 biu no 10 of 1989 the constitution (sixty-fifth amendment) bill, 1989 a billfurther to amend the constitution of india be it enacted by parliament in the fortitth year of the republic of india as follows:-1 (1) this act may be called the constitution (sixty-fifth amendment) act, 1989 title and ---com-s (2) it shall come into force on such date as the central government mence-mento may, by notification in the official gazette, appoint 2 in part ix of the constitution, after chapter i, the following chapters shall be inserted, namely:-irisertion of new chaptel'l ii to v  'chap'rli1r n-nagar panchayats10 243n (1) there shall be constituted in every state a nagar panchayat (by whatqver name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area, in accordance with the provisions of this part constitu-, tion, etc • " of na'pr , ',"  panchyat (2) the governor of a state may, having regard to the density t; of population, the revenue generated for local administration, the perce,ntage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification an area with a population of about ten thousand or more but less than twenty thousand, to be a transitional area for the purposes of clause (1) s (3) notwithstanding anything in clauses (1) and (2), the governor may, by order, declare that any town committee, town area committee, notified area committee or any other similar body (by whatever name called) existing immediately before the commencement of the constitution (sixty-fifth amendment) act, 1989, in 10 relation to an area having a population of less th::tn ten thousand, shall be deemed to be a nagar panchayat for the purposes of this part (4) the legislature of a state may, by law, endow the nagar panchayats with such powers, authority and responsibilit'es referred 1 s to in article 243e and article 243u as may be specified in such law  chapter hi-municipalities243-0 in this part, unless the context otherwise requires,-definitions (a) "metropolitan area" means one or more contiguous agglomorations having a population of about twenty lakhs or more, 20 comprised in one or more d:stricts and consisting of two or more municipalities or panchayats or other adjoining areas, specified by the governor of a state by public notification to be a metropolitan area for the purposes of this part; (b) "municipal area" means the territorial area of a muni- 2s cipality; (c) "municipality", that is to say, nagarpalika, means an institution (by whatever name called) of self-government for the urban areas constituted in accordance with the provisions of article 243p, and includes a nagar panchayat 30 243p (1) there shall be constituted in every state, in accordance with the pro\"isions of this part,-constitution of municlpalitie' (a) a municipal council for an urban area having a population of about twenty thousand or more but less than three lakhs; (b) a municipal corporation for an urban area having a 3s population of about three lakhs or more (2) notwithstanding anything in clause (1), the governor of a state may, by order, declare that every municipal corporation existing immediately before the commencement of the constitution (sixty-fifth amendment) act, 1989, in relation to an area having a 40 population of less than three lakhs, shall be deemed to be a munlcfpal corporation for the purposes of this part (3) the legislature of a state may, by law, notwithstanding anything in clause (1) and in clause (2) of article 243n, provide for the constitution of-5 area having a less than five (a) a nagar panchayat for a transitional population of less than ten thousand but not thousand; (b) a municipal council for an urban area having a population of less than twenty thousand but oot less than ten thousand; 10 (c) a municipal corporation for an urban area having a population of less than three lakhs but not less than twenty thousand in the capital of a state, where such area is in an island or a hiljy or a desert terrain 15 243q (1) subject to the provisions of this part, the legislature of a state may, by law, make provision with respect to the composition of municipalities i : composi tion of municipa litiell (2) save as provided in clauses (3), (4) and (5), all the seats in a municipality shall be filled by persons chosen by direct election from territorial constituencies in the municipal area and for this 20 purpose each municipal area shall be divided into territorial constituencies to be known as wards (3) where wards committees are constituted within the territorial area of a municipal council under article 243r the chairpersons of all such wards committees shall also be members of that 25 municipal council (4) where zonal committ·ees are constituted within the territorial area of a municipal corporation under article 243s the chairpersons of an such zonal committees shall also be members of that corporation 10 (5) the legislature of a state may by law, provide for the reore<;ent1ti0l1 in a ml1nicip~litv of pe~ons havin~ special knowledcte or experienc4'> of municipal ::uimini!'ltr::ltion in such manner and subject to such conditions as may be specified in such law: provided that such person~ shall not have the right to vote in 3s the meetings of the municipality ' (6) the chairperson of a municipality shall be elected by, and from amongst, the elected mem~rs thereof 40 (7) no resolution by a municipality for removing the chairperson of the municipality from the office of the chairperson shall be valid and effective unless such resolution bas been passed by a majority of the total number of tj-e elected members of the municipality and by a majority of not less than two-thirds