Local authority to remedy defects: Procedure to be followed after report of the

(2) On receipt of such intimation or explanation the Examiner may, in respect of all or any of the matters discussed in his report, (a) accept the intimation or explanation given by the Chairman and withdraw the objection, or (b) direct that the matter be re-investigated at the next audit or at any earlier date, or (c) hold that the defects or irregularities pointed out in the report or any of them have not been removed or remedied. (3) The Examiner 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 Chairman referred to in sub-section (1) or in the event of the Chairman failing to give such intimation or explanation, on the expiry of the period of four months mentioned in the said sub-section and 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 Examiner 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 report on the accounts of such local authorities as are specially notified by the State Government in this behalf the report referred to in this sub-section shall be sent by the Examiner to such officer, being the head of a department, as the state Government may direct specifying therein in particular the portions thereof to be published under subsection (4). Such officer 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 Commi-ssioner together with his recommendation in that behalf. (4) The local authority concerned shall publish in its next administration report, such portions of the report under section 7 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 Examiner 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 published in the Gujarati language in any newspaper circulating in the district 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) ; Provided that- (i) a local authority, 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 in the Gujarati Language and (ii) a local authority, whose annual income is Rs. 50,000 or less, may, instead of so publishing such report of defects and, irregularities, explanation and final report in the newspaper, publish the fame by affixing a copy thereof at its office and at such other conspicuous places within its limits as it may think fit and simultaneously notify in the Gujarati language in a newspaper circulating in the district selected by the local authority the fact of such publication. (5) If the Chairman fails to give the intimation or explanation referred to in sub-section (1) within the period therein mentioned the Commissioner may, at the instance of the Examiner, publish in the Gujarati language the whole of the Examiner's report under section 7, or such portions thereof as are specified by the Examiner under sub-section (3), together with any observations which the Commissioner may make thereon in any newspaper circulating in the district which the Commissioner may select and the cost of such publication shall be forthwith paid by the local authority concerned. If such 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 sufficient discharge to such person from all liability to the local authority in respect of any amount paid by him out to the money of the local authority so held by him. (6) Nothing in this section or in section 8 shall preclude the Examiner 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 Examiner to support a presumption of criminal misappropriation or fraud or which in his opinion deserves special attention or immediate investigation.