In India, the Panchayati Raj generally refers to the system introduced by constitutional amendment in 1992, although it is based upon the traditional panchayat system of South Asia. The modern Panchayati Raj and its Gram Panchayats are not to be confused with the extra-constitutional Khap Panchayats (or Caste Panchayats) found in northern India. The Panchayati Raj system was formalized in 1992, following a study conducted by a number of Indian committees on various ways of implementing more decentralized administration.
Mahatma Gandhi advocated Panchayati Raj as the foundation of India's political system, as a decentralized form of government in which each village would be responsible for its own affairs. The term for such a vision was Gram Swaraj ("village self-governance"). Instead, India developed a highly centralized form of government. However, this has been moderated by the delegation of several administrative functions to the local level, empowering elected gram panchayats. There are significant differences between the traditional Panchayati Raj system, that envisioned by Gandhi, and the system formalized in India in 1992.
In India, the Panchayati Raj now functions as a system of governance in which gram panchayats are the basic units of local administration. The system has three levels: Gram Panchayat (village level), Mandal Parishad or Block Samiti or Panchayat Samiti (block level), and Zila Parishad (district level). It was formalized in 1992 by the 73rd amendment to the Indian Constitution.
Various committees on Panchayati Raj:
The Balwant Rai Mehta Committee, headed by MP Balwantrai Mehta, was a committee appointed by the Government of India in January 1957 to examine the work of the Community Development Programme (1952) and the National Extension Service (1953), to suggest measures to improve their work. The committee's recommendation of the committee by NDC in January 1958, and this set the stage for the launching of Panchayati Raj Institutions throughout the country. The committee recommended the establishment of the scheme of ‘democratic decentralisation’, which finally came to be known as Panchayati Raj.