Amendment status not verified — confirm the current text below against the official source.
Defalcahon or loss in money or stores to be reported by the Execunve autherety.— {1} Whenever any defalcation or loss in money or stores of a local authority. is discovered. the fact shall be promptly reported by the Executive authority to the Director and to the Controlling Authority or the Government, as the case may be, giving im n detail the circumstances which fed to such defalcation or loss, Note-—In this sub-section Controlling Authority means the Head of the Department concerned or the officer empowered to countersign = the grant-in-aid Bill. {2} On receipt ofa report under sub-section (1), the Director shall immediately conduct or cause to be . conducted .a special audit of the accounts of that local. authority: , Provided that nothing in this section shall prevent the lecal authority from taking crimina] proceedings against any person suspected of, or involved in, any defalcation or loss of money or stores, where such | a course.is considered expedient. 10 22, Act to override other enactments—If any provision contamed in any other law for the time being in force relating to the audit of accounts ofa lecal authority or a local fund included in the Schedule is repugnant to the provisions of this Act, the latter shall prevail and the former be void to the extent ofsuch repugnancy.