INITIATIVES LEADING TO THE CONSTITUTION 74TH AMENDMENT ACT, 1992
THE government of India introduced the Constitution (65th Amendment) Bill, 1989, in Parliament in August. The statement of objects and reasons underscored endowing urban local bodies "with such powers and authority as are necessary to enable them to function effectively as units of local self-government...". Although the bill was passed by the Lok Sabha, the Rajya Sabha did not pass it because the Opposition contended that the Union government was attempting to impinge on the autonomy of the states.
After the National Front government assumed power in December 1989, the amendment bill was reviewed and revised. A new bill, the Constitution (73rd Amendment) Bill, 1990, including provisions relating to panchayats as well as municipalities, was introduced in Parliament in September. But the Bill lapsed due to the dissolution of the Lok Sabha.
The Constitution (73rd Amendment) Bill, 1991, was introduced in the Lok Sabha on September 16, 1991. Its statement of objects and reasons said, "...in many states, local bodies have become weak and ineffective on account of a variety of reasons, including the failure to hold regular elections, prolonged supersession and inadequate devolution of powers and functions. As a result, urban local bodies are not able to perform effectively as vibrant democratic units of self government". The Constitution (73rd Amendment) bill was passed by Parliament in December 1992; it became the Constitution (74th Amendment) Act, 1992, and was brought into force on June 1, 1993.