Liability of Officers and employees for misappropriation of Fund

Every Officer or other employee of the Grama Sasan shall be personally liable for the loss, waste, misappropriation or misapplication of any money or other property held for the Administration of the Grama Sasan where such loss, waste, misappropriation or misapplication is a direct consequence of his neglect or misdconduct in his capacity as a Servant of the Grama Sasan and a suit for compensation for the same may be instituted against him either by the Grama Panchayat or by the State Government.