History:
According to the local legends, Jamlu rishi (sage) inhabited this place and made rules and regulations. The locals claim it to be one of the oldest democracies of the world with a well-organized parliamentary system, guided by their devta (deity) Jamlu rishi. Although Jamlu is currently identified with a sage from the Puranas, this is a relatively recent development. Jamlu is believed to have been worshipped in pre-Aryan times. Penelope Chetwood recounts a tale about an orthodox Brahmin priest, who visited Malana, and tried to educate the locals about the pedigree of their god, and what subsequently befell the hapless priest.
According to tradition, the residents of Malana are the descendant of Aryans[citation needed], and they acquired their independence during the Mughal reign when the Emperor Akbar walked to the village in order to cure an ailment that he was afflicted with[citation needed]; after having been successfully cured he put out an edict stating that all the inhabitants of the valley would never be required to pay tax. An alternative tradition suggests that Malana was founded by remnants of Alexander the Great’s Army.
A dam project, the Malana Hydro Power Station, has brought Malana much closer to the rest of the world and provides revenue for the region. A new road has shortened the walking time from several days to just 4 hours. The Hydro Malana Project has also ruined the beauty of the valley. In 2004, Malana was adopted by Aryan Sharma, a businessman based in Delhi. On 5 January 2008, a raging fire in the village, which burnt for more than 5 hours, destroyed cultural structures and parts of ancient temples located in the village.