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61. The Statement of Objects and Reasons of the Constitution (74th Amendment) Act, 1992, briefly outlined the object and purpose for which the Constitution Amendment was brought in. It is useful to refer to the Statement of Objects and Reasons of the Constitution Amendment which is to the following effect:

"Statement of Objects and Reasons
1. In many States local bodies have become weak and ineffective on account of a variety of reasons, including the failure to hold regular elections, prolonged supersession and inadequate devolution of powers and functions. As a result, urban local bodies are not able to perform effectively as vibrant democratic units of self-government.

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2026:JHHC:1901-DB be in force until amended, repealed or until expiration of one year from the date of commencement of the Amending Act.

68. The 74th Constitutional Amendment Act authorized the State Legislatures to enact laws to endow local bodies with powers and authority as necessary to enable them to function as institutions of Self-Government and make provisions for devolution of powers and responsibilities so as to enable the local bodies to prepare plans and implement schemes for economic development and social justice.

71. It is, thus, evident that the constitutional mandate as per insertion in Part IX-A by way of 74th Amendment Act, 1992, the three tier system has been set up with the object and reasons that in many States local bodies have become week and ineffective on account of variety of reasons including failure to held elections, prolonged supersession and inadequate devolution of powers and functions, as such in the aforesaid backdrop and the underlying idea that the local bodies is not working properly, and timely elections were not being held and nominated bodies were continuing for long periods, the Constitution has been amended by way of 74th Amendment Act, 1992.