Section 35(2) in The Khadi and Village Industries Commission Rules, 2006
(2)The Commission shall take suitable action against the persons responsible for the loss and shall also send to the Government a detailed report together with the action taken against the persons, if any, responsible for the loss. The cases involving losses not exceeding Rs.5, 000 shall not be reported to the Government unless there are in any case important features which merit detailed investigation and consideration.Exception: Nothing contained in this rule shall apply to losses occasioned by irrecoverable loans. Sanction of the Government shall be obtained before such losses are written off.
