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bodies in the state. They are transferable between the local bodies in
the state. This system is prevalent in Andhra Pradesh, Tamil Nadu,
Uttar Pradesh, Rajasthan, Madhya Pradesh and so on.
3. Integrated Personnel System: Under this system, the personnel
of the state government and those of the local bodies form part of the
same service. In other words, the municipal personnel are the
members of the state services. They are transferable not only
between the local bodies in the state but also between local bodies
and departments of state government. Thus, there is no distinction
between local civil service and state civil service. This system is
prevalent in Odisha, Bihar, Karnataka, Punjab, Haryana and others.
The various national level institutions providing training to the
municipal personnel are
1. All-India Institute of Local SelfGovernment (Mumbai) constituted
in 1927; it is a private registered society
2. Centre for Urban and Environmental Studies (New Delhi) set up
in 1967 on the recommendation of Nur-uddin Ahmed Committee
on Training of Municipal Employees (1963–1965)
3. Regional Centres for Urban and Environmental Studies (Kolkata,
Lucknow, Hyderabad and Mumbai) set up in 1968 on the
recommendation of Nur-ud-din Ahmed Committee on Training of
Municipal Employees (1963–1965)
4. National Institute of Urban Affairs, established in 1976
5. Human Settlement Management Institute, established in 1985
MUNICIPAL REVENUE
There are five sources of income of the urban local bodies. These are
as follows:
1. Tax Revenue: The revenue from the local taxes include
property tax, entertainment tax, taxes on advertisements,
professional tax, water tax, tax on animals, lighting tax, pilgrim
tax, market tax, toll on new bridges, octroi and so on. In addition,
the municipal bodies imposes various cesses like library cess,
education cess, beggary cess and so on. Octroi (i.e., taxes on
the entry of goods into a local area for consumption, use or sale
therein) has been abolished in most of the states. Property tax is
the most important tax revenue.
2. Non-Tax Revenue: This source include rent on municipal
properties, fees and fines, royalty, profits and dividends, interest,
user charges and miscellaneous receipts. The user charges (i.e.,
payment for public utilities) include water charges, sanitation
charges, sewerage charges and so on.
3. Grants: These include the various grants given to municipal
bodies by the Central and State Governments for several
development programmes, infrastructure schemes, urban reform
initiatives and so on.
4. Devolution: This consists of the transfer of funds to the urban
local bodies from the state government. This devolution is made
on the basis of the recommendations of the state finance
commission.
5. Loans: The urban local bodies raise loans from the state
government as well as financial institutions to meet their capital
CENTRAL COUNCIL OF LOCAL GOVERNMENT
The Central Council of Local Government was set up in 1954. It was
constituted under Article 263 of the Constitution of India by an order of
the President of India. Originally, it was known as the Central Council
of Local Self-Government. However, the term ‘selfgovernment’ was
found to be superfluous and hence was replaced by the term
‘government’ in the 1980s. Till 1958, it dealt with both urban as well as
rural local governments, but after 1958 it has been dealing with
matters of urban local government only.
The Council is an advisory body. It consists of the Minister for
Urban Development in the Government of India and the ministers for
local self government in states. The Union minister acts as the
Chairman of the Council.
