State Legislative Brief

KARNATAKA

The Bruhat Bengaluru Mahanagara Palike Bill, 2020

Key Features Addition of zones to the existing three-tier system of administration in the city Chief and zonal commissioners appointed as administrative heads  Measures to improve fiscal management and certain new taxes added

Issues to Consider The state government continues to have powers over certain key areas of the Corporation  Both, the elected mayor and the appointed commissioners have executive powers Delimitation of wards will be done by the state instead of an independent commission

 

The Constitution (74^th 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. 

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

Key features proposed in the Bill include: 

• BBMP Corporation: The Bill establishes the BBMP (Corporation) as the apex municipal authority in Bengaluru.  It will be responsible for functions including preparation and implementation of schemes for social justice and urban development in the city.  It will have a term of five years.  It will consist of: (i) councillors elected from each ward, (ii) members of Lok Sabha and Karnataka Legislative Assembly whose constituencies are within the Corporation area, (iii) members of Rajya Sabha and Karnataka Legislative Council registered as voters in the Corporation, and (iv) nominated members (without voting rights).
   
• Mayor and deputy mayor: The elected members of the Corporation will elect two of its members to be the mayor and deputy mayor, and assign them their functions.  They will have a term of five years.
   
• Commissioners: The state government will appoint a chief commissioner, in consultation with the mayor, for a term of two years.  His functions will include: (i) supervising zones under the Corporation, and (ii) signing contracts on behalf of the Corporation.  The Bill also provides for the appointment of zonal commissioners responsible for civic administration in each zone.  
   
• Zones: The state, in consultation with the Corporation, will divide the municipal area into zones (maximum of 15), which will be administered through zonal committees.  Functions of the zonal committees will include: (i) supervision and implementation of projects and schemes, and (ii) approving fresh infrastructure projects.  Each zonal committee will consist of: (i) the zonal commissioner (as Chairperson), (ii) councillors elected from wards within the zone, (iii) engineer in charge of the zone, and (iv) two nominated members who are experts in waste management and urban governance. 
   
• Wards: The state government will divide the area under the Corporation in up to 225 wards with roughly equal population.  Each ward will have a ward committee which will be responsible for: (i) preparing ward development schemes, and (ii) supervising the schemes of the Corporation in their ward.  The Bill changes the composition of ward committees to: (i) increase the maximum number of nominated members from 10 to 20, (ii) include all representatives from area sabhas and representatives from certain parastatals as non-voting members.   
   
• Area Sabha: Each ward will be divided into area sabhas.  Each area sabha will have a representative, who will be nominated by the zonal committee.   Functions of the area sabha include: (i) generating proposals to determine the priority of development programmes, and (ii) identifying beneficiaries for schemes.
   
• Taxes: The Bill allows the Corporation to levy a tax on entertainment and professions and a cess on urban transportation.  This will be in addition to taxes on property and advertisement and a cess on infrastructure and solid waste management provided in the KMC Act, 1976. 
   
• Fiscal management: The Bill states that to improve fiscal management: (i) annual financial statements of income and expenditure will be prepared by the chief commissioner and audited by an empanelled Chartered Accountant, (ii) a medium-term fiscal plan will be framed by the mayor, and (iii) a debt limitation policy shall be framed by the Corporation.  

Issues for Consideration

The Constitution (74^th 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 (74^th 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 74^th 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 74^th Constitutional Amendment Act, 1992.6 

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 

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  

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.

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]

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	-

Sources: The Bruhat Bengaluru Mahanagara Palike Bill, 2020; The Representation of Peoples’ Act, 1951; PRS. 

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 

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.  

