After prolonged skirmishes between the Portuguese and 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 territory 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.