My study is intended to analyse how Peoples perception is very important because of the 73rd constitutional amendment act that was introduced to ensure political participation of underprivileged groups like Scheduled Castes, Scheduled Tribes, Other Backward Classes and Women through the reservation of provisions in Panchayati Raj System at grassroots level democracy. In this context, the peoples perception of working of Panchayati Raj institutions in Karimnagar district plays a very crucial role to reveal the actual ground realities thereof and to what extent they accomplished the above-mentioned objectives. several policy initiatives have been taken for effective implementation of reservation policy in Panchayati Raj in the district. The present research work also focussed on the political backwardness of scheduled castes, scheduled Tribe leadership in Panchayati Raj Institutions at the Panchayati level. It also reveals peoples perception to the conscious understanding that people have of public functionaries and official issues in the society and realistically based on their understanding level in the given context on a particular aspect.