Liability of local authorities to prepare and present accounts for audit.

(1) The accounts of a local authority or a local fund included in the Schedule relating to a financial year shall be prepared or caused to be prepared by the Executive authority, in such form and in such manner as may be prescribed, and presented for audit within four months of the close of that financial year. (2) Where an Executive authority makes default in the preparation and presentation of accounts for audit within the period specified under sub-section (1), he shall be punishable, on conviction, with fine which may extend to three thousand rupees but which shall not be less than one thousand rupees: Provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a fine of less than one thousand rupees. (3) No proceedings under sub-section (2) shall be taken by the Director without giving the person affected thereby an opportunity to show cause, within fifteen days, why such proceedings should not be taken against him.