74th Amendment — Definition
Definition
The 74th Constitutional Amendment Act, 1992, is a landmark legislation that constitutionalized urban local governance in India by inserting Part IXA (Articles 243P to 243ZG) into the Constitution. This amendment is often called the 'Nagarpalika Act' and represents the urban counterpart to the 73rd Amendment which dealt with rural local bodies.
The amendment came into force on June 1, 1993, and fundamentally transformed the landscape of urban governance in India by providing constitutional status and protection to urban local bodies. Before this amendment, municipalities existed at the mercy of state governments and could be dissolved or superseded arbitrarily.
The 74th Amendment changed this by making certain provisions mandatory and giving constitutional backing to urban local institutions. The amendment establishes a three-tier structure of urban local bodies: Nagar Panchayats for transitional areas (areas in transition from rural to urban), Municipal Councils for smaller urban areas, and Municipal Corporations for larger urban areas.
This classification is based on population, density of population, revenue generated for local administration, percentage of employment in non-agricultural activities, and economic importance. The amendment makes several provisions mandatory for all states, including the constitution of municipalities, reservation of seats for Scheduled Castes, Scheduled Tribes, and women, establishment of State Election Commissions, and constitution of State Finance Commissions.
It also includes discretionary provisions that states may choose to implement, such as reservation for Other Backward Classes and constitution of Ward Committees. The 74th Amendment added the Twelfth Schedule to the Constitution, which lists 18 functional items that can be devolved to municipalities, including urban planning, regulation of land-use and construction, roads and bridges, water supply for domestic and commercial purposes, public health and sanitation, fire services, urban forestry, slum improvement and upgradation, urban poverty alleviation, and provision of urban amenities and facilities.
The amendment also provides for the constitution of Metropolitan Planning Committees for metropolitan areas and District Planning Committees to consolidate plans prepared by Panchayats and Municipalities.
This amendment was the result of decades of deliberation and recommendations from various committees, including the Balwantrai Mehta Committee (1957), Ashok Mehta Committee (1977), and L.M. Singhvi Committee (1986).
The amendment aims to strengthen democracy at the grassroots level, ensure regular elections, provide adequate representation to weaker sections, and create institutions capable of functioning as effective units of local self-government.
It represents a significant step towards decentralization of power and democratic governance, making urban local bodies the third tier of government in India's federal structure.