The correct answer is By an Act of Parliament. Explanation & Key Takeaways: • Municipal Corporations in Union Territories (UTs) are established through Acts passed by the Parliament of India, as UTs are governed directly by the Central Government. • Unlike states, which have their own legislative assemblies, Union Territories are administered by the President of India through appointed administrators. • The Parliament enacts laws to create and regulate municipal corporations in UTs, ensuring they fulfill the functions of urban local governance. • For example, the New Delhi Municipal Council (NDMC) operates under the New Delhi Municipal Council Act, 1994, passed by Parliament. • This framework ensures consistency and uniformity in governance across UTs, considering their unique administrative structures. Related Concepts: • Municipal Corporation: • It is a form of urban local government that governs cities with a population exceeding 1 million. • Municipal corporations are responsible for providing civic amenities such as water supply, waste management, roads, and public health services. • They are governed by elected representatives (councillors) and an appointed municipal commissioner. • Union Territories: • Union Territories are regions in India directly governed by the Central Government. • Currently, India has 8 Union Territories, including Delhi, Chandigarh, and Puducherry. • Some UTs, like Delhi and Puducherry, have partial statehood with legislative assemblies. • New Delhi Municipal Council (NDMC): • The NDMC is a municipal council governing the central area of New Delhi. • It was constituted under the New Delhi Municipal Council Act, 1994, passed by Parliament. • The council is chaired by a government-appointed officer, typically an IAS officer. • Constitutional Provisions: • The 74th Constitutional Amendment Act, 1992, provides the framework for urban local governance in India. • However, in Union Territories, Parliament has the authority to legislate municipal laws under Article 239 of the Constitution.