of such mem~ present and voting 243ij (1) there shall be constituted in every state, in accord~e with the provisions of this part, wards committees (by whatever nallle called) within the territorial area of a municipality having a population of one lakh or more 03nstitution and composition of-wards committee (2) the legislature of a state may, by law, make provision with 5 respect t~ (a) the composition and the territorial a",a of a wards committee: provided that the territorial area of a wards committee shall, (i) in the case of a municipal council comprise two or 10 more wards; and (ii) in the case of a municipal corporation, comprise one or more wards; (b) the manner in which the seats in a wards committee shalj be filled by persons chosen by dirert elect!on from the territorial 15 area of the wards committee (3) notwithstanding anything in dause (1) wards committees may not be constituted within the territorial area of a municlpal corporation ref-:rred to in clause (2) of article 243p (4) every member representing a ward! in a municipal area com- 20 pri~ within the tenitorial area of a wards committee shall be a member of that committee (5) the chairperson of a wards comm;uee shall be elected by, and from amoanst, the members thereof 2438 (1) there shall be ('onstituted jn every state, in accordance 25 with the provisions of this part, at a level between the wards committees and the municipal co~ration zonal committees (by whatever name called) within the territorial area of a municip'll corporation constitution and composition of zonal committees (2) the legislature of a state may, by law make provision with 30 r£;ped to the territorial area of a zonal committee (3) notwithstanding anything in clause (1), zonal committees may not be coastruted within the territorial area of a municipal corporation referred to in clause (2) of article 243p (4) the chairpersons of all the wards committees comprised 3s within the territorial area of a zonal committee shan be members of that committee (5) the chairperson of a zonal committee shall be elected by, and from amongst, the members thereof' 243t (1) the provisions of articles 243c, 243d, 2438, 2431, z43j and z43k shall, so far as may be, apply in relation to municipalities and wards committees as they apply in relation to paachayats 5 applica_ tion of certain articles of chapter ito municipa_ ilities, etc (2) the provisions of article 243c shall, so far as may be, apply in relation to the committees constituted under article 243y and article 243z as they apply in relation to panchayats: provided that the reservation of seats in such conunittees shall be detennined with reference to 'the district as a whole and not separately with reference to the pancha~'ats and municipalities ]0 (3) the prov',i'lns of artie'c 24:lf !'h:th, "0 far as may be, apply in relation to municipalities as they apply in relation to pal)chayats (4) the provisions of articles 2438 ancf 24~ shall, so far as may be, apply in relation to zonal committees as they apply in relation to panehayats 15 243u subjl2ct to the provlslons of this constitution, the legislature of a state may, by law, endow-powers, authority and reaponsi_ bihies of municipalities, etc  t 20 (a) the municipalities with such power3 and authority as may be necessary to enable them to function as institut'ons of self-government and such law may contain provisions for the devolution of powers and responsibilit:es upon municipalities subject to 'such conditions as may be specified therein, with respect to-(i) the preparation of plans for economic development and social i'ustice; 25 (ii) the pr:rfo'"mance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the twelfth schedule; 30 (b) the wards committees or, as the ca~e may bp, the zonal committees with such powers and authority as ma-r be necessary to enabl:-them to carry out the responsibilitie conferred upon them including those in relation to the matten listed in the twelfth schedule 243v (1) the finance commission referred to in clause (2) finance shall review the financial position of the municipalities and make commis recommendations to the governor as tosion 35 (a) the principles which should govern-(i) the determination of the! taxes, duties, tolls and fees which may be assigned to, o,r appropriated by, the municipalities; (u) the distribution between the state and the munici- l'- palities of the net proaeeds of the taxes, duties, tolls and fees which are to be, or may be, divided between them under this part and the allocation between the municipalities of their i'iespective shares of such proceedsj 5 (iii) the grants-in-aid to the municipalities from the consolidated fund of the state; (b) any other matter referred to the finance commission by the governor in the interests of sound finance of the municipalities 10 (2) the finance commission constituted under article 24'30 shall be the finance commission for the purposes of clause (1) (3) the governor shall cause every recommendation made by the finance commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before 1 5 the legislatur~ of the state 243w (1) nothing in chapters ii to v shall apply to the scheduled areas referred to in clause (1), and the tribal areas referred to in clause (2), of article 244 chapters ii tovnot to apply to certain areas (2) notwithstanding anything in this constitution" the gover- 20 nor of a state may, in his dis<!retion and subject to such exceptions and modifications as he may specify, by public notification, extend chapters ii to v to the scheduled areas referred to in clause (1), or the tribal areas referred to in clause (2), of article 244, comprised within that state 25 continuance of existing laws and mulillcipalities, etc 243x notwithstanding anything in this part, any provision of any law relating to municipalities, wards committees and zonal committees in force immediately before the commencement of the constitution (sixty-fifth amendment) act, 1989, which is inconsistent with the provisions of this part, shall continue to be in 30 force until amended or repealed by a competent legislature or other competent authority or, until the expiration of one year from such commencement, whichever is earlier: provided that all the municipalities, wards committees and zonal committees existing immediately before such commence- 35 ment shall colltin'le·· till the expiration of their duration, unless sooner dissolved by a resolution passed to that effect by the legislative assembly of that state or, in the case of a state having a legislative council, by each house of the legislature of that state  chapter jv-planning40 distrjct planninl 243y (1) subject to the provisions of clause (2), the governor of a state shall by public notification constitute a committee in every panchayat at the district level to consolidate the plans prepared by the panchayets and the municipalities jn the district and to p"pare a draft development plan for the district as a whole, 45 (2) the committee shall consist of such number of persons not exceeding twenty-one as the govemor may, by order, specify and the members of the committee shah be el~ted by, and from amongst, the elected members of the panchayat at the district level 5 and the municipalities in the district in proportion to the ratio between the population of the panchayat at the d1striet level and of the municipalities in the district (3) the chairperson of the p~chayat at the district level shall be the chairperson of the committee 10 (4) the tenn of ofbce of a member of the committee shad come to illl end as soon as he ceases to be a member of the pancbayat at the district l'evel or, as the case may be, the municipauty from which he was elected (5) the committee shah, in preparing the draft development 15 plan,-(a) have regard to-20 (i) matters of common interest between the panchayats and the munic:palitics includinl'r spatial planning sharing of water and other physical and natural resources, the integrated development of ~tructure and (environmental conservation; (ii) the overall objectives and priorities set by the government of india and the government of the state; (iii) the extent and type of available reso1lj'ee8, whether financial or otherwise: 25 (b) consult such institutions and organisations as the govemor may, by order, specify (6) the chairperson of the committee shall forward the development plan, as recommended by the committee, to the govem-30 ment of the state metropolitan planning 243z (1) subject to the provisions of clause (2), the governor of a state shall by public notification constitute a committee in every metropolitan area to prepare a draft development plan for the metropolltan area as a whole 35 (2) the committee shall consist of such number of persons not exceeding thirty-one as the govemor may, by order, specify, of whom,-40 (a) two-thirds of the members shall be elected by, and from amongst, the 'elected members of the municipalities and chairpersons of the panchayats in the metropolitan area in proportion to the ratio between the population of the municipalities and of the panchayats in that area; and (b) the rest 'shad be such penons and such representatives of the government of india and the government of the state and of such organisations and institutions, as the governor may in such order specify (3) thechairp~rson of the committee shall be appointed by s the governor (4) the term of office of an elected member of the committee shall come to an end as soon as he ceases to be a member of the municipality or, as the case may be  the panchayat from which he was elected (5) the 'cglnm:ittee shall in preparing the draft development 10 plan,-(a)  to-(z) tile plans prepared by die mudidpaiities and the pac yaib in  mm'opuiitan area; (ii) idiitter's of common interest between the municipalities is and the panchayats including co-ord:inated spatial plandinr of the area, sharing of water and other physical and natural i'esoune8, the integrated development of infl'bstructure and, environmental conlk"rvation; (iii) the overall objectives 8ild priorities set by the govem- 20 dient of india and the government of the state (iv) the extent and nbture of investment hkely to be made in the metropolibm 8fta by agencies of the government of india ad of the government of the state; (v) file extent and type of available resources, wbether ftmm 25 dal or otberwise; (b) codiuit soda inmitudons uld orgaoisa4ions 1m the governor " by order, specify (6) 'i1ie 0iairpen0n of the conimlttee shad forward fhe demopment plan,  i'ecoiiiiiailcled by the commit", to the gom1lment of the st 30  chapter y-miscellaneous243za elections to the panchayats, municipalities and wards committees in every state shall be held simultaneously jdlections to panchayats, municipalities, etc to be held simultane_ ously 243zb (1) a person shall be disqualified for being chosen as and fod being, a member of a panchayat or m'unicipality or wards 35 committee-disqualificatiojlb for membership (a) if he holds any office of profit under the government of india or the govemment of any state, or a panchayat or municipality or wards committee or zonal committee in a state (to ba1as illtrc~:hced i:i i,oi: s:lb:ia)  -~',"     ' - ,- ~  -  ,--- - --- ---l page 