5.1. Main features of the act

The mandate of the Municipalities is to undertake the tasks of planning for ‘economic development and social justice’ and implement city/town development plans. The main features of the 74th Constitutional Amendment are as under:

• The Act stipulated three levels of municipal bodies to be set up in the country:

o a ‘nagar panchayat (town council)‘ for transitional areas

o a ‘municipal council’ for a smaller urban area

o a ‘municipal corporation’ for a larger urban area.

• The term for the ULBs was five years. Unless there were overwhelming reasons, a municipal body was not to be superseded by the state. In case a decision in regard to dissolution was under consideration, it was made mandatory that the ULB would be heard. If after a hearing, the state decided to dissolve the elected body before the completion of its full term, it would necessarily have to be reconstituted within a period of six months.

• The Act empowered an independent State Election Commission for the conduct, superintendence and control of municipal elections.

• The Act also stipulated that seats be reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) in proportion to their population in the municipal area.

• A revolutionary feature of the enactment was the mandatory provision of reserving one- third of every elected urban body for women representatives. Reservations were also provided for in the position of chairpersons of municipalities.

• For the larger municipalities with populations of 300,000 and above, wards committees were made mandatory.

• For the purposes of planning, a District Panning Committee had to be constituted. In addition, for every metropolitan area, defined as an Urban Local Body with more than a million population, a Metropolitan Planning Committee had to be formed.

• A State Finance Commission was also made mandatory, charged with the task of reviewing the financial position of the municipalities and making recommendations for the financial health of ULBs.