Friday 17 February 2012

Seeking Accountability in Urban Local Governance of Maharashtra – An Analysis of Post – Implementation of Constitutional (Seventy-Fourth Amendment) Act, 1992 of the Functioning of Mumbai, Nagpur and Nashik Municipal Corporations[1]





 Introduction


1st June 1993, is considered a landmark in the history of local governance in India, as on this day  the Constitution (Seventy - Fourth Amendment) Act, 1992[2] (74th CAA, 1992) came into force. This Act for the first time in India’s Constitutional history accorded constitutional status to municipal governments in India in order to initiate a process of democratic decentralisation accompanied by accountability, responsiveness and transparency[3]. Decentralised Democracy in a Federal Structure meant devolution of powers from centre to state and from state to the local level, thus creating a third tier of governance.
The challenges to urban governance are manifold and complex – cities being seen as drivers of economic growth, the consequent magnetic pull to cities (population and resources) and the stresses of managing this influx. The vying for resources, civic amenities and services, are consequently leading to marginalisation and informalisation of the socially and economically poorer sections from living and working spaces in the cities. Devolution of powers, decentralisation and increased people's participation in local governance, would enable city governance to better cope with these challenges and improve its responsiveness to people's needs, in a more inclusive manner.
This study, is therefore, the initiation of a process of examining the functioning and performance of urban local governments in Maharashtra, post implementation of 74th CAA, 1992, with a view to seeking greater accountability of these urban local bodies, and at the same time trying to explore as to how these local governments could function and perform more effectively, to especially cater to the needs of the socially and economically marginalised populations.
Three Municipal Corporations of Mumbai, Nagpur and Nashik have been selected for the study, as these three cities represent three sizes, stages and nature of urbanisation, and are also governed by 3 different Municipal Acts[4].



Methodology

Minutes of the meetings of the General Body (GB) of the three Municipal Corporations for the year 2005-06, individual interviews with a few senior councillors, leaders of various political parties and officials from various departments and review of the major Acts impinging urban governance in these three cities has been the data used for this analysis.


Key Findings from Analysis of Minutes of General Body Meetings Held in Mumbai, Nashik and Nagpur Municipal Corporations in 2005-2006

1.       Adherence to Procedures and Rules
Sr.No.
Type of Procedures
Mumbai Municipal Corporation
Nagpur Municipal Corporation
Nashik Municipal Corporation
1.
Meeting of General Body of the Corporation – Once a month
55 meetings held in 2005-06. On average 4 meetings per month.
11  meetings held in 2005-06. On an average one meeting a month. However, for 5 months i.e. from 23.7.05 to 20.12.05 no meetings were held.
16 meetings held in 2005-06. On an average meetings held once or twice a month.
2.
Quorum
One fifth or 45 councillors must be present. The attendance range is 136 – 222. (Total Councillors 227)
One half for Special Meeting and One Third for General Meeting. The attendance range is from 100 – 135 Councillors. (Total 136)
One-third or 36 councillors must be present. The attendance range is 78 – 104. (Total Councillors 108)
3.
Agenda of the General Body
Agenda circulated seven clear days before the General Body Meeting.
Agenda circulated seven clear days before the General Body Meeting and three clear days before Special Meeting.
Agenda circulated seven clear days before the General Body Meeting.
4.
Legislative Tools
Point of Order, Notice of Motion, Interpellations, Adjournment Motions used by councillors.
No such tools found to be used except Point of Order.
No such tools found to be used. Only tool found is Calling Attention Motion.
5.
Budget presentation for 2005-06.
Budget discussions were held in month of  March 05. 
Budget discussion held in July and December 05 meetings of the General Body. The budget was rejected by majority 78 vs 43  in the December 05 meeting.Hence,Commissioners Budget became the budget for the year, which is legally allowed under Section 86 (4) of the CNC Act, 1948.
Budget discussion held in March 05.
6.
Presentation of Environment Status Report by the Commissioner[5].
Environment Status Report for 2004-05 presented in 21st October 2005 General Body Meeting.
Environment Status Report  prepared annually and submitted to the state since 2006.
Environment Status Report  prepared annually and submitted to the state since 2006. Report is not presented to the General Body.
7.

Audit Report
In 2005-06 the audit report of previous year (2004-05) not found to be tabled.
Audit Report 2001-2002 presented in 2005-06 to Standing Committee on 28.9.05. Audit Reports not prepared and submitted yearly. Backlog exists.
Not found to be tabled in 2005-06.
Not found to be tabled in 2005-06.

2.      Conduct of Business in the House

Municipal Corporation of Greater Mumbai  (MCGM) is the oldest Municipal Corporation in Maharashtra and there is certain maturity demonstrated in its administrative practices and conduct of business in the House. Codified rules and regulations for conducting business in a separate publication – Corporation Procedure Rules and Regulations[6]in addition to a chapter on the Proceedings of the Corporation in the MMC Act, 1888[7], has enabled systematic procedures.

The other two, younger Municipal Corporations have specified some rules and procedures, but they are not comprehensive, nor are they codified by a special publication as in Mumbai.  For Nagpur Municipal Corporation, the CNC Act, 1948, has a chapter on Conduct of Business,[8] but there is no mention of legislative tools to be used by the Councillors during the meetings of the Corporation, nor is there any mention of a prescribed order for conducting business[9] as exists in Mumbai’s MMC Act, 1888. 

In Nashik, the BPMC Act, 1949 has a chapter on Proceedings of the Corporation,[10] its statutory Committees and other Committees.  However it has not identified the various legislative tools to be used for deliberation in the House, nor is there a protocol designed to manage meeting agendas. Meanwhile, Nashik Municipal Corporation has prepared rules for conducting meetings vide section 454 and 457 (2) and (17) respectively of the BPMC Act, 1949 approved by the Government of Maharashtra.  In practice it is found that Councillors in Nashik Municipal Corporation often use Calling Attention (a tool used in the Legislative Assembly), instead of Point of Order.

