Section 18(3) in Tamil Nadu Local Fund Audit Rules, 2016
(3)When a defalcation or misappropriation is detected or may reasonably be inferred from any suspicious circumstances, or there is very strong evidence to raise suspicion thereof, or where any serious irregularity is noticed in accounts, the auditor shall at once confidentially report the circumstances, in writing to the Executive authority of the local authority as the case may be and also to the Director.
