Urban Local Bodies (ULBs) are institutions of local self-governance, also known as municipalities, which constitute the third tier of government in India, responsible for administering cities, towns, and transitional areas. The concept was given constitutional status by the 74th Constitutional Amendment Act, 1992, which came into force on June 1, 1993. This landmark amendment was introduced to solve the problem of centralized control and the arbitrary dissolution of municipal bodies by state governments, aiming to promote democratic decentralization and improve urban services.
The Act added Part IXA (The Municipalities) to the Constitution, covering Article 243P to 243ZG. Article 243Q mandates the constitution of three types of ULBs based on the area's character: a Nagar Panchayat for transitional areas, a Municipal Council for smaller urban areas, and a Municipal Corporation for larger urban areas. Key provisions include a fixed term of five years for every municipality (Article 243U) and the direct election of members. Furthermore, Article 243T mandates the reservation of at least one-third of the total seats for women.
The functional mandate of ULBs connects directly to the Twelfth Schedule of the Constitution, which lists 18 functional items such as urban planning, water supply, and sanitation that may be devolved to them. Related institutions mandated by the Act include the State Election Commission (SEC) and the State Finance Commission (SFC). While the constitutional framework is robust, a recent audit in 2024 highlighted that the devolution of the 18 functions remains incomplete, with ULBs on average having autonomous control over only about four of them, indicating that the implementation of the Act's provisions is still a work in progress.