2 line 20,-iq~ "agglomorations:' ~~9  ;·ag)lomerationsu 2 page 4 line 24,-foi~ flamognstlt ~ uamongst" 3 page 8, line 35,-new delhi; other than an office declared by the legislature of the state by law not to disqualify its holder; (b) if he is of unsound mind and stands so declared by a competent court; 5 (c) if he is an undischarged insolvent; (d) if he is not a citizen of india, or has voluntarily acquired the citizenship of a foreign state or is under any acknowledgment of allegiance or adherence to a foreign state; (e) if he is so disqualified by or under any law for the time 10 being in force fo,r the purposes of elections to the legislature of the state concerned; (f) if he is so disqualified by or under any law made by the legislature of the state (2) if any question arises as to whether a member of a pan-15 chayat or municipality or wards committee has become subject to any of the disqualifications mentioned in clause (1), the question shall be referred for the decision of the governor and his decision shall be final (3) before giving any decision on any such question, the gov-20 ernor shall obtain the opinion of the election commission and shall act according to such opinion 243zc notwithstanding anything in this constitution,-25 bar to interfer_ ence by, courts in clect0ral matters (a) the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies, made or purporting to be made under article 243j or under article 243t, shall not be called in question in any court; (b) no election to any panchayat or municipality or wards committee shall be called in question except by an election petition presented to such authority and in such manner as may 30 be provided for by or under any law made by the legislature of a state' 3 after the eleventh schedule to the constitution, the following schedule shall be added namely:-addition of twelfth schedule  ''twelfth schedule35 (article 243u) 1 public health 2 sanitation, incl  ding conservancy senices, public conveniences solid waste collection and disposal and recycling of waste water , i 40 3 drainage, sewerage and sewage disposal 4 hospitals, primary health centres and dispensaries 5 veterinary services 6 burials and burial grounds; cremations and cremation grounds 7 pounds and the prevention of cattle trespassj prevention of cruelty to animals 8 vital statistics including registration of births and deaths 9 prevention of adulteration of foodstuffs and other goods 10 communications, including roads, bridges, rerries, municipal 5 tramways, ropeways and inland waterways 11 city passenger transport and other vehicles, whether propelled mechanically or otherwise 12 maintenance of community assets 13 works, lands and buildings vested in or in the possession of i() the municipalities 14 fire services 15 welfare of the' weaker sections, and in particular, of the scheduled castes and the scheduled tribes 16 social welfare, including welfare of the handic'apped and men· is tally retarded 17 women ani child development 18 family welfare 19  education, including primary and secondary schools 20 technical training and vocational education 20 21 adult and non-formal education 22 libraries, museums ani other similar institutions 23 water supplies for drinking, industrial and commercial purposes 24 urban electrification, including distribution of electricity 25 25 non-conventional energy sources 26 town planning, including heritage conservation, urban arts and aesthetics 27 urban housing 28 parks, play grounds and recreational facilities 29 regulation and promotion of land use and buildings 30 slum improvement 31 urban forestry 32 investment, promotion and development of industrial and commercial estates 3-5 33 urban poverty-alleviation programmes 31 public distribution system 35 cultural activities 36 licensing of theatres and dramatic performances 31 pilgrimages" a review of the working of the urban local bodies has shown that in many states they have become weak and inet!ective on account of a variety of reasons, including the failure to hold regular and periodical elections, prolonged supersessions, inadequate representation to the weaker sections like the scheduled castes, the scheduled tribes and women, lack of financial resouroes and inadequate devolution of powers and responsibilities upon them 2 having regard to the inadequacies in the existing system and keeping in view the need to endow urban local bodies with such powers and authority as are necessary to enable them to function effectively as units of local self-government, it is proposed to add n~w provisions in the constitution relating to the municipalities, that is to say, the nagarpalikas 3 the bill proposes, inter alia, to-(a) make provisions for the constitution of three types of nagarpalikas: (i) nagar panchayats for transitional area, ie, areas in transition from rural to urban with a population between 10,000 and 20,000; however, the governor is being ~mpowered to declare the existing town committees, notified area committees, etc, with a population of less than 10000 as nagar panchayats; (ii) municipal councils for urban areas with a population between 20,000 and 3,00000; (iii) municipal corporations for urban areas with a population exceeding 3,00,000; however, tbe governor is being empowered to declare the existing corporations with a population of less than 3,00000 as mun:cipal corporaticlds; (b) make provisions for the constitution of wards committees in nagarpalikas with a population of more than 1,00,000 and, in the territorial area of municipal corporations, of zonal committees at an intermediate level between the wards committees and the