Moti Paneli village is situated on the banks of the Phulzar river. King Bha Kumbha acquired Moti Paneli between 1755-1790. In 1948, Moti Paneli became a part of Rajkot District and came under Upleta Taluka. In 1952, Gram Panchayat was established in Moti Paneli.
In 1894, the farmers had given the Shock Rights of the Land, which boosted farming. Between 1902-1906, the most extensive irrigation lake of Kathiyawad was built on the Phulzar river with whooping expenses of Rs. 6 Lakhs 50 Thousand spent by the Gondal State. This lake had an irrigation capacity of 8400 Acres!
The farmers had farming crops like Sugar Cane, Peanuts, Onion, and more. The Jaggary made from the Sugar Cane of Moti Paneli was famous in the Rajkot district.
In 1931, a railway line between Moti Paneli and Jarkhan was established. Moti Paneli was famous for its businesses like Ghee, Jaggary, and Peanuts.
Moti Paneli was famous for its Oil Mills and Sugar Factories. In 1948-50, the Galaxy group started a Touring Talkies in Moti Paneli.
The Dhoda-Dhoraji railway line was extended to Porbandar in 1887, and the construction was completed in 1889. Still, Moti Paneli has a working railway station.
In 1956, the Moti Paneli Group Co-operative Society was established. In 1967, the Union Bank of India opened its branch here. In 1974, the State Bank of India opened its branch, while in 1975, Rajkot District Co-operative Bank opened a branch here.
In 1867, the first Primary School opened here in Moti Paneli. In 1931-32, a vast Primary School building was inaugurated. There is also a ‘Bal Mandir’ (Pre-Primary) which Gram Panchayat manages. There was also a ‘Middle School,’ later converted into Pandit Nehru High School, which was again converted into Shree K. J. Patel High School.
This school has produced many Doctors, Engineers, Businessmen, Educators, and Entrepreneurs.
In 1944-45, Shree Parvatibai Public Hospital was started and continued till 1972. In 1972, the government started Government Hospital, which is still working in the village.
The library was started in 1945 and named Shree Phoolbai Library, which worked till 1972. After that, Moti Paneli Gram Panchayat took over this library's management.
The administrative center has magnificent construction here. A modern building was constructed in 1932-33. Today, this building has Gram Panchayat Office, Primary Health Center, Irrigation Office, and Government Guest House.