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Abstract
Panchayati Raj institution is a fundamental tool of Indian vote based decentralization process from central government to rural government. Panchayati Raj framework is the main source which gives an extraordinary chance of full democratic based government system, political mindfulness, insurance of rights, equitable basic leadership process, self-government, and political power, to the rural individuals. Panchayati Raj institution is a genuine process which gives single administrative arrangement and advancement to the Indian rural masses. Panchayati Raj plays a pivotal role in bringing and strengthening democracy at grass root levels in India. In State of Jammu and Kashmir panchayati Raj Institution was enacted by the Act of 1989.Present paper is a detailed study of panchayats as units of rural local self government, various problems faced by these institutions and the difficulties faced by the Jammu and Kashmir Panchayati Raj institution in the present situation.