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State of Andhra Pradesh - Section

Section 9 in Andhra Pradesh State Audit Rules, 2000

9. Initiating Surcharge Proceedings, Appeal and the Recovery.

(1)
(a)Under Section-10 of the Act, the Director is empowered for initiating surcharge proceedings against the persons responsible for causing loss to the funds of Local Authorities or other authorities.
(b)The powers of Director under Section 10 of the Act, shall also be exercised by the authorities specified in column (2) in respect of the Local authority or other Authority specified in the corresponding entry in column (3) of the table given hereunder.
TABLE
Sl.No. Name of the Authority Name of the local/other Authority
(1) (2) (3)
1. Regional Deputy Director 1. All Hindu Religious and CharitableEndowments and Institutions whose Executive Authorities are inthe rank of Deputy Commissioner and above except TirumalaTirupati Devasthanams.
    2. All Private Engineering Colleges receivinggrants-in-aid from the Government.
    3. All aided Colleges and Schools other thanGovernment Colleges and Schools.
    4. All Polytechnics receiving aid from theGovernment.
    5. Municipal Councils (Special grade andselection grade).
    6. Mandal Parishads
    7. Zilla Grandhalaya Samsthas constituted underthe A.P. Public Libraries Act, 1960.
    8. Agricultural Market Committees.
2. Audit Officer 1. Gram Panchayats
    2. Municipal Councils (upto and inclusive offirst Grade) including notified Area Committees.
    3. All Hindu Religious and CharitableEndowments and Institutions whose Executive Authorities are inthe rank less than that of Deputy Commissioner.
    4. Andhra Pradesh Employees Welfare Fund.
    5. Aided Women Hostels and other Institutionsother than Government under the Women Welfare Departments.
    6. All Official Receivers.
    7. All District Chambers of Panchayat Raj.
    8. Medical lending Libraries at Visakhapatnam,Chittoor, East Godavari, Guntur, Kurnool and Warangal.
    9. District Sailors and Soldiers Board at EastGodavari, West Godarvari, Krishna, Guntur, Nellore Chittoor,Anantapur Cuddapah, Kurnool and Ranga Reddy Districts.
    10. T.B. Sanitorium in Chittoor District.
    11. Prize Endowments in East Godavari, Chittoorand Anantapur Districts.
    12. N.C.C. Trophy, Anantapur.
    13. District Leprosy Funds, Anantapur.
    14. Andhra Pradesh Medical Council, Hyderabad.
    15. Andhra Pradesh Medical Pharmacy Council,Hyderabad.
    16. Official Trustee, Hyderabad
    17. Andhra Pradesh Bhoodana Yagna Board,Hyderabad.
    18. Aradhana Magzine
    19. Andhra Pradesh Dental Council
(2)The objections of the Audit Report which are not rectified under clause (c) of sub-section (2) of Section 9 of the Act read with sub-rule (2) of Rule 8 of these rules, which had been included in the body of special letter under sub-rule-(9) of Rule 7, shall be subject to surcharge under Section 10 of the Act.Provided that the objections raised and pending in the audit reports of Gram Panchayats, Mandal Parishads, Zilla Parishads, Agricultural Market Committee and Zilla Grandhalaya Samsthas, as on the date of commencement of these rules and also those objections on which surcharge was not barred by the limitation, if any, under the existing provisions, shall continue to be subjected to surcharge proceedings even after these rules came into force.
(3)
(a)The onus for production of records for audit shall lie on the Chief Executive authority concerned, under Rule-6 and if the records are not produced willfully the same shall be subject to surcharge proceedings under sub-rule (2) above. The Chief Executive authority, shall produce the records within four months as specified in sub-rule (1) of Rule-8 for compliance. Failure to produce records within the time prescribed shall be liable for surcharge proceedings.
(b)The special letter or letter wherever required shall be caused to be reissued in the same manner as was provided for in the first proviso to sub-rule (9) of Rule 7 after audit on subsequent production of records. The report to be submitted after such audit or review shall be deemed to be a report and to form part of original report, for purpose of various other provisions of Rule 7.
Note. - Report and the special letter or letters consequent to conducting of special audit shall also be treated in the same manner as the report and the special letter or letters covered in Clause (b) of sub-rule (3).
(4)
(a)auditor may disallow every item contrary to law and surcharge the same on the person making or authorising the making of the illegal payments and may charge against any person responsible therefor, the amount of any deficiency, loss or unprofitable outlay incurred by the negligence or misconduct of the person or of any sum which ought to have been, but is not, brought to account, by that person and shall in every case, certify the amount due from such person, and cause to serve his decision to surcharge in the form of surcharge Certificate by Registered Post with Acknowledgement due, to the person against whom it was made.
(b)The auditor shall state in writing the reasons for his decision in respect of every such disallowance, surcharge or charge and serve the surcharge Certificate in the manner laid down for the service of summons in the Code of Civil Procedure, 1908.
