Decentralization Act 1982.

The present Act establishes the responsibility and power of local Panchayats with respect to the implementation of development activities an local level and the formulation of development plans and construction projects, according the procedure, criteria and priorities set out by the Act. The local Panchayats are divided into the following categories, on the basis of their territorial jurisdiction: Village, Town and District Panchayats. The Town and Village Panchayat shall be subject to the guidelines and directives received from the District Panchayat, whereas the supervision of the district development plan shall be appointed to the District Supervision Committee. Further provisions concern the procedure for the collection of land taxes by Village and Town Panchayats and raising of contributions. Chapter 5 deals with the audit of account of local Panchayats.