Liability of members as well as of Chairpersons and deputy Chairpersons of Panchayati Raj Institutions

(1) Every member of a Panchayati Raj Institution including the Chairperson or deputy Chairperson thereof shall be liable to the Panchayati Raj Institution of which he is such member or, as the case may be, such Chairperson or deputy Chairperson for the loss, waste or mis-application of any money or other property belonging to such Panchayati Raj Institution, if such loss, waste or mis-application is a direct consequences of his neglect or misconduct while in office as such member or, as the case may be such Chairperson or deputy Chairperson.

(2) Whenever, on a complaint made by a Panchayati Raj Institution or otherwise the competent authority is of opinion that any such member or, as the case may be, such Chairperson or deputy Chairperson has caused or done any loss, waste or mis-application of any money or other property belonging to the Panchayati Raj Institution the competent authority shall give notice to the concerned office-bearer of the allegations against him and require him to appear on the date and time to be specified in the notice and to file a written statement in reply to the allegations against him.

(3) If on appearance the member or, as the case may be, the Chairperson or the deputy Chairperson admits his liability and its amount, the competent authority shall pass an order for the recovery of the amount of each liability from such member or, as the case may be, such Chairperson or deputy Chairperson.

(4) If the member or, as the case may be, the Chairperson or the deputy Chairperson disputes his liability or its extent, the competent authority or the officer authorized by him after recording evidence in support of the allegations and after giving the concerned office-bearer, opportunity to cross-examine the witness and to adduce evidence in defence shall, by order, determine the extent and amount of liability of such office-bearer for such loss, waste or mis-application of money or property.

(5) Any person aggrieved by an order made by the competent authority under Sub-sec.(4) may appeal therefrom to the State Government within thirty days of the date on which the order is communicated to him. The competent authority and the State Government may, after giving the parties interested an opportunity of being heard, confirm, modify or set aside the order or remit the case to the competent authority for such further enquiry as it thinks fit.

(6) The Panchayati Raj Institution to which such member or, as the case may be, such Chairperson or deputy Chairperson is liable, shall be and shall be deemed to be a party in an enquiry under this section before the competent authority or in an appeal under Sub- sec. (5) before the State Government.

(7) The competent authority or the State Government holding an enquiry or hearing an appeal under this section shall have the powers of a Civil Court under the Code of Civil Procedure, 1908 (Central Act V of 1908) relating to-

(a) proof of facts by affidavits;

(b) enforcing attendance of any person and his examination on oath;

(c) production of documents; and

(d) issuing of commission.

(8) The amount of any liability ordered to be recovered under Sub-sec. (3) or determined under Sub-sec. (4) shall be recoverable by the Panchayati Raj Institution concerned from such member or, as the case may be, such Chairperson or deputy Chairperson as an arrear of land revenue.

(9) No civil or other revenue Court shall have jurisdiction in respect of any matter which is required to be decided, determined, or dealt with by the competent authority or State Government under this section and no order made by the competent authority or State Government shall be called in question in any court.