Section 6(3) in Tamil Nadu Panchayats (Issue and Disposal of Audit Report of Village Panchayats) Rules, 2000
(3)The auditor shall report to the village panchayat any loss, waste or misapplication of money or other property owned by or vested in the village panchayat if such loss, waste or misapplication is a direct consequence of the neglect or misconduct of the executive authority or any other subordinates with names of persons directly or indirectly responsible for such loss, waste or misapplication.