municipal corporation; (c) provide for seats in nagarpaukas, including nagar panehayats, and wards committees to be fuled by direct eloection and for zonal committees to be constituted by the chairpersons of the wards committees comprised within the territorial area of the zonal committees; however chairpersons of wards committees shall be represented in municipal councils and chairpersons of zonaj committees shall be represented in municipaj corporations; (d) provide for reservations in nagarpalikas, including the nagar panchayats, and wards committees to ensure the due representation of the scheduled castes, the schedul'ed tribes and women; (e) ensure a fixed tenure of five years for the nagarpalikas, including the nagar panchayats, and wards committees; howev~r, if a nagarpalika or a wards committee is dissolved before the expiry of its term, provision is made for the conduct of elections within a period of six months of its dissolution to reconstitute the body for the remainder of the term;  (f) provide for the devolution by the state legislatures of powers and responsibilities upon the nagarpalikas, wards committees and zonal committees with respect to the preparation of plans for 'economic development and social justice and for the implementation of development schemes; (g) make provisions for the constitution of a committee at district level for harmonising and consolidating the plans of panchayats and nagarpalikas in the district and preparing a draft development plan for the district as a whole; (h) provid~ for filling of seats in the committee at the district level by election from and amongst the members of the panchayat at the district level and the nagarpalikas in proportion to the ratio of the population covered by them respectiv'e1y; (i) make provrsion for constituting a committee for metropolitan areas for preparing, in association with other agencies concerned, a draft development plan for the metropolitan area as a whole; (j) provide for the sound finance of the nflgarpalikas by securing authorisation from state legislatures for grants-in-aid to the nagarpalikas from the consolidated fund of the state as also assignment to, ot' appropriation by, the nagarpalikas of the revenues of designated taxes, duties tolls and fees; (k) provide for a finance commission to review the fin~nces of the nagarpalikas ~d recommend principhs on the basis of which state legislatures may dete"mine the taxes to be appropriated by, or assigned to, the na~arpalikas as also grants-in-aid to the nagarpalikas from the consohdated fund of the states; (1) vest in the klection commission the superintendence, direction and control of elfjciions to the nagarpalikas, including nagar panchayats and o'ther eleeted committees established under this part; (m) empower the comptroller and auditor-gene"al of india to cause the accounts of the nagarpalikas, wards committees and zonal committees to b'!l audited in such manner as he may deem fit; (n) exempt certain areas and territories from the application of the proposed provisions or empower the president and the governor to modify them in their application to union territories and scheduled areas and tribal areas respectively; (0) specify factors which would disqualify a person from membership of a panchayat or nagarpalika or ward committee; and (p) bar the jurisdiction of courts in matters relating to elections to the panchayats, the nagarpalikas and the wards committees 4 the bill ~eeks to achieve the aforesaid objectives new delhi; rajiv gandhi the 1st august, 1989 clause 2 of the bill seeks to insert articles 243n to 243zc in part ix of the constitution 2 articles 243r, 2438, 243y and 243z envisage the formation of warc-a committees, zonal committees, a committee for consolidating and preparing a dev'e!'lopment plan for a district and a committee for preparing a development plan for a metropolitan area, respectively the constitution of municipal bodies in accordance with the proposed provisions would require certain modifications and readjustments this will call for strengthening the administrative capability of the urban local bodies at various levels and may also imply certain training requirements though the responsibility in this regard would primarily be that of the local bodies concerned and the state governments, the central government may be required to share some portion of the extra expenditure that may be- involved in this process it is, however, difficult to estimate the annual recurring expenditure that will be involved in the exercise as it will depend upon specific decision!! taken bv the state governments in this behalf 3 article 243t provides for auditing of accounts of the municipalities wards committees and zonal committees in such manner as the comptroller and auditor-general of india deems necessary similarly that article provides for superintendence, direction and control of the elections to the municipalities' and wards committees to be vested in the election commission these provisions are likely to increase the work in the office of the comptroller and auditor-general of india as well as in the election commission and may necessitate augmentation of their staff however, both the comptroller and auditor-general of india and the chief election commissioner have indicated that in the absence of details regarding exact worklo8d involved, it would be difficult for them at the present moment to estimate the additional expenditure that wo'illd be involved there will be no other recurring or non-recurring expenditure a bill further to amend the constitution of india (shri ra;iv gandhi, prime minister) 