Legislative tools are important because they provide mechanisms for dealing with divergent viewpoints and often heated debates that emerge in a democratic, deliberative process.  For example in Mumbai, members of the opposition tabled a no-confidence motion against the Mayor, based on allegations of fraud.  In contrast, in Nashik, heated debates regarding allegations of corruption against the administration disrupted one meeting a total of four times, simply because the Commissioner was not present in the meeting to provide necessary clarifications[11]. In Nagpur Municipal Corporation, the situation seems to be graver with instances of acrimonious behaviour in the house as described in Box 1.

Box 1:  A House Divided in Nagpur

At least two instances of acrimonious behaviour in 2005-06 significantly disrupted the business of the Municipal Corporation in Nagpur.  In one case, the ruling party did not allow the opposition parties to make suggestions during the Commissioner’s budget presentation.  In the end the budget was rejected by majority vote, which included Councillors from the Opposition and Ruling parties.

In another incident, a former Mayor of Nagpur used unparliamentary language and violated the directions of the current Mayor[12].  Both were from the same political party. When the current Mayor suspended him from the day’s proceedings, he refused to accept it.  Surprisingly, the majority backed the former Mayor instead of supporting his suspension from the day’s proceedings.  The lack of protocols for managing the business of the Corporation, combined with factionalism within the ruling party of the Municipal Corporation, resulted in the Councillors legitimising the rowdy conduct of the former Mayor and condoning acrimonious behaviour within the House.





There has also been an instance of one of the meetings being adjourned, without any discussion, as the Commissioners were absent in the meeting. Minutes of this meeting state “The members wanted to discuss important issues like water and committee formation for weaker sections of society. However, as Commissioners were absent who will listen and implement the ruling given by the Mayor” (Nagpur Corporation GB minutes, 28.02.2006).


Mumbai Municipal Corporation has prescribed procedures for paying homage to the deceased – namely, the death of a sitting Councillor, Ex-Presidents, Ex-Mayors and distinguished persons who have rendered noteworthy service to the city or the country. The meeting may be adjourned for a Shraddhanjali (Hindi for ‘homage to the deceased’) at the discretion of the Mayor and is usually done so after the entire business for the day is discussed. During 2005-06, five out of 55 meetings were adjourned in MCGM after paying homage, without conducting any other business.

In Nagpur and Nashik Municipal Corporations, however, no such procedures were found to be followed. In Nashik Municipal Corporation in 2005-06, three out of total sixteen meetings were adjourned after paying homage and nearly 50 items in the remaining 14 meetings discussed Shraddhanjali proposals.

In Nashik and Nagpur Municipal Corporations there is also a convention to have “congratulation proposals”. In Nagpur Municipal Corporation, out of the total of 11 meetings in 2005-06, two were adjourned after discussing only congratulations proposals. In Nashik Municipal Corporation, there were about 21 congratulatory proposals discussed at the beginning of 7 meetings.

While expressions of grief and joy are important and some conventions are in place for this purpose, it is also critical to have adequate frameworks to ensure sufficient time for conducting civic business.


3.    Discussion Priorities[13]

A review of the minutes of the three Municipal Corporations for 2005-06 reveals a certain trend, as detailed in Table 2 in the annexure. In all three Municipal Corporations, proposals pertaining to “regulation of land use and construction of buildings” figure most frequently on the agenda. The proposals were primarily for change from agricultural to non-agricultural use (as seen in Nagpur) or from non-development zone to residential zone or commercial zone (as seen in Mumbai and Nashik).    

Analysis of the minutes shows a similar number of agenda items related to “urban planning”.  However, this is not an indication that the Corporations are discussing broader urban planning issues.  Rather, because a land use change requires a change in the city’s development plans, the matter is referred to the Urban Development Department for its final clearance.  As such, the agenda items for urban planning are often directly related to the discussions about land use change. 

It must be mentioned that the proposals for land use change are not necessarily given approval. However, the fact that these proposals have figured most frequently in the General Body discussions, indicates the instigation for the rising land values and spurt in construction activity in the three cities.

Infrastructure, specifically proposals for “roads and bridges”, is the second most frequent item on the agendas of the three Corporations. Since the financial range of these proposals varies from lakhs to crores of rupees, they are required to be cleared by the General Bodies of the Corporations after getting approval from the Standing Committee. In Mumbai besides 21 proposals for construction or improvement of road infrastructure, there were 91 items on the agenda of General Body of MCGM on naming of roads, streets, chowks and maidans, which if counted would exceed the number of proposals on regulation of land-use.  There were 2 such items in Nashik Municipal Corporation. Such proposals did not appear on Nagpur Municipal Corporation’s agenda.

In Mumbai, there is also frequent inclusion of proposals related to “water supply”.  While some of the agenda’s pertained to proposals for refurbishment of old water lines, etc., bulk of the water-related agenda was a monthly reporting by the Municipal Commissioner to the General Body on the levels in the lakes that supply water to the city. Such reports are not tabled in the other two Municipal Corporations. Discussions on water in the other two Corporations were related to supply shortage, water contamination, infrastructure maintenance and enhancement, as well as one discussion in Nashik Corporation on water taxation in the context of JNNURM proposal to increase taxes on a no profit-no loss basis. Healthy discussion on this crucial matter of water pricing was noticed, with the General Body deliberating on loss reducing mechanisms, rather than readily accepting the proposal to hike prices.

