotation to different constituencies
•(4) Office of Chairpersons reserved for SC/ST /women in
such manner as Legislature may, by law, provide.
•(5) Reservation may be made in favour of backward
class

26. 7474
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CAA,1992- CAA,1992-
Duration &Duration &
Power ,Authority and Power ,Authority and
Responsibilities of Responsibilities of
ULBsULBs

27. Duration of ULBsDuration of ULBs
• Every Municipality- unless dissolved – shall continue for
5 years- from date of first meeting
• Before dissolution- given a reasonable opportunity
•of being heard
•Election to constitute a Municipality to be completed,-
before expiry of its 5 years duration
•When dissolved - elections completed within 6 months
unless time left is less than 6 months
•In case of re-election- duration of the new ULB - to be of
remaining period.

28. ULBs-Power Authority& ResponsibilityULBs-Power Authority& Responsibility
•State by law, endow- Municipalities-- with such powers / authority;
• as necessary to enable them;
•- to function as institutions of self-government
•- such law may contain provisions;
•-- devolution of powers / responsibilities upon Municipalities,
• subject to such conditions as may be specified regarding
•(i) preparation of plans for economic development & social justice;
•(ii) performance of functions & implementation of schemes entrusted
to them including those in relation to the matters listed in the Twelfth
Schedule;
•(b)Invest Committees with such powers / authority as may be
necessary
•-- to enable them to carry out responsibilities conferred upon them
•-- including those in relation to matters listed in Twelfth Schedule.

29. 7474
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CAA,1992 CAA,1992
-Functions which May -Functions which May
be Vested in ULBs --12be Vested in ULBs --12
thth

Schedule Schedule

30. 74 th CAA- Functions- 1274 th CAA- Functions- 12
thth
Schedule Schedule
• "TWELFTH SCHEDULE -- attached with the constitution (Article 243W)
•1. Urban planning including town planning.
•2. Regulation of land-use and construction of buildings.
•3. Planning for economic and social development.
•4. Roads and bridges.
•5. Water supply for domestic, industrial and commercial purposes.
•6. Public health, sanitation conservancy and solid waste management.
•7. Fire services.
•8. Urban forestry, protection of environment /promotion of ecological aspects.
•9. Safeguarding the interests of weaker sections of society, including the
handicapped and mentally retarded.
•10. Slum improvement and up-gradation. 11. Urban poverty alleviation.
•12. Providing urban amenities /facilities parks, gardens, playgrounds.
•13. Promotion of cultural, educational and aesthetic aspects.
•14. Burials /burial grounds; cremations, cremation grounds/electric
crematoriums.15. Cattle pounds; prevention of cruelty to animals.
•16. Vital statistics including registration of births and deaths.
•17. Public amenities including street lighting, parking lots, bus stops / public
conveniences. 18. Regulation of slaughter houses and tanneries

31. 7474
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CAA,1992 CAA,1992
- Source of Finances of - Source of Finances of
ULBsULBs

32. Finance- Power to Taxation Finance- Power to Taxation
Sources of ULBs; Tax Revenue; Non-Tax Revenue; Grants; Devolution ; Loans
• State Legislature may, by law,-
•(a) authorize- Municipality-- to levy, collect and appropriate
such
•taxes, duties, tolls/ fees- in accordance procedure / subject
to limits prescribed ;
•(b) assign -- Municipality such taxes, duties, tolls , fees
levied/ collected by State Government for purposes / subject
to conditions/ limits prescribed ;
•(c) making grants-in-aid to from Consolidated Fund of
State; and
•(d) Constitution of such Funds for crediting all moneys
•Received for& on behalf of Municipalities / withdrawal of
such moneys therefrom..

33. 74 th CAA- State Finance Commission74 th CAA- State Finance Commission
•. Setting up of State Finance Commission for
•-- reviewing financial position of Municipalities
•-- make recommendations regarding-
•(a) principles governing -
•(i) distribution between State/ Municipalities—taxes,
duties, tolls /fees leviable by State, which may be divided
between them/allocation between
Municipalities/Panchayats at all levels
•(ii) determine taxes, duties, tolls /fees
–assigned/appropriated by, Municipalities;
•(iii) grants-in-aid to Municipalities from Consolidated
Fund of the State;
•(b) measures to improve financial position of
Municipalities;
•Audit of accounts of ULBs -

34. 7474
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CAA,1992 CAA,1992
-Election to ULBs-Election to ULBs

