Decentralization is a process to transfer of authority from central to local government. It is also seen as a process of transfer of responsibility, authority and functions from a superior government into a lower government unit. India is a democratic decentralized country where powers are decentralised from centre to village level in a democratic manner. Local government is working on both level rural and urban. 74^th amendment of the constitution is a landmark in the history of urban local government in the country. This act facilitates the democratic decentralisation at urban level. The main object of this paper is to see how democratic decentralisation has paved the path for local governance in India and what are the challenges in implementation of actual democratic decentralisation at urban level.

KEYWORDS: Democratic Decentralization, Urban Government, Constitutional Amendment.