In a significant move aimed at overhauling urban governance, the Government of Bihar has promulgated the Bihar Municipal (Amendment) Ordinance, 2025 (Bihar Ordinance No. 03 of 2025). This ordinance introduces critical amendments to the Bihar Municipal Act, 2007, with the goal of ensuring greater transparency, decentralization, and democratic representation in the functioning of Urban Local Bodies (ULBs).
The ordinance was promulgated under Article 213(1) of the Constitution of India, allowing the Governor to issue ordinances when the state legislature is not in session. It comes into immediate effect from the date of its publication in the official gazette. OCTOBER 3, 2025.
Background and Need for the Ordinance
The 74th Constitutional Amendment recognized Urban Local Bodies as key institutions of local self-governance. The Bihar Municipal Act, 2007 was enacted to align with this constitutional vision, mandating direct elections of Mayors, Deputy Mayors, and Chairpersons in urban bodies.
However, the existing process of constituting Empowered Standing Committees—the core decision-making body within municipal institutions—had drawn criticism. Previously, these committees were nominated solely by the elected Mayor or Chairman, which led to allegations of favoritism, centralization of power, and lack of transparency.
The state government, recognizing the urgent need for decentralization and participatory governance, has now reformed the structure and election method of these committees through this ordinance.
Key Highlights of the Ordinance
1. Inclusion of MPs and MLAs as Ex-Officio Members (Section 12 Amendment)
Members of the Lok Sabha, Rajya Sabha, State Legislative Assembly, and Legislative Council who represent the constituency covering the municipal area will now be considered deemed members of the Municipality.
- Exemptions: These representatives are exempted from attending meetings during the session periods of their respective Houses.
- Representation: If they are unavailable due to official commitments, they can nominate a non-relative representative to attend municipal meetings on their behalf. However, such representatives will not have voting rights.
2. Democratic Election of Empowered Standing Committee (Section 21 Amendment)
- The Empowered Standing Committee will now be elected by all municipal councillors via secret ballot under the supervision of the District Magistrate.
- This replaces the earlier practice of nomination by the Mayor or Chairman.
- Elections for forming these committees must be conducted within six months from the enactment of the ordinance.
- The Department of Urban Development and Housing may issue additional guidelines for conducting the voting process.
3. Process to Fill Casual Vacancies (Section 23 Amendment)
- Any vacancy arising in the Empowered Standing Committee will now be filled through fresh elections, conducted as per the revised procedure under Section 21(3).
- The newly elected member will serve for the remaining term of the vacated position.
4. Dissolution and Reconstitution of All Committees (Section 27 Amendment)
- A new provision mandates that all existing Empowered Standing Committees across Bihar will stand dissolved to pave the way for fresh elections as per the new rules.
- The government will notify the date of dissolution and the schedule for elections, which will be supervised by the District Magistrates.
Why This Matters
This ordinance is a significant step toward strengthening urban democracy and ensuring greater checks and balances in municipal functioning. By shifting from nominations to secret ballot elections, the state aims to:
- Minimize favoritism
- Encourage participatory governance
- Empower elected councillors
- Ensure equitable representation in decision-making
Additionally, by involving MPs and MLAs without giving them undue voting powers, the ordinance respects their presence while maintaining the autonomy of municipal councils.
Next Steps
With the ordinance in effect, all municipal bodies in Bihar must now prepare to:
- Conduct elections for their Empowered Standing Committees within six months.
- Dissolve current standing committees based on government notifications.
- Update municipal procedures to accommodate the participation and exemptions of MPs/MLAs.
The Department of Urban Development and Housing is expected to release detailed operational guidelines soon.
Conclusion
The Bihar Municipal (Amendment) Ordinance, 2025 marks a major administrative reform in the state’s urban governance framework. It not only aligns Bihar’s municipal structure with democratic norms but also seeks to restore public confidence in local governance by ensuring greater transparency, fairness, and decentralization of power.