Consider the following statements:
1. A municipal corporation in India is established by legislation
2. A municipal corporation enjoys inherent powers of its own in matters of finance and administration
Which among the above is / are correct statements?

Answer: [A] Only 1

The second statement is not correct. A municipal corporation enjoys a non sovereign status. Since it is created by the state government, it has no inherent powers of its own and enjoys only such powers as are allocated to it. In other words, its powers art derivative and not original. As such, if is subject to the control of the state government, which exercises the powers of determining its area, the size of its council, its term of office, powers and responsibilities, and financial resources, and can also dissolve it in case of consistent default” in the performance of its duties.  Municipal Corporation is established by an act of a Vidhan Sabha.

This question is a part of GKToday's Integrated IAS General Studies Module