Section 18(8) in Tamil Nadu Local Fund Audit Rules, 2016
(8)The Director shall report to the Government also about the defalcation or misappropriation and the loss caused to the local authority or local fund, which in his opinion deserves special attention or immediate investigation as per sub-section (5) of section 13 of the Act:Provided that where the Executive authority or the Head of Office of a local authority is involved or there are grounds for suspecting his complicity in the defalcation or misappropriation or the serious irregularities, neither the preliminary nor the complete report shall be sent to any of these officers.
