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The main difference is population. Population above 3 lakh constitute a municipal corporation, while below 3 lakh is municipal council.
Municipal council is further divided into three classes I, II and III.
Municipal Council class I : 50000 to 3 lakh
Municipal Council class II : 10000to 50000
Municipal Council class III : upto 10000
Below 10000 population it is called as Nagar Panchayat.
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