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)	Corresponding section numbers within the Bill not mentioned at various places Maximum term of an acting commissioner in case of death, resignation, or removal of the chief commissioner Time period for suggestions/objections of residents on closure of public streets Percentage of concession allowed on the payment of tax on property where any socially or ecologically beneficial scheme is being implemented
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	All elected councillors  Up to 10% of nominated councillors with expertise in administration, health, town planning, education, or social work (without voting rights). MPs, MLAs, and MLCs with constituencies in, or registration as voters within the Corporation area	All elected councillors Up to 15% of nominated councillors with expertise in health, town planning, education, or social work (without voting rights) MPs, MLAs, and MLCs with constituencies in, or registration as voters within the Corporation area
Functions of Corporation	Maintenance of boundaries, streets, sewage, markets, and water works  Regulation of dangerous trades, crematoriums, and unhealthy localities.    Maintenance of institutions, labs, and housing for poor	Prepare and implement schemes for social justice and urban development Core functions of the Corporation include urban planning, water supply, public health, sanitation, fire services, and slum improvement
Term of the Mayor	One year	Five years
Standing Committee	Each Committee comprises of 11 councillors There are 12 Standing Committees. These are on taxation and public finance, health, education, social justice, and appeals	Each Committee will comprise of 15 councillors There are 12 Standing Committees.  Addition of Committee on infrastructure and waste. No Committee for major public works and accounts
Zones	Does not specify	Up to 15 zones to be instituted within the Corporation, administered by Zonal Committees and headed by zonal commissioners
Number of Wards	Up to 250 wards can be established	Up to 225 wards can be established
Ward Committee	Will consist of the councillor as Chairperson and 10 other members	The Bill adds non-voting members to the Committee.  These are representatives from all area sabhas in the ward and some parastatals agencies
Area Sabha	Representative nominated by the Corporation on the recommendation of the councillor	Representative to be nominated by the Zonal Committee
Taxes	Taxes specified are: (i) property including building and vacant land, (ii) advertisements, and (iii) duty on transfer of property	The Bill adds taxes on professions and entertainment
Fiscal Management	Details procedure for passing the budget and its audit	The Bill provisions for medium-term fiscal plan, a debt limitation policy, auditing by empanelled Accountants and the post of Chief Financial Officer
Public Health	No specific chapters empowering the Corporation	Allows the Corporation to undertake sanitation and notify dangerous diseases
Disaster Management	No specific chapters empowering the Corporation	Assist the government by undertaking regulatory and supervisory functions Empowers the Corporation to prepare and publish a fire hazard response and mitigation plans
Urban Heritage	No specific chapters empowering the Corporation	Empowers the Corporation to give tax-based incentives for protection of heritage sites Provisions for a Heritage Conservation Committee to protect 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	Three tiers including: (i) the Municipal Corporation, (ii) up to 25 wards committees (similar to zones), and (iii) 227 wards	Two tiers including: (i) the Municipal Corporation, and (ii) wards	Three tiers including: (i) corporation, (ii) boroughs (administrative bodies, similar to zones), and (iii) wards	Four tiers including: (i) Corporation, (ii) zones, (iii) wards, and (iv) area sabhas	Four tiers including: (i) Corporation, (ii) zones, (iii) wards, and (iv) area sabhas
Composition of Corporation	227 elected councillors and five nominated members	155 elected councillors, MPs and MLAs representing the constituent areas or registered to vote in the Corporation	141 elected councillors and nominated members	Elected councillors, MPs, MLAs, and MLCs representing or registered to vote the constituent areas, and five nominated members	Elected councillors, MPs, MLAs, and MLCs representing the constituent areas or registered to vote in the Corporation, and up to 15% of the nominated members, who do not have voting rights.
Functions of the Corporation	Responsible for tasks in the area not delegated to other Municipal authorities	Maintenance and monitoring of water supply, street lighting, sewage, among other regulatory functions	Maintenance of civic necessities such as water and lighting, and upliftment of social justice through projects in sectors such as education and health	Responsible for tasks in the area not delegated to other Municipal authorities	Core functions of the Corporation include urban planning, water supply, public health, sanitation, fire services, and slum improvement
Ward Delimitation	The State Election Commission responsible	State government responsible	List of wards and their territorial limits given in the Act	State government responsible	State government responsible
Executive Powers	The Act does not empower the Mayor or the Commissioner as the executive head of the Corporation	The Commissioner has executive powers for carrying out the provisions under the Act	The executive power is exercised by the mayor-in-council within the Corporation	The Commissioner has executive powers for carrying out the provisions under the Act	The Act does not empower the Mayor or Commissioner as the executive head of the Corporation
Budget	Budget estimates are prepared by the Commissioner and Standing Committees, and adopted after consideration by the Corporation	Budget estimates are prepared by the Commissioner and adopted after consideration by the Corporation	The Budget is presented by the Mayor to the Corporation and adopted after consideration	Estimates made by Standing Committees compiled by the Commissioner and considered and adopted by the Corporation	Mayor to prepare estimates based on estimates sent by Zonal Committees
Key taxes	The Corporation is empowered to levy tax on property, streets, theatre, and water.	The Corporation can levy tax on property, companies, profession, carriages, and animals	The Corporation can levy tax on property tax, advertisements, toll, carts, and carriages	The Corporation can tax property, vehicles, animals, boats, and entertainment	The Corporation can tax property, advertisements, professions, and entertainment
Bye-laws	Must be confirmed by the state or central government	Must be confirmed by the state government	Does not specify	Must be confirmed by the state government	Must be confirmed by the state government

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.