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What are Nyaya Panchayats? What authority do they possess?

A Nyaya Panchayat is a system of dispute resolution at village level in India. Nyaya panchayats can be endowed with functions based on broad principles of natural justice and can tend to remain procedurally as simple as possible.

Authority of Nyaya Panchayats:
(a)  They possess the authority to hear some petty, civil and criminal cases.
(b)  They can impose fines but cannot award a sentence. These village courts have often been successful in bringing about an agreement amongst contending parties. 
(c) They have been particularly effective in punishing men who harass women for dowry and perpetrate violence against them.