State Legislative Brief
KARNATAKA
The Bruhat Bengaluru Mahanagara Palike Bill, 2020
Key Features
|
Issues to Consider
|
The Constitution (74th Amendment) Act, 1992 provided for the establishment of urban local bodies (including municipal corporations) as institutions of local self-government.[1] It also empowered state governments to devolve certain functions, authority, and revenue to these urban local bodies, and made periodic elections to these bodies compulsory. The Bruhat Bengaluru Mahanagara Palike (BBMP) is the municipal corporation governing the Greater Bengaluru metropolitan area.[2] It was established under the Karnataka Municipal Corporation Act, 1976 (KMC Act).[3]
Experts have noted that urban local bodies across Karnataka and the country face certain challenges. These include lack of autonomy in city management which results in shortage of funds, stressed municipal finances, and overlap of functions with parastatals.[4],[5],[6] The Economic Survey (2017-18) had noted that these challenges led to poor service delivery and created administrative and governance challenges in cities.4
The BBMP Bill, 2020 was introduced in the Karnataka Legislative Assembly on March 24, 2020. It will replace the provisions of the Karnataka Municipal Corporation Act, 1976 in its application to Bengaluru. It seeks to provide an independent legislation for the BBMP to: (i) improve decentralisation, (ii) ensure public participation, and (iii) address certain administrative and structural concerns of Bengaluru.[7] The Bill was referred to a Joint Select Committee constituted by the state Legislative Assembly for further examination in March 2020.[8] This note analyses some of the key issues with the Bill.
Key Features
Currently, the KMC Act, 1976 provides for a three-tier system of administration, consisting of the BBMP Corporation, ward committees, and area sabhas. The Bill proposes to add a new level of zonal committees to the current municipal structure in Bengaluru. Figure 1 highlights the units of administration established under the Bill and the proposed key authorities under each tier. Table 3 in the annexure compares key provisions of the KMC Act, 1976 and the BBMP Bill, 2020.
Figure 1: Administrative structure proposed under the BBMP Bill, 2020
Corporation Mayor; Chief Commissioner |
→ |
Zonal Committees (maximum 15) Zonal Commissioner |
→ |
Ward Committees (maximum 225) Elected Councillor |
→ |
Area Sabha Representative |
Key features proposed in the Bill include:
Issues for Consideration
Bill does not decentralise powers to the Corporation as per the 74th Amendment
The Constitution (74th Amendment) Act, 1992 provided for the establishment of urban local bodies as institutions of local self-government and enabled decentralisation through devolution of powers to them. It also empowered states to devolve the responsibility of 18 functions to these urban local bodies. These functions include urban planning, regulation of land use, water supply, and slum upgradation.[9] However, in most Indian cities, a majority of these functions are carried out by parastatals (agencies managed by and accountable to the state government). Several experts have highlighted that the lack of independence and autonomy for urban local bodies poses a governance challenge and hampers service delivery and development of urban areas.4,5
The Statement of Objects of the Bill provides that it aims to improve decentralisation in Bengaluru.7 However, under the Bill the state government continues to exercise powers over certain areas of the Corporation’s working. We discuss some of these issues below.
Parastatal civic agencies and the Corporation
The Bill provides the Corporation with the power and responsibility to prepare and implement schemes for the 18 functions provided for in the Constitution (74th Amendment) Act, 1992. However, in Bengaluru, several of these functions are carried out by parastatals. For example, the Bengaluru Development Authority is responsible for land regulation and planning and the Karnataka Slum Clearance Board is responsible for slum rehabilitation.[10],[11] It is unclear if these parastatals will continue to perform these functions and if so, whether they will be accountable to the Corporation.
A CAG report (2020) examining the implementation of the 74th Amendment in Karnataka observed several overlaps in the functions between municipalities and parastatals.13 Of the 17 functions to be devolved by the state, the municipalities were solely responsible for three functions; had no role in two functions; had limited role in eight functions; and were only the implementing agencies in three functions. It noted that the existence of parastatals has eroded the autonomy of the municipalities in Karnataka to implement their functions.13
The Expert Committee on Indian Urban Infrastructure (2011) had recommended that activity mapping be done for the 18 functions.5 This means it should be specified which functions can be taken up by only the municipalities, which need to be shared with state governments, and which need to be performed concurrently by the municipalities, state governments, and the central government. The Second Administrative Reforms Commission (2007) had recommended that the municipality be responsible for providing civic amenities in its jurisdiction and if there is a parastatal exercising a civic function, it should be accountable to the municipality.13
Power to make Rules and sanction bye-laws
The Bill provides that the state government may make Rules for carrying out all or any purposes of the Bill. The Corporation may make bye-laws on matters specified in the Bill, which will be approved by the state government. If the state government finds that the Corporation has failed to make or has made inadequate bye-laws on a subject, it may make Rules for those subjects. Rules made by the state government will override any bye-laws made by the Corporation in such a case.