““Public health” related agendas were also considerable in number, especially in MCGM. Of the 60 items discussed, 28 items were human resource related (primarily proposals for appointment of doctors in teaching positions in various municipal hospitals), 17 items were on hospital renovations and up gradations and 7 items were on outsourcing dispensaries and maternity homes on caretaker basis to various private institutions. In Nashik Municipal Corporation, of the 12 public health agendas, 7 were for setting up anganwadis[14], while others were one-off discussions on malaria, dengue and chikungunya; recruitment of doctors and training of nurses. A fair number of agenda’s related to “sanitation” were also discussed in all three Corporations, primarily regarding installation of storm water drains, sewerage lines, gutters and toilets in the cities.

Nashik Municipal Corporation discussed 11 items pertaining to “provision of urban amenities and facilities such as parks, gardens, playgrounds” as there is a policy of the Corporation to protect open plots by fencing or giving them to institutions for maintenance or for public gardens and jogging tracks for citizens. This policy serves to prevent formation of slums on these open plots. Nagpur Municipal Corporation had no discussion regarding open spaces and similar amenities, while Mumbai only had one discussion item on this agenda in the year of analysis.
“Promotion of cultural and educational aspects” has received some attention in all three Municipal Corporations. Although, as per the BPMC Act of the Nashik Municipal Corporation it is a discretionary function, there was considerable focus on cultural and education oriented activities, which included, a grant to Sane Guruji Kathamala[15], construction of an auditorium for cultural programmes, construction of libraries, construction of school and increase in wages for teachers. In MCGM there was some amount of discussion on the deteriorating standard of education in MCGM Schools and lack of infrastructure and on recommendations of Dhanuka Committee[16]. The one discussion in Nagpur Municipal Corporation was on the “glaring instances of disorder, lack of direction and control of the education system”[17] and the very poor implementation of Sarva Shiksha Abhiyan[18]. Problems cited were lack of qualified teachers and unqualified teachers teaching multiple subjects with overlapping languages of Hindi, Marathi and Urdu.

Matters that can be considered under the function of “safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded”, appear 7 times in Mumbai, while only once in Nagpur and Nashik Municipal Corporations respectively. In MCGM, discussions included a policy discussion on a proposal for providing employment and housing to the mill workers[19], a proposal to create insurance schemes for conservancy workers as well as income generation schemes for the blind and handicapped. Reviving Zunka Bakar Scheme as a means of providing employment to sons-of-the-soil was a policy discussion initiated through a Notice of Motion. In Nashik too the one agenda was of similar nature – pertaining to promotion of livelihood. In this case it was the construction of shop spaces in every ward for cobblers from the 5% backward class welfare fund of the Nashik Corporation[20]. In Nagpur the one agenda on the minutes was for the formation of the Weaker Sections Welfare Committee. However, due to the absence of the Commissioner in this meeting, the House was adjourned and no decision on this was taken[21].

While one can consider a number of discussions, especially pertaining to basic services such as water, sanitation, ICDS, etc. as catering to the urban poor populations in these cities, more strategic discussions pertaining to “slum improvement and up gradation” and “urban poverty alleviation” were sparsely discussed in the General Body of all the three Corporations. When one sees the large and growing proportion of slum population to total population, these two duties deserve more attention than it is receiving. Nashik Municipal Corporation had one discussion on the need to address the problem of growing populations and slum-like living conditions as fallouts of urbanisation[22]. Here, the House “unanimously agreed to address the slum issues within the existing slum policy” – meaning, provision of 225 sq. ft. tenements to slum dwellers having proofs of residence prior to 1995.

The only two discussions in Nagpur Municipal Corporation were about the poor implementation of poverty alleviation programmes. One was about the failure to effectively implement the Swarna Jayanti Rojgar Yojana[23] resulting in “non-payment to women for months together, forcing them to borrow heavily from middle-men, pulling them into heavy indebtedness and starvation”[24]. The other discussion was about the non-implementation of a Rs. 8 crore grant allocation for slum improvement, leading to its lapse[25].

While “slum improvement and up gradation” and “urban poverty alleviation” are discretionary duties in all three Municipal Acts, the function of “urban forestry, protection of the environment and promotion of ecological aspects” enlisted in the 12th Schedule is an obligatory duty in all three Corporations. However, this again was very sparsely discussed.

Finally, apart from the routine budget discussions, no discussions for an integrated approach to “planning for economic and social development” featured in the General Body discussions of all three Corporations. Meanwhile, what has been noticed in several places in this one year of the General Bodies discussions, are discussions to privatise basic services, such as maternity homes, solid waste management, open spaces and public recreational spaces such as gymnasiums and sports grounds. Essential services of water, sanitation, shelter, health, education and recreation must be treated as basic human rights, as enshrined in the United Nations Universal Declaration of Human Rights to which the Indian State is a signatory. Privatisation of essential services, is necessarily followed by price rise, reducing access to these services. Universal access to essential services can only be ensured when kept in the public domain of urban local governments.

On the whole, this snapshot of one year’s General Body discussions, reveal low levels of inclusiveness in the discussion priorities across these three Municipal Corporations – governing cities that are prototypes of three stages of urbanisation. The largest number of agendas across all three Municipal Corporations pertain to change in land regulations. This clearly reflects ambitions of fast paced urbanisation. This is however, inadequately supported by discussions to address concerns of inclusiveness in the urbanisation process, failing which, the fallout will be growing marginalisation, exploitation, poverty and social unrest.

4.       Accountability of the Municipal Corporations.

Analysis of Minutes to understand accountability of the three Municipal Corporations on six criteria i.e. prevalence of malpractices, corruption and alleged frauds; acrimonious behaviour; number of inquiries conducted, reasons for conducting inquiries, follow ups and tabling of reports; wastages; unfinished business and delays and privatisation of basic services and outsourcing of work by the Municipal Corporations, throw light on the functioning of these corporations and their accountability to the citizens.

