Since last couple of decades, there is an emerging trend of decentralisation and India is no exception to such a trend. Studies that measure decentralisation in India, however, are mostly comparative and target a limited set of parameters. This paper, attempts at a comprehensive examination of a case of Kalyan-Dombivli (KD), a fringe subcity to Mumbai. The analysis brings out that over the past seven years (since the beginning of the centrally sponsored urban renewal program), even though the local body in KD had higher resources for local development, its functional authority, fiscal autonomy, and accountability has been significantly re-centralised towards higher level governments. The case analysis brings out key lessons in terms of need for focusing on the empowerment (functional and fiscal) of local bodies and creating accountability structures that are effective and responsive to the local citizenry.