The correct answer is Option 3 -74th Constitutional Amendment Act (CAA), 1992
The 74th Amendment Act of the Constitution of India, enacted in 1993, is also known as the Constitution (Seventy-fourth Amendment) Act, 1992. This amendment aimed to strengthen and empower urban local bodies, commonly known as municipal governments, by providing them with constitutional recognition and greater autonomy in local governance The 74th Amendment Act added a new Part IXA to the Constitution, titled "The Municipalities," which provides constitutional recognition to urban local bodies. This recognition elevated the status of municipal governments and highlighted their importance in the democratic structure of India. Similar to the provisions for Panchayati Raj institutions in rural areas (enacted through the 73rd Amendment Act), the 74th Amendment Act mandated a three-tier structure for urban local bodies. This structure includes: Nagar Panchayats for transitional areas. Municipal Councils for smaller urban areas. Municipal Corporations for larger urban areas, including metropolitan cities.
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