Amendment status not verified — confirm the current text below against the official source.
Liability of the President, Executive Authority and members, etc., for loss, waste or misapplication of property.- (1) The President, Executive Authority and every member of a Village Panchayat and the Chairman, Commissioner and every member of a Panchayat Union Council and the Chairman, 1[Secretary] and every member of a District Panchayat shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in the Village Panchayat or Panchayat Union Council or the District Panchayat if such loss, waste or misapplication is a direct consequence of his neglect or misconduct; and a suit for compensation may be instituted against him in any Court of competent jurisdiction by the Panchayat or Panchayat Union Council or the District Panchayat with the previous sanction of the Inspector. (2) Every such suit shall be commenced within three years after the date on which the cause of action arose.