·The Hindu·15 marks·250–350 wordsGeographyPolityEconomy

How does the 74th Constitutional Amendment Act shape the scope of state legislatures in reforming urban local body laws? Illustrate with a recent example.

In this answer
  1. The enabling space it creates for states
  2. Illustration: Telangana's CURE Bill, 2026

The 74th Amendment Act, 1992 inserted Part IXA (Articles 243P–243ZG) and the Twelfth Schedule, giving municipalities constitutional status [1]. Yet "local government" remains a State List subject — the Amendment sets a democratic floor while leaving state legislatures as the principal architects of urban local body (ULB) law [2].

The enabling space it creates for states

  • Article 243Q: the State decides whether an area becomes a Nagar Panchayat, Municipal Council or Corporation, and may exempt industrial townships — so redrawing municipal boundaries is a state prerogative [1].
  • Article 243W: municipalities get only such powers as "the Legislature of a State may, by law, endow"; the Twelfth Schedule's 18 functions are illustrative, not self-executing [1].
  • Article 243X: ULBs may levy taxes only as authorised by state law, though property tax supplies over 60% of their own tax revenue [3].
  • Articles 243ZD–243ZE: States constitute District and Metropolitan Planning Committees, shaping metro-region planning [1]. Hence wide inter-state variation, with parastatals often retaining core city functions [2].

The floor it cannot breach State laws must preserve five-year terms and timely elections through State Election Commissions, reservations for SCs/STs and women (Article 243T), ward committees (243S) and a State Finance Commission every five years (243Y) [1]. Reform is therefore within constitutional limits, not around them.

Illustration: Telangana's CURE Bill, 2026

  • Passed in September 2026, it repeals the GHMC Act, 1955, uniting Greater Hyderabad, Cyberabad and Malkajgiri corporations (~1.3 crore people) under "one city, one administration, one law" — Article 243Q restructuring in action [4].
  • It endows integrated mechanisms for disaster management, traffic, climate action, lake and heritage protection — an Article 243W endowment [4].
  • The proposed property tax hike was capped at 10%, showing state control under Article 243X [4].
  • Transgender representation in corporations extends inclusion beyond the 243T floor [4].

The Amendment thus frames, rather than fetters, state reform. Going forward, pairing such consolidation with activity mapping, empowered Metropolitan Planning Committees and stronger own-revenues would convert administrative unification into genuine self-government — the spirit of Part IXA.

Sources

  1. 1The Constitution (Seventy-Fourth Amendment) Act, 1992 — Ministry of Law and JusticePart IXA, Articles 243Q, 243S, 243T, 243W, 243X, 243Y, 243ZD–243ZE and Twelfth Schedule
  2. 2PRS Legislative Research — "Examining urban local governance in India through the case of Bengaluru"urban governance as a State List subject; parastatals diluting ULB autonomy; activity mapping
  3. 3RBI, Report on Municipal Financesproperty tax as the dominant own-tax revenue of municipal corporations
  4. 4The Hindu — "Assembly passes new Bill to build 'modern Hyderabad'" (13 September 2026)CURE Bill, 2026 replacing the GHMC Act, 1955; three corporations; 10% property tax cap; transgender representation
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