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    Question

    Which of the following correctly describes the

    constitutional treatment of municipal property and its protection?
    A Municipal property is beyond law. Correct Answer Incorrect Answer
    B Municipal property is subject to state law and Article 300A protections for property apply; municipalities can hold property but deprivation must be by law and subject to compensation unless law provides otherwise consistent with Article 300A. Correct Answer Incorrect Answer
    C Municipal property is part of Ninth Schedule automatically. Correct Answer Incorrect Answer
    D Municipal property cannot be taxed. Correct Answer Incorrect Answer
    E Municipal property is under President’s direct administration. Correct Answer Incorrect Answer

    Solution

    Municipal property is protected under Article 300A, which provides that no person—including a municipal body—shall be deprived of property except by authority of law. Although municipalities are not sovereign entities, they possess legal personality and property rights. Any State action depriving municipal property must be backed by valid legislation and satisfy constitutional standards of fairness and non-arbitrariness under Article 14. Courts have recognized that financial and property autonomy is essential for effective urban governance, reinforcing the constitutional status of municipalities under Part IXA.

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