(c)If the person to whom the Surcharge Certificate has been sent by Registered Post with acknowledgement due, refuses to receive it, he shall nevertheless be deemed to have been duly furnished or issued with a copy of the certificate within the meaning of Clause (a) of sub-rule (4) and the period of sixty days fixed in sub-rules (5) and (8) shall be calculated from the date of such refusal.
Explanation. I - For purpose of Clause (a) of sub-rule (4), the person making or authorising to make of the illegal payments, is the person, who on his own acts or neglects or makes a final decision leading to illegal payments. Person who is authorised to draw the funds and disburse unless he himself is a party to such decision, is not necessarily the person charged with authorising or making such payments. Person who raises the claim on account of Pay and allowances leading to illegal payments or in the alternative a person who fails to initiate corrective measures for stopping and for recovering the said illegal payments, are the persons said to be authorising such payments. But the person who raises the claim of such allowances on account of the express orders of some other authority is not the person said to be authorising such payments. Person making payments or responsible for deficiency, loss or waste etc., originating from his own neglect, misconduct or misinterpretation of the provisions, viewed in terms of the relevant provisions of the Act, rules or orders governing the Local Authority or other Authority concerned, is said to be the person authorising such illegal payments, deficiencies etc.Explanation II. - When there is more than one person charged to have authorised or made illegal payments, all such persons shall be equally treated for purpose of Clause (a) of sub-rule (3).Explanation III. - It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that not withstanding his negligence or misconduct, the deficiency or loss would not have occured but for the negligence or misconduct of some other person.
(5)Every person aggrieved by any disallowance, surcharge, or charge, may within sixty days after the date of service on him of the surcharge certificate issued by the Auditor either: -
(a)file an appeal before the Government who shall pass such orders as it deems fit
OR
(b)make an application to the concerned Principal Civil Court of Original Jurisdiction to set aside such disallowance, surcharge or charge and the Court after taking such evidence as is necessary may confirm, modify or remit such disallowance, surcharge or charge with such orders as to costs as it may think proper in the circumstances;
(c)The orders passed by the respective appellate authority shall be final.
(d)From the decision of the Court under Clause (b) of sub-rule (5) an appeal shall lie to the High Court.
(6)Where an application is made in the Court under Clause (b) of sub-rule (51 or an appeal made under Clause (d) ibid, the authority who issued the Surcharge under Clause (a) or as the case may be under Clause (b) of sub-rule (1) shall be the sole respondent thereto, and the applicant shall not make either the Government or any other person a party to the proceedings.
(7)Notwithstanding the requirement under the first and second provisos to sub-rule (9) of Rule 7, that the Special letter or letters be sent by registered Post with Acknowledgement due, the Surcharge shall not be appealed under sub-rule (5), on the ground that the said letter or letters were not received by him nor acknowledged by him. It shall however be open for him to contest or appeal on the contents of the Surcharge Certificate so received by him with reference to the objection or objections the copy of which has already been available in the Audit Report sent to the Chief Executive Authority concerned under sub-rule (9) of Rule 7. However in case a copy of the objection on which Surcharge was served, is required to be supplied, the authority who issued the Surcharge shall forthwith supply such copy.
(8)Every sum certified by the Director or other authority subordinate to him, to be due from a person under these rules shall be paid by such person in the nearest Government treasury or in the office of the Local Authority or other Authority as the case may be within sixty days after the date of service on him of the Surcharge Certificate issued by the Director or other Authority subordinate to him and unless within that time such person has made an application or an appeal to the authorities mentioned in sub-rule (5), against the Surcharge Certificate, such sum, if not paid, or such sum as the said authorities declare to be due, shall be recoverable as if it were arrear of land revenue.
(9)All payments within the meaning of sub-rule (8) shall be reported to the authority who issued the Surcharge Certificate, by the Chief Executive Authority or the Surcharge soon after such payments are made. Copies of all Surcharge Certificates on which no action has been taken for recovery under sub-rule (8) shall be communicated to the District Collector concerned, by the surcharge issuing authority, for initiating action for recovery as if they were the arrears of land revenue. The Collector, shall send the particulars of the said recovery to the said Surcharge issuing authority. The District Collector shall designate field level officers concerned of Local authorities or other Authorities for filing Execution Petitions and attending to other matters related thereto.