Explanation:

Both statements 2&3 are correct.

• In India, the Municipal Corporation is the urban local government that is responsible for the development of any Metropolitan City having a population of more than one million people.
• Mahanagar Palika, Nagar Palika, Nagar Nigam, City Corporation, and so on are some of the other names for it.
• The Municipal Corporations are established in the states by the acts of the state legislatures, whereas in the Union Territories through the acts of the Parliament.
• Municipal governments rely heavily on property tax revenue to fund their operations.
• The first municipal corporation in India was created in Madras in 1688, followed by municipal corporations in Bombay and Calcutta in 1726.
• In the Constitution of India, no provision was made for the establishment of local self-government, except the incorporation of Article 40 in the Directive Principles of State Policy.
• The 74th Amendment Act, 1992 has inserted a new Part IX-A into the Constitution which deals with the administration of Municipalities and Nagar Palikas.
• It consists of Article 243P to 243ZG. It also added a new twelfth schedule to the Constitution. The 12th schedule consists of 18 items.
• 12th Schedule of the Indian Constitution deals with the provisions that specify the powers, authority and responsibilities of Municipalities.

Hence option 2nd is correct.