Explanation:

The Nayakar and Ayagar were the two most important administrative systems of Vijayanagar Empire.
o The Ayagar system: It was an important feature of the village organization in Vijayanagar. According to this, every village was a separate unit and its affairs were conducted by a team of 12 functionaries who were collectively known as the  'ayagars‘. They were granted tax-free lands (manyams) which they were to enjoy in perpectuity for their services. Once granted, these ayagars had a hereditary right over their offieces. The ayagars could also sell or mortgage their offices. For justice, very harsh punishments like mutilation of body, throwing to elephants were delivered.
o The Nayakara system: Under this system, the king was considered to be the owner of the soil and he distributed the lands to his nayakas. Nayakas had to pay a fixed annual financial contribution to the imperial exchequer which, according to the chronicle of Nuniz, was generally half their revenue. They were required to maintain a sufficient number of troops for the king and serve them in his war. The nayaka enjoyed greater freedom in his province. There was no system of transfer from one district to another.