29. Penalty for causing loss, waste or misappropriation of money or property of the Gaon Sabha.
(1)Every member of the Gaon Panchayat or any committee constituted under this Act or panch of a Circle Panchayat shall be liable for the loss, waste or misapplication of any money or property belonging to the Gaon Sabha or Circle Panchayat if such loss, waste or misapplication is a direct consequence of his neglect or misconduct while a member of the Gaon Panchayat or of any committee or a panch of a Circle Panchayat and a suit for compensation may be instituted against him by the Gaon Panchayat, as the case may be, with the previous sanction of the prescribed authority.(2)If the prescribed authority sanctions the institution of a suit under sub-section (1) or refuses to grant the sanction, the members, panch or Panchayat concerned, as the case may be, may, within thirty days of such sanction or refusal appeal to the Chief Commissioner against the said sanction or refusal.(3)The Chief Commissioner may institutes a suit mentioned in sub-section (1) on his own initiative and in case the suit is decreed, such member or panch shall cease to be a member of the Gaon Panchayat or of the committee or a panch of the Circle Panchayat as the case may be.
