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The Act extended the provisions of Pachayats to  the tribal areas of 9 states that have Fifth Schedule Areas.

FEATURES: 1 A state legislation on panchayats in the scheduled areas should take care of the customs, religious practices & traditional management practices of the community resources. 2 Every village shall contain a Gram Sabha whose members are included in the electoral list of Panchayats at village level. 3 Planning and management of minor water bodies are entrusted to the Panchayats.