(1)Within the area subject to its authority a Panchayat Samiti shall be the agent to the Government for formulation and execution of the Community Development Programme financed out of grants made by the Government to the Panchayat Samiti in this behalf.(2)Where the Government decides to advance loans under the area of a Panchayat Samiti, such loans shall be disbursed by the Panchayat Samiti to such persons as it thinks fit on the terms and conditions applicable to such loans.
