Section 6(6) in Tamil Nadu Panchayats (Issue and Disposal of Audit Report of Village Panchayats) Rules, 2000
(6)During the course of audit, when the auditor of the village panchayat notices, any defalcation or misappropriation of the fund of the village panchayat, he shall immediately bring the fact to the notice of the Inspector for taking necessary action under the Act including prosecution of the executive authority. Copy of such report shall also be sent to the Assistant Director of Rural Development (Panchayat) and Assistant Director (Audit).