The CAG (2020) has noted that the power of the state government to frame Rules and sanction bye-laws on subjects under the jurisdiction of the Corporation restricts its autonomy.6
Human resource management
The Bill provides that the Corporation may make bye-laws for the due performance of duties by its employees. However, it does not mention other aspects of human resource management such as recruitment and promotion.
The CAG (2020) has observed that in Karnataka, the power to assess municipal staff requirements, recruiting such staff, determining their pay, transfer and promotion vests with the state government.6 This is in contrast with the recommendations of several experts who have suggested that municipalities should appoint their personnel to ensure accountability, adequate recruitment, and proper management of staff.[12],[13],[14] Note that in cities like Mumbai, and Coimbatore, and some states like Gujarat and Madhya Pradesh the recruitment process is conducted by the respective Municipal Corporations.[15],[16],[17],[18] However, final sanction for hiring staff lies with the state government.
Lease and sale of property
The Bill provides that the chief commissioner may sell any property of the Corporation with the prior approval of the state government. Further, the Corporation can lease its properties for over 30 years, only with the prior sanction of the state government. The CAG (2020) noted that the need for the sanction of the state government for the sale and lease of properties of the Corporation violates the spirit of self-government laid in the 74th Constitutional Amendment Act, 1992.6
Elected officials and commissioners
The Bill provides for the appointment of a chief commissioner and zonal commissioners by the state government. This raises certain questions on who should exercise certain functions of the Corporation. We discuss these below:
Executive powers with elected and appointed officials
Under the Bill, both the mayor, who is elected, and the various commissioners, who are appointed by the state, exercise several executive functions. The mayor is responsible for approving contracts and preparing the budget estimate for the Corporation. He is also required to discharge all functions assigned to him by the Corporation. Executive functions of the chief commissioner include: (i) selling or leasing properties owned by the Corporation, and (ii) regulating and issuing instructions regarding public streets. Executive functions of the zonal commissioner include: (i) granting licenses for the establishment and operation of industries, restaurants, and trade establishments, and (ii) taking measures to remove nuisance. Further, the zonal commissioner is the Chairperson of zonal committees, who can issue directions to officers of the Corporation to implement any project. This structure is contrary to the recommendations of several experts that at the local level, executive power must be exercised by locally elected officials to facilitate democratic governance.13,[19]
The Second Administrative Reforms Commission (2007) had noted that charging commissioners with executive power diluted the role of the mayor and violated the spirit of self-governance.13 The Expert Committee on Indian Urban Infrastructure (2011) had recommended that the commissioner should act as a city manager and be recruited through a transparent search-cum-selection process led by the mayor. The Model Municipal law, released by the Urban Development Ministry in 2003, provided that the executive power should be exercised by an Empowered Standing Committee consisting of the mayor, deputy mayor, and seven elected councillors.14
Note that, the delegation of executive power to commissioners and elected officials differs across India. For example, the executive power of the Corporation is exercised by a mayor-in council (consisting of the mayor and up to 10 elected members of the Corporation) in Kolkata and Madhya Pradesh.18,[20] Tamil Nadu and Gujarat vest the executive power in the commissioner.17,[21] In other countries, in large metropolitan cities such as New York and London, the mayor is the executive head of the local government.[22],[23]
Procedure for selecting area sabha representative
The Bill provides that territories representing between two to five polling stations can be determined as an area. Each area will have an area sabha which will comprise of all the voters in that area. Each area will also have an area sabha representative, who will preside over the meetings of the sabha and represent the area in ward committee meetings. He will be nominated by the zonal committees. It is unclear why the zonal committee is nominating the representative for the area sabha; this could lead to all area sabha representatives with affiliation to the party in majority at the zonal level being nominated, despite limited support at the area level.
