One of the major political innovations of the Vijayanagara empire was the Amara- Nayaka system. It is probable that many features of this system were derived from the Iqta system of the Delhi Sultanate.

The Amara- Nayakas were military commanders. They were given territories for governing purposes by the Rayas. As part of their military duties, the Amara- Nayakas maintained an army. This collection of armed forces allowed the Rayas to claim dominance over the entire southern peninsula.

Apart from their military duties, their administrative duties included the collection of taxes from the peasants, the traders and the craftsmen in their governed areas. They handed over their collections to the Rayas and retained some revenues for personal uses and the maintenance of the animals used in battle and the temples.

The Amara- Nayakas would annually pay tribute to the kings. They would show their loyalty by personally appearing in the Royal courts with gifts. The Amara- Nayakas would also give gifts during the Mahanavami celebrations to the King and his guests.

They were sometimes transferred to other places. Krishnadeva Raya strengthened the central authority and strictly controlled the Nayakas. After his death in 1529, many of the Nayakas established their own kingdoms which ultimately affected the central imperialist structure and the ultimate collapse of the Vijayanagara empire.