Section 39(3) in Orissa Panchayat Samiti Accounting Procedure Rules, 2002
(3)No money, stores or other property lost by embezzlement, theft, fire or otherwise shall be written off from the accounts except with the sanction of the Government :Provided that the Samiti shall be competent to sanction the write off of loss of money or the value of stores or property not exceeding Rs. 500 subject to the following condition :(a)That the loss does not disclose a defect system the amendment of which requires the order of Government; and(b)that there has not been any gross negligence on the part of any individual officer or officers which might possibly call for disciplinary action or in respect of which action could be taken under Section 9 of the Orissa Local Fund Audit Act, 1948 (Orissa Act V of 1948).
