Gram Panchayat is the lowest run autonomous organization in rural areas. The basis of the formation of Gram Panchayats has been fixed on the average population of 7000 . Under a Panchayati area, a ward is formed for a population of 500 . Ward members in the number of 15-16 are selected by voting method. The head of the Panchayat is the head. The post of a Deputy Chief has also been created. The Panchayat sevak appointed by the Government is the Secretary (ex officio) of the Panchayat.
There is a provision of reservation for women, scheduled castes, tribes backward classes in the panchayat. The general term of the Panchayat including the Mukhiya is five years. The head of the Upmukhiya can resign at his will. He has to send his resignation letter to the District Panchayat officer. If the Panchayat wants to remove the Mukhiya, he can be removed by a two thirds majority of the Gram Panchayat.
Gram Panchayat plans the development of villages. It does the work of village development. Panchayats can levy fair tax, hat tax, vehicle tax etc.