The Amendment provides for the continuous existence of Panchayats. The normal term of a Panchayat is five years. If a Panchayat is dissolved earlier, elections are held within six months. There is a
provision for State Election Commission, for superintendence, direction, and control of the preparation of electoral rolls and conduct of elections to Panchayats.
Article 243 E is a provision on the duration of members in Panchayat. A clear term for 5 years has been provided for the Panchayats and elections must take place before the expiry of the terms. However, the Panchayat may be dissolved earlier on specific grounds in accordance with the state legislation. In that case, the elections must take place before the expiry of 6 months of the dissolution.
Article 243F makes provisions for disqualifications from the membership. As per this article, any person who is qualified to become an MLA is qualified to become a member of the Panchayat, but for Panchayat the minimum age prescribed is 21 years. Further, the disqualification criteria are to be decided by the state legislature by law.
The state legislature can confer power upon panchayat systems (A.243G to 243H) and the 11th schedule enshrines the distribution of powers between the State legislature and the Panchayats.
The State can authorize a Panchayat by Law to levy, collect and appropriate taxes, duties, etc
To review the financial position and status of the Panchayat the state legislatures are authorized to appoint a Finance Commission.
The main source of income of the panchayat samiti is grants-in-aid and loans from the respective State Governments.
Referring to Article 329 of the Constitution, the courts cannot interfere in matters relating to allotment of seats, delimitation of Constituencies as under article 243K. Any matters relating to the election of panchayats can be questioned only by means of Election petition following certain procedures prescribed by the State legislature.