Government to surcharge or charge illegal payment or loss caused by negligence or misconduct

(1) The Government may, after considering the report of the Controller and after taking the explanation of the person concerned or making such further enquiry as it may consider necessary, by order disallow any item which appears to it to be contrary to law and surcharge the same on the person making or authorising the making of the illegal payment; and may charge any person responsible therefor the amount of any deficiency or loss caused by the negligence or misconduct of that person, or any such amount received which ought to have been, but is not brought into account by that person and shall, in every such case, certify the amount due from such person.

(2) The Government shall state in writing the reason for its decision in respect of every surcharge or charge and shall send by registered post a copy thereof to the person against whom it is made.

(3) If a person to whom a copy of the Government decision is sent under sub-section (2) refuses to take delivery thereof he shall be deemed to have duly received it on the day on which it was refused by him.