The model Nagara Raj Bill (2006) and the model municipal law (2003) provide that an area sabha representative be chosen through elections.14,[24] The Second Administrative Reforms Commission (2007) had recommended that each area sabha elect a small committee of representatives, who elect one person to chair the meetings of the sabha.13
Body responsible for delimitation of wards
The Bill allows the state government to divide the area under the Corporation in up to 225 wards. A councillor will be elected from each ward. Further, the state government will decide the number of wards reserved for female candidates and candidates from Scheduled Castes, Scheduled Tribes, and backward classes. The question is whether the state government should be responsible for the delimitation and reservation for wards.
Note that at the central and state level, an independent delimitation commission is responsible for fixing the boundaries for Lok Sabha and state assembly seats.[25] The Second Administrative Reforms Commission (2007) and the CAG (2020) had recommended that the State Election Commission be charged with the task of delimitation and reservation of wards.6,13 Currently, some states such as West Bengal, Kerala, and Maharashtra have empowered State Election Commissions to conduct the delimitation of wards.13 Note that, in October 2020, the Karnataka government set up a four-member commission for the delimitation of wards.[26] This commission consists of the BBMP commissioner, the Bengaluru Urban district deputy commissioner, the Bangalore Development Authority commissioner, and the BBMP special commissioner for revenue.26
Dissolution of the Corporation
Lack of clarity on grounds for dissolution
The Bill provides that the Corporation will have a term of five years, unless dissolved earlier. However, it does not provide who has the power to dissolve a Corporation and on what grounds such dissolution can be done.
The KMC Act, 1976 provides that the state government has the power to dissolve any Corporation covered under the Act after giving it a reasonable opportunity of being heard.3 Municipal Acts of other cities such as Kolkata, Mumbai, and Chennai also have similar provisions.15,20,[27] These Acts provide certain grounds on which a Corporation may be dissolved. These include, if the state government is of the opinion that: (i) the Corporation is not competent to perform its duties, (ii) the Corporation exceeds or abuses its powers, or (iii) the financial position and the credit of the Corporation is seriously threatened.15,20,27
Powers of the mayor during interim administration
The Bill provides that when a Corporation is dissolved, the functions and powers of the Corporation and all authorities working under it will be taken over by a state government-appointed administrator. However, the Bill also provides that the mayor and deputy mayor will continue in office till their successor is elected. Therefore, it is unclear that till the new mayor and deputy mayor have been elected, whether their functions will be carried out by the incumbents or the state government-appointed administrator.
Procedure for the approval of the budget
The Bill provides that the mayor will prepare a budget estimate for the Corporation after considering the budget estimates from all the zonal committees. This estimate will be prepared, presented, and adopted in such manner as may be prescribed. However, the Bill does not specify if the budget will be approved by the Corporation.
The KMC Act, 1976 provides that the budget estimates be prepared by the Standing Committee for taxation and finance and then passed by the Corporation.3 The Corporation may refer the budget estimate back to the Standing Committee for further consideration or adopt the estimate either as it stands or subject to such any alteration. In cities such as Mumbai, Chennai, and Hyderabad the budget has to be approved by the Corporation or the Standing Committee on finance.15,27,[28]
Fines for some election-linked offences differ from the Representation of Peoples’ Act
The Bill provides for fines for offences linked to election proceedings for councillors. The fines for three of these offences differ from the penalties specified in the Representation of Peoples’ Act, 1951 (central legislation providing for the conduct of election for Parliament and state legislatures).[29] The table below specifies the difference between penalties under the Bill and the Representation of Peoples’ Act, 1951.
Table 1: Comparison of penalties for certain election-linked offences in the BBMP Bill, 2020 and the Representation of Peoples’ Act, 1951
Offences |
Penalty under the BBMP Bill |
Penalty under the Representation of Peoples’ Act, 1951 |
||||
Maximum Fine (Rs.) |
Maximum Imprisonment |
Maximum Fine (Rs.) |
Maximum Imprisonment |
|||
Causing disturbances in election meetings |
1,00,000 |
- |
2,000 |
six months |
||
Unauthorised printing of pamphlets |
1,00,000 |
six months |
2,000 |
six months |
||
Canvassing near a polling station |
1,00,000 |
- |
250 |
- |
The penalties are also significantly higher than those specified in municipal laws of other cities. In Mumbai, Hyderabad, and Chennai, the maximum fine for canvassing near a polling station is Rs 250.15,27,28 For causing disturbances in election meetings and printing pamphlets without authorisation, the maximum penalty specified in these cities is imprisonment up to six months and a fine of up to Rs 2,000.28
Maximum zones and wards
The Bill states that the Corporation should not have more than 225 wards. This is lower than the limits set by a recent amendment to the KMC Act, 1976.
