Section 11 in The M.P. Panchayat Audit Rules, 1997
11. Auditor to report theft, fraud or embezzlement confidentially.
- Where fraud, theft or an embezzlement is detected or may reasonably be inferred from any suspicious circumstances or where any irregularity is noticed in the accounts, the auditor shall forthwith report confidentially the circumstances in writing to the Sarpanch/President concerned as the case may be and also to the Collector. Where a fraud or an embezzlement has been fully investigated by the auditor, he shall submit a complete report on the case to the Collector and the District Panchayat Officer and in the case of a Janpad or Zila Panchayat the report shall also be required to be submitted to the Director, Panchayat and the Commissioner of the Division :Provided that where the Sarpanch or the Up-sarpanch or the President/ Vice-President is suspected of being involved in any fraud or embezzlement, no preliminary report shall be sent to such Sarpanch/Up-sarpanch, President/ Vice-President.
