The Constitution of India contains no provision for the constitution of municipalities in every State for

The 74th Constitutional Amendment Act of 1992, which added Part IX-A to the Constitution of India, provides for the mandatory constitution of three specific types of municipalities in every State under Article 243Q [2]. These are: (1) a Nagar Panchayat for transitional areas moving from rural to urban; (2) a Municipal Council for smaller urban areas; and (3) a Municipal Corporation for larger urban areas [5]. While the Act grants constitutional status to these urban local bodies and mandates their establishment, it does not contain any provision for an 'Urban Panchayat' [4]. The term 'Panchayat' specifically refers to rural local self-government institutions constituted under Article 243B of Part IX, whereas urban bodies are strictly categorized into the three aforementioned types [6]. Therefore, 'Urban Panchayat' is not a constitutionally recognized category for urban governance.

Sources

1. [1] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 40: Municipalities > 74TH AMENDMENT ACT OF 1992 > p. 399
2. [2] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 19: MUNICIPALITIES AND PLANNING COMMITTEES > MUNICIPALITIES AND PLANNING COMMITTEES > p. 323
3. [3] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 40: Municipalities > Salient Features > p. 400
4. [5] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 40: Municipalities > Salient Features > p. 400
5. [4] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 40: Municipalities > 74TH AMENDMENT ACT OF 1992 > p. 399
6. [6] https://mahasec.maharashtra.gov.in/Upload/PDF/Constitutional%20Provisions%20-%20IXA%20-%20Municipalties%20(Urban).pdf