After prolonged skirmishes between the Portuguese and
the Marathas, on 17
December 1779, the Maratha Government assigned the aggregated revenue of
Rs.12,000 in a few villages of this territory to the Portuguese as
compensation to ensure their friendship. The Portuguese ruled this
territory until its liberation on 2 August 1954. Subsequently the
administration was carried on for some time by an administrator.
The area was merged with the Indian Union on 11 August 1961 as a Union
Territory. Since liberation of the territory from Portuguese rule, a
Varishtha Panchayat was working as an advisory body of the administration,
which was, however, dissolved in August 1989 and Pradesh Council for Dadra
and Nagar Haveli was announced. Subsequently Dadra and Nagar Haveli
District Panchayat and 11 village Panchayats were constituted as per
Constitutional amendments at all India level.