In September 2020, the KMC Act, 1976 was amended to provide that the BBMP Corporation must have between 225 to 250 wards, to take account of the population in Bengaluru.[30] This was done to recognise the growth in population in the city and the possible re-adjustment geographical area it may require.
Drafting errors
The Bill has several drafting errors. Table 2 below provides the details of the some of these errors.
Table 2: Drafting errors in the Bill
Error |
Clause No. |
Details |
Blanks in certain clauses of the Bill |
2(3,49,50,53); 48; 84; 85 (6); 86; 87 (2); 96 (1,3,4); 98 (2); 99 (1); 100 (1); 103 (1); 116; 136; 143 (3); 184 (1)
|
|
Number of nominated members in ward committee |
57 |
The Bill provides that the ward committee will have a maximum of 20 nominated members. The same cluse also states that the ward committee will have 10 nominated members. |
No definition for a council |
46 (2); 49 (2); 54 (2); 83 (2, 4); 110 (2); 173 (3) |
The Bill provides that the Corporation shall determine property tax rate by a resolution passed at a general meeting of the council. It also provides that a council will approve the budget estimate of the Corporation. However, it does not define a council. |
Population density for an area to be under the Corporation |
4 (3) |
The Bill provides certain conditions for an area to come under the Corporation. The density of population for every one square kilometer of an area should not be less than 3,000 or 5,000 inhabitants. It is unclear whether the floor is 3000 or 5000. |
Annexure
The table below compares key provisions from the Karnataka Municipal Corporation Act, 1976 and the BBMP Bill, 2020.
Table 3: Comparison of the Karnataka Municipal Corporation Act, 1976 and BBMP Bill, 2020
Provision |
Karnataka Municipal Corporation Act, 1976 |
Bruhat Bengaluru Mahanagara Palike Bill, 2020 |
Composition of the Corporation |
|
|
Functions of Corporation |
|
|
Term of the Mayor |
|
|
Standing Committee |
|
|
Zones |
|
|
Number of Wards |
|
|
Ward Committee |
|
|
Area Sabha |
|
|
Taxes |
|
|
Fiscal Management |
|
|
Public Health |
|
|
Disaster Management |
|
|
Urban Heritage |
|
|
Sources: The Karnataka Municipal Corporation Act, 1976; the Bruhat Bengaluru Mahanagara Palike Bill, 2020; PRS.
The table below compares municipal Acts regulating Corporations of some metropolitan Indian cities with the BBMP Bill, 2020.
Table 4: Comparison of the BBMP Bill, 2020 with municipal Acts of some Indian metropolitan cities.
Provision |
Mumbai |
Chennai |
Kolkata |
Hyderabad |
BBMP Bill, 2020 |
Tiers of administration |
|
|
|
|
|
Composition of Corporation |
|
|
|
|
|
Functions of the Corporation |
|
|
|
|
|
Ward Delimitation |
|
|
|
|
|
Executive Powers |
|
|
|
|
|
Budget |
|
|
|
|
|
Key taxes |
|
|
|
|
|
Bye-laws |
|
|
|
|
|
Sources: Mumbai Municipal Corporation Act, 1888; Chennai City Municipal Corporation Act, 1919; Kolkata Municipal Corporation Act, 1980; Greater Hyderabad Municipal Corporation Act, 1955; Bruhat Bengaluru Mahanagara Palike Bill, 2020; PRS.
[1]. The Constitution (Seventy-fourth Amendment) Act, 1992, Department of Law and Justice, 1992, http://legislative.gov.in/constitution-seventy-fourth-amendment-act-1992
[2]. History of BBMP, Government of Karnataka, https://bbmp.gov.in/historyofbbmp.html.
[3]. Karnataka Municipal Corporation Act, 1976, https://www.indiacode.nic.in/bitstream/123456789/8129/1/14_of_1977_%28e%29.pdf.
[4]. Chapter 14: From Competitive Federalism to Competitive Sub-Federalism: Cities as Dynamos, Economic Survey 2017-18, Government of India, 2018, https://www.indiabudget.gov.in/budget2017-2018/es2016-17/echap14.pdf.
[5]. The High-Powered Expert Committee (HPEC) for Estimating the Investment Requirements for Urban Infrastructure Services, Ministry of Urban Development, March 2011, https://icrier.org/pdf/FinalReport-hpec.pdf.
