Each Nagar Panchayat has a committee consisting of a chairman/mayor along with ward members. Membership consists of a minimum of ten elected ward members and three nominated members. NAC members of the Nagar Panchayat are elected from the several wards of the Nagar Panchayat on the basis of adult franchise for a term of five years. There are seats reserved for Scheduled Castes, Scheduled Tribes, backward classes and women. The councillors or ward members chosen by direct election from electoral wards in the Nagar Panchayat.
Chairman is the head of the Notified Area Committee. The Executive Officer is the official in charge of the Notified Area Council. Executive Officers monitor the implementation of all the programs related to planning and development of the Notified Area Council with the coordination of N.A.C. Chairman and all ward members.
Nagar panchayats derive income from taxes including those on water, pilgrimage, markets and transport services. They also receive a mixed grant from the state government in proportion to the land revenue and money for works and schemes assigned to them.