The Delhi MCA Act denudes the spirit of federalism 

News: Recently, The Delhi Municipal Corporation (Amendment) Act 2022 was passed by the parliament.

Subsequently, the State Election Commission of Delhi deferred the announcement of schedule for the elections to the three Municipal Corporations of Delhi after the proposed unification of the three municipal corporations. 

What have been the arguments of the Central government about the validity of the act?

The MHA has stated that the Article 239AA(3)(b) empowers the parliament to make laws for the State of Delhi “on any matter”.  

What are some associated concerns? 

The Central government has conferred upon itself various crucial powers. It assumed control over the Municipal Corporation of Delhi from the State government. For example, the Centre is now empowered to determine the number of wards, extent of each ward, reservation of seats, number of seats of the Corporation, etc. 

The Central government has taken over powers from the State to decide on matters such as ‘salary and allowances, leave of absence of the Commissioner, the sanctioning of consolidation of loans by a corporation, and sanctioning suits for compensation against the Commissioner for the loss or waste or misapplication of municipal fund or property’.  

In 2011, the trifurcation of the Delhi Municipal Corporation was done after much deliberation and discussion at various levels. For example, 1987 Balakrishnan Committee Report, and the 2001 Virendra Prakash Committee Report proposed the slit-up. Thereafter, it went through a number of consultations. However, the decision to reunify has been done without any study or consultation with the Delhi government.  

The Centre’s argument of using Article 239AA does not hold ground. The Part IXA of the Constitution states that the State Legislature is empowered to make laws concerning representation to the municipalities. And, Article 239AA cannot override the general law related to municipalities mentioned in Part IXA of the constitution.  

– Further, Article 239AA was added by the Sixty Ninth Amendment Act of 1991. However, Part IXA of the Constitution was inserted into the Constitution later on through the Seventy-Fourth Constitutional Amendment Act of 1992.  

Recently, the Supreme Court of India in the famous State of NCT of Delhi vs Union of India judgment (2018) finally determined the scope of the Article 239AA. The Court ruled in favour of a balanced federal structure. It mandated that the Union does not usurp all powers and the States should enjoy freedom without any unsolicited interference from the Central Government with respect to matters which exclusively fall within the domain of state government.  

The MCD Act 2022 will lead to litigation on the aspect of a sharing of powers between the State of NCTD and the Central government.  

The act strikes a blow against federalism and the celebrated Indian model of decentralisation. 

Source: The post is based on an article “The Delhi MCA Act denudes the spirit of federalism” published in The Hindu on 21st April 2022.