The question is asking about the first Municipal Corporation established in India.

Option 1, Calcutta, is incorrect. Although Calcutta (now known as Kolkata) was the capital of British India until 1911, its Municipal Corporation wasn`t formed until later.

Option 2, Madras, is the correct answer. The Madras Municipal Corporation, officially Chennai Corporation, is the oldest municipal body of India established on the 29th of September, 1688 by the East India Company.

Option 3, Bombay (now Mumbai), is not correct. The Bombay Municipal Corporation was established in 1888, 200 years after the creation of the Madras Municipal Corporation.

Option 4, Delhi, is also not correct. Delhi became the capital of India in 1911, and its Municipal Corporation was established even later, in 1958.

So, understanding the historical timeline and establishment of these municipal corporations, it is clear that Madras holds the distinction of having the first Municipal Corporation in India.