Chapter 1Implications of $7 3 ^ { r d } 8 7 4 ^ { t h } C$ onstitution Amendment Act

URDPFI Guidelines 2014 Volume II-A: Compilation of Legal Instruments

2014 · PDF page 10

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1.1 Provisions of $7 4 ^ \{ mathrm \{ t h \} \}$ Constitution Amendment Act

The $7 3 ^ { \mathrm { r d } }$ Constitutional Amendment Act came $( 7 3 ^ { \mathrm { r d } } \mathrm { C A A } )$ in effect from $2 4 ^ { \mathrm { t h } }$ April, 1993 and $7 4 ^ { \mathrm { t h } }$ Constitution Amendment Act $( 7 4 ^ { \mathrm { t h } } \mathrm { C A A } ) ,$ , in effect from $1 ^ { \mathrm { s t } }$ June 1993, ushered a new era in the history of urban local government in the country. The Constitution of India has detailed provisions for ensuring protection of democracy in Parliament and State Legislatures; however, it did not make local self-government in urban areas a clear cut constitutional obligation. Even though there was provision for organisation of village Panchayats in the Directive Principles of State Policy, there was no reference to municipalities except implicitly in Entry – 5 of the State List, which places the subject of local self-government as a responsibility of the State. The $7 4 ^ { \mathrm { t h } }$ CAA (referred to as part IXA of Constitution) made provisions for decentralisation, thereby, ensuring democracy in the establishment and operation of local self-government. It bestows power to the people to plan for themselves and participate in the decision making process. The main provisions introduced by the Act are as under:

1) Constitution ofPanchayats and Municipalities:

Article 243 B of $7 3 ^ { \mathrm { r d } }$ CAA, provides for the constitution of Panchayats at three levels in a state:

a) Village,

b) Intermediate (may not be constituted in a State having a population not exceeding twenty lakhs) and

c) District.

Article 243 Q of $7 4 ^ { \mathrm { t h } } \mathsf { C A A } ,$ provides for constitution of Municipalities in every State as given under:

a) NagarPanchayat for transitional area, that is to say, an area in transition from rural to urban in character.

b) Municipal Council for a smaller urban area, and

c) Municipal Corporation for a larger urban area.

Constitution of Ward Committees: Article 243 S provides for constitution of ward committees, consisting of one or more wards, within the territorial area of a Municipality having a population of 3,00,000 or more.
Duration of Municipalities:Article 243 E of $7 3 ^ { \mathrm { r d } }$ CAA and 243 U of $7 4 ^ { \mathrm { t h } }$ CAA, provides a fixed term of 5 years of a panchayat and municipality respectively, from the date appointed. Elections to constitute a panchayat or municipality are required to be completed before the expiration of the duration of the municipality.
Powers, authority and responsibilities ofPanchayats and Municipalities: Article 243G of $7 3 ^ { \mathrm { r d } }$ and 243W of $7 4 ^ { \mathrm { t h } } C A A$ provides powers, authority and responsibilities of Municipalities subject that legislature of the State by law endow:

a. The Panchayats and Municipality with such powers and authority those are necessary to enable them to function as institutions of self-government. The law prepared by the

state government may contain provisions for the devolution of powers and responsibilities upon Municipalities, with or without conditions with respect to-

i. the preparation of plans for economic development and social justice;

ii. the performance of functions and implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Eleventh and Twelfth Schedule;

b. The Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon Municipalities themincluding those in relation to the matters listed in the Twelfth Schedule.

