Section 39 in Orissa Panchayat Samiti Accounting Procedure Rules, 2002
39. Loss.
(1)Whenever any loss of money, stores or other properties by embezzlement, theft, fire or otherwise is noticed, the Block Development Officer shall forthwith report the facts to the Examiner of Local Fund Accounts, Orissa and Collector of the district and to tho Administrative Department. The Block Development Officer shall lodge F.I.R. in Police-station regarding loss and keep Chairman informed about it. He shall, after making a full enquiry with respect to such loss, submit to the said officers a complete report showing the total sum of money or the value of stores or other property lost, the manner in which such loss occurred and the steps taken by him to recover the money, stores or other properties lost and to punish the offender, if any.(2)Collector of the district receiving a report under Sub-rule (1) shall forward it forthwith to Government with his remarks, if any. He shall also submit a detailed report, after completing such departmental investigation as may be necessary or expedient, on the causes or circumstances which led to defalcation or loss, the steps taken to prevent its re-occurrence and the disciplinary or any other proposed as against the person(s) responsible.(3)No money, stores or other property lost by embezzlement, theft, fire or otherwise shall be written off from the accounts except with the sanction of the Government :Provided that the Samiti shall be competent to sanction the write off of loss of money or the value of stores or property not exceeding Rs. 500 subject to the following condition :(a)That the loss does not disclose a defect system the amendment of which requires the order of Government; and(b)that there has not been any gross negligence on the part of any individual officer or officers which might possibly call for disciplinary action or in respect of which action could be taken under Section 9 of the Orissa Local Fund Audit Act, 1948 (Orissa Act V of 1948).
