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The term Panchayath raj in India signifies the system of rural Local self-goverment.it is created in all the states in India by the act of the state legislatures to establish democracy at the grass roots level.Its entrusted with the duties and responsibilities in the field of rural development. It was constitutionalised through the 73rd constitutional Amendments Act of 1992. This amendment implements the article 40 of the DPSP which says that “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” and have upgraded them from non-justifiable to justifiable part of the constitution and has put constitutional obligation upon states to enact the Panchayati Raj Acts as per provisions of the Part IX. However, states have been given enough freedom to take their geographical, politico-administrative and others conditions into account while adopting the Panchayati Raj System.