Section 160(1) in The Delhi Land Reforms Rules, 1954
(1)The Chief Commissioner will issue a notification in the Official Gazette dividing the entire area of the State subject to the proviso to sub-section (1) of Section 150, into circles called Gaon Sabha areas, each comprising one or more contiguous revenue villages and establishing a Gaon Sabha in each circle under Section 150 and the date of such establishment will be the date of specified in the notification. As far as possible, a village with a population of 500 persons or more will constitute a separate Gaon Sabha area.