Local governance through panchayats has been embedded in the Indian administrative system from time immemorial. From a five member team representing the elders of the village to the present three tier structure, tremendous changes have taken place in the panchayat structure. Since independence, many Commissions have been appointed, studies conducted and recommendations made to make the panchayats more viable and responsive people’s bodies. Notable among them are the Ashok Mehta Commission and the Balawant Rai Mehta Commission. This led to a realisation of the need for drafting a Bill to give Constitutional status to Panchayati Raj Institutions (PRIs). The Constitution had hitherto devoted not more than three to four lines to the matter of establishing village panchayats. (Article 40 of the Directive Principles of State Policy). The basis for the Bill had been the shortcomings of the panchayat like lack of regular elections, prolonged suppersessions, inadequate representation of weaker sections, insufficient devolution of power, inadequate financial support and constitutional obligation on the part of state governments to empower PRIs.