PLANNING

1. 74TH AMENDMENT
ACT
DONE BY:
Jinal Bhavsar
Payal Bhoyal
Krupali Vejapara
Rakesh Donga

2. WHAT IS AMENDMENT OF THE
CONSTITUTION OF INDIA?
 Amendments of the Constitution of
India is the process of making changes to
the nation's fundamental law or supreme
law.
 The procedure of amendment in the
constitution is laid down in Part XX
(Article 368) of the Constitution of India.

3. WHAT IS 74TH AMENDMENT
ACT
‘74 constitutional amendment act’ 1992 is aimed to strengthen ULBS
through devolution of power towards decentralization
The aim and objectives of 74th con. Amendment is:
1. To set up institutional mechanism to facilitate decentralization.
2. Demarcate role of ULBs &specify their function
3. Specify areas deemed as urban to include new urbanizing areas.
4. Ensure representation of pubic specially deprived class/woman
5. Ensure that ULBs are not superseded

4. WHAT IS 74TH AMENDMENT
ACT
REASONS:
1. Urban areas and their governance have always been a subject of interest
and have traversed various territories, sometimes slippery, sometimes
firm, but always a matter of discussion and a favorite of policy making.
2. Efforts have been made by the government repeatedly to create smooth
and efficient ways of managing urban affairs. Another leap in this
direction was the 74th Amendment Act of the Constitution in 1992.
3. At that time it was considered a path breaking amendment because it
aimed at the creation of local governments and dissolution of powers to
them in the respective states.
4. It outlined a broad framework of institutions that would act as the local
governments and would ultimately bridge the gap between the
government and the governed.
5. The 73rd Amendment Act, which is known as the sister amendment
aimed at the creation of stronger, active bodies at the local level in the
rural areas.

5. HISTORICAL BACKGROUND OF
74TH AMENDMENT ACT
1. The process to amend the constitution was initiated by the then
“Prime Minister Rajiv Gandhi” during 1989.
2. Finally passed during December' 1992 and effective with effect
from April '1993.
3. Since the urban development is the state subject, all the state
was to enforce the provision of above amendment through
amendment of respective bye-laws of states within a year

6. 74th CAA
CONTENTS OF 74TH AMENDMENT:
ARTICLE 243 - the Indian Constitution was amended by the Constitution Act 1956,
which brought in the definitions of Panchayats and Municipalities within the ambit of
the Constitution.
Article 243 P- Metropolitan Area means an area having a population of ten lakhs
or more, comprised in one or more districts, and consisting of two or more
Municipalities or Panchayats or other contiguous areas, specified by the Governor by
public notification to be a Metropolitan Area for the purposes of this Part.
Article 243 Q - Municipal Area means the territorial area of a Municipality as is
notified by the Governor or State Government – Municipality
Article 243 S - Municipality will be divided into territorial constituencies known
as Wards.
Article 243 T – SC and ST reservation according to the population - and women
will be given one-third reserved seats
Article 243 U - 5-year term to the Municipalities, with the opportunity to be
heard if they are to be dissolved or superseded
Article 243 W- lays down some of the powers and functions of the Municipalities
as listed out under the Twelfth Schedule

7. Feature
 Constitution of three types of municipalities:
(i) nagar panchayats for areas in transition from rural area to urban area;
(ii) municipal council for smaller urban areas;
(iii) municipal corporation for larger urban areas.
 Composition of municipalities, which will be decided by the legislature of a
state having the following features:
(i) person to be chosen by direct election;
(ii) representation of chairpersons of committees, if any, at ward or other levels
in the municipalities;
(iii) representation of the persons having special knowledge or experience of
municipal administration in municipalities (without voting rights);
 Election of chairpersons of a municipality in the manner specified in the state
law;
 Constitution of committees at ward level or other level or levels within the
territorial are of a municipality as may be provided in the state law;