[6]. Implementation of the 74th Amendment in Karnataka, Comptroller and Auditor General, 2020 http://agkar.cag.gov.in/docs/74th%20Constitutional%20Amendment%20Act%20English.pdf.
[7]. The Bruhat Bengaluru Mahanagara Palike Bill, 2020.
[8]. Joint Select Committee, Bruhat Bengaluru Mahanagara Palike Bill, 2020, http://www.kla.kar.nic.in/assembly/commjsc2/meeting_jsc2_24082020.pdf.
[9]. The Constitution of India, Ministry of Law and Justice, https://www.india.gov.in/sites/upload_files/npi/files/coi_part_full.pdf.
[10]. The Bangalore Development Authority Act, 1976, https://www.indiacode.nic.in/bitstream/123456789/7903/1/12_of_1976_%28e%29.pdf.
[11]. The Karnataka Slum Areas (Development) Act, 1973, http://www.dpal.kar.nic.in/pdf_files/33%20of%201974%20(E).pdf.
[12]. Report of the Fourth State Finance Commission, Karnataka, May, 2018, http://www.sfckarnataka.mrc.gov.in/sites/sfckarnataka.mrc.gov.in/files/4th%20Finan%20Com%20with%20sign.pdf.
[13]. Sixth Report, Second Administrative Reforms Commission, Ministry of Personnel, Public Grievances and Pensions, 2007, https://darpg.gov.in/sites/default/files/local_governance6.pdf.
[14]. Model Municipal Act, Ministry of Housing and Urban Affairs, Government of India, 2003, http://mohua.gov.in/cms/mml.php.
[15]. The Mumbai Municipal Corporation Act, 1888, H-4094 The Mumbai Municipal Corporation Act.pdf (maharashtra.gov.in).
[16]. The Coimbatore City Municipal Corporation Act, 1981, Government of Kerala, https://www.indiacode.nic.in/bitstream/123456789/13222/1/1._the_coimbatore_city_municipal_corporation_act%2C_1981.pdf.
[17]. The Gujarat Provincial Municipal Corporations Act, 2017, https://www.indiacode.nic.in/bitstream/123456789/4653/1/gpmcact.pdf.
[18]. The Madhya Pradesh Municipal Corporation Act, 1956, https://www.indiacode.nic.in/bitstream/123456789/3582/1/Municipal%20Corporation%20ACT1956.pdf.
[19]. Policy option paper on framing Municipal Laws in India, Ministry of Housing and Urban Affairs, Government of India, 2006, http://mohua.gov.in/upload/uploadfiles/files/chap10.pdf.
[20]. The Kolkata Municipal Corporation Act, 1980, http://www.wbja.nic.in/wbja_adm/files/The%20Kolkata%20Municipal%20Corporation%20Act,%201980.pdf.
[21]. The Tamil Nadu Urban Local Bodies Act, 1998, https://lawsofindia.blinkvisa.com/pdf/tamil_nadu/1999/1999TN9.pdf.
[22]. New York City Charter, http://www.nyc.gov/html/records/pdf/section%201133_citycharter.pdf.
[23]. Greater London Authority Act, 1999, https://www.legislation.gov.uk/ukpga/1999/29/section/35.
[24]. Model Nagara Raj Bill, Ministry of Urban Development, https://www.prsindia.org/uploads/media/NagaraRajBILL.pdf.
[25]. The Delimitation Act, 2002, http://legislative.gov.in/sites/default/files/09_Delimitation%20act%2C%202002.pdf.
[26]. Delimitation commission to carve out 243 BBMP wards, Deccan Herald, October 15, 2020, https://www.deccanherald.com/city/bengaluru-infrastructure/delimitation-commission-to-carve-out-243-bbmp-wards-902029.html.
[27]. Chennai City Municipal Corporation Act, 1919, https://lawsofindia.blinkvisa.com/statelaw/5213/TheMadrasCityMunicipalCorporationAct1919.html.
[28]. Greater Hyderabad Municipal Corporation Act, 1955, https://www.indiacode.nic.in/bitstream/123456789/8634/1/act_2_of_1956.pdf.
[29]. The Representation of Peoples’ Act, 1951, http://legislative.gov.in/sites/default/files/04_representation%20of%20the%20people%20act%2C%201951.pdf.
[30]. The Karnataka Municipal Corporations (Third Amendment) Act, 2020, https://prsindia.org/files/bills_acts/bills_states/karnataka/2020/Bill%2060%20of%202020%20Karnataka.pdf.
DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it.