    4.1       Prevalence of Malpractices, Corruption and Alleged Frauds.
There were malpractices, corruption and alleged frauds raised in all three Municipal Corporations in 2005-06. There were allegations of corruption against the administration as well as fellow Councillors in Mumbai, allocation of contracts to the highest bidder instead of a lower bidder in Nashik and allegations of a nexus between the contractors and the administration in Nagpur.  This however, we also see as indicative of the positive role of some Councillors in serving as watchdogs, taking steps to uncover and address these instances of alleged corruption.

In Mumbai, the Councillors exposed malpractices in the Estate and Market Department, particularly bringing out a case, in which, several new markets and galas (shops) allotted to Project Affected People (PAP) were kept vacant for nearly five years.  After this time lapse, the Market Department called for tender on 25th July 2005 for 10 markets.  Meanwhile, a developer sold 86 galas which should have been allotted to PAP, causing a loss of revenue to the Corporation in several crores. The developer was arrested and agreed to pay market rate for galas available with him.[26] 

The Mumbai Corporation also experienced allegations of malpractices against the Mayor for allotting a contract to clean nallas (open drains) worth Rs.4.5 crore without discussing it in the Standing Committee. When the Leader of Opposition  proposed a ‘no confidence motion’ against him, the Mayor responded to the charges of corruption by staunchly defending himself, stating that he had acted in the best interest of the city.  The no-confidence motion was put to vote and defeated.[27] 

In Nagpur, the Councillors raised doubt about a proposal to construct a new premises for the Corporation, the cost of which shot up to nearly three times the original estimates, from Rs. 13.5 crore in 2003 to Rs. 38 crore, 81 lakh in 2005. While questioning the accountability of the project, they pointed out that the recording of the proposal being unanimously approved is wrong, when only 12 members had given approval.[28]

There were also two allegations of corruption related to electricity provision in Nagpur Corporation. One was about 25,000 electric poles in the city of Nagpur not working. The electric company given the contract for maintenance of streetlights failed to do their job and it was demanded to terminate the contract[29]. The demand to terminate was approved by the General Body but was implemented only in 2007[30]. In a separate case, the Government of India project - Generation of electricity from the waste in the Nagpur city - came under cloud due to detection of fraudulent transaction to tune of Rs. 32 lakh. The Councillors alleged that the institution the Corporation engaged for this transaction did not in fact exist. The work was not done in the specified time limit and the bank guarantee turned out to be bogus[31]. While the Mayor gave a ruling to file an FIR (First Information Report) with an investigation to be conducted within 15 days, meeting minutes show little indication of follow-up.
These instances of malpractices in Nagpur Municipal Corporation raise serious questions about the role of the Administration as well as the elected Councillors.  Proposals appear to be tabled in the Corporation without any scrutiny from the administration, while the elected representatives have not been successful in stalling them. 

In Nashik, Councillors alleged corruption against the administration for allotting a garbage disposal contract that increased the annual cost of the service by Rs. 154,80,000, within three years.[32]  At the insistence of several Nashik Councillors, a writ petition was eventually filed in the High Court, with a decision in October 2005 to re-tender for the bid[33].  In another case, the Nashik Municipal Corporation granted a contract for work on a double-entry accounting system to a company with a bid of Rs. 383,00,000 instead of giving it to the lowest bidder who offered to do the same work for Rs. 163,00,000 (a difference of Rs. 2 crore 20 lakhs).[34] Following discussions, inquiries and legal counsel, the tender given to the highest bidder was cancelled and the Municipal Corporation invited a new tender to carry out the work.  Exposure of malpractices by vigilant Councillors in Nashik prevented the loss of public money. Yet, these incidents raise questions about functioning of the Standing Committee, which has the duty to scrutinise proposals and allocate contracts appropriately. 

Prevalence of corruption and malpractices is a stark reality. Decentralising powers of Urban Local Bodies to the ward level through Ward Committees and opening up the Committee to the people, will curb corruption and make decisions more accountable and need based. Systems such as public disclosure of information through standardised Management Information Systems (MIS) reports will also foster greater accountability. As one of the mandatory reforms under JNNURM, the Public Disclosure Law was enacted by the state as Maharashtra Municipal Corporations and Municipal Councils (Second Amendment) Act, 2007. The regular disclosure of reports stipulated under the Act through newspaper, internet, notice boards of Corporation offices and other modes must be implemented with immediate effect.

    4.2      Acrimonious Behaviour
Acrimonious behaviour is found more prevalent in Nagpur and Nashik Municipal Corporations than Mumbai, the reason being that the Councillors in Mumbai use legislative tools to register their protests. There have been incidences of Walk Out being undertaken by the opposition parties after the ruling parties passed items to which there was an objection from the opposition parties[35].  There was also an incident of tabling of no-confidence motion against the Mayor by the opposition parties alleging fraud[36]. Thus the Councillors in Mumbai have taken recourse to legislative tools to ventilate their grievances against the ruling party. Whereas, in Nagpur Municipal Corporation it was found that the ruling party was not allowing the opposition parties to make suggestions during budget presentation leading to rejection of budget by the majority[37]. Factionalism found within the ruling party of the Municipal Corporation in Nagpur in 2005-06, has also led to condoning of acrimonious behaviour by Councillors within the house.

In Nashik Corporation, it has been noticed that non-availability of concerned administrative authorities in General Body meetings have led to acrimonious disruptions of proceedings (at least four times of the total 17 meetings held in the year), based on allegations of corruption against the administration made by the Councillors. 