Table 1.1Items listed in Eleventh and Twelfth Schedule

S.No.	29 Items of the Eleventh Schedule	S.No.	18 Items of the Twelfth Schedule
1	Agriculture, including agricultural extension	1	Urban planning including town planning
2	Land improvement, implementation of land reforms, land consolidation and soil conservation	2	Regulation of land-use and construction of buildings
3	Minor irrigation, water management and watershed development	3	Planning for economic and social development
4	Animal husbandry, dairying and poultry	4	Roads and bridges
5	Fisheries.	5	Water supply for domestic, industrial and commercial purposes
6	Social forestry and farm forestry	6	Public health, sanitation conservancy and solid waste management
7	Minor forest produce	7	Fire services
8	Small scale industries, including food processing industries	8	Urban forestry, protection of the environment and promotion of ecological aspects
9	Khadi, village and cottage industries	9	Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded
10	Rural housing	10	Slum improvement and up-gradation
11	Drinking water	11	Urban poverty alleviation
12	Fuel and fodder	12	Provision of urban amenities and facilities such as parks, gardens, playgrounds
13	Roads, culverts, bridges, ferries, waterways and other means of communication	13	Promotion of cultural, educational and aesthetic aspects
14	Rural electrification, including distribution of electricity	14	Burials and burial grounds; cremations, cremation grounds and electric crematoriums
15	Non-conventional energy sources	15	Cattle pounds; prevention of cruelty to animals
16	Poverty alleviation programme	16	Vital statistics including registration of births and deaths
17	Education, including primary and secondary schools	17	Public amenities including street lighting, parking lots, bus stops and public conveniences
18	Technical training and vocational education	18	Regulation of slaughter houses and tanneries
19	Adult and non-formal education
20	Libraries.
21	Cultural activities

S.No.	29 Items of the Eleventh Schedule S.No. 18 Items of the Twelfth Schedule
22	Markets and fairs
23	Health and sanitation, including hospitals, primary health centres and dispensaries
24	Family welfare
25	Women and child development
26	Social welfare, including welfare of the handicapped and mentally retarded
27	Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes
28	Public distribution system
29	Maintenance of community assets

Source: 73^rd&74^th Constitutional Amendment Act

Finances of Panchayats and Municipalities: As per Article 243 H of $7 3 ^ { r d } 8$ 243 X of $7 4 ^ { \mathrm { t h } }$ CAA it has been left to the legislature of the State to specify the imposition of taxes.

Table 1.2Finances of Panchayats&Municipalities

Revenue Sources		Responsibility of
Taxes, Duties, fees etcetera		Levied and collected by Panchayats &Municipalities
Taxes, Duties, fees etcetera		Levied and collected by State Government
Grant-in-aid		Given to municipalities from the State Government
Funds		For crediting and withdrawal of money byPanchayats &Municipality

Source: $7 3 ^ { \mathrm { f d } }$ and 74th Constitutional Amendment Act

State Finance Commission: Article 243 I of $7 3 ^ { \mathrm { r d } }$ CAA give provision of State Finance Commission (SFC). Article 243 Y of $7 4 ^ { \mathrm { t h } }$ CAA extends duty/power of SFC to review the financial positions of municipalities apart from Panchayati Raj Institutions and make recommendations to the Governor.
Committee for District Planning: Article 243 ZD provides for constitution of District Planning Committee at district level in every state, to consolidate the plans prepared by the Panchayats and the Municipalities in the district and to prepare a draft development plan for the district as a whole.

A close study of this article provides a reasonable inference that each municipality is expected to prepare a plan for its area and undertake the task of urban planning including town planning, regulation of land uses, construction of buildings and phasing of the programme for economic and social development as envisaged in the Twelfth Schedule.

The DPC would provide interaction with the municipal bodies and panchayatiraj institutions, in addition to planning and conflict resolutions.

Committee for Metropolitan Planning: Article 243 ZE provides for constitution of a Metropolitan Planning Committee (MPC) for planning a metropolitan area having a population of 10 lakh or more, comprising one or more districts and consisting of one or more municipalities or panchayats.
Scheduled Areas:In terms of Article 243 M of 73^rd&243ZC of 74^th CAA, these provisions shall not apply to Scheduled areas and Tribal areas as referred to in Article 244 of the Constitution(i.e Scheduled areas and scheduled tribes in the States of Assam, Meghalaya, Tripura and Mizoram.) However, Parliament may by law, extend the provisions of Part IXA to these areas subject to such exceptions and modifications as may be specified in that law.

In order to provide time to State Governments to allow changes to be made in the then existing State Municipal laws which were inconsistent with the provisions of the $7 4 ^ { \mathrm { t h } }$ CAA , a transition period of one year was provided,uptill 31^st May 1994.

