According to Article 243-C(1) of the Indian Constitution, the legislature of a state may, by law make provision on the composition of Panchayat.

The Gram Sabha has been envisaged as the foundation of the Panchayati Raj System. 73^rd Amendment to Constitution provides for the Panchayat at the village level. Gram Sabha consists of persons registered in the electoral rolls of a Panchayat area constituted at the village level.

According to Article 243(I) of the Constitution, the Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (73^rd Amendment) Act, 1992 , and thereafter at the expiration of very fifth year, constitute a Finance Commission to review the financial position of the Panchayats and make recommendations to the President.

According to PESA rules a person who is a member of a scheduled Tribe will be selected as chairperson for the meeting of the Gram Sabha for one year by consensus. In case of non - consensus, amongst the members present, the oldest lady from the scheduled tribes would be the Chairperson.

Panchayati Raj is a system of local self-government with three tier system- Gram Panchayat at the village level, Panchayat Samiti at the block level and Zila Parishad at the district level. The Panchayati Raj System is aimed at achieving the goal of economic development and social justice.

The principle aim of Panchayati Raj System is the democratic decentralization of power to villages and to empower them to make policies according to their need and to implement these policies.

The Panchayati Raj System is established for full advancement and development of villagers. Panchayati Raj represents decentralization of democratic power, Community development, and participation of people.

Balwant Rai Mehta is considered as Architect of Panchayati Raj in India due to his contribution in democratic decentralization. He recommended three tier Panchayati Raj System.

L.M. Singhvi Committee was constituted in 1986 to give suggestions in favour of Panchayati Raj. This Committee had recommended that the local-self government should be Constitutionally recognized, protected and preserved by the Constitution, and had also recommended for noninvolvement of political parties in Panchayat elections.

73^rd Amendment makes Panchayat elections mandatory and provides for the formation of State Election Commission for such elections. These provisions have been given under Article 243-K.