Statements (1), (2) and (4) with regard to Panchayats in India are correct. The 73rd Constitutional Amendment Act provides for a Gram Sabha as the foundation of the Panchayati Raj system. It is essentially a village assembly consisting of all the registered voters in the area of the Panchayat. The state has the power to determine what kind of powers it can exercise, and what functions it has to perform at the village level.