Municipalities & 74th Amendment — Set 11

Correct Answer: A. Decentralization of governance to the urban grassroots level through elected local bodies

Decentralization of governance to the urban grassroots level through elected local bodies is the primary aim of the Nagarpalika system. It ensures regular elections, reservation for marginalized groups, devolution of functions and finances to urban local bodies. The amendment was meant to give urban residents direct democratic control over local services. It supplemented the rural Panchayati Raj system established by the 73rd Amendment.

Correct Answer: A. State Election Commission

Article 243-ZA provides that the State Election Commission is responsible for superintendence, direction, and control of preparation of electoral rolls and conduct of elections to municipalities. The State Election Commissioner is appointed by the Governor and has the same security of tenure as a High Court judge. This ensures independence of the election process for urban local bodies. The State Election Commission handles both panchayat and municipal elections.

Correct Answer: A. The Mayor serves only for the remaining period of the dissolved municipality's term

If a municipality is dissolved and elections are held to constitute the new body, the newly elected Mayor and council serve only for the remaining period of the original five-year term, not a fresh five-year term. This constitutional provision under Article 243-U prevents manipulation through deliberate dissolution to extend terms indirectly. It ensures the total governance period for any given election cycle remains within five years. Elections after dissolution must be completed within six months.

Correct Answer: A. Defense and national security

Defense and national security is not included in the 12th Schedule as it is an exclusive central government function. The 12th Schedule lists 18 functions that are civic and local in nature such as urban planning, regulation of land use, public health, sanitation, roads, and social welfare. Defense, foreign affairs, and national security matters are in the Union List and cannot be delegated to municipal bodies. The 12th Schedule focuses entirely on local governance functions.

Correct Answer: A. State Legislature by law

The State Legislature is empowered to constitute Ward Committees by law and to define their composition, territorial area, and functions. Article 243-S mandates constitution of Ward Committees in municipalities with population of 3 lakh or more but leaves the details to state legislation. This approach respects India's federal structure while establishing a constitutional baseline for grassroots urban democracy. Different states have varying Ward Committee structures depending on their municipal laws.

Correct Answer: A. Debt instruments issued by municipalities to raise funds from capital markets for infrastructure projects

Municipal Bonds are debt instruments issued by Urban Local Bodies to raise funds from capital markets for financing infrastructure projects like water supply, sewerage, roads, and bridges. In India, the Ahmedabad Municipal Corporation issued India's first municipal bond in 1998. SEBI has issued guidelines for municipal bond issuance. Successful bond issuance requires strong creditworthiness which depends on healthy finances, good governance, and reliable revenue streams of the issuing municipality.

Correct Answer: A. 12th Schedule

Public health, sanitation, conservancy and solid waste management are listed as item 6 in the 12th Schedule of the Constitution added by the 74th Amendment. These are among the most critical urban services that affect quality of life and disease prevention in cities. Urban local bodies are primarily responsible for garbage collection, street sweeping, sewage management, and disease vector control. Swachh Bharat Mission Urban has significantly strengthened municipal capacity in solid waste management.

Correct Answer: A. Article 243-ZF

Article 243-ZF provides for continuance of existing laws and municipalities and states that any law relating to municipalities in force before the 74th Amendment shall remain valid for a period of one year. This transitional provision allowed states time to bring their municipal laws in conformity with the constitutional requirements. States were required to amend their municipal laws within one year to align with the 74th Amendment. The provision balanced constitutional reform with practical governance continuity.

Correct Answer: A. 12th Schedule item 10

Urban poverty alleviation is listed as item 10 in the 12th Schedule, which specifies functions that may be transferred to Urban Local Bodies. This underscores the role of municipalities in addressing poverty among urban residents. Programs like DAY-NULM, PM SVANidhi, and PMAY-Urban are implemented through urban local bodies. Municipalities can organize urban poor into self-help groups, facilitate skill training, and provide support for livelihoods as part of poverty alleviation.

Correct Answer: A. A reasonable opportunity for hearing must be given before dissolution as per constitutional requirements

A reasonable opportunity for hearing must be given before dissolution as per constitutional requirements even though the Constitution does not specify an exact notice period. State municipal laws provide specific procedures including show cause notices. The Supreme Court has held that dissolution of municipalities must follow principles of natural justice. Elections must be held within six months of dissolution to restore democratic local governance.