8.  Reservation of seats in every municipalities-
 for SC and ST in proportion to their population of which not less than one-
third shall be for women;
 for women which shall not less than one-third of total number of seats;
 in the favour of backward class of citizens if so provided by the legislature of
the state;
 for SC and ST and women in the office of the chairpersons as may be in the
state law;
 Fixed tenure of 5 years for the municipality and re-election within six months of
end of tenure. if a municipality is dissolved before expiration of its duration ,
election to be held within a period of six months of its dissolution;
 Devolution by the state legislature of powers and responsibilities. Upon the
municipalities with respect to preparation of plans for economic development and
social justice, and for the implementation of development scheme as may be
required to enable them to function as institution of self-government;
 Levy of taxes and duties by municipalities, assigning of such taxes and duties to
municipalities by state govt. and for making grants-in-aid by the state to the
municipalities as may be provided in the state law;

9.  A finance commission to review the finances of the municipalities;
 Audit of accounts of the municipal corporations by the comptroller
and auditor general of india and laying of reports before the
legislature of the municipal corporation concerned;
 Making of law by a state legislature with respect to elections to the
municipalities to be conducted under the superintendence, direction
and control of chief electoral officer of the state;
 Application of the provisions of the bill to any union territory or part
thereof with such modifications may be specified by the president-
exempting schedule areas and areas from the application of the
provision of the bill;
 Disqualifications for membership of a municipality;
 Bar of juridiction of courts in matters relating to elections to the
municipalities.

10. 74 TH CONSTITUTION AMENDMENT ACT AND ITS IMPLICATION
ON THE STATUTORY PROCESS IN TOWN AND COUNTRY PLANNING

11.  First UDPFI Guidelines were prepared in 1996 in consonance with the
provisions of 74th CAA .
 Part 2 contained suggested changes required in Model Regional and Town
Planning and Development Law (Volume 2A) and modifications in Town
Planning Acts of Maharashtra {Volume 2B) and Gujarat (Volume 2C).
 The objective of the Volume 2 A and B was to guide the State governments
to incorporate the provision especially of preparation Metropolitan and
District Plan
 However, most of the State Governments did not incorporate the
provisions in the Town and Country Planning Acts as suggested by UDPFI
Guidelines,1996.
 An attempt was made under the JNNURM wherein one of the reform was
to comply with 74th CAA with reference to constitution of both MPC and
DPC.
 States have constituted MPC and DPC but without strong professional
backup for preparing both metropolitan and district plans.
74rd AMENDMENT ACT IN TOWN AND COUNTRY PLANNING

12.  Rather ,the Acts needs reforms in view of compliance to 74th CAA and host
of emerging issues which calls for
 Expeditious completion of Master Plan process Need based and speedy
change of Land use Re engineering the overall regulatory framework.
Provision for notifying the sectoral plans.
 Urban Policies at the State level
 Constitution of State Regulatory body
74rd AMENDMENT ACT IN TOWN AND COUNTRY PLANNING

13. URBAN FINANACE- DEVOLUTION OF SOURCE OF REVENU
ETHROUGH SFCs
1. The 74th amendment directs state governments to constitute state finance
commission in line with central finance commission once in 5 years.
2. SFCs responsibility is to decide on sharing of state's tax, duties, tolls between state
and municipalities and also distribution between municipalities of the state.
3. It would suggest for improvement in financial position.
4. Though all the states have established SFCs delay in implementation of SFCs
suggestion are observed by most of the states.
5. There is also necessity for capacity building to comply SFCs guidelines.
6. It is also important to maintain balance between the Function and Finance.
7. Many of the States are yet to adopt new approaches to levy tax etc. to improve
financial base
74rd AMENDMENT ACT AND ITS EFECT ON URBAN INSTITITIONS

14. FUNCTIONAL DOMAIN-12™ SCHEDULE
The state legislations to assign 18 functions to ULBs as per 12th schedule related to
planning, infrastructure, public health, solid waste, fire service, environment,
poverty alleviation, amenities, culture, education, aesthetic etc. The details are
narrated below:
1. Urban planning including town planning.
2. Regulation of land-use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological
aspects.

