CHAPTERͲI Introduction to Ulbs in the State of Bihar 1.1 Constitutional Background After the 74 Constitutional Amendment Act, G

CHAPTERͲI

IntroductiontoULBsintheStateofBihar

1.1 ConstitutionalBackground

Afterthe74thConstitutionalAmendmentAct,GovernmentofBiharenactedtheBihar MunicipalAct(BMA),2007forNagarNigam,NagarParishadandNagarPanchayat.Thereare11 NagarNigams,43NagarParishadsand87NagarPanchayatsinthestateofBihar.Atthestate leveltheUrbanDevelopmentandHousingDepartment(UD&HD)coͲordinatesthefunctioning oftheUrbanLocalBodies(ULBs).ImportantstatisticsoftheStatearegiveninthetablebelow:Ͳ TableͲ1 ImportantStatisticsoftheState Sl. Unit State Ranking AllIndia No. figure among figure states 1ShareinCountry'sPopulation percent 8.07 2ShareofRuralPopulation percent 89.5 3 TotalArea km² 94,163 12 32,87,240 4 PopulationDensity perkm² 881 2 313 5 Literacyrate(2001) percent 47 28 ~65 6 Sexratio per1000 919 20 933 7 Populationbelowpovertyline percent 41.4 27.5 (FY05)

1.2 OrganisationalStructureofULBs

ThefollowingtabledepictstheorganizationalstructureoftheULBsatdifferentlevels.

ElectedBody Minister(UrbanDevelopmentandHousingDepartment)

MunicipalCorporation NagarParishad NagarPanchayat

Mayor MunicipalChairperson MunicipalChairman

WardCommissioner WardCouncillor WardCommissioner

1 TableͲ2 ElectedBody LevelofLB ElectedBody Authorities Others District NagarNigam Mayor,Deputy Memberselectedfromterritorialconstituencies. Elected head of Nagar Nigam i.e. Mayor is exͲofficio Mayorand memberofNagarNigam. Standing Committees

District/SubͲ Nagar Chairman, Memberselectedfromterritorialconstituencies. division Parishad Elected head of Nagar Parishad i.e. Chairman is exͲ ViceͲChairman officiomemberofNagarParishad. andStanding Committees District/SubͲ Nagar Chairman, Memberselectedfromterritorialconstituencies. division/Block Panchayat ElectedheadofNagarPanchayati.e.ChairmanisexͲ ViceͲChairman officiomemberofNagarPanchayat. andStanding Committees AdministrativeSetup

Secretary(UrbanDevelopmentandHousingDepartment)

MunicipalCorporation NagarParishad/Panchayat

ExecutiveOfficer MunicipalCommissioner

1.MunicipalFinanceOfficer 1. Controller of Finance and Accounts 2.Asstt.Engineer 2. Internal Auditor 3.HealthOfficer 3. Chief Municipal Engineer 4.MunicipalSecretary 4.Architect&TownPlanner 5.HealthOfficer 6.LawOfficer 7.MunicipalSecretary 8.ThreeadditionalMunicipal 2 Commissioners TableͲ3 PowersandRoleofStateGovernment Authority PowersandRoleofStateGovernment Section42ofBMA, MunicipalEstablishmentAuditCommission 2007 For the purpose of review of the existing establishment of the Establishment in the State and for fixing norms and standards of manpower for different tasks performed at various levels of Municipalitiesandforperformanceofsimilarotherfunctions,the StateGovernmentmayconstituteaMunicipalEstablishmentAudit Commission. Section44ofBMA, StateMunicipalVigilanceAuthority 2007 The State Government may, by notification, entrust the responsibilitiestotheStateVigilanceBureau,forinquiringintoany complaintofcorruption,misconduct,lackofintegrityoranyother kindofmalpracticeormisdemeanouronthepartofanyofficeror otheremployeeofaMunicipalityandfortakingsuchsuitablelegal actionsaccordancewithlaw. Section419ofBMA, Powertomakerules 2007 Governmentmay,bynotification,makerulestocarryoutthe purposeofBMA,2007subjecttoapprovalbytheStateLegislature. Section65and66of Powertoinspectoffice,recordsetc. BMA,2007 Governmenthasthepowertoinspectanyofficeorrecordsunder thecontroloftheULBsthroughsuchofficernotbelowtherankof (a) aDeputySecretarytotheStateGovernmentinthecaseof aMunicipalCorporation,andMunicipalCouncilofclass“A” and“B”, (b) anUnderSecretarytotheStateGovernmentinthecaseof a Class “C” Municipal Council or Nagar Panchayat, as the casemaybe.However,itisnotmentionthatwhichinterval theinspectionwillbedone. Section421ofBMA, Powertomakeregulations 2007 TheMunicipality,may,fromtimetotime,makeregulationsforthe purposeofgivingeffecttotheprovisionsofBMA,2007subjectto approvaloftheStateGovernment. Section274&275of Developmentandplanning BMA,2007 TheMunicipalityshallparticipateintheelectionofmembersofthe District Planning Committee and such members shall actively representtheinterestoftheMunicipalityinsuchcommittees. Also, the Municipality shall undertake preparation of plans for improvementandinfrastructuredevelopment.

3 Authority PowersandRoleofStateGovernment Section487ofBMA, Removalofdifficulties 2007 If any difficulty arises in giving effect to the provisions of BMA, 2007,theStateGovernment,maybyorder,doanythingnecessary toremovethedifficulty. Note:Ͳ The Municipal Commissioner/Executive Officer of Nagar Nigam/Nagar Parishad/Nagar Panchayat carries out the policies and directives of the Nagar Nigam/Nagar Parishad/Nagar Panchayat, discharges duties defined under the Act, controls the officers/officials of Nagar Nigam/Nagar Parishad/ Nagar Panchayat has custody of all papers and documents of Nagar Nigam/Nagar Parishad/ Nagar Panchayat and draws and disburses money.

