Constitution of India, 1949
243Q. Constitution of Municipalities. —
(1) There shall be constituted in every State,—
(a) a Nagar Panchayat (by whatever name
called) for a transitional area, that is to say, an area in transition from a
rural area to an urban area.
(b) a Municipal Council for a smaller urban
area; and
(c) a Municipal Corporation for a larger urban
area, in accordance with the provisions of this Part:
Provided that a Municipality under this clause may not
be constituted in such urban area or part thereof as the Governor may, having
regard to the size of tile area and the municipal services being provided or
proposed to be provided by an industrial establishment in that area and such
other factors as he may deem fit, by public notification, specify to be an
industrial township.
(2) In this article, ‘a transitional area’, ‘a smaller urban
area’ or ‘a larger urban area’ means such area as the Governor may, having
regard to the population of the area, the density of the population therein,
the revenue generated for local administration, the percentage of employment in
non-agricultural activities, the economic importance or such other factors as
he may deem fit, specify by public notification for the purposes of this Part.