35. Election to ULBS- State Election Election to ULBS- State Election
CommissionCommission
•direction / control
• preparation of electoral rolls
• conduct of all elections to Municipalities
• --shall vest in
•-- State Election Commission
•- Subject to provisions of Constitution,
•-Based on law made by state Legislature
•relating elections to Municipalities.
•Complying with provisions of constitution
•

36. •CAA- 1992
•Planning Functions—
•District Planning
Committee
•Preparing DDP(DPC)

37. District Planning CommitteeDistrict Planning Committee
•243ZD- Each district will have District Planning Committee
•- Prepare a draft development plan for district – by
consolidating plans prepared by Panchayats& Municipalities in
district
•(2) State Legislature by law, make provision regarding ;
•(a) composition of District Planning Committees;
•(b) manner of filling seats in Committees :
•- Provided - not less than four-fifths of total members-- elected
by/ from amongst, elected members of Panchayat at district
level / Municipalities in proportion population in rural areas/
urban areas
•(c) functions assigned to Committee for preparing DP
•(d) manner in which Chairpersons of Committees shall be
chosen.

38. District Planning CommitteeDistrict Planning Committee
•243ZD-(3) Every District Planning Committee while preparing draft
•development plan,- shall consider ;
•(i) matters of common interest between - Panchayats & Municipalities
including ;
•-spatial planning,
•-sharing of water
• other physical / natural resources,
• integrated development of infrastructure & environmental
conservation;
•(ii) extent/ type of available resources whether financial etc;
•(b) consult institutions/organisations as Governor may, specify.
•(4) Chairperson of Committee shall forward development plan- as
recommended by such Committee- to Government of the State

39. •CAA- 1992
•Metropolitan
Planning Committee
•Preparing MDP

40. Metropolitan Planning CommitteeMetropolitan Planning Committee
•243ZE. –For every Metropolitan area -- a Metropolitan Planning
•Committee shall be constituted-
• to prepare a draft development plan for Metropolitan area as a whole.
•(2) State Legislature may, by law, make provision regarding;
•(a) composition of Metropolitan Planning Committees;
•(b) manner in which seats in Committees shall be filled:- Provided not less
than two-thirds of members of Committee elected by, amongst, elected
members
•--of Municipalities & Chairpersons of Panchayats in Metropolitan area
•-in proportion to ratio between population of Municipalities/ Panchayats
•(c) representation in Committees of Government of India& state
Government& such organisations/ institutions deemed necessary-
•- for carrying out functions assigned to such Committees;
•(d) functions relating to planning / coordination as assigned to such
Committees;
•(e) manner of chosing Chairpersons of Committees shall be

41. Metropolitan Planning CommitteeMetropolitan Planning Committee
•(3) Metropolitan Planning Committee while preparing draft
development plan,-(a) have regard to-
•(i) plans prepared by Municipalities & Panchayats in Metropolitan area;
•(ii) matters of common interest between Municipalities & Panchayats,
including - co-ordinated spatial planning o
•- sharing of water & other physical/ natural resources,
•--integrated development of infrastructure & environmental conservation;
•(iii) objectives& priorities set by Government of India & Government of
State;
•(iv) extent / nature of investments likely to be made in Metropolitan area
by agencies of the Government of India / State and
•-other available resources whether financial or otherwise;
•(b) consult such institutions / organisations -as Governor may specify.
•(4) Chairperson of Committee shall forward development plan, as
recommended by Committee, to State Government.

42. •CAA- 1992
•Conclusion

43. 74 th Constitutional Amendment Act. 199274 th Constitutional Amendment Act. 1992
•Act implemented only in letters -- not in spirit.
•Municipalities not free from interference from state
•Municipalities not given urban planning functions
•Need for induction of professionals in different fields
•-- Empowering /Capacity buildings for good governance
•- Including in constitution – schedule for financial resources
•-Strengthening the Municipal cadres of professionals-
•Municipal planners to come forward to play greater role in planned
development of urban areas.
•Multiplicity of agencies operating at local level avoided
•Creating a Regulatory authority for fixing Municipal services charges
•Creating dedicated cadre of municipal governance
•Incentivising ULBs for good efforts/ good practices initiated
•Making aware about the CAA- 1992 – to all elected and offciials
•- --74 th CAA– hold great potential in making urban areas inclusive/
sustainable/liveable/productive