Article 40 of the Constitution which enshrines the Directive Principles of State Policy lays down that the state shall take steps to organize village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.
A new Part IX relating to the panchayats was inserted in the Constitution to provide for among other things, Gram Sabha in a village or group of villages; the constitution of panchayats at the village and other level or levels; direct elections to all seats in panchayats at the village and intermediate level, if any, and to the offices of Chairpersons of panchayats at such levels; reservation of seats for the scheduled castes and scheduled tribes in proportion to their population for membership of panchayats and office of Chairpersons in panchayats at each level; reservation of not less than one-third of the seats for women; fixing tenure of five years for panchayats and holding elections within a period of six months in the event of supersession of any panchayat.