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Hence, it was argued by the counsel for the State that the parent department, i.e., HUD Department, requested the Corporation to spell out the details before investing any municipal fund for opening the Engineering College and the role to be played by the Corporation in providing municipal fund for such institution overlooking the much more urgent needs of the town for providing services to the tax-payers. The learned State Counsel further stated that the local Govt., that is to say, the constitution and powers of Municipal Corporation etc. for the purpose of local self-Govt. is State Subject finding place under Entry 5 of List II. The 74th Amendment of the Constitution specifically provided for constitution of Municipalities under Article 243-Q. Article 243-W provides that the State Legislature may, by law, endow the Municipalities with such powers and authority and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to the performance ot functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; and promotion of educational aspect is covered by Entry 13 of the Twelfth Schedule of the Constitution. The constitution and power of Municipal Corporations, Municipalities, etc. at SI. No. 1 of State Subject has been assigned to the Housing & Urban Development Department under Entry XXII of the Rules of Business of the State Govt. and, therefore, the HUD Department is the appropriate department for the Municipal Corporations. So, according to the learned counsel for the Slate, the HUD Department is the Administrative Department so far as the Cuttack Municipal Corporation is concerned and, therefore, the HUD Department is entitled in examining the feasibility and viability of the proposal of the Corporation for opening the Engineering College.

As earlier mentioned, the 74th Amendment to the Constitution introduced Part IX-A dealing with the Municipalities. Article 243-W contained in Part-IX-A empowers the State Legislatures to endow the Municipalities with such law for devolution of powers and responsibilities subject to such conditions as may be specified therein. According to the Rules of Business of the Govt. of Orissa, HUD Department is the appropriate Administrative Department so far as Municipal Corporations are concerned. Hence, there is no doubt that the HUD Department is entitled to examine the feasibility and viability of the proposal of the Corporation to open an engineering College and to allow or disallow the proposal to take up the project. As it appears from the letter dated 29.5.1999 contained in Annexure-D series to the counter affidavit in OJC No. 6919/99, the Director, Municipal Administration and the ex-officio Additional Secretary to the Govt. in HUD Department objected to the establishment of the Engineering College by the Corporation. Significantly, this letter was issued on 29.5.1999 on which day overlooking the above objection raised by the State Govt., the first trust deed was executed. This was because in the Regulations of the AICTE, there is no provision allowing a Municipal Corporation to run a technical college and it is only a Trust which can run such a college.