<p>Urban governance in India’s non-metropolitan cities remains a critical yet understudied domain for understanding the contradictions of decentralization and policy-led urban reforms. Using Aligarh as a case study, this study investigates how decentralization, polycentric governance structures, and stakeholder dynamics influence the operational capacity of ULBs, examines the interface between national urban missions and local institutions, and analyses the limitations arising from their design and implementation. The findings show that fragmented authority, political interference, and institutional constraints continue to undermine service delivery, producing environmental injustice and reinforcing socio-spatial inequalities. Despite extensive urban reform programmes, secondary cities remain constrained by fiscal dependency and weak coordination across agencies. The study argues for strengthened decentralization, grassroots participation, and integrated multi-agency collaboration to align urban development with sustainability and equity goals. By offering a replicable analytical framework, the research contributes to broader debates on governance, inequality, and sustainable urbanization in India’s evolving non-metropolitan landscape.</p>