The Panchayati Raj system under Part-IX of the Constitution of India does not apply to the States of:

The Panchayati Raj system, introduced by the 73rd Constitutional Amendment Act and contained in Part IX of the Constitution, is not applicable to the entire states of Nagaland, Meghalaya, and Mizoram [2]. According to Article 243M, the provisions of this Part do not apply to these three states, as well as the hill areas of Manipur where District Councils exist [2]. These states are exempted because they have traditional tribal institutions and local self-government systems, such as Village Councils, which are protected under special constitutional provisions like the Sixth Schedule [3]. While other North-Eastern states like Assam, Tripura, and Sikkim have Panchayati Raj institutions (though certain tribal areas within them are exempted), Nagaland, Meghalaya, and Mizoram remain the primary states where the Part IX framework is entirely inapplicable.

Sources

1. [1] https://secforuts.mha.gov.in/73rd-amendment-of-panchayati-raj-in-india/
2. [2] https://necouncil.gov.in/sites/default/files/uploadfiles/243M.pdf
3. [3] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 20: ADMINISTRATION OF SCHEDULED AND TRIBAL AREAS > ADMINISTRATION OF SCHEDULED AND TRIBAL AREAS > p. 329