The State Legislature alone is competent to legislate in respect of municipalities, with the limitation that the provisions of the State Act cannot be inconsistent with the mandate of the Scheme of Part IXA of the Constitution.

JUDGMENT :

HEMANT GUPTA, J.

1. The present appeal is directed against an order passed by the High Court of Judicature of Rajasthan dated 28.4.2015 whereby a notification dated 12.8.2014 declaring Gram Panchayat Roopbas, District Bharatpur as Municipal Board was set aside. The High Court found that no public notification as contemplated under Article 243Q(2) of the Constitution of India has been produced specifying Gram Panchayat Roopbas as a “transitional area” and thus, it cannot be declared as a Municipal Board.

2. The Constitution (Seventy-Fourth Amendment) Act, 1992 introduced Part IXA in the Constitution which came into force on 20.4.1993. The Statement of Objects and Reasons as was published in the Gazette on 16.09.1991 when the Bill was introduced is as under:

“(1) In many States local bodies have become weak and ineffective on account of a variety of reasons, including the failure to hold regular elections, prolonged super-sessions and inadequate devolution of powers and functions. As a result, Urban Local Bodies are not able to perform effectively as vibrant democratic units of self-government.

(2) Having regard to these inadequacies, it is considered necessary that provisions relating to Urban Local Bodies are incorporated in the Constitution particularly for:

(i) putting on a firmer footing the relationship between the State Government and the Urban Local Bodies with respect to:

(a) the functions and taxation powers.

(b) arrangements for revenue sharing.

(ii) Ensuring regular conduct of elections.

(iii) ensuring timely elections in the case of super-session.

(iv) providing adequate representation for the weaker sections like Scheduled Castes, Scheduled Tribes and women.

(3) Accordingly, it is proposed to add a new part relating to the Urban Local Bodies in the Constitution to provide for:

(a) constitution of three types of Municipalities:

(i) Nagar Panchayats for areas in transition from a rural area to urban area.

(ii) Municipal Councils for smaller urban areas.

(iii) Municipal Corporations for larger urban areas. The broad criteria for specifying the said areas is being provided in the proposed article 243-0.

(b) composition of Municipalities, which will be decided by the Legislature of a State, having the following features:

(i) persons to be chosen by direct election.

(ii) representation of Chairpersons of Committees, if any, at ward or other levels in the Municipalities.

(iii) representation of persons having special knowledge or experience of Municipal Administration in Municipalities (without voting rights).

(c) election of Chairpersons of a Municipality in the manner specified in the State law.

(d) constitution of Committees at ward level or other level or levels within the territorial area of a Municipality as may be provided in the State law.

(e) reservation of seats in every Municipality:

(i) for Scheduled Castes and Scheduled Tribes in proportion to their population of which not less than one-third shall be for women.

(ii) for women which shall not less than one-third of the total number of seats.

(iii) in favour of backward class of citizens if so provided by the Legislature of the State.

(iv) for Scheduled Castes, Scheduled Tribes and women in the office of Chairpersons as may be specified in the State law.

(f) fixed tenure of 5 years for the Municipality and re-election within six months of end of tenure. If a Municipality is dissolved before expiration of its duration, elections to be held within a period of six months of its dissolution.

(g) devolution by the State Legislature of powers and responsibilities upon the Municipalities with respect to preparation of plans for economic development and social justice and for the implementation of development schemes as may be required to enable them to function as institutions of self-government.

(h) levy of taxes and duties by Municipalities, assigning of such taxes and duties to