The Correct Answer is a, b, c and d.

The following are the few recommendations of the 2^nd ARC on local government:

1.  Local bodies Ombudsman should be empowered to investigate cases against the functionaries of the local bodies. The State Panchayat Raj Acts and the Urban Local Bodies Act should be amended to include the provision.
2. The local bodies Ombudsman should be empowered to investigate cases of corruption or maladministration by the functionaries of the local self-governments and submit a report to the competent authorities for taking action. The competent authorities should normally take action as recommended. In case they do not agree with the recommendations, they should give their reasons in writing and the reasons should be made public.
3. A District Council should be constituted in all districts with representation from rural and urban areas. It should be empowered to exercise the powers and functions in accordance with Articles 243 G and 243 W of the Constitution. In that event, the District Planning Committees (DPCs) will either not exist or become, at best, an advisory arm of the District Council.  Article 243 (d) of the Constitution should be amended to facilitate this.
4. In the interim and in accordance with the present constitutional scheme, DPCs should be constituted in all States within three months of completion of elections to local bodies and should become the sole planning body for the district. The DPC should be assisted by a planning office with a full-time District Planning Officer (District Collector).
5. In metropolitan areas state should establish a metropolitan transport authority where the population is more than 1 million.