Act Info:
1[Chief Auditor]
2[(1) On receipt of a report under section 8, the Chairman shall remedy any defects or irregularities which may have been pointed out in the report, and shall place the report, together with a statement of the action taken or proposed to be taken thereon and an explanation in regard thereto before a meeting of the local authority. He shall also within 3[four months] of the receipt of the report, send to the 1[Chief Auditor] intimation of his having remedied the defects or irregularities, if any, pointed out in the report or shall within the said period, supply the 1[Chief Auditor] any further explanation in regard to such defects or irregularities as the local authority may wish to give.]
(2) On receipt of such intimation or explanation the 1[Chief Auditor] may, in respect of all or any of the matters discussed in his report, -
(a) accept the intimation or explanation given by the 4[* * *] Chairman and withdraw the objection, or
(b) direct that the matter be re-investigated at the next audit or at any earlier date,
(c) or hold that the defects or irregularities pointed out in the report or any of them have not been removed or remedied.
(3) The 1[Chief Auditor] shall send a report of his decision to the Commissioner within one month of the date of the receipt by him of the intimation or explanation of the 4[* * *] Chairman referred to in sub-section (1) or in the event of the 4[* * *] Chairman failing to give such intimation or explanation, on the expiry of the period of 5[four months] mentioned in the said sub-section and 6[shall forward to the Chairman a copy of such report specifying therein in particular the portions thereof to be published under sub-section (4)]. If the 1[Chief Auditor] holds that any defects or irregularities have not been removed or remedied he shall state in the report whether, in his 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. He shall also state whether the amounts to which the defects or irregularities relate should, in his opinion, be surcharged or charged :
Provided that, in the case of reports on the accounts of school boards and of such local authorities as are specially notified by 7[the 8[State] Government] in this behalf the report referred to in this sub-section shall be 9[sent by the Chief Auditor to the head of a department or such other officer as the State Government may direct, specifying in the report in particular the portions thereof to be published under sub section (4)]. Such officers shall take such action as may be necessary regarding any defects or irregularities falling under clause (c) of sub-section (2) which may have been brought to notice in the report. If he is of the opinion that the amounts to which any such defects or irregularities relate should be surcharged or charged, he shall forward the report to the Commissioner together with his recommendation in that behalf :
10[Provided further that, where the amount involved in any defect or irregularity to which objection has not been with drawn under clause (a) of sub-section (2),-
(i) does not exceed two hundred and fifty rupees, the Deputy Chief Auditor, Local Fund Accounts (Senior), or the Deputy Chief Auditor, Local Fund Accounts;
(ii) does not exceed five hundred rupees, the Chief Auditor, Local Fund Accounts, may, if he considers that it ought to be condoned, condone such defect or irregularity. On such condonation, however, the officer concerned shall make a note to that effect in his report.]
(4) The local authority concerned shall publish in its next administration report, such portions of the report under section 8 as deal with defects and irregularities falling under clause (c) of sub-section (2), together with the explanation thereof, if any, given under sub-section (1) and the final report of the 1[Chief Auditor] thereon under sub-section (3). Such report of defects and irregularities, explanation and final report shall be open to the inspection of the public at the office of the local authority for a period of one month from the date of their receipt and shall also be 11[published in Marathi in such newspaper circulating within the jurisdiction of the local authority as may be selected by the local authority,] within one month of the receipt by it of the copy of the report sent to the Commissioner under sub-section (3) :
12[Provided that,-
(i) 13[alocal authority (not being a Zilla Parishad, Panchayat Samiti or a Municipal Council for 'C Class Munici pal area within the meaning of the *Maharashtra Municipalities Act, 1965)] whose annual income is less than Rs. 1,00,000 but exceeds Rs. 50,000 may, instead of so publishing the whole of such report of defects and irregularities, explanation and final report in such newspaper, publish in such newspaper a summary thereof 14[in Marathi], and (ii) a local authority whose annual income is Rs. 50,000 or less, 15[a Zilla Parishad, Panchayat Samiti, or a Municipal Council for such 'C Class Municipal area] may, instead of so publishing such report of defects and irregularities, explanation and final report in the newspaper, publish the same by affixing a copy thereof at its office and at such other conspicuous places within its limits as it may think fit, 16[and by inserting a notice 14[in Marathi] in such newspaper that the copy has been affixed for inspection of the public accordingly.]