1.4 AuditArrangement

WiththeenactmentofBMA,2007andprovisionsthereunder,theStateGovernment,in exerciseofpowerconferredunderSection91(1)oftheAct,appointedtheELA,Biharasthe DirectorLocalFundAudit(DLFA)toconducttheauditofULBstillfurtherordervidenotification no.5130dated:15.11.2007.ThePrincipalAccountantGeneral(Audit)authorizedtheELA,Bihar toconducttheauditofULBsasperprovision ofLFAAct,1925asusualandthematterwas intimated(November2007)totheStateGovernment. AccordinglytheauditofULBsisbeingconductedbytheELAunderthesupervisionof thePrincipalAccountantGeneral(Audit),Bihar. ThisAnnualReportdiscussestheimportantauditfindingsin641and432ULBsaudited during2008Ͳ09and2009Ͳ10respectively.Outofthese,123ULBsarecommon. 1 Nagar NigamͲAra, Bhagalpur, Biharsharif, Darbhanga, Gaya, Muzaffarpur, Patna. Nagar ParishadͲ Araria, Aurangabad,Bagha,Barh,Begusarai,Bettiah,Bhabhua,Buxar,Chhapra,DehriDalmianagar,Dumraon,Gopalganj, Hajipur, Jamalpur, Jamui, Jehanabad, Katihar, Khagaria, Khagaul, Lakhisarai, Madhepura, Masaurhi, Motihari, Narkatiyaganj,Nawada,Raxaul,Samastipur,Sasaram,Sheikhpura,Sitamarhi,Sultanganj,Supaul.NagarPanchayatͲ Banmankhi,Barauli,Barbigha,Belsand,Bihia,Fatuha,Ghoghardiha,GogriJamalpur,Jamhore,Jhajha,Jhanjharpur, Kahalgaon,Kasba,Khusrupur,Lalganj,Manihari,Mirganj,Nabinagar,Naugachhia,Nokha,Piro,Rajgir,Silao,Tekari, Thakurganj.

2Nagar NigamͲ Ara, Bhagalpur, Biharsharif, Darbhanga, Gaya, Munger, Muzaffarpur, Patna. Nagar ParishadͲ Begusarai, Danapur Nizamat,Farbisganj, Katihar, Kishanganj, Madhubani, Mokama, Motihari, Phulwarisharif, Purnea,Raxaul,Saharsa,Samastipur,Siwan.NagarPanchayatͲAmarpur,Areraj,Bakhtiyarpur,Banka,Bikramganj, Birpur,Chakia,Dalsinghsarai,Dhaka,Jagdishpur,JanakpurRoad,Kanti,Kateya,Koilwar,Makhdumpur,Marhoura, Motipur,Nasriganj,Rosera,Sheohar,Sonepur. 3 Nagar NigamͲAra, Bhagalpur, Biharsharif, Darbhanga, Gaya, Muzaffarpur, Patna. Nagar ParishadͲBegusarai, Katihar,Motihari,Raxaul,Samastipur.

4 1.5 StatusofRecoverybySurchargeProceedings AsperprovisionscontainedinSection9ofLFAAct,1925,theELA,Biharisempowered toorderrecoveryofanylossduetonegligenceandmisconductofemployeesandlossofstores through Surcharge from persons responsible. In 24 ULBs, 64 cases of Surcharge Notices involving` 68.87lakhwereissuedforrecoverybytheELA,Biharduringtheyearending31st March2010(AppendixͲI). SurchargeNoticeshavebeenissuedtotheperson(s)responsibleforlapsesthroughthe DistrictMagistrates(D.M.)butreportsofservingtheSurchargeNoticeshavenotbeenreceived inanycases. SeventeenSurchargeOrderswereissuedin10ULBsamountingto` 81.76lakhduring 2008Ͳ09 to 2009Ͳ10, giving one month time for repayment of indicated amount in the concernedaccountsofULBs(AppendixͲII).However,tilltheendof31.03.2010,theseorders havenotbeencompliedwithbytheindividualsconcerned. WhenrecoveryisnotdoneafterlapseofonemonthfromthedateofissueofSurcharge Order, the ELA sends a request for certificate to the District Certificate Officer (DCO) as per provisionunderSection5ofPublicDemandandRecoveryAct,1914.

TheELA,BiharhassenteightCertificateRequisitionsamountingto` 20.77lakhinfour ULBstorespectiveDCOforfilingCertificatecasesduring2008Ͳ09(TableͲ4).Statusoffilingof casesinthecourtsofDCOisyettobeintimated. TableͲ4 DetailsofCertificateRequisitionissued (` inlakh) Sl.No. NameofULB Period Certificate Dateof Amount Requisitions Issue sent 1. Barh 2003Ͳ04to2005Ͳ06 1 07.11.08 03.27 2. Buxar 2000Ͳ01to2005Ͳ06 3 27.05.08 00.97 3. Gaya 2004Ͳ05to2005Ͳ06 2 30.03.09 14.69 4. Revilganj 2000Ͳ01to2005Ͳ06 2 07.11.08 01.84 Total 8 20.77 1.6 RecoveryattheInstanceofAudit Inresponsetoobjectionsraisedbyaudit` 90.34lakhwasrecoveredby63ULBsfrom respectiveperson(s)during2008Ͳ09to2009Ͳ10.