In Brief
The Supreme Court examined whether Rajasthan could upgrade a Gram Panchayat (village council) to Nagar Palika (municipality) status without following Article 243Q(2) of the Constitution. Article 243Q(2) requires the Governor to specify areas as transitional or urban based on multiple factors including population, density, revenue, employment patterns, and economic importance. The State had issued only population-based classifications, ignoring other mandatory factors. The Court held the initial notification unconstitutional and ruled that all subsequent actions derived from it were fundamentally flawed and need not be separately examined. The High Court's decisions were declared per incuriam for failing to examine constitutional requirements.
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