15. 9. Safeguarding the interests of weaker sections of society, including the
handicapped and mentally retarded.
10. Slum improvement and upgradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facilities such as parks, gardens,
playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds; and electric
crematoriums.
15. Cattle pounds; prevention of cruelty to animals.
16. Vital statistics including registration of births and deaths.
17. Public amenities including street lighting, parking lots, bus stops and
public conveniences.
18. Regulation of slaughter houses and tanneries.

16. PLANNING AT DECENTRALISED LEVEL
In order to decentralize planning activity the 74th amendment directs for formation of
District planning committee and Metropolitan planning committee
1.DISTRICT PLANNING COMMITTEE:
District planning committee is to be set up to integrate planning for urban and rural areas.
4/5th of the representation shall be from elected members with representation from rural
and urban areas on proportionate basis. Public representatives are expected to provide
real needs, fix priorities, formulate policies of people. The responsibility of DPC is here in
under:
• To consolidate plan prepared by Panchayats and municipalities
• To prepare draft development plan considering economic development and social
justice.
• To look after common interest between Panchayats and municipalities including spatial
planning.
• To recommend socio-economic district development plan to state
• To integrate development of infrastructure.
• To available of resources and finances.
• To promote integrated and participatory planning
74rd AMENDMENT ACT AND ITS EFECT ON URBAN INSTITITIONS

17. PLANNING AT DECENTRALISED LEVEL
In order to decentralize planning activity the 74th amendment directs for formation
of District planning committee and Metropolitan planning committee
2.METROPOLITAN PLANNING COMMITTEE:
1. Metropolitan planning committee is to be set up with the similar objectives DPCs
at metropolitan cities ( 35 Nos) having population more than 10 lacs.
2. 2/3th of the representation shall be from elected members with representation
from rural and urban areas on proportionate basis.
3. MPCs shall act with overall objectives and priorities of Gol/ State and investment
need. While only West Bengal has constituted the MPCs namely Kolkata
metropolitan Committee, Maharastra is in the process of setting up the
committee.
4. With the constitution of MPC, there is a need to define role of development
authorities, state depts like roads, PHE, water supply, Housing Board. There may
be also conflict between DPC and MPC in respect of jurisdiction. Since the MPC is
a new body it is required to be equipped with professionals like town planners for
preparation of spatial planning. Most of the state is required to amend their town
and country planning act
74rd AMENDMENT ACT AND ITS EFECT ON URBAN INSTITITIONS

18. PLANNING AT DECENTRALISED LEVEL
In order to decentralize planning activity the 74th amendment directs for formation
of District planning committee and Metropolitan planning committee
2.METROPOLITAN PLANNING COMMITTEE:
As per the UDPFI guidelines formulated Govt, of India following responsibilities are
made in addition to above:
1. Formulate development goals , objective sand policies
2. Perspective plan within 5 years
3. Development plan within 2 years
4. Metropolitan area annual plan
5. Consult professional organizations like CII.FCCI for monitoring and resolve
conflict.
74rd AMENDMENT ACT AND ITS EFECT ON URBAN INSTITITIONS

19. SOURCES
 http://indiacode.nic.in/coiweb/amend/amend74.htm
 http://moud.gov.in/legislation/constiution
 http://www.slideshare.net/umeshvarma1/municipal-structures-in-india?qid=5b15af51-6437-4db
from_search=1
 http://www.nrcddp.org/file_upload/73rd%20and%2074th%20Constitution%20Amendment%20Act
 http://www.yourarticlelibrary.com/constitution/74th-amendment-of-the-constitution-of-india-
 http://www.preservearticles.com/2011100514743/essay-on-the-the-constitution-74th-amendm
 http://ccs.in/internship_papers/2004/2.%2074th%20Amendment_Areeba.pdf
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