   4. 3      Inquiries Conducted, Reasons, Follow up and Tabling of Reports
Although the Commissioner or any other authorities are required to present reports, there are rare instances when reports are tabled within the stipulated time frame and action taken against erring parties on inquiry reports.

The reports tabled in Mumbai are of different types i.e. the Municipal Commissioner of Mumbai has been requested to present feasibility reports[38] on various proposals, where as in Nagpur Municipal Corporation and Nashik Municipal Corporation, the enquiry reports are pertaining to misbehaviour or malfunctioning or alleged scams. 122 reports[39] since 1997 have not been submitted by the successive Commissioners to the MCGM. Eighteen resolutions from 11th April 2005 to 28th June 2005 are listed in which the Commissioner has not tabled reports to the General Body of MCGM.

In Nagpur Municipal Corporation inquiry was to be conducted by Commissioner in case of malfunctioning of contractors who left the work of roads incomplete causing frequent accidents. Report was to be tabled within time span of eight days[40]. However there was no report tabled in the next meeting. In another inquiry into alleged misbehaviour by an officer from electricity department of Nagpur Municipal Corporation with contractors, it was found that the contractors refused to do the electric work as they alleged harassment meted to them by the officer, resulting in repeated advertising for the work (about 10 times) causing revenue loss to the Nagpur Municipal Corporation. Report was to be tabled by the Commissioner in a month’s time frame[41]. Report not found tabled in the next two meetings[42]. Inquiry was conducted by Maharashtra State Government against Nagpur Municipal Corporation General Body and the Standing Committee for not conducting meetings for 5 successive months[43]. No discussion on this issue was reported in the minutes of subsequent meetings.

In Nashik Municipal Corporation the Councillors demanded probe in the matter of the plots, which were allotted for resettlement and were allegedly given to the builders[44].  Commissioner sought probe by Principal Secretary – Urban Development Department of Maharashtra State Government. However no report was found tabled or discussed in the subsequent meetings. There were two internal Committees appointed for probing this issue but their reports too were not tabled in the house. 

   4.4      Wastages and Non-utilisation of Budget
Non-utilisation of budgetary provision leading to a lapse of fund is a waste of public money. The Opposition Leader has mentioned non-utilisation of 30% to 40% of budgetary fund in MCGM in the budgetary speech. According to the information available to him only 20% to 25% of work was done in A,B and E Budget till Jaunary 2006 and the rest of the work could not be completed in 3 months, thus leading to lapse of funds at the end of the financial year.

Poor maintenance of Municipal properties has also been found as a reason for escalated costs, as seen in the Rs. 1,62,75,000/- spent on repairs to the Mayors bungalow.

It is also found that funds of Corporations in Nagpur and Nashik were wasted on repeated advertisements to invite tenders.

In Nagpur, Rs.1 crore and public space was wasted in constructing a market, which has finally closed down, because of its non-accesibility to the public, while Rs. 8 crore allocated for slum improvement was forced to lapse due to non-utilisation. This raises serious questions, not only about efficiency, but also priorities.

    4.5       Unfinished Business and Delays in Decision Making  
Municipal Corporation of Greater Mumbai follows a practice of recording unfinished business, which is presented by the Municipal Secretary in the house. Unfinished business include the list of unanswered questions by Municipal Commissioners, Reports not tabled in the house by the Municipal Commissioner, Letters not disposed by the Standing Committee and Auditors, MCGM’s list of incomplete work by various committees, Interpellations not answered in prescribed period or during the tenure of the Councillor, thus leading to its expiry. While such recording of the details of unfinished business is not evident in Nagpur and Nashik Municipal Corporations, delays in implementation of work due to inefficiency of the administration is more evident in these two Corporations. Reasons include shortage of staff, frequent re-tendering, etc. Delays have also culminated in price escalation of projects or lapse of funds.

Administrative lapse in filling up vacant positions is prevalent in all three Municipal Corporations. Total Vacancies in Municipal Corporation of Greater Mumbai up to 31st March.2005 were - 15,135 posts to be filled by direct recruitment and 6532 posts were to be filled by promotion[45] where as total vacancies in Nagpur Municipal Corporation as on 20th October 2007[46] were – 2736. These vacancies in Nagpur existed for the past 4-5 years. Total vacancies in Nashik Municipal Corporation were – 1856[47]. Lack of personnel directly affect quality and quantity of services provided by these urban local bodies.[48]

   4.6        Privatisation of Basic Services and Outsourcing of Work
Privatisation of basic services and outsourcing of services that necessarily have to be provided by the Urban Local Body, has been taken as a criterion indicating accountability of the local government to its citizens, from the perspective of social and economic justice within cities. This direction towards outsourcing of public services, has emerged more in the General Body discussions of Mumbai and Nashik Corporations in the year of analysis. In Municipal Corporation of Greater Mumbai there is a clear trend of inviting private institutions to maintain open spaces, and public recreational facilities, as well as letting out maternity homes on a caretaker basis. Privatization of this sort, and consequent introduction of user charges, will only reduce access to these spaces and services for the urban poor.

Privatisation of water services has appeared twice on the agenda of Nashik Municipal Corporation in 2005-06, which has been strongly opposed by the Councillors. The administration cited several reasons for such a move – tracing it to establishment costs, machinery, water reservoir repair etc, chemicals and store material purchase, MSEB electricity bill and Irrigation department bill. Increase in water tax was also proposed but strongly opposed in the Standing Committee of Nashik Municipal Corporation.
However, in 2007 there has been increase in tariff on water by the Nashik Municipal Corporation. Metre system has been initiated in 70% area of Nashik. which have been installed on individual pipelines. The citizens are charged as per the reading appearing on the metre.

Attempts to privatise water supply are also being made in Mumbai, through, amongst other things, provision of pre-paid water meters to post-1995 informal settlements.

