The Andaman & Nicobar Islands being a UT is directly governed by The central government through the Lieutenant Governor, who is also the Administrator of these Islands.   The Andaman & Nicobar Islands (Panchayats) Regulation 1994 came into effect from 23^rd April 1994  repealing A&N Islands (Administration) Regulation 1979 which provided for the Pradesh Council (vide A&N Islands (Municipal Board) Regulation 1994). The tenure of Pradesh Council expired on April 1994.

Under the A&N Islands (Panchayat) Regulation 1994, the three tier Panchayat System, extends to the whole of the UT of A&N Islands except the areas included in the municipality (Port Blair) and area notified as reserved areas under the A&N Islands(Protection of Aboriginal Tribes) Regulation,1956. The three tiers are- Gram Panchayat, Panchayat Samiti & Zila Parishad. The elections to the officers to the Gram Panchayat are held directly. The Pramukh & Up-Pramukhs of the Panchayat Samitis are to be elected amongst the elected members of the Panchayat Samitis.  The tenure of the Panchayat and of the Gram Pradhan, Pramukhs & Up-Pramukhs is for 5 years. The Adhyaksha & the Up- Adhyaksha of the Zilla Parishad are to be elected from amongst its elected members for the duration of the financial year. Reservation in the offices of the Pradhans of Gram Panchayats as also in the offices of the Pramukhs of the Panchayat Samitis for the STs and women have been provided according to constitutional provisions. The seats/offices reserved are to be allotted by the Election Commission of UT by rotation to different Constituencies/Gram Panchayats/ Panchayat Samitis. The offices of the Adhyaksha for the first and the Third year of the Zilla Parishad is to be reserved for the women and for the fifth year in favour of a member, if any belonging to ST.

The A&N Islands(Panchayats) (Preparation of electoral rolls and conduct of election) Rule, 1995 was notified under the regulation on 23^rd March 1995.

After constitution of the Gram Panchaysts a Nyaya Panchayat is also to be formed for every Gram, consisting of Five persons is to elected by the members of the Gram Panchayat from amongst themselves. The Nyaya Panchayat may take cognizance of suits for money due or contract not effecting any interest in immovable property

The 73^rd constitutional amendment strives to make the institution more effective which confirms the belief in the people of the country, particularly in the rural areas that they are capable of formulating their own plans for material prosperity, social upliftment and economic independence. The Panchayati Raj Institutions, as enriched in the constitution are a forward step in the process of democratic decentralization.

Dissolution of Panchayat Bodies:-

          The Panchayat Institutions have a life of 5 years. However they can be dissolved earlier by the Administrator, if in his opinion a Panchayat body :-

a) Exceeds or abuses its powers or

b)  Is incompetent to perform ort makes willful and persistent default in performance of duties.

c)    Fails to levy taxes levialble under the Regulation.

d)   Persistently disobeys order for suspending the execution of any work likely to cause injury or annoyance to public or lead to breach of peace or is unlawful.