Democratization needs a uniform system of local government in a given polity, otherwise undesirable and unviable diversity impedes the process of democratization. Now, it makes way out for challenge of dysfunctionality in the relevant political process with effect of anomaly in many other respects. Such a perspective has been generated through Hill Tract Peace Pact 1997, Regional Council Act 1998, Hill Tract District Council Act 1998 in the 3 Hilltract districts of Bangladesh. These Acts in effect have created a great differences between the local government system in the country in general and the Hill Tracts region in particular. The consequence has been that there now prevails cleavage between civil and military, plainlanders and paharis, centrals and locals, Tribes and Bangalis. In the Hilltract these prevails union council like how it is in the rest of Bangladesh. In addition to that local circle chief or king and under the king there are Moujas headed by a headman and number of karbaris. These headmen and karbaris are nominated by the king and appointed by the D.C. These employees get salary from the government exchequer and at the same time get taxes from the common men. While Union Council functions under democratic governmental system the Local Circles function under monarchy. This is a great and penetrating contrast. How monarchy and democracy can go hand in hand is a big question mark which posses a threat to the sovereignty of the state and can be a way out for foreign intervention. A remedy is urgently needed to bring national uniformity of local government system keeping the cultural uniqueness of the hill people.