Section 148 in Maharashtra Housing and Area Development Act, 1976
148. Audit of accounts of Panchayat.
(1)The audit of the accounts of a Panchayat shall be carried out by the State Government in such manner as it deems fit and a copy of the audit note shall be forwarded to the Board and the Panchayat, within two months of the completion of the audit.(2)On receipt of the audit note referred to in sub-section (1), the Panchayat, shall either remedy and defects or irregularities, which may have been pointed out in the audit note and send to the Board within two months an intimation of its having done so, or shall, within the said period, supply to the Board any further explanation in regard to such defects or irregularities as it may wish to give.(3)On receipt of such intimation or explanation, the Board may, in respect of all or any of the matters discussed in the audit note,-(a)accept the intimation or explanation given by the Panchayat and recommend to the Authority to drop the objection;(b)suggest that the matter be reinvestigated at the next audit or at any earlier date, or(c)hold that the defects or irregularities pointed out in the audit note or any of them have not been removed or remedied.(4)The Board shall send a report of its decision to the Authority with one month of the date of receipt by it of the intimation or explanation referred to in subsection (2), or in the event of the Panchayat failing to give such intimation or explanation on the expiry of the period of two months referred to in the said subsection (2), and shall forward a copy of such report to the auditor, and the Panchayat. If the Board holds that any defects or irregularities have not been removed or remedied, the Board shall state in the report whether in its 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. The Board shay also state whether the amounts to which the defects or irregularities relate should in its opinion be surcharged or charged as hereinafter provided.(5)The Authority may, after considering the report of the Board and after making such further enquiry as it considers necessary, disallow any time which appears to it to be contrary to law and surcharge the same on the person making or authorising the making of thy, illegal payment, and may charge against any person responsible therefor the amount or any deficiency or loss caused by the gross negligence or misconduct of that person, or, any sum received, which ought to have been, but is not, brought into accounts, by that person, and-(a)if the person on whom the surcharge or charge is made be a member, direct the Board to proceed against him in the manner provided in subsections (2) and (3) of section 151; and(b)if the person on whom the surcharge or charge is made is not a member, then after taking his explanation direct by order in writing that such person shall pay to the Panchayat the amount surcharged or charged, and if the amount is not so paid within one month, the State Government may recover as arrears of land revenue and credit it to the Panchayat fund.(6)Any person aggrieved by an order of surcharge or charge made under this section may, within one month from the receipt by him of the decision of the State Government, apply in Greater Bombay to the City Civil Court, and elsewhere, to the District Court to modify or set aside such order; and the Court after taking such evidence as it thinks necessary, may confirm, modify or remit such surcharge or charge and make such order as to costs as it thinks proper in the circumstances. The order made by the Court shall be final,
