State Act

The Maharashtra Village Panchayats Act.

140. Audit of account of panchayats.— (1) The audit of the accounts of a panchayat shall be carried out 1[by such authority and] in such manner as may be prescribed and a copy of the audit note shall be forwarded 2[to 3[the Chief Executive Officer], the Panchayat Samiti and the panchayat] within 4[two months] of the completion of the audit. (2) On receipt of the audit note referred to in sub-section (1), the panchayat shall either remedy any defects or irregularities which may have been pointed out in the audit note and send to the 5[Panchayat Samiti] within three months and intimation of its having done so or shall, within the said period, supply to the 6[Panchayat Samiti] any further explanation in regard to such defects or irregularities as it may wish to give. (3) On receipt of such intimation or explanation, the 7[Panchayat Samiti] may in respect of all or any of the matters discussed in the audit note,— (a) accept the intimation or explanation given by the panchayat and recommend the 8[Chief Executive Officer] to 9[drop] the objection, (b) 10[suggest] that the matter be reinvestigated at the next audit or at any earlier date, or (c) hold that the defects or irregularities pointed out in the audit note or any of them, have not been removed or remedied. (4) The 11[Panchayat Samiti] shall send a report of its decision to the 12[Chief Executive Officer] within one month of the date of receipt by it of the intimation or explanation referred to in sub-section (2), or in the event of the panchayat failing to give such intimation or explanation on the expiry of the period of three months referred to in the said sub-section (2), 13[and shall forward a copy of such report to the auditor and the panchayat]. If the 14[Panchayat Samiti] holds that any defects or irregularities have not been removed or remedied, the 15[Panchayat Samiti] shall state in the report whether in its opinion the defects or irregularities can be regularised and if so, by what method and if they do not admit of being regularised, whether they can be condoned and if so, by what authority. The 16[Panchayat Samiti] shall also state whether the amounts to which the defects or irregularities relate should in its opinion be 17[surcharged or charged] as hereafter provided. 18[(5) The Chief Executive Officer may, after considering the report of the Panchayat Samiti and after making such further inquiry as he considers necessary, disallow any item which appears to him contrary to law and surcharge the same on the person making or authorizing the making of the illegal payment and may charge against any person responsible therefore the amount of any deficiency or loss caused by the gross negligence or misconduct of that person, or any sum received which ought to have been, but is not, brought into account by that person; and may after taking explanation of such persons, direct by order in writing that such person shall pay to the panchayat the amount surcharge or charged and where the Chief Executive Officer considers it necessary, also an interest on the amount so surcharged at such rate as may be determined by him. If the amount or interest directed to be paid by the Chief Executive Officer under his order is not paid by the person aforesaid within one month from the date of receipt of such order by him, the Chief Executive Officer shall request the Collector to recover it as an arrear of land revenue and credit it to the village fund, and thereupon the Collector shall be bound to do so]. (6) Any person aggrieved by any order of 1[surcharge or charge or interest thereon] made by the 2[Chief Executive Officer] under this section, may, within one month from the receipt by him of the decision of 3[Chief Executive Officer], apply to the District Court to modify or set aside such order, and that Court after taking such evidence as it thinks necessary, may confirm, modify or remit such 4[surcharge or charge or interest thereon] and make such order as to costs as it thinks proper in the circumstances. 5[* * * * * *]