This Act has added a new Part IX-A to the Constitution of India.
This part is entitled ‘The Municipalities’ and consists of provisions from Articles 243- P to 243-ZG.
In addition, the act has also added a new Twelfth Schedule to the Constitution.
This schedule contains eighteen functional items of municipalities. It deals with Article 243-W.
The act gave constitutional status to the municipalities. It has brought them under the purview of justiciable part of the Constitution.
In other words, state governments are under constitutional obligation to adopt the new system of municipalities in accordance with the provisions of the act.
The act aims at revitalising and strengthening the urban governments so that they function effectively as units of local government
The act established three types of municipalities in every state.
A Nagar Panchayat (by whatever name called) for a transitional area, that is an area in transition from a rural area to an urban area.