Decentralised governance is one of the key factors contributing to the development of a society. There are many standing examples in the world to prove this fact. The Governance in India has a long history. From the epics and ancient literatures we can find evidences of highly decentralized governance practices in India especially in southern parts. Over a period during the Vijayanagara Dynasty, governance system was centralized in order enforce rules over a vast kingdom. It helped the King to do effective administration of his country. This system was continued during the British rule. During the later periods of British rule the then British Government realized the importance of local governance and efforts were taken to revive the system. Since independence there are many amendments are made regarding creating local governsnce structures and delegating powers to them. The 73rd amendment made in 1993 was a milestone in the history of local governance. It compelled all the State Governments to delegate powers with Panchayatiraj Institutions. Despite of enactment of the law still the Local Governance is found to be ineffective in most of the States. The ignorance of the powers of the Panchayat system and the role of Public and the Panchayat functionaries is the major factor for the failure of Panchayat system.

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