Conclusions and Suggestions :

Findings of the study raise a number of accountability concerns. Concerns with regards to conduct of business in the Municipal Corporation include acrimonious behaviour, holding meetings only to pay homage to a deceased dignitary or congratulate the accomplishment of a dignatory and conduct no other business and adjournment of meetings due to absence of responsible persons from the administration such as the Commissioner or an empowered deputy. These problems have largely emerged in the discussion minutes of Nashik and Nagpur Municipal Corporations. On the other hand, systematic procedures of conducting business have been found to be followed in Mumbai Corporation, including the use of legislative tools to register protests. The primary reason, as we see it, is the minimalistic rules and procedures for conduct of business in the House in the two newer Municipal Acts, viz., CNC Act, 1948 and BPMC Act, 1949, ruling Nagpur and Nashik Municipal Corporations respectively.

The prevalence of three different Municipal Acts in the same state has also allowed the Nagpur Municipal Corporation to implement a Commissioners Budget in 2005-06, without the necessary democratic sanctioning of the Corporation House. Also Nagpur Municipal Corporation does not have the post of a Municipal Chief Auditor and only conducts internal audits of its finances, that too only once in 3-4 years. One step towards dealing with these discrepancies is for the Urban Development Department to synchronise the different Municipal Acts on certain basic aspects of functioning such as conduct of business in the House and nature of Statutory Authorities and Deliberative Committees.

The other serious concern is the delays in tabling of reports, including statutory reports such as Financial Audit Statements. Apart from this, the reports the General Body seeks from the administration on feasibility of proposals, inquiries into cases of malpractices and malfunction, etc. are rarely found to be tabled, leading to delays in decisions, or, decisions taken with inadequate information. Here again, one reason we have been able to identify is the administrative lapse in filling up vacant positions in all three Municipal Corporations. Shortage of personnel in the corporations, not only affects the timely production of documents and reports for speedy decision making, but directly affects the quantity and quality of services provided by the urban local bodies.

Adherence to a comprehensive code of conducting business common to all Municipal Corporations will also help set in place systems of tracking unfinished business on a regular basis. In Mumbai Municipal Corporation, we have noticed the Municipal Secretary reports (although intermittently) the list of unfinished business, which have included, the list of unanswered questions by Municipal Commissioners, reports not tabled in the house by the Municipal Commissioner, letters not disposed by the Standing Committee and Auditors, MCGM’s list of incomplete work by various committees and Interpellations not answered in prescribed period or during the tenure of the Councillor thus leading to its expiry. Such recording of the details of unfinished business was not evident in Nagpur and Nashik Municipal Corporations.

Finally, it is always disturbing to see alleged malpractices, corruption and frauds rife in the institutions that govern our cities. Decentralisation of powers and functions is a crucial step towards checking this menace. Accessibility to information is also a crucial means of seeking accountability. The Right to Information Act is a very effective tool in the hands of citizens to access specific information. Apart from this, Municipal Corporations should also publically disclose information on a regular basis through standardised Management Information Systems (MIS) reports. The regular disclosure of reports stipulated under the newly enacted Public Disclosure Act, 2007, must be implemented with immediate effect across Municipalities.

Urban governance will be truly effective, when it is able to addresses the rights and needs of the most marginalised. According to the State Planning Commission of Maharashtra, 27% of the urban population in Maharashtra is poor (largest among all states) and the percentage of urban population to total population has almost doubled between 1977 and 2000 (from 24% to 45%).[49] Being able to catch up better with the pace of urbanisation and addressing the issues that emerge in an inclusive manner is necessary to reduce disparities and make cities just for all. The Constitutional Seventy-Fourth Amendment, is an excellent framework for inclusive and accountable governance in India but there is a need for strong political will for its implementation.

Annexures

Table 1: Salient Features of the Constitution (74th Amendment) Act, 1992 and its Implementation in the Municipal Corporations of Mumbai, Nagpur and Nashik


Sr No
Features of 74thCAA, 1992
Mumbai Municipal Corporation
Nagpur Municipal Corporation
Nashik Municipal Corporation
1.
243-Q[50] Constitution of Municipal Corporation in larger urban area[51].
Urban area with an approximate population of 1.2  crores
Urban area with an approximate population of 21 lakhs
Urban area with an approximate population of 15 lakhs
2.
243-R Composition of Municipalities.
227 councillors directly elected from 227 wards in 2002-07
136 Councillors directly elected from 45 wards in 2002-07
108 Councillors directly elected from 36 wards in 2002-07.
3.
243-S  Constitution and  Compostion[52] of  ‘Wards Committees.
Section 50 TT in MMC Act 1888 – 16 Wards Committees formed in 2001. NGO/CBO members nominated in 11 Wards Committees.
Section 38 A in the CNC Act 1948 – No Wards Committees formed.
Section 29 A of the BPMC Act 1949 – 6 Wards Committees formed since 1997.
NGO/CBO members not nominated since 1997 – 2007.
4.
243- T Reservation of seats.
76 Women, 15 SC, 2 ST, 61 BC in 2002-07.
46 Women, 26 SC, 12 ST, 37 BC in 2002-07.
38 Women, 13 SC, 8 ST, 29 BC in 2002-07. 
5.
243-U Duration of Municipalities
Duration for five years. Elections are held periodically every five years-2002 and 2007.
Duration for five years. Elections are held periodically every five years – 2002 and 2007.
Duration for five years. Elections are held periodically every five years- 2002 and 2007.
6.

