Rectification of defects in audit, etc.

(1) The Commissioner, the Deputy Commissioner or the Assistant Commissioner, as the case may be, shall send a copy of every audit report relating to the accounts of a charitable or religious institution or endowment to the Executive Officer and it shall be the duty of such Executive Officer to remedy within the time specified in this behalf the defects or irregularities pointed out by the auditor and report the same to the Commissioner, Deputy Commissioner, or the Assistant Commissioner, as the case may be. (2) Where on a consideration of the audit report received by him under clause (i) of section 59 and the report of the Executive Officer thereon received by him under sub-section (1) of this section and after such enquiry as may be necessary, the Commissioner thinks that the trustee or any other person was guilty of illegal expenditure or of loss or waste of money or other property thereof caused by misconduct, misapplication, collusion, fraud, breach of trust, misappropriation, or negligence, he may, after giving notice to the trustee or such person to show cause why an order of surcharge should not be passed against him and after considering his explanation, if any, by order, certify the amount so spent or the amount or value of the property so lost or wasted and direct the trustee or such person to pay within a specified time such amount or value personally and not from the funds of the institution or endowment. (3) Where on a consideration of the audit report received by him under section 59 and the report of the Executive Officer thereon received by him under sub-section (1) of this section and after such enquiry as may be necessary, the Deputy Commissioner or the Assistant Commissioner, as the case may be, thinks that the trustee or any other person was guilty of illegal expenditure, or of loss or waste of money or other property thereof, caused by misconduct, misapplication, collusion, fraud, breach of trust, misappropriation or negligence, he shall report to the Commissioner, and the Commissioner may, after giving notice to the trustee or such person to show-cause why an order of surcharge should not be passed against him and after considering his explanation if any by order, certify the amount so spent or the amount or value of the property so lost or wasted, and direct the trustee or such person to pay within a specified time such amount or value personally and not from the funds of the institution or endowment. (4) The Commissioner shall send a copy of the order under sub-section (2) or sub-section (3)- with the reasons for the same by registered post to the trustee or the person concerned. (5) An order of surcharge under sub-section (2) or sub-section (3) against a trustee or other person shall not bar a suit for accounts against him except in respect of the matter finally dealt with by such order. (6) Where the Commissioner is satisfied that the trustee or other person with intent to defeat or delay the execution of any order that may be made under sub-section (2) or sub-section (3) – (a) is about to dispose of the whole or any part of his property; or (b) is about to remove the whole or any part of his property from the jurisdiction of the Commissioner, the Commissioner may by an order direct the trustee or other person within a time to be fixed by him either to furnish security in such sum as may be specified in the order or to produce and place at his disposal when required, the said property or the value of the same or such portion thereof as may be sufficient to satisfy the order or to appear and show-cause as to why he should not be asked to furnish security. The commissioner may also in the order direct conditional attachment of the whole or any portion of such property in the manner prescribed.