(1)The audit of the accounts of a panchayat shall, be carried out under the provisions of the Gujarat Local Fund Audit Act, 1963 and a copy of the audit note shall be forwarded to the panchayat and to the taluka panchayat within one month of the completion of audit.(2)On receipt of the audit note referred to in sub-section (1), the panchayat shall, either remedy any defects or irregularities which may have been pointed out in the audit note and send to the taluka panchayat within three months an intimation of its having done so, or shall, within the said period supply any further explanation in regard to such defects or irregularities as it may wish to give.(3)On receipt of such intimation or explanation, the taluka panchayat may, in respect of all or any of the matters discussed in the audit note,-(a)accept the intimation or explanation given by the panchayat and recommend to the Collector to withdraw the objection,(b)direct that the matter be investigated at the next audit or at any earlier date, or(c)hold that the defects or irregularities pointed out in the audit note or any of them have not been removed or remedied.(4)The taluka panchayat shall send a report of its decision to the Collector within one month of the date of receipt by it of the intimation or explanation referred to in subsection (2), or in the event of the panchayat failing to give such intimation or explanation on the expiry of the period of three months referred to in the said sub-section (2), and shall forward a copy of such report to the panchayat. If the taluka panchayat holds that any defects or irregularities have not been removed or remedied, it shall state in the report whether in its 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. The taluka panchayat shall also state whether the amounts to which the defects or irregularities relate should in its opinion be surcharged as hereinafter provided.(5)The Collector may, after considering the report of the taluka panchayat and after making such further enquiry as he considers necessary disallow any item which appears to him contrary to law and surcharge the same on the person making or authorising the making of the illegal payment, and(a)if the person on whom the surcharge is made by a member, proceed against him in the manner described in sub-sections (2) and (3) of section 267;and(b)If the person on whom the surcharge is made is not a member, then after taking his explanation direct by order in writing that such person shall pay to the panchayat the amount surcharged, and if the amount be not so paid within one month, the Collector shall recover it as an arrears of land revenue and credit it to the village fund.(6)Any person aggrieved by any order of surcharge made by the Collector under this section may, within one month from the receipt by him of the decision of the Collector, apply to the District Court to modify or set aside such order and that court after taking such evidence as it thinks necessary, may confirm, modify or remit such surcharge and make such order as to costs as it thinks proper in the circumstances.(7)The taluka panchayat may by order in writing direct that all or any of its functions under sub-sections (3) and (4) may also be performed by one of its committees.