17[(5) If the Chairman fails to give the intimation or explanation referred to in sub-section (1) within the period therein mentioned, the Chief Auditor shall bring the fact to the notice of the Commissioner. Thereupon, the Commissioner may 18[publish in Marathi in any newspaper circulating within the jurisdiction of the local authority] such portion of the Chief Auditor's report under section 8 as may be specified by the Chief Auditor or as the Commissioner may select, together with any observations which the Commissioner may make on such report. The cost of such publication shall be forthwith paid by the local authority concerned. If the cost is not so paid, the Commissioner may make an order directing any person, who for the time being has custody of any moneys on behalf of the local authority, as its officer, treasurer, banker or otherwise, to pay the amount of such cost from such moneys as he may have in his hands or may, from time to time, receive, and such person shall be bound to obey such order. Every payment made pursuant to such order shall be a sufficient discharge to such person from all liability to the local authority in respect of any amount paid by him out of the moneys of the local authority so held by him :
Provided that, the Commissioner may -
(i) in the case of 19[a local authority referred to in clause
(i) of the proviso to sub-section (4)], publish a summary of such report of defects and irregularities, explanations and the final report 20[in Marathi] in any such newspaper; and
(ii) in the case of 21[a local authority referred to in clause
(ii) of the proviso to sub-section (4)] cause a copy of such report of defects and irregularities, explanations and final report to be kept at such conspicuous place within the limits of the local authority as he may think fit, and a notice to be published in such newspaper that such copy has been kept for inspection of the public accordingly.
(5A) If a local authority fails to comply with any of the provisions of sub-section (4), the Commissioner may cause the relevant reports and explanations or summaries thereof to be published in accordance with the provisions of sub section (5), so far as they may be applicable, as if there had been a failure to give the intimation or explanation required by sub-section (1), and the provisions of sub-section (5) shall apply also for recovery of costs of such publication made by the Commissioner.]
(6) Nothing in this section or in section 9 shall preclude the 1[Chief Auditor] at any time from bringing to the notice of the Commissioner, for such action as the Commissioner may consider necessary, any information which appears to the 1[Chief Auditor] to support a presumption of criminal misappropriation or fraud 22[or which in his opinion deserves special attention or immediate investigation.]
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1. These words were substituted for the word Examiner by Mah. 3 of 1961, section 10(1).
2. This sub-section was substituted for the original by Bom. 12 of 1949, section 6.
3. These words were substituted for the words three months by Mah. 3 of 1961, section 10(2).
4. The words president or were deleted by Bom. 12 of 1949, section 6.
5. These words were substituted for the words "three months" by Mah. 3 of 1961, section 10(3)(a).
6. These words, brackets and figure were substituted for the words shall forward a copy of such report to the Chairman by Bom. 9 of 1955, section 2(1).
7. The word the provincial Government were substituted for the word Government by the Adaptation of Indian Law Order in Council.
8.. This word was substituted for the word Provincial by the Adaptation of Laws Order, 1950.
9. This portion was substituted for the portion beginning with the word submitted and ending with the words State Government may, direct by Mah. 3 of 1961, section 10(3)(b).
10. This proviso was substituted by Mah. 39 of 1977, section 3.
11. These words were substituted for the words Published in the regional language of the district in any newspaper circulating in the district selected by the authority by Mah. 40 of 1971, section 2(1)(a).
12. This proviso was added by Bom. 9 of 1955, section 2(2).
13. This portion was substituted for the words a local authority by Mah. 40 of 1971, section 2(1)(b)(i)(A).
*. See now the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Township Act, 1965 (Mah. XL of 1965).
14. These words were substituted for the word "in the regional language of the district by Mah. 40 of 1971, section 2(1)(b)(i)(B).
15. This portion was inserterd, ibid., section 2(1)(b)(ii)(A).
16. This portion was inserted by Mah. 3 of 1961, section 10(4).
17. These words were substituted for the words in the regional language by Mah. 40 of 1971, section 2(i)(b)(ii)(B).
18. Sub-section (5) and (5A) were substituted for the original sub-section (5) by Mah. 3 of 1961, section 10(5).
19. These words were substituted by Mah. 40 of 1971, section 2(2)(a).
20. These words, brackets and figures were substituted for the words, letter and figures a local authority whose annual income is less than rs. 1,00,000 but more than rs. 50,000 by Mah. 40 of 1971, section 2(2)(b)(i)(A).
21. These words were substituted for the words in the regional language , ibid., section 2(2)(b)(i)(B).
22. These words, brackets and figures were substituted for the words, letters and figures a local authority whose annual income is rs. 50,000 or less , ibid., section 2(2)(b)(ii).
23. These words were added by Bom. 12 of 1949, section 6.