Read the following passage and answer the question:

Ralegan Siddhi is a small village in the district of Ahmadnagar, Maharashtra, it has become an example for watershed development throughout the country.

In 1975, this village was caught in a web of poverty and illicit liquor trade. The transformation took place when a retired army personnel, settled down in the village and took up the task of watershed development. He convinced villagers about the importance of family planning and voluntary labour; preventing open grazing, felling trees, and liquor prohibition.

Voluntary labour was necessary to ensure minimum dependence on the government for financial aids. "It socialised the costs of the projects," explained the activist. Even those who were working outside the village contributed to the development by committing a month's salary every year.

Work began with the percolation tank constructed in the village. In 1975, the tank could not hold water. The embankment wall leaked. People voluntarily repaired the embankment. The seven wells below it swelled with water in summer for the first time in the living memory of the people. The people reposed their faith in him and his visions.

A youth group called Tarun Mandal was formed. The group worked to ban the dowry system, caste discrimination and untouchability. Liquor distilling units were removed and prohibition imposed. Open grazing was completely banned with a new emphasis on stall-feeding. The cultivation of water-intensive crops like sugarcane was banned. Crops such as pulses, oilseeds and certain cash crops with low water requirements were encouraged.

All elections to local bodies began to be held on the basis of consensus. "It made the community leaders complete representatives of the people." A system of Nyay Panchayats (Informal Courts) were also set up. Since then, no case has been referred to the police.

A system of Nyay Panchayat is known as _____.

Informal court

A system of Nyay Panchayat is known as: **Informal court**

In the passage, it is mentioned that a system of Nyay Panchayats (Informal Courts) were set up in Ralegan Siddhi.