Rectification of Defects disclosed in audit and orders of surcharge against Chairman or Executive Officer

Rectification of Defects disclosed in audit and orders of surcharge against Chairman or Executive Officer.-

1. (1) The Authority sanctioning the budget shall send a copy of every audit report relating to the accounts of the Notified Institution to the Chairman, Manager or the Executive Officer or any other person concerned with the administration of that institution, as the case may be, and require him to submit an explanation thereof, within such period as he thinks fit. It shall be the duty of such Chairman, Manager or the Executive Officer or other person to remedy any defects or irregularities pointed out by the Auditor and report the same, together with his explanation and the explanation of any other person required, to the said Authority.
2. (2) If upon consideration of the report of the Auditor along with the explanation, if any, furnished under sub-section (1), the Chairman, Manager or the Executive Officer or any other person is found guilty of negligence, breach of trust or misappropriation or misconduct, which has resulted in loss to the notified institution, the said Authority may, give notice to the person to show cause why an order of surcharge should not be passed against him and after considering his explanation, if any, and holding such inquiry, as he thinks fit, by an order, certify the amount so lost and direct the Chairman, Manager or the Executive Officer or such other person, as the case may be, to make good within a specified time, the loss caused to the notified institution.
3. (3) The said Authority shall forward a copy of the order under sub-section
4. (2) with the reasons for the same by registered post to the Chairman, Manager or the Executive Officer of the Institution, or other person who is held guilty.
5. (4) The Chairman, Manger or the Executive Officer or any person aggrieved by an order, passed under sub-section
6. (2) may, within thirty days from the date of the communication of the order appeal:-
   • (i) to the Deputy Commissioner where the order is passed by the Assistant Commissioner;
   • (ii) to the Commissioner where such order is passed by the Deputy Commissioner; and
   • (iii) to the Karnataka Appellate Tribunal, if such order is that of the Commissioner.
7. (5) The Appellate Authority shall not stay the operation of the order pending the disposal of the appeal, unless sufficient security is furnished to its satisfaction.
8. (6) The Deputy Commissioner of the District in which any property of the Chairman or Manager or Executive Officer or other person from whom an amount is recoverable by way of surcharge is situated, shall on requisition made by the Assistant Commissioner, recover such amount as if it were an arrears of land revenue and pay the same to the notified institution concerned.
9. (7) If the surcharge is against the Executive Officer, it shall be recovered out of his salary and other amounts payable to him, as may be ordered by the authority.