Reservation of Seats in Urban Local Bodies for SCs, STs, and Women

• Reservation for SCs and STs: The Act provides for reservation of seats for the scheduled castes and the scheduled tribes in every municipality in the proportion of their population in the municipal areas.
• Reservation for Women: The act also provides for the reservation for women. At least one-third of the total number of seats is allocated for women, which also includes those seats reserved for women belonging to the Scheduled Castes and Scheduled Tribes.
• Reservation in the office of Chairpersons: The state legislature provides the manner of reservation of offices of chairpersons in the municipalities for the scheduled castes, scheduled tribes and women. It can also provide for the reservation of seats in any municipality or offices of chairpersons in municipalities to encourage the participation of backward classes.

Duration and Dissolution of Municipalities in India

Every municipality shall have a term of five years. However, they can be dissolved before the completion of their term. Fresh elections to form a municipality must be completed

• Before the expiry of its duration of five years.
• In case of dissolution, before the expiry of a period of six months from the date of its dissolution.

It should be noted that if a municipality is reconstituted after premature dissolution, it does not enjoy a full term of five years but remains in office only for the remainder period. 

There are two other important provisions with respect to dissolution:

• A municipality should be given a fair chance to present its case before any decision to dissolve it is made.
• A municipality cannot be dissolved before expiry of its term by an amendment of any law for the time being in force.

Qualification and Disqualifications for Urban Local Body Elections

• Qualification: Indian citizens above 21 years are qualified for contesting elections in the Urban Local Bodies.
• Disqualification: An individual will be disqualified from being elected or serving as a member of a municipality if they are disqualified-
  • Under a law which was for the time being in force for the purposes of elections to the legislature of the state concerned.
  • Under any law that is made by the state legislature.
  • under any applicable law concerning elections to the state legislature. 

The questions of disqualifications are referred to the authority as the state legislature determines.

State Election Commission in Urban Local Body Elections

The state election commission is empowered and authorised for superintendence, direction, and control of the preparation of electoral rolls. The state election commission is also authorised to conduct the elections of the municipalities. Only the state legislature is empowered to make provisions with respect to all matters related to elections to the municipalities.

Powers and Functions of Urban Local Bodies in Economic Development and Social Justice

The state legislature is empowered to grant authority to the municipalities that shall enable them to function as institutions of self-government. The state legislature can devolve powers and responsibilities to the municipalities with respect to:

• Preparation of plans for economic development and social justice.
• The schemes designed for economic growth and social equity are to be implemented. 

Finances of Urban Local Bodies in India

The state legislature is empowered to:

• A municipality is authorized to impose, collect, and allocate taxes, duties, tolls, and fees.
• To assign to a municipality taxes, duties, tolls and fees levied and collected by the state government.
• To provide grants-in aid to the municipalities from the consolidated fund of the state.
• To provide for the constitution of funds for crediting all funds of the municipalities.

Finance Commission in Urban Local Bodies

The Finance Commission is empowered to review the financial position of municipalities every five years and shall make recommendations to the governor. Such recommendations are generally based on the following-

• There should be a distribution of funds among the states, municipalities, and the net revenue generated from taxes, duties, tolls, and fees imposed by the state.
• Determination of taxes, duties, tolls and fees that could be assigned to the municipalities.
• The grants-in-aid to the municipalities from the consolidated fund of the state.
• Provisions for measures that are required to improve the financial position of the municipalities.
• Other recommendations that might be deemed necessary for sound finances of the municipalities.

The Governor is further required to place recommendations of the commission along with the report highlighting the actions taken before the state legislature.

The Central Finance Commission shall suggest measures that are required to augment the consolidated fund of a state to supplement the resources of the municipalities in the state (on the basis of the recommendations of state finance commission)

Audit of Account

The state legislature is empowered to make provisions for the maintenance of accounts by municipalities and the auditing of such accounts.