The 74th Constitution Amendment Act, 1992 of Indian Constitution in India aims at a decentralised regime through the mechanism of devolution of functions, finances and functionaries to urban local bodies. Originally, the Constitution of India envisaged a two-tier system of federation. Until 1992, local governments had not been a Constitutional component of the Indian planning and development strategy. It took nearly four decades to accord a constitutional status to Local Self-Governments and, thereby create a three-tier system of federation. With the Constitution (73rd Amendment) Act, 1992 and the Constitution (74th Amendment) Act, 1992, local bodies became the third stratum of government. Enormous responsibilities have been identified for urban local bodies in the 74th Constitution Amendment. These include:

i) preparation of plans for economic developments and social justice, and

ii) implementation of such plans and schemes as may be entrusted to them, including those in relation to the matters listed in the Twelfth schedule to the Constitution (Article 243W). Besides the 18 items of responsibilities envisaged as legitimate functions of Urban Local Bodies in the Constitution of India. The Legislature of a State, by law, can assign any tasks relating to the preparation