Section 42 in The M.P. Gram Panchayats (Accounts) Rules, 1999
42. Security Deposits.
- Every Secretary of the Gram Panchayat or Sarpanch or any other panch or such other person who is entrusted with the custody of the cash or stocks of the Panchayats shall furnish cither in cash or through a guarantee of a person, acceptable to the Panchayat, a security of a minimum amount of Rs. 5,000/- or such higher amount as may be fixed by the Gram Panchayat. Provided that the guarantor shall furnish a solvency certificate of at least 4 times the amount of the security required lo be given.