243-W Powers, authority and responsibilities of Municipalities
Obligatory and discretionary duties, inclusive of the details of Twelfth Schedule are specified in Section 61 and 63 of Mumbai Municipal Corporation Act, 1888 respectively.
Obligatory and discretionary duties inclusive, of the details of Twelfth Schedule are specified in Section 57 and 58 of City of Nagpur Corporation Act, 1948.
Obligatory and discretionary duties, inclusive of the details of Twelfth Schedule are specified in Section 63 and 66 of Bombay Provincial Corporation Act, 1949.
7.
243.Z. Audit or accounts of Municipalities
Audit Report 2001-2002 presented in 2005-06 to Standing Committee in 28.9.05. However Compliance Report, which is prepared by Municipal Commissioner, is not ready[53].
No Yearly Audit conducted. Internal audit is done after every 3 to 4 years. Internal audit is done by private auditors and government auditors.
No Yearly Audit is conducted in Nashik Municipal Corporation.



Table 2 : Items appearing in General Body for discussions and approval in Municipal Corporations of Mumbai, Nagpur and Nashik in 2005-06 in comparison with Twelfth Schedule of the 74th CAA, 1992                                                    

Serial No
Provisions of 12th Schedule
Municipal Corporation of Greater Mumbai (55 meetings)
Nagpur Municipal Corporation (11 meetings)
Nashik Municipal Corporation (16 meetings)

Budget for 2005-06
Income:

Expenditure:
Rs. 9014.89 crores

Rs. 8516.12 crores
Rs. 409.28 crores


Rs. 375.6 crores
Rs. 412.67 crores


Rs. 355.93 crores
1
Urban planning including town planning.
 41
4
10
2
Regulation of land-use and construction of buildings.
41 +
 9 = 50
3  +
1 = 4
10 +
0 = 10
3
Planning for economic and social development.
Budget Discussion*
Budget Discussion*
Budget Discussion*
4
Roads and bridges.
21* + 4 = 25
3
27 + 2 = 29
5
Water supply for domestic, industrial and commercial purposes
36 *
3 
8
6
Public health, sanitation, conservancy and solid waste management
60 (public health) + 34 (sanitation) 
+ 3 (conservancy) + 1 (SWM)
= 98
1 +  3 +
 0 + 0
 = 4 
12 + 15 +
 3 + 0 = 30
7
Fire services
5
1
1
8
Urban forestry, protection of the environment and promotion of  Ecological  aspects
5
0
1
9
Safeguarding the interests of weaker sections of society, including  the handicapped and mentally retarded
7
1
1
10
 Slum improvement and up gradation.
2
1
2
11
Urban poverty alleviation.
0
1
1
12
Provision of urban amenities and facilities such as parks, gardens, playgrounds.
1
0
11
13
Promotion of cultural, educational and aesthetic aspects.
7 (cultural) + 7 (educational) = 14
1 (cultural) + 1 (educational) = 2
13 (cultural) + 11 (educational) = 24
14
Burials and burial grounds; cremations, cremation grounds
and electric crematoriums.
6
0
3
15
Cattle ponds; prevention of cruelty to animal.
1
1
1
16
Vital statistics including registration of births and deaths
1
0
0
17
Public amenities including street lighting, parking lots, bus stops and public conveniences.
9
2
5
18
Regulation of slaughter houses and tanneries.
0
1
0

Note: (3*) Budget discussions are the routine discussions which may be categorised as Planning for social and economic development (4*) Roads-related agendas enumerated here pertain to road improvement and do not include proposals for naming of roads, street or chowks for MCGM. (5*) Majority water supply related agenda pertained to monthly and weekly reports on water supply levels in Mumbai lakes submitted by the Commissioner for MCGM.


-         Paper written by Ms. Chandana Shetye, Senior Researcher
-         Urban Governance and Consultant – Maharashtra associated with YUVA, Mumbai.
 This paper is submitted to Centre for Good Governance, Hyderabad in May 2011.
[This paper is based on the report  ‘Examining Urban Governance in Maharashtra – Case Studies of Mumbai, Nagpur and Nashik Municipal Corporations’,  A Maharashtra Social Watch Report 2010 - research by Chandana Shetye.]

(7980 Words)