The Council performs the following functions with regard to local
government:
(i) Considering and recommending the policy matters
(ii) Making proposals for legislation
(iii) Examining the possibility of cooperation between the Centre and
the states
(iv) Drawing up a common programme of action
(v) Recommending Central financial assistance
(vi) Reviewing the work done by the local bodies with the Central
financial assistance
Table 39.3 Articles Related to Municipalities at a Glance
Article No. Subject-matter
243P Definitions
243Q Constitution of municipalities
243R Composition of municipalities
243S Constitution and composition of wards committees,
and so on
243T Reservation of seats
243U Duration of municipalities, and so on
243V Disqualifications for membership
municipalities, and so on
243X Powers to impose taxes by, and funds of, the
municipalities
243Y Finance commission
243Z Audit of accounts of municipalities
243ZA Elections to the municipalities
243ZB Application to union territories
243ZC Part not to apply to certain areas
243ZD Committee for district planning
243ZE Committee for metropolitan planning
243ZF Continuance of existing laws and municipalities
243ZG Bar to interference by courts in electoral matters
Table 39.4 Name of Urban Local Bodies in the States (2019)8
Sl. No. State Urban Local Bodies
1. Andhra Pradesh 1. Municipal Corporations
2. Municipalities
3. Nagar Panchayats
2. Arunachal Pradesh (ULBs do not exist)
3. Assam 1. Municipal Corporations
2. Municipalities
3. Town Panchayats
4. Bihar 1. Municipal Corporations
2. Municipal Councils
3. Nagar Panchayats
5. Chattisgarh 1. Municipal Corporations
2. Municipalities
3. Town Panchayats
6. Goa 1. Municipal Corporations
2. Municipal Councils
7. Gujarat 1. Municipal Corporations
8. Haryana 1. Municipal Corporations
2. Municipal Councils
3. Municipal Committees
9. Himachal Pradesh 1. Municipal Corporations
2. Municipal Councils
3. Nagar Panchayats
10. Jharkhand 1. Municipal Corporations
2. Municipalities / Municipal
Councils
3. Town Panchayats / Notified
Area Councils
11. Karnataka 1. Municipal / City Corporations
2. Municipal / City Councils
3. Town Panchayats
12. Kerala 1. Municipal Corporations
2. Municipalities
13. Madhya Pradesh 1. Municipal Corporations
2. Municipalities
3. Nagar Panchayats
14. Maharashtra 1. Municipal Corporations
2. Municipal Councils
3. Nagar Panchayats
15. Manipur 1. Municipal Councils
2. Nagar Panchayats
16. Meghalaya 1. Municipalities
17. Mizoram 1. Municipalities
18. Nagaland 1. Municipal Councils
2. Town Councils
19. Odisha 1. Municipal Corporations
2. Municipalities
3. Notified Area Councils
20. Punjab 1. Municipal Corporations
2. Municipalities
3. Nagar Panchayats
21. Rajasthan 1. Municipal Corporations
2. Municipal Councils
3. Municipal Boards
22. Sikkim 1. Municipal Corporations
2. Municipal Councils
3. Nagar Panchayats
23. Tamil Nadu 1. Municipal Corporations
2. Municipalities
3. Town Panchayats
24. Telangana 1. Municipal Corporations
2. Municipalities
3. Nagar Panchayats
25. Tripura 1. Municipal Councils
2. Nagar Panchayats
26. Uttar Pradesh 1. Nagar Nigam
2. Nagar Palika Parishads
3. Nagar Panchayats
27. Uttarakhand 1. Nagar Nigam
2. Nagar Palika Parishads
3. Nagar Panchayats
28. West Bengal 1. Municipal Corporations
2. Municipalities
3. Notified Area Authorities
NOTES AND REFERENCES
1. ‘Local Government’ is a subject mentioned in the State List
under the 7th Schedule of the Constitution.
2. The bill was passed in both the Lok Sabha and the Rajya
Sabha in December 1992. After that, the bill was approved
by the required number of state legislatures. It was
assented by the president in April 1993.
3. A transitional area means an area which is in transition from
a rural area to an urban area.
4. At present (2019), ten states of India have scheduled areas.
These are: Andhra Pradesh, Telangana, Jharkhand,
Chhattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh,
four states of Assam (3), Meghalaya (3), Tripura (1) and
Mizoram (3).
5. Metropolitan area means an area having a population of 10
lakh or more, in one or more districts and consisting of two
or more municipalities or panchayats or other contiguous
areas.
6. The Rural-Urban Relationship Committee (1963–66)
headed by A.P. Jain recommended that small town area
committees should be merged with the panchayati raj
institutions to avoid multiplicity in the pattern of local bodies.
7. A cantonment area is a delimited area where the military
forces and troops are permanently stationed.
PART-VI
UNION TERRITORIES AND SPECIAL AREAS
40. Union Territories
40 Union Territories
U
nder Article 1 of the Constitution, the territory of India
comprises three categories of territories: (a) territories of
the states; (b) union territories; and (c) territories that may
be acquired by the Government of India at any time. At present,
there are twenty-nine states, seven union territories and no
acquired territories.
The states are the members of the federal system in India and
share a distribution of power with the Centre. The union territories,
on the other hand, are those areas which are under the direct
control and administration of the Central government. Hence, they
are also known as ‘centrally administered territories’. ‘In this way,
existence of these territories constitutes a conspicuous departure
from federalism in India; the Government of India is plainly unitary
CREATION OF UNION TERRITORIES
During the British Rule, certain areas were constituted as
‘scheduled districts’ in 1874. Later, they came to be known as
‘chief commissioners provinces’. After independence, they were
placed in the category of Part ‘C’ States and Part ‘D’ Territories2.