1.2New Roles and Functions of State Town and Country Planning Department

The new role of Town and Country Planning Departments that emerges out of the provisions of the $7 3 ^ { r d } 8 7 4 ^ { t h }$ CAA shall, among others, include :

a) Advice and technical assistance to the State Government on matters pertaining to spatial planning and development as well as implementation of state programmes;

b) Initiation of action pertaining to provision of legal support in relevant Acts for socio-economic, spatial planning and development processes; and on the suggested Regional and Urban Development Planning system;

c) Assistance to the State Urban and Regional Planning Board in formulation of the State Perspective Plan and strategy of spatio-economic development of the State, having regard to proposals contained in district and metropolitan area development plans;

d) Division of the State into various planning regions taking into account the physical, socio cultural, economic and climatic considerations and formulation of plans of their spatio-economic development to serve as a guide for resolving inter-district developmental issues and provide basis for inter-district co-operation and co-ordination with a view to prepare district development plans more harmonious;

e) Scrutiny of the district and metropolitan area development plans for approval of State Government, taking into account the State perspective plan, spatio-economic development strategy and proposals of relevant planning region covering the district of the metropolitan area;

f) Ensuring that respective settlement Development Plans prepared by local authorities are within the framework of the approved perspective plan of the State/settlement;

¹UDPFI Guidelines, 1996 & MM

g) Technical assistance to local authorities if so requested at the cost of the concerned body;

h) Preparation of the development plan in case of default by the local authority, district planning committee or the metropolitan planning committee, if so directed by the State Government, at the cost of the concerned planning body;

Provision of necessary research input directly or through the help of consultants in formulation of policies, strategies, norms, standards, laws, regulations and rules pertaining to urban and regional planning and development matters;

j) Provision of manpower training facilities;

k) Establishment of an Urban and Regional Information System and dissemination of information.

1.1 Provisions of $7 4 ^ \{ mathrm \{ t h \} \}$ Constitution Amendment Act

1) Constitution ofPanchayats and Municipalities:

Article 243 B of $7 3 ^ { \mathrm { r d } }$ CAA, provides for the constitution of Panchayats at three levels in a state:

a) Village,

b) Intermediate (may not be constituted in a State having a population not exceeding twenty lakhs) and

c) District.

Article 243 Q of $7 4 ^ { \mathrm { t h } } \mathsf { C A A } ,$ provides for constitution of Municipalities in every State as given under:

a) NagarPanchayat for transitional area, that is to say, an area in transition from rural to urban in character.

b) Municipal Council for a smaller urban area, and

c) Municipal Corporation for a larger urban area.

Constitution of Ward Committees: Article 243 S provides for constitution of ward committees, consisting of one or more wards, within the territorial area of a Municipality having a population of 3,00,000 or more.
Duration of Municipalities:Article 243 E of $7 3 ^ { \mathrm { r d } }$ CAA and 243 U of $7 4 ^ { \mathrm { t h } }$ CAA, provides a fixed term of 5 years of a panchayat and municipality respectively, from the date appointed. Elections to constitute a panchayat or municipality are required to be completed before the expiration of the duration of the municipality.
Powers, authority and responsibilities ofPanchayats and Municipalities: Article 243G of $7 3 ^ { \mathrm { r d } }$ and 243W of $7 4 ^ { \mathrm { t h } } C A A$ provides powers, authority and responsibilities of Municipalities subject that legislature of the State by law endow:

a. The Panchayats and Municipality with such powers and authority those are necessary to enable them to function as institutions of self-government. The law prepared by the

state government may contain provisions for the devolution of powers and responsibilities upon Municipalities, with or without conditions with respect to-

i. the preparation of plans for economic development and social justice;

ii. the performance of functions and implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Eleventh and Twelfth Schedule;

