Goa, Daman and Diu liberated on 19-12-1961 from the Portuguese rule during Operation Vijay. The Portuguese Government ruled for nearly 450 years. After liberation the Goa, Daman and Diu became a Union Territory & thereafter Goa became a state & Diu & Daman continued as Union Territory with effect from 31-05-1987. The Diu Municipal Council was earlier known as “ CAMARA MUNICIPAL DE DIO ” during the Portuguese reign. The members were called “VOGAL” and the entire administration was governed under the Rules and Regulations called “ESTATUTO” framed by the Erstwhile Regime. After liberation there were 5 elected members upto 1970. The Goa, Daman & Diu Municipalities Act. 1968 was Published in Govt. Gazette on 16-05-1969 and made applicable with effect from 16-05-1969. In the year 1971 the Fudam Panchayat was merged in Diu Municipal Council. At that time there were 11 councillors in the DMC. The Union Territories of Daman & Diu were separated from Goa in 1987 after Goa attained “STATEHOOD”. In the year 1987, the Ghoghla Panchayat was also merged in Diu Municipal Council & there were 13 councillors in Diu Municipal Council.
The Diu Municipal Council consists of 13 Elected Councillors, out of which 8 are Male and 5 are Female. One seat is reserved for S.C. Female Member. Standing and Subject Committees are constituted from among the Elected Councillors. At present entire Municipal Affairs are governed under the Daman & Diu Municipal (Amended) Regulation, 1994. Diu is a tiny island situated slightly off the coast of Saurashtra (Kathiawad) near the port of Veraval in Gujarat with a coastal distance of 21 kms. and is at a distance of about 768 kms. from Daman, the Capital of the newly formed Union Territory of Daman & Diu. Diu is bounded by Junagadh and Amreli District of Gujarat in the North and by the Arabian Sea from three sides. It is connected by two bridges with the mainland and lies between the North Latitudes of 20”-44’-3” and 20”-42’-00” and East Longitudes of 71”-52’-26”. The town of Diu is located at the east end of the Island. It occupies an area of about 40 Sq.kms. Its maximum width from the extreme North to South measures 4.6 kms. and length from East to West 13.8 kms. It has one main town and 5 villages. There is one Municipal Council (B Type) and four Village Panchayats. The occupied area of Diu Municipal Council is of 17.71 Sq.km. The population of Diu Municipal Council area is 21,576 as per 2001 census, which distributed in Diu town, Ghoghla, Fudam, Gandhipara & Simbor. There are 4 ‘A’ Class category, 9 ‘B’ Class Category and 16 ‘C’ & ‘D’ class category hotels in Diu District. These are located mainly in Diu City. The important tourist places like fort, fortress of Panikota, Diu Museum, St. Paul’s Church, Gangeshwar Temple, Jalandhar Shrine, Chakratirth Beach, Ghoghla Beach are located in Diu Municipal area.
Diu became a tourist destination due to its scenic beauty the wonderful sandy beaches and heritage buildings. The discretional functions and obligatory duties of Diu Municipal Council are prescribed under the provision of Section 51 of Daman & Diu Municipalities (Amended) Regulation, 1994. The main functions and duties performed by the DMC in the interest of the public, includes Bus Transport Service, City Cleanliness and promoting hygienic condition, Maintenance of Street Light, Maintenance of Municipal properties, Library & Gardens, construction and maintenance of roads, issuing of construction licence, issuing of Trade Licences, issuing of Completion Certificate for newly constructed houses, Registration of Births and Deaths, issuing of NOC of electric, issuing of NOC for breaking of C.C. Road for water connection, issuing of NOC for occupation of Municipal land on temporary basis. Implementation of various schemes such as UDISSMT, MPLAD, Rehabilitation under Slum Programme, Integrated Tourist Circuit Schemes sponsored by the Government of India.