Marathas were the rulers of this territory before it came under Portuguese rule. In 1779, a treaty was signed between the Marathas and the Portuguese which allowed the latter to collect revenues from Dadra and Nagar Haveli. There were 72 villages in DNH which were known as parganas.

The treaty was only made for the collection of revenues in compensation for their loss of a warship called ‘Santana’ which had earlier been captured by the Marathas but not surrendered to the Portuguese in spite of their many entreaties. But subsequently instead of collecting only the revenues from the region the whole territory came under the clutch of Portuguese. Their supremacy over the land continued for more than 150 years.

India became independent in 1947 and the reorganization movement of several princely states and colonies was carried out by major political leaders.

The Indian nationalist volunteers liberated Dadra and Nagar Haveli only in July 1954 and a pro-India administration was formed. This land was made a centrally administered union territory with effect from August 11, 1961 by an amendment in the Indian Constitution. The territory came to be known as Dadra and Nagar Haveli (DNH).