Local authority to remedy defects; Procedure to be followed after report of the Director under section 8.

Local authority to remedy defects; Procedure to be followed after report of the 1[Director] under section 8.- 2[(1) On receipt of a report under section 8, the Chairman shall remedy any defects or irregularities which may have been pointed out in the report, and shall place the report, together with a statement of the action taken or proposed to be taken thereon and an explanation in regard thereto before a meeting of the local authority. He shall also within 3[four months] of the receipt of the report, send to the 4[Director] intimation of his having remedied the defects or irregularities, if any, pointed out in the report or shall within the said period, supply the 5[Director] any further explanation in regard to such defects or irregularities as the local authority may wish to give.]

1. (2) On receipt of such intimation or explanation the 6[Director] may, in respect of all or any of the matters discussed in his report,
   • (a) accept the intimation or explanation given by the 7* * 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.
2. (3) The 8[Director] 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 9* * Chairman referred to in sub-section (1) or in the event of the 10* * Chairman failing to give such intimation or explanation, on the expiry of the period of 11[four months] mentioned in the said sub-section and 12[shall forward to the chairman a copy of such report specifying therein in particular the portions thereof to be published under subsection (4)]. If the 13[Director] 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 reports on the accounts of school boards and of such local authorities as are specially notified by 14[the 15[State] Government] in this behalf the report referred to in this sub-section shall be 16[sent by the Chief Auditor to the head of a department or such other officer as the State Government may direct, specifying in the report in particular the portions thereof to be published under sub-section (4). Such officers 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 Commissioner together with his recommendation in that behalf : 17[Provided further that, where the amount involved in any defect or irregularity to which objection has not been withdrawn under clause (a) of sub-section (2),- 18[(i) does not exceed five hundred rupees, the Joint Director, Local Fund Accounts Audit or the Assistant Director, Local Fund Accounts Audit ;
   • (ii) does not exceed one thousand rupees, the Director, Local Fund Accounts Audit, may, if he considers that it ought to be condoned, condone such defect or irregularity. On such condonation, however, the officer concerned shall make a note to that effect in his report.]
3. (4) The local authority concerned shall publish in its next administration report, such portions of the report under section 8 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 19[Director] 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 20[published in Marathi in such newspaper circulating within the jurisdiction of the local authority as may be 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) : 21[Provided that-
   • (i) 22[a local authority (not being a Zilla Parishad, Panchayat Samiti or a Municipal Council for "C" Class Municipal area within the meaning of the 23Maharashtra Municipal Act, 1965) (Mah. XL of 1965).] 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 24[in Marathi], and
   • (ii) a local authority whose annual income is Rs. 50,000 or less, 25[a Zilla Parishad, Panchayat Samiti, or a Municipal Council for such "C" Class Municipal area] may, instead of so publishing such report of defects and irregularities, explanation and final report in the newspaper, publish the same by affixing a copy thereof at its office and at such other conspicuous places within its limits as it may think fit, 26[and by inserting a notice 27[in Marathi] in such newspaper that the copy has been affixed for inspection of the public accordingly.] 28[(5) If the Chairman fails to give the intimation or explanation referred to in subsection (1) within the period therein mentioned the 29[Director] shall bring the fact to the notice of the Commissioner. Thereupon, the Commissioner may 30[publish in Marathi in any newspaper circulating within the jurisdiction of the local authority] such portion of the 31[Director's] report under section 8 as may be specified by the 32[Director] or as the Commissioner may select, together with any observations which the Commissioner may make on such report. The cost of such publication shall be fortwith paid by the local authority concerned. If the 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 a sufficient discharge to such person from all liability to the local authority in respect of any amount paid by him out of the moneys of the local authority so held by him : Provided that, the Commissioner may-
   • (i) in the case of 33[a local authority referred to in clause (i) of the proviso to sub-section (4)], publish a summary of such report of defects and irregularities, explanations and the final report 34[in Marathi] in any such newspaper, and
   • (ii) in the case of 35[a local authority referred to in clause (ii) of the proviso to sub-section (4) cause a copy of such report of defects and irregularities, explanations and final report to be kept at such conspicuous place within the limits of the local authority as he may think fit, and a notice to be published in such newspaper that such copy has been kept for inspection of the public accordingly. (5A) If a local authority fails to comply with any of the provisions of sub-section (4), the Commissioner may cause the relevant reports and explanations or summaries thereof to be published in accordance with the provisions of sub-section (5), so far as they may be applicable, as if there had been a failure to give the intimation or explanation required by sub-section (1), and the provisions of sub-section (5) shall apply also for recovery of costs of such publication by the Commissioner.]
4. (6) Nothing in this section in section 9 shall preclude the 36[Director] 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 37[Director] to support a presumption of criminal misappropriation or fraud 38[or which in his opinion deserves special attention or immediate investigation.]