In 1956, they were constituted as the ‘union territories’ by the 7th
Constitutional Amendment Act (1956) and the States
Reorganisation Act (1956). Gradually, some of these union
territories have been elevated to statehood. Thus, Himachal
Pradesh, Manipur, Tripura, Mizoram, Arunachal Pradesh and Goa,
which are states today were formerly union territories. On the
other hand, the territories that were acquired from the Portuguese
(Goa, Daman and Diu, and Dadra and Nagar Haveli) and the
French (Puducherry) were constituted as the union territories.
At present, there are nine Union Territories. They are (along
with the year of creation): (1) Andaman and Nicobar Islands–
1956, (2) Delhi–1956, (3) Lakshadweep–1956, (4) Dadra and
Nagar Haveli–1961, (5) Daman and Diu–1962, (6) Puducherry–
1962, (7) Chandigarh–1966, (8) Jammu and Kashmir–2019 and
(9) Ladakh–2019. Till 1973, Lakshadweep was known by the
name of Laccadive, Minicoy and Amindivi Islands. In 1992, Delhi
was redesignated as the National Capital Territory of Delhi. Till
2006, Puducherry was known as Pondicherry.
The union territories have been created for a variety of reasons.
These are mentioned below3 :
1. Political and administrative consider-ation–Delhi and
Chandigarh.
2. Cultural distinctiveness–Puducherry, Dadra and Nagar
Haveli, and Daman and Diu.
3. Strategic importance–Andaman and Nicobar Islands and
Lakshadweep.
4. Special treatment and care of the backward and tribal
people–Mizoram, Manipur, Tripura and Arunachal Pradesh
which later became states.
In 2019, the erstwhile state of Jammu and Kashmir was
bifurcated into two separate union territories, namely, the Union
territory of Jammu and Kashmir, and the Union territory of Ladakh.
While introducing the Jammu and Kashmir Reorganisation Bill,
2019, in the Parliament, the central government gave the following
reasons for the creation of these two new union territories:
1. The Ladakh division of the state of Jammu and Kashmir has
a large area but is sparsely populated with a very difficult
terrain. There has been a long pending demand of people of
Ladakh, to give it the status of a Union territory to enable
them to realize their aspirations. The Union territory of
Ladakh will be without a legislature.
2. Further, keeping in view the prevailing internal security
situation, fuelled by cross border terrorism in the existing
state of Jammu and Kashmir, a separate Union territory for
Jammu and Kashmir is being created. The Union territory of
Jammu and Kashmir will be with a legislature.
ADMINISTRATION OF UNION TERRITORIES
Articles 239 to 241 in Part VIII of the Constitution deal with the
union territories. Even though all the union territories belong to
one category, there is no uniformity in their administrative system.
Every union territory is administered by the President acting
through an administrator appointed by him. An administrator of a
union territory is an agent of the President and not head of state
like a governor. The President can specify the designation of an
administrator; it may be Lieutenant Governor or Chief
Commissioner or Administrator. At present, it is Lieutenant
Governor in the case of Delhi, Puducherry, Andaman and Nicobar
Islands, Jammu and Kashmir and Ladakh and Administrator in the
case of Chandigarh, Dadra and Nagar Haveli, Daman and Diu
and Lakshadweep. The President can also appoint the governor
of a state as the administrator of an adjoining union territory. In
that capacity, the governor is to act independently of his council of
ministers.
The Union Territories of Puducherry (in 1963), Delhi (in 1992)
and Jammu and Kashmir (in 2019) are provided with a legislative
assembly4 and a council of ministers headed by a chief minister.
The remaining six union territories do not have such popular
political institutions. But, the establishment of such institutions in
the union territories does not diminish the supreme control of the
president and Parliament over them.
The Parliament can make laws on any subject of the three lists
(including the State List) for the union territories. This power of
Parliament also extends to Puducherry, Delhi and Jammu and
Kashmir, which have their own local legislatures. This means that,
the legislative power of Parliament for the union territories on
subjects of the State List remain unaffected even after
establishing a local legislature for them. But, the legislative
assembly of Puducherry can also make laws on any subject of the
State List and the Concurrent List. Similarly, the legislative
assembly of Delhi can make laws on any subject of the State List
(except public order, police and land) and the Concurrent List.
Likewise, the legislative assembly of Jammu and Kashmir can