Section 13(4) in The M.P. Panchayat Audit Rules, 1997
(4)If the audit organisation holds that any detects or irregularities pointed out in the report have not been removed or remedied, he shall on receipt of the intimation or explanation of the Panchayat or in the event of the Panchayat failing to give such intimation or explanation within the stipulated time send a report to the Director Panchayat stating the details of the defects or irregularities. He shall also send a copy of said report, in case of Gram Panchayat & Janpad Panchayat to the District Panchayat and Social Welfare Officer and in case of Zila Panchayat to the concerned Joint Director of Panchayat. The above said officers shall scrutinise the report and shall cause to register a case before Prescribed Officer, if necessary. The concerned Panchayat will plead his ease before the Prescribed Officer. If the Prescribed Officer is not satisfied with the disposal of audit objection, he shall proceed to fix the responsibility.
