(1)Within two months from the date of receipt referred to in section 90,the Gram Panchayat or the Zilla Panchayat concerned shall, at a meeting, remove or cause to be removed if any defect or irregularity pointed out in the report and shall also inform the auditor or the action taken by it. The Gram Panchayat or the Zilla Panchayat concerned shall give reasons or explanations, if any defect or irregularity is not removed.(2)If, within the period referred to in sub-section (1),no information is received by the auditor from the Gram Panchayat or the Zilla Panchayat concerned or if the reasons or explanations given by it for not removing any defect or irregularity pointed out in the report is not considered sufficient by the auditor,the auditor shall if he has not already exercised or does not propose to exercise the powers conferred upon him by section 92 refer the matter to the State Government within such time and in such manner as the State Government may prescribed.(3)On receipt of the report under under sub-section (2), it shall be competent for the State Government to pass such orders thereon as it may think fit.The orders of the State Government shall, save as provided in sections 92 and 93 be final and the Gram Panchayat or the Zilla Panchayat concerned shall take action in accordance with such orders.(4)If the Gram Panchayat or the Zilla Panchayat concerned fails to comply with the order within the period specified therein, the State Government may empower any officer of the State Government to carry out the order.(5)The officer empowered under sub-section (4) shall, for the purpose of carrying out the order, exercise any of the powers which might have been exercised by the Gram Panchayat or Zilla Panchayat concerned.
