Rural world is constituted by villages known historically as secular seats of coexistence of different castes/classes and communities. However, under the pressure of different divisive forces, village reality began to be weakened since colonial era, and now, its significance has been almost completely overlooked in the context of the formation of panchayat in accordance with the provisions of the 73rd Constitutional Amendment. The criterion of forming a panchayat is not village community; it is, rather, a fixed number of persons belonging generally to parts of a few different villages. As a result, a panchayat remains a mere collectivity (not a community) of individuals having no common secular and socio-historical bond. So, it seems that panchayati raj, instead of promoting development of people at large, tends to become captive of the forces of casteism/communalism and money/muscle power.