Section 10 in The M.P. Sthaniya Nidhi Sampariksha Adhiniyam, 1973
10. Local Authority to remedy defect-Procedure to be followed after report of the Director under Section 8.
- [(1) Within forty-five days of the receipt of a report under Section 8, the Principal Officer of the local authority shall-(a)sort out or cause to be sorted out the defects or irregularities which may have been pointed out in the report-(i)which he or the Executive Officer is competent to remedy without reference to local authority; and(ii)which the local authority alone is competent to remedy;(b)notwithstanding anything contained in the law relating to local authority, call a special meeting of the local authority for consideration of the report, which meeting shall, for the purposes of the law relating to local authority, be deemed to be a special meeting concerned under the said law; and(c)place before the special meeting of the local authority called under clause (b) the report together with a note giving therein the position about the facts mentioned therein and the action which he would propose thereon.Explanation. - For the purposes of clauses (b) and (c) in the case of a "Municipal Corporation", the Mayor thereof shall be deemed to be the Principal Officer of the local authority in place of the Municipal Commissioner.(1-A) If the Principal Officer of the local authority fails to call a special meeting as required by clause (b) of sub-section (1), the Executive Officer of the local authority shall call a special meeting within thirty days from the date of the expiration of the period mentioned in sub-section (1) and the provisions of clauses (b) and (c) of sub-section (1) shall apply thereto as they apply to a special meeting convened under clause (b) of the said sub-section.Explanation. - For the purpose of this sub-section "Executive Officer of the local authority" means-(i)in the case of Municipal Corporation, the Municipal Commissioner;(ii)in the case of Municipal Council or Notified Area Committee, the Chief Municipal Officer;(iii)in the case of Town and Country' Development Authority, in Chief Executive Officer;(iv)in the case of-(a)Gram Panchayat, the Secretary;(b)Janpad Panchayat, the Chief Executive Officer;(c)Zila Panchayat, the Secretary;(v)in the case of an Agricultural Produce Market Committee, the Secretary;(vi)in the case of any other local authority, such office-bearer or officer thereof as the State Government may, by notification, specify in this behalf.(1-B) The Principal Officer of the local authority shall, after the local authority has considered the matter in the special meeting called under sub-section (1), take necessary action to rectify the defects or irregularities and within four months of the receipt of the report-(a)send to the Director, intimation of having remedied the defects or irregularities pointed out in the report; or(b)supply to the Director, explanation in regard to such defects or irregularities, as the local authority may wish to give.(1-C) If the Principal Officer of local authority finds any difficulty or has any doubt in understanding the report, he may seek clarification thereof from the Director in such manner and within such period as may be prescribed. The Director may for the purpose of furnishing the clarification sought by the Principal Officer of the local authority summon the Principal Officer of the local authority requiring him to present himself at such lime and place and with such records as he may direct or he may, if he thinks fit to do so, inspect the record at the place at which it is kept.] [Sub-sections (1), (1-A), (1-B) & (1-C) Substituted by M.P. Act No. 14 of 1978.](2)On receipt of such intimation or explanation, the Director may, in respect of all or any of the matter discussed in his report-(a)accept the intimation or explanation given by the Principal Officer of the local authority and withdraw the objections; or(b)direct that the matter be re-investigated at the next audit or at any earlier date; or(c)hold that the defects or irregularities pointed out in the report or any of them have not been removed or remedied.(3)[ If the Director holds that any detects or irregularities pointed out in the report have not been removed or remedied, he shall, as soon as may be, on receipt by him of the intimation or explanation of the Principal Officer of the local Authority concerned under sub-section ((1 -B) or on the expiration of the period prescribed under sub-section (1-C) or in the event of the Principal Officer of the local authority failing to give such intimation or explanation on the expiry' of the period of four months mentioned in sub-section (1-B) but not later than one year of the receipt of the report, frame charges against the alleged delinquent persons stating the amounts to which the defects or irregularities relate and forward a copy of the said charges to the Commissioner as well as to the Principal Officer of the local authority.] [Substituted by M.P. Act No. 14 of 1978.][(3-A) If the Principal Officer of the local authority or the Executive Officer of the local authority, as the case may be, fails to take action under sub-section (1) or sub-section (1-A) or sub-section (1-B) or sub-section (1-C), he s/fall render himself liable for framing of charges and the Director may, on the expiry of a period of four months mentioned in sub-section (1-B), frame charges against the Principal Officer of the local authority or the Executive Officer of the local authority, as the case may be, in addition to framing of charges against the alleged delinquent person or persons under sub-section (3)] [Inserted by M.P. Act No. 14 of 1978.].(4)Nothing in this section shall preclude the Director at any time from bringing to the notice of the Commissioner, for such action the Commissioner may consider necessary any information which appears to the Director to support a presumption of criminal misappropriation or fraud or which in his opinion deserves special attention or immediate investigation.
