Section 10(3) in The Maharashtra Local Fund Audit Act, 1930
(3)The Director shall send a report of his decision to the Commissioner within one month of the date of the receipt by him of the intimation or explanation of the Chairman referred to in sub-section (1) or in the event of the Chairman failing to give such intimation or explanation, on the expiry of the period of four months mentioned in the said sub-section and shall forward to the chairman a copy of such report specifying therein in particular the portions thereof to be published under sub-section (4). If the Director holds that any defects or irregularities have not been removed or remedied he shall state in the report whether, in his opinion, the defects or irregularities can be regularised and if so, by what method; and if they do not admit of being regularised, whether they can be condoned and if so, by what authority. He shall also state whether the amounts to which, the defects or irregularities relate should, in his opinion, be surcharged or charged :Provided that in the case of reports on the accounts of school boards and of such local authorities as are specially notified by the State Government in this behalf the report referred to in this sub-section shall be sent by the Chief Auditor to the head of a department or such other officer as the State Government may direct, specifying in the report in particular the portions thereof to be published under sub-section (4). Such officers shall take such action as may be necessary regarding any defects or irregularities falling under clause (c) of sub-section (2) which may have been brought to notice in the report. If he is of the opinion that the amounts to which any such defects or irregularities relate should be surcharged or charged he shall forward the report to the Commissioner together with his recommendation in that behalf :Provided further that, where the amount involved in any defect or irregularity to which objection has not been withdrawn under clause (a) of sub-section (2),—(i)does not exceed five hundred rupees, the Joint Director, Local Fund Accounts Audit or the Assistant Director, Local Fund Accounts Audit;(ii)does not exceed one thousand rupees, the Director, Local Fund Accounts Audit,may, if he considers that it ought to be condoned, condone such defect or irregularity. On such condonation, however, the officer concerned shall make a note to that effect in his report.
