If so it's an error as the panchayat blocks or unions are developmental blocks.
From the en.wikipedia.org
In some places the panchayat president is directly elected by village people.
From the en.wikipedia.org
The panchayat had threatened them and volunteers went to the village to rescue her.
From the guardian.co.uk
On April 13th 4,000 khap panchayat members gathered to protest against the verdicts.
From the economist.com
A gram panchayat can be set up in villages with minimum population of 300.
From the en.wikipedia.org
The death sentence passed on them by their khap panchayat remains in place.
From the guardian.co.uk
No village panchayat, no landowner, no grasping corporatist, stood for long in his way.
From the economist.com
The next day, Shakoor's uncle tried to get him released by proposing a formal panchayat.
From the time.com
Later he became an important politician during the panchayat period.
From the en.wikipedia.org
More examples
A village council in India or southern Pakistan
The panchayat raj is a South Asian political system mainly in India, Pakistan, and Nepal. "Panchayat" literally means assembly (yat) of five (panch) wise and respected elders chosen and accepted by the village community. ...
A council of elders representing a village or caste.
A council of five or more. Found both in villages and in jatis (q.v.). Also refers to an administrative grouping of villages under constitutionally mandated elected councils.
A quorum; council of five; village government system in India