What is the 74th Amendment?

The Constitution (Seventy-fourth Amendment) Act, 1992 — also known as the Nagarpalika Act — granted constitutional status to urban local bodies (municipalities) in India. Passed alongside the 73rd Amendment in December 1992, it came into force on 1 June 1993.

The Amendment added a new Part IX-A to the Constitution titled "The Municipalities" (Articles 243-P to 243-ZG) and a new Twelfth Schedule listing 18 functional areas of municipalities. It established a uniform framework for three types of municipalities — Nagar Panchayats, Municipal Councils, and Municipal Corporations — ensuring regular elections, reservation for marginalised groups, and financial autonomy through State Finance Commissions.

Before the 74th Amendment, urban local bodies functioned entirely at the mercy of state governments, with no constitutional protection. States could supersede municipalities indefinitely without elections. The Amendment was enacted under PM P.V. Narasimha Rao's government and was a companion to the 73rd Amendment, together constituting India's most significant push toward democratic decentralisation.

Key Features / Provisions

# Feature Details
1 Three types of municipalities Nagar Panchayat (rural-to-urban transitional area), Municipal Council (smaller urban area), Municipal Corporation (larger urban area)
2 Direct elections All members elected directly; chairperson election method left to state legislature
3 SC/ST reservation Seats reserved in proportion to their population in the municipal area
4 Women's reservation Not less than one-third of total seats reserved for women (including within SC/ST reserved seats)
5 Five-year term Uniform 5-year term; elections must be completed before expiry or within 6 months of dissolution
6 State Election Commission Same body constituted under Article 243-K to superintend municipal elections
7 State Finance Commission Same body under Article 243-I to review municipal finances and recommend grants
8 Twelfth Schedule 18 subjects including urban planning, regulation of land use, water supply, public health, sanitation, fire services, urban forestry, slum improvement
9 Ward Committees Mandatory in municipalities with population of 3 lakh or more (Article 243-S)
10 District Planning Committee Article 243-ZD mandates a DPC to consolidate plans from Panchayats and municipalities
11 Metropolitan Planning Committee Article 243-ZE mandates an MPC for metropolitan areas with population of 10 lakh or more
12 Bar on court interference Article 243-ZG bars courts from questioning delimitation matters or seat allotment

Historical Background

  • 1687 — Madras Municipal Corporation established — the first municipal corporation in India (and among the oldest in the world)
  • 1726 — Municipal corporations established in Bombay and Calcutta
  • 1882 — Lord Ripon's Resolution — the "Magna Carta of local self-government"
  • 1919 — Montagu-Chelmsford Reforms brought local self-government under Indian ministers
  • 1935 — Government of India Act expanded provincial autonomy
  • 1992, December — 74th Amendment passed by Parliament
  • 1993, 1 June — Came into force, providing constitutional status to urban local bodies
  • 2005 — Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched to strengthen ULBs
  • 2015 — Smart Cities Mission, AMRUT launched — building on the 74th Amendment's framework

UPSC Exam Corner

Prelims: Key Facts

  • Year: 1992 (came into force 1 June 1993)
  • Part added: Part IX-A ("The Municipalities")
  • Articles: 243-P to 243-ZG
  • Schedule added: Twelfth Schedule (18 subjects)
  • Three types: Nagar Panchayat, Municipal Council, Municipal Corporation
  • Women's reservation: Minimum one-third of total seats
  • Ward Committees: Mandatory for municipalities with population 3 lakh+
  • DPC: Article 243-ZD; MPC: Article 243-ZE (for areas with 10 lakh+ population)
  • Term: 5 years; fresh elections within 6 months of dissolution

Mains: Probable Themes

  1. "The 74th Amendment has failed to create truly empowered urban local bodies." — Discuss the gap between constitutional mandate and actual devolution of 3Fs (funds, functions, functionaries)
  2. "Compare the 73rd and 74th Amendments as instruments of democratic decentralisation." — Structural parallels, Eleventh vs Twelfth Schedule, rural vs urban challenges
  3. "Examine the role of Metropolitan Planning Committees in urban governance." — Article 243-ZE, coordination between ULBs, implementation challenges
  4. "Urbanisation demands stronger municipalities — evaluate India's municipal governance framework." — Connect 74th Amendment to Smart Cities Mission, AMRUT, JNNURM
  5. "Ward Committees can bridge the democratic deficit in urban governance." — Article 243-S, citizen participation, area sabhas

Sources: Ministry of Housing and Urban Affairs, GoI | State Election Commission for UTs | Ministry of Education, GoI | Wikipedia — 74th Amendment