It was also passed by Parliament in Dec. 1992 in order to activate Municipalities and to confer them statutory status. It provides for
constitution of three types of municipalities.
Reservation of seats in every municipality for the Scheduled Castes, the Scheduled Tribes, Women and backward classes
Devolution of powers and responsibilities upon the municipalities with respect to preparation of plan for economic development, levy of taxes and duties, and review of finances of the municipalities
Conducting election to the local bodies by an independent State Election Commission.
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