Explanation:

The Delhi MCA Act denudes the spirit of federalism.
The Delhi Municipal Corporation (Amendment) Act

• The Central government’s line is that the amendment has been passed as in Article 239AA of the Constitution, which is a provision that provides for special status to Delhi.
• The Central government has consciously chosen to overlook Part IXA of the Constitution that specifically states that it will be the Legislature of the State that will be empowered to make laws concerning representation to the municipalities.
• The Delhi MCA Act provides that the power to determine the number of wards, extent of each ward, reservation of seats, number of seats of the Corporation, etc. will now be vested in the Central government.
• The number of seats of councillors in the Municipal Corporations of Delhi is also to be decided now by the Central government.
• By exercising that very power, the number of councillors to the Municipal Corporations of Delhi has been reduced from 272 to 250.

Hence both statements are correct.