The Municipal administration in the erstwhile Bombay existed since 1805. During this period the civic administration was vested in a Court of Petty Sessions. Up to the end of 18th century the administration of Bombay was conducted by the President and Council directly. However, since the Municipal administration had been inefficient, multiple efforts were undertaken by the British administration. The first major change came through in the year 1865 with a Municipal Corporation being established as a Body Corporate and Sir Arthur Crawford was appointed as the first Municipal Commissioner.
Thereafter in 1872, after enactment of the Bombay Act No. III of 1872, a regular Corporation was established consisting of 64 elected Corporators who were the rate (tax) payers with the right to vote being restricted to the tax payers only.
Sir Pherozeshah Mehta was instrumental in the drafting of the 1872 Act which led to the establishment of the Corporation as seen today. Sir Pherozeshah served as a Municipal Commissioner in 1873 and served as Chairman in 1884–86, and President in 1905 and 1911. A The MCGM was formed in the year 1873 as Mumbai's civic body. It is one of the oldest local self governing bodies in India.
The BMC building finally saw completion on July 31, 1893, after four years of construction.
(born Aug. 4, 1845, Bombay [now Mumbai], India—died Nov. 5, 1915, Bombay) was an Indian political leader, planner of the municipal charter for Bombay (now Mumbai) and founder of the English-language newspaper Bombay Chronicle (1913).
A brilliant orator, leading lawyer, active social worker, ardent nationalist and an outstanding public figure of his days, Pherozeshah Mehta was one of the founders of the Indian National Congress and its President in 1890. He is also reverentially remembered as the maker of the modern Bombay Municipal Corporation.
A statue of Sir Pherozeshah Mehta was installed in front of the BMC building in honor of his role in the establishment of the municipality.