Panchayati Raj Institutions (PRIs) in India are a result of a long and complex evolutionary process. This system of decentralised governance has its roots in ancient India, where the village councils (panchayats) were responsible for resolving disputes, managing village affairs, and maintaining law and order. However, over time, the authority of the panchayats eroded, and they became ineffective due to various reasons such as the British colonial rule, rapid urbanisation, and industrialization.

The Constitution (73rd Amendment) Act, 1992 brought in a new wave of reforms in the PRI system. It granted constitutional status to PRIs and mandated the state governments to devolve powers and responsibilities to them. It also reserved one-third of the seats for women in PRIs, thereby ensuring their representation and participation in local governance.

Today, PRIs are seen as an essential tool for grassroots democracy, social justice, and inclusive development. They have become an integral part of India’s democratic framework, empowering the marginalised sections of society and providing them with a platform to voice their concerns and opinions. PRIs have helped to bridge the gap between citizens and the government, leading to better service delivery, accountability, and transparency.

Evolution of Panchayati Raj Institutions in India

Panchayats as local governance institutions have existed in India since ancient times. Village assemblies of elders which carried out governance functions find mention in vedic and post-vedic texts. The Uttaramerur inscriptions discovered in Uttaramerur, a small town in Tamil Nadu, date back to the 10th century AD and provide valuable insights into the functioning of the village assemblies or sabhas during the period of the Chola dynasty.

The beginning of British rule in the second half of the 18th century had an adverse effect on the panchayats. The panchayats, which used to be self-sustainable units of administration, crumbled due to British interference. The Zamindari system, urbanisation, establishment of courts, establishment of police stations, and individualism arising from western ideology were prominent factors that weakened the panchayats.

Key Milestones in the Development of Local Self-Government in Colonial India

• Lord Ripon’s resolution: The resolution of the British Government in India on local self-government was announced by Lord Ripon in 1882. This resolution paved the way for greater devolution of powers to local bodies. That is why Lord Ripon is known as ‘Father of Local Self Government in India’.
• Local Bodies Act: The Local Bodies Act came into force in 1885. This formed the basis for establishing local self-governing bodies with mostly nominated members at the village level.
• Royal Commission for decentralisation: The Royal Commission for decentralisation was formed in 1907. The commission recommended that effective decentralisation would require people to be connected with local works and village affairs through village panchayats. 
• INC Resolution: In the Lahore session, the Indian National Congress passed a resolution urging the government to take necessary steps for the election of local bodies at the levels above the gram panchayat and making provisions for non-official presidents for the local bodies.
• Montagu-Chelmsford Reforms: In the Montagu-Chelmsford Reforms, the local government was made a ‘transferred subject’. This meant that the local self-government in the provinces came under the control of Indian ministers. 

Different provinces in India passed various acts to enable local government to function efficiently, these include – Bengal Village Autonomous Government Act, 1919, Madras-Bombay and United Provinces Village Panchayat Act, 1920, Bihar Orissa Village Administration Act, 1926 and Punjab Gram Panchayat Act, 1935, etc.

Committees and their recommendations on local self-government 

Balwant Rai Mehta Committee

Formation year: 1957

Objective: The objective of the committee was to examine the performance of the Community Development Program (1952) and the National Extension Service (1953) and thereby suggest reform measures for their better working.

Recommendations: The committee presented its findings in November 1957. It suggested the scheme of Democratic Decentralization, which later came to be known as the Panchayati Raj. The Balwant Rai Mehta committee made the following recommendations in the report:

• Three tier system: Establishment of a three-tier Panchayati Raj system. At the village level, there is a Gram Panchayat, at the block level a Panchayat Samiti, and at the district level a Zila Parishad. These levels must be interconnected through a system of indirect elections.
• Manner of elections: The members of the village panchayats should be constituted by direct elections, while the members of Panchayat Samiti and Zila Parishad shall be constituted through indirect elections.
• Nature of function: Gram Panchayat and Panchayat Samiti shall be entrusted with all the developmental activities in the villages. While the Zila Parishad serves as the coordinating, advisory, and supervisory entity, the Panchayat Samiti will function as the executive body. The district collector will be appointed as the chairman of the Zila Parishad.
• Devolution of power: There shall be a genuine transfer of power and responsibilities to these democratically functioning bodies.
• Devolution of resources: Adequate resources must be transferred to these bodies to ensure their smooth functioning and fulfilment of their responsibilities.
• Devolution of authority: A system must be created to device further devolution of authority in the future. 

In the year 1958, the Central Government accepted the suggestions of the Balwant Rai Mehta Committee and urged the states to adopt the system of local governance suggested by the committee. Rajasthan was the first state to implement the Panchayati Raj system. The then Prime Minister J. L. Nehru inaugurated the Panchayati Raj system in India on 2nd October 1959 in Nagaur district of Rajasthan. Andhra Pradesh became the second state to adopt the Panchayati Raj system.

Ashok Mehta Committee 

Morarji Desai government constituted a committee under the chairmanship of Ashok Mehta in the year 1977 to study Panchayati Raj Institutions. The committee made the following suggestions regarding local self-government:

• Constitutional recognition: Panchayati Raj Institutions should be constitutionally recognised.
• Two-tier system: The committee suggested a two-tier Panchayat system instead of a three-tier system suggested by the Balwant Rai Mehta Committee. The two-tier structure included the Zilla Panchayat at the district level and Mandal Panchayats made up of several villages.
• Tenure:  The tenure of Panchayats should be four years instead of five years.
• Politicisation: There should be the participation of political parties in the Panchayat elections at all levels.
• Taxation Powers: Panchayats should be empowered with taxation authority to gather resources.
• Accountability: Regular social audits must be conducted by the district authority along with a body of legislators to ensure accountability.
• Independence: States should not encroach on the rights of local bodies and the system of regular elections must be ensured.
• Nyaya Panchayat: These should be established as a distinct entity separate from development panchayats. Nyaya Panchayats should be led by a qualified judge.
• Reservation: Scheduled castes and scheduled tribes should receive reservations in accordance with their population proportions.
• Separate ministry: New ministry for Panchayati Raj should be created in the State Council of Ministers.