Panchayat raj, as a system of governance at the grassroots level in rural India has been rightly conceived as the most viable and proper mechanism of realising the goals of democracy, development, peace and security. Panchayat Raj is a system of maximum welfare of maximum people and based on the principle of equitable justice. After Independence efforts have been made to create the units of self-governance at grassroots level but all went in vain since they could not produce the desired result. After Independence efforts were continued to create the panchayats as units of self-governance but the committed Central Government’s initiative came out with 73rd constitutional Amendment for the establishment of panchayat raj institutions in India in 1992.