What is Nagar Panchayat? The composition and functions of the Nagar Panchyat are similar to Municipal Councils. Nagar Panchayats are established in those rural areas to be soon transformed into urban. Nagar Panchyat is formed according to the 74th constitutional amendment. Related posts: Describe the Three-Tier System of Indian Federation? What is Zilla Parishad? What is Panchayat Samiti? Describe the Character of Sergei