Section 12(2) in Kerala Local Fund Audit Rules, 1996
(2)When a fraud or misappropriation has been fully investigated by the auditor, he shall submit a complete report on the case to the Director, who shall send copies thereof either to the Controlling Authority or the Government as the case may be:Provided that where the Executive Authority (President/Vice President Chairman/Vice Chairman etc) or the Head of Office of a local authority is involved or there are grounds for suspecting his complicity in the fraud or misappropriation or the serious irregularities, neither the preliminary nor the complete report shall be sent to any of these officers.
