House clears urban governance reforms, extends mayor tenure

The Himachal Pradesh Vidhan Sabha on Thursday approved two significant Bills aimed at overhauling urban governance, modernising municipal administration and ensuring stronger financial accountability across civic bodies. Passed in the absence of the Opposition and without discussion, the Bills mark one of the most comprehensive sets of reforms introduced in recent years.

The Himachal Pradesh Municipal (2nd Amendment) Bill, 2025, tabled on December 2 by Rural Development and Panchayati Raj Minister Anirudh Singh on behalf of Urban Development Minister Vikramaditya Singh, proposes major changes to the Himachal Pradesh Municipal Act, 1994.

A key highlight is the provision granting statutory backing to the audit of municipal accounts under the technical supervision of the Principal Accountant General (Audit), Himachal Pradesh. The government maintains this will significantly improve transparency, fiscal discipline and the credibility of municipal finances.

The Bill also removes long-standing ambiguities by clarifying the tenure of elected members from areas that later become part of a municipal corporation. It introduces a time-bound mechanism for accepting resignations and makes mandatory the prompt reporting of vacancies, ensuring cleaner administrative processes. Penalties under various sections of the Act, including those related to building norms, sanitation, licensing, public safety and election conduct, have been rationalised to make them realistic and enforceable after years of remaining outdated.

To improve revenue compliance, the amendment authorises municipal bodies to offer incentives to taxpayers who clear corporation taxes on time. The Municipal Commissioner and designated officials will frame detailed rules on the incentive structure and verification process. However, individuals with pending arrears will be excluded. Existing provisions related to penalties, interest and recovery will continue unchanged to maintain deterrence.

In a parallel reform, the Assembly passed another Bill amending Section 36 of the Himachal Pradesh Municipal Corporation Act, 1994, extending the tenure of mayors and deputy mayors from the current two-and-a-half years to a full five-year term. The government argues that this continuity will strengthen long-term policy planning and support sustained development within municipal corporations.

Together, the reforms promise greater administrative stability, fiscal accountability and efficiency in urban governance across the state.