Table 1.1Items listed in Eleventh and Twelfth Schedule

S.No.	29 Items of the Eleventh Schedule	S.No.	18 Items of the Twelfth Schedule
1	Agriculture, including agricultural extension	1	Urban planning including town planning
2	Land improvement, implementation of land reforms, land consolidation and soil conservation	2	Regulation of land-use and construction of buildings
3	Minor irrigation, water management and watershed development	3	Planning for economic and social development
4	Animal husbandry, dairying and poultry	4	Roads and bridges
5	Fisheries.	5	Water supply for domestic, industrial and commercial purposes
6	Social forestry and farm forestry	6	Public health, sanitation conservancy and solid waste management
7	Minor forest produce	7	Fire services
8	Small scale industries, including food processing industries	8	Urban forestry, protection of the environment and promotion of ecological aspects
9	Khadi, village and cottage industries	9	Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded
10	Rural housing	10	Slum improvement and up-gradation
11	Drinking water	11	Urban poverty alleviation
12	Fuel and fodder	12	Provision of urban amenities and facilities such as parks, gardens, playgrounds
13	Roads, culverts, bridges, ferries, waterways and other means of communication	13	Promotion of cultural, educational and aesthetic aspects
14	Rural electrification, including distribution of electricity	14	Burials and burial grounds; cremations, cremation grounds and electric crematoriums
15	Non-conventional energy sources	15	Cattle pounds; prevention of cruelty to animals
16	Poverty alleviation programme	16	Vital statistics including registration of births and deaths
17	Education, including primary and secondary schools	17	Public amenities including street lighting, parking lots, bus stops and public conveniences
18	Technical training and vocational education	18	Regulation of slaughter houses and tanneries
19	Adult and non-formal education
20	Libraries.
21	Cultural activities

S.No.	29 Items of the Eleventh Schedule S.No. 18 Items of the Twelfth Schedule
22	Markets and fairs
23	Health and sanitation, including hospitals, primary health centres and dispensaries
24	Family welfare
25	Women and child development
26	Social welfare, including welfare of the handicapped and mentally retarded
27	Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes
28	Public distribution system
29	Maintenance of community assets

Source: 73^rd&74^th Constitutional Amendment Act

Finances of Panchayats and Municipalities: As per Article 243 H of $7 3 ^ { r d } 8$ 243 X of $7 4 ^ { \mathrm { t h } }$ CAA it has been left to the legislature of the State to specify the imposition of taxes.

Table 1.2Finances of Panchayats&Municipalities

Revenue Sources		Responsibility of
Taxes, Duties, fees etcetera		Levied and collected by Panchayats &Municipalities
Taxes, Duties, fees etcetera		Levied and collected by State Government
Grant-in-aid		Given to municipalities from the State Government
Funds		For crediting and withdrawal of money byPanchayats &Municipality

Source: $7 3 ^ { \mathrm { f d } }$ and 74th Constitutional Amendment Act

State Finance Commission: Article 243 I of $7 3 ^ { \mathrm { r d } }$ CAA give provision of State Finance Commission (SFC). Article 243 Y of $7 4 ^ { \mathrm { t h } }$ CAA extends duty/power of SFC to review the financial positions of municipalities apart from Panchayati Raj Institutions and make recommendations to the Governor.
Committee for District Planning: Article 243 ZD provides for constitution of District Planning Committee at district level in every state, to consolidate the plans prepared by the Panchayats and the Municipalities in the district and to prepare a draft development plan for the district as a whole.

The DPC would provide interaction with the municipal bodies and panchayatiraj institutions, in addition to planning and conflict resolutions.

Committee for Metropolitan Planning: Article 243 ZE provides for constitution of a Metropolitan Planning Committee (MPC) for planning a metropolitan area having a population of 10 lakh or more, comprising one or more districts and consisting of one or more municipalities or panchayats.
Scheduled Areas:In terms of Article 243 M of 73^rd&243ZC of 74^th CAA, these provisions shall not apply to Scheduled areas and Tribal areas as referred to in Article 244 of the Constitution(i.e Scheduled areas and scheduled tribes in the States of Assam, Meghalaya, Tripura and Mizoram.) However, Parliament may by law, extend the provisions of Part IXA to these areas subject to such exceptions and modifications as may be specified in that law.

1.1 Provisions of 74{mathrm{th}}7 4 ^ \{ mathrm \{ t h \} \}74{mathrm{th}} Constitution Amendment Act

1) Constitution ofPanchayats and Municipalities:

1.1 Provisions of 74{mathrm{th}}7 4 ^ \{ mathrm \{ t h \} \}74{mathrm{th}} Constitution Amendment Act

1) Constitution ofPanchayats and Municipalities:

1.1 Provisions of $7 4 ^ \{ mathrm \{ t h \} \}$ Constitution Amendment Act

1.1 Provisions of $7 4 ^ \{ mathrm \{ t h \} \}$ Constitution Amendment Act