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The first municipal corporation in India was set up in Madras in 1687, followed by Bombay and Calcutta.
The system of urban government was constitutionalised through the 74th Constitutional Amendment Act of 1992.
- Added a new Part IX-A titled "The Municipalities" (Articles 243P to 243ZG).
- Added the 12th Schedule containing 18 functional items (e.g., urban planning, fire services, public health) of municipalities.
- It provides a constitutional foundation to local self-government in urban areas.
The Act provides for the constitution of three types of municipalities in every state:
- Nagar Panchayat: For a transitional area (an area in transition from a rural area to an urban area).
- Municipal Council: For a smaller urban area.
- Municipal Corporation: For a larger urban area.
Demographic and revenue factors are considered by the Governor to declare an area as transitional, smaller, or larger urban area.
- Direct Elections: All members of a municipality are elected directly by the people. The municipal area is divided into territorial constituencies known as wards.
- The State Legislature may provide the manner of election of the chairperson of a municipality.
- Nominated Members: State legislature may provide for representation of persons having special knowledge/experience in municipal administration (without the right to vote in meetings), as well as MPs and MLAs representing the area.
- Wards Committees: Must be constituted within the territorial area of municipalities having a population of 3 lakhs or more. They consist of one or more wards.
- Reservation of Seats:
- SC/ST: Proportionate to their population.
- Women: Not less than 1/3rd of total seats.
- States can make provisions for backward class reservation.
- Duration: Five-year term. If dissolved, elections to be held within six months.
Apart from the constitutional ULBs, historically there are 8 types of urban local bodies in India:
- Municipal Corporation: For big cities (Delhi, Mumbai, etc). Statutory body established by acts. Headed by a Mayor (formal head) and a Municipal Commissioner (chief executive).
- Municipality: For towns/smaller cities.
- Notified Area Committee: For developing towns or areas lacking full municipality conditions.
- Town Area Committee: For small towns (semi-municipal authority).
- Cantonment Board: Established for civilian population in cantonment areas (under the Defence Ministry, not state government).
- Township: For large public enterprises to govern their staff colonies.
- Port Trust: Established in port areas (Mumbai, Kolkata) to manage port and provide civic amenities.
- Special Purpose Agency: Statutory bodies set up for specific functions (e.g., Water Supply and Sewerage Board, Housing Board).
- District Planning Committee (DPC): Exists at district level to consolidate plans of panchayats and municipalities, preparing a draft development plan for the district. 4/5th of its members are elected from amongst the elected members of district panchayats and municipalities.
- Metropolitan Planning Committee (MPC): Every metropolitan area (population 10 lakhs or more) must have an MPC. 2/3rd of its members are elected from amongst the elected members of municipalities and panchayats in the area.