[1]                     This paper is substantially drawn from a report prepared by YUVA for Maharashtra Social Watch. Key Researcher for this report is Ms. Chandana Shetye, Senior Researcher on issues of urban governance.
[2]               Constitution (Seventy - Fourth Amendment) Act, 1992 also known as 74th CAA, 1992 or Nagarpalika Act.
[3]               Shetye Chandana, 2006, Functioning of Wards Committees in Maharashtra: A Case Study, in Sivaramkrishnan K.C. (edit), People’s Participation in Urban Governance, Published for Institute of Social Sciences, by Concept Publishing Company, New Delhi- 110059.
[4]              Municipal Corporation of Greater Mumbai (MCGM) is governed by Mumbai Municipal Corporation Act (MMC Act), 1888; Nagpur Municipal Corporation by City of Nagpur Corporation Act (CNC Act), 1948 and Nagpur Improvement Trust Act (NIT Act), 1936 and Nashik Municipal Corporation by Bombay Provincial Municipal Corporation Act (BPMC Act), 1949.
[5] Maharashtra Municipal Corporations and Municipal Councils (Amendment) Act, 1994 has amended the Municipal Corporation Acts of Mumbai, Nagpur and Nashik  and  made it mandatory for Municipal Commissioner to table Environment Status Report. The need to develop the Environmental Status Report (ESR), to include activities listed under twelfth schedule should not be viewed only as a Statutory obligation. It needs to be internalised among all municipal elected representatives, municipal personnel, and other stakeholders that urban environment need to be addressed because it ensures survival of the city and its citizens. The urban local body needs to develop a proper and sustainable framework to address these concepts, concerns, problems and perspectives through the proper policies leading to implementation of urban environmental management.
[6] MCGM, 2001, Corporation Procedure Rules and Regulation, Corrected upto December 2001, is a detailed publication for rules and regulations for conducting entire business of the MCGM.
[7]  MMC Act, 1888, Section 36 – Provisions regulating the Corporation’s Proceedings and 36 A – Power to withdrawal of member.
[8] CNC Act, 1948, Chapter III.
[9] There is a mention of adjournment of meeting in section 27 of CNC Act, 1948 and withdrawal or suspension of Councillors to preserve order in section 32 of CNC Act, 1948.
[10] BPMC Act, 1949, Chapter III.
[11] Nashik Municipal Corporation, minutes of the General Body meeting dated 17.01.2006
[12] Nagpur Municipal Corporation, minutes of the General Body meeting dated 21.07.2005. Details of both incidences in this text box were verified through interview with the Leader of the Opposition and a senior woman Councillor from the Ruling party.
[13]             Refer Table 2: Analysis of GB Minutes vis-a-vis 12th Schedule of Constitution 74th Amendment Act, 1992, appended at end of paper
[14] Care centres, providing early childhood care to children between 0-6 years and nutritional support to pregnant mothers. These are set-up under Government of India’s Integrated Child Development Scheme (ICDS).
[15] A child development activity through storytelling and other cultural forms
[16] The Dhanuka Committee report made recommendations for improvement of infrastructure in MCGM schools.
[17] Nagpur Municipal Corporation, minutes of the General Body meeting dated 28.01.06
[18] Sarva Shiksha Abhiyan (SSA) is Government of India's flagship programme for achievement of Universalization of Elementary Education (UEE) in a time bound manner, as mandated by 86th Amendment to the Constitution of India making free and compulsory education to children of 6-14 years age group, a fundamental right. (http://ssa.nic.in/)
[19] Mill workers in Mumbai have been dishoused with the closing down of textile mills in the city. General Body Meeting of MCGM dated 14.7.2005.
[20] Nashik Municipal Corporation General Body Meeting minutes dated 19.3.2005.
[21] Nagpur Municipal Corporation General Body Meeting minutes dated 28.2.2006.
[22] Nashik Municipal Corporation, minutes of the General Body meeting dated 19.03. 2005.
[23] A Centrally sponsored scheme for urban poverty alleviation. One of its major thrusts is capacity building of urban poor women for income generation activities.
[24] Nagpur Municipal Corporation, minutes of the General Body meeting dated 28.01.2006
[25] Ibid
[26] This scam was exposed by a councillor vide Notice under Section 66 (b) in the meeting dated 5th Dec. 2005 citing collapse of administration in functioning of Estate and Market Departments.
[27] MCGM, GB meeting dated 17.10.2005. When the Leader of the Opposition was interviewed, it was learnt that four members of Standing Committee called for Emergency Meeting to discuss no confidence motion via a written intimation on 11th October 2005 vide section 36(h) 1888 Act. According to Section 49 (a) Standing Committee meeting must be convened every week. According to Section 49 (c) in case a decision is to be taken on emergency basis, the Municipal Commissioner can write letter to Chairman of Standing Committee requesting him/her to convene a meeting within 24 hours. Thus, according to the Councillor, the Mayors action is illegal & the opposition parties are opposed to awarding contract in such a manner.
[28] Nagpur Municipal Corporation, minutes of the General Body meeting dated 28.01.2006
[29] Ibid
[30] As per follow up inquiry by the Research Team through RTI
[31] Matter discussed in Nagpur Municipal Corporation, minutes of the General Body meeting dated 21.07.2005
[32] Nashik Municipal Corporation, minutes of the General Body meeting, dated 7.06.2005.
[33] Information received through RTI
[34] Nashik Municipal Corporation, minutes of the General Body meeting dated 17.01.06
[35]             Resolution Nos.1119, 1120, 1121, 1122 and 1123,  Corporation General Body Meeting dated 10th January 2005, 2:30 pm pertaining to Maternity homes being given on caretaker basis.
[36]          MCGM Meeting held on 17th October 2005, 4: 06 pm.
[37]          Nagpur Corporation General Body Minutes dated 20.12.2005.
[38]             The Commissioner also presents reports such as Administrative Report, Environment Status Report, Reports on level of water in lakes providing water supply to the city to the General Body of the MCGM.
[39]             Item No. 838, Meeting dated 14th Oct 2005 2:30pm.
[40]             This issue was discussed in meeting dated 28.1.06.
[41]             This issue was discussed in a meeting dated 28.1.06.
[42]             Meeting dated 28.2.06 adjourned as commissioner was absent. 
[43]             This issue was discussed in meeting dated 20 /12 /05.
[44]             This issue was discussed in meeting dated 19.12.2005.
[45]             MCGM, Notice vide Section 66(C) in the General Body meeting dated 9th January 2006 by Shri D.B.Gavade to get information about the details of vacancies in accordance with the Establishment Schedule. The data provided by AMC Eastern Suburbs.
[46]             Nagpur Municipal Corporation data from Labour Officer 20th October 2007.
[47]             Nashik Municipal Corporation data,.March 2008.
[48]             Attempt was made to understand vacancies, department-vise with a reservation break-up, but this data was not readily available.
[49]             Maharashtra State Development Report, State Plan Division, Planning Commission, Government of India
[50]               Seventy fourth Constitutional Amendment Act corresponding sections 243-Q -
[51]             In Maharashtra population exceeding 3 lakh are categorised as Municipal Corporations.
[52]             In Maharashtra the Composition of Wards Committees consists of all councillors residing within the ward, the administrative officer as well as 3 nominated NGO/CBO Members.
[53]             MCGM, A and B Budget for 2004-05 has been submitted in 2007 and G Budget for 2005-06 has been presented in 2007.