GOVERNMENT OF MAHARASi{TRA

/
LAW AND JUDICIARY, DBPARTMENT

Bombay Act No. XXV of 1930

The Bombay Loca1 fund Audit Act, 1930

( AS modified upto l)th March 2005 )

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STORES, KOLHAPUR AND PUBLISHED BY THE DIRECTOR, GOVERNMENT
PNINTINC. STATIONERY AND PUBLICATIONS MAHARASHTRA STATE.
MUMBAT-4OO OO4.

2005

[Price : Rs, 4.00]

t-
\

1930: Mah. XXV l

THE BOMBAY LOCAL FT.]ND AI.]DIT ACT 1930

l'CoNTENTS
Pnreumr.

SrcnoNs.

1. Short title

a Extent.

J. Definitions.

4. Liability of local authorities to submit their accounts for audit'

as may be required'
5. Accounts to be submitted for audit at such period or periods

6. power of auditor to require production of documents and attendance of persons

concerned, etc.

7. Penalty for disobeying requisition under section 6'

as State Government may

8. Audit report to be sent to certain officers and bodies
direct.

9. Audit rePort what to contain.

after report of the
10. Local authority to remedy defects. Procedure to be followed
Chief Auditor under section 8.
loss caused by gross
11. Commissioner to surcharge or charge illegal payment or
negligence or misconduct.

t2. Recovery of surcharges and charges how made

13. Application against order of surcharge or charge'

1

Expenses in respect of requisitions of auditors to be payable out of local Fund'

I 14.

I 15. Rules.
'1
16. Amendments in Bom. III of 1901, Bom' VI of 1923 and Bom- XVIII of
iI L925-(Not printed.)
:

1
t7. Repeal of C. P. and Berar IX of 1933 and saving'

18. provisions of this Act to apply irr addition to any other law relating to audit

iiF- of accounts of local authorities'

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 Bornbay Local Fr'ud Audit Act, 1930 11930: Bom. XXV

r[(.74) ..chairman" means 2[in the case of the Municipal corporation of the city of
Mah'
3[in the co'e of
Nagpur, the Municipal Commissioner for that City'
'"1' :':::|:1!^ ?^'. ,;.;:
panclru\,at satriti constituted under the Maharashtra Zilla Parishads and Panchayat
that Act,l and in the case
Samitis Act, 1961, the Chief.Exectitive Officer as defined in
and includes in the case
of any other local authority, the president or chairman thereof;l
lawfully appointed,
of a dissolved or supersejed local authority, the person or persons
to exercise the powers and perform the duties of such local authority];
al(aaa)..Chief Auditor" means the chief Auditor, Local Fund Accounts and includes
,t Th; Deputy Chief Auditor, Local Fund Accounts (Senior) andl the Deputy
chief
Auditor, Local Fund Accounts;l
\l(ab) "Detaried audit" means an audit of accounts for the whole year ;l
6r< * * * *
'r
(c)..Localauthority''meansalocalauthorityasdefinedinclause(26)ol.'":,i:n'?,:l,iT;
a school board constito*d,'n1:1 r)o+.
the Bombay General clauses Act, 1904, and includes
8 a Panchayat Sanlti consbtuted under Bom'
the 7 [Bombay Primary Education Act, 1947) [and
theMaharashttaZtllaParishadsandPanchayatSamitisAct,196l];lxld
u l::11 ,}ff.
(il ,,Loca|Fund,' means any fund to the control or management of which tax which v of
proceeds of any cess, rate, duty or
authority is legally entitled and includes the
such auihority is iegatty entitled to impose, and any property, vested in such authority ; 1962'
an audit of accounts pertaining to a specified item or
',1(e)..Special Audit,,,means
series of items requiring thorough examination'l
1o[(2)onthecom4encementoftheBombayLocalFundAudit(ExtensionandMah.
or the III
- Amendment) Act, 1960, any reference to the examiner of Local Fund Accounts

Assistant Examiner of Local Fund Accounts in any rule,

requisition or order made under 196"11

this Act, or in any other law l'or the time being in force, or
in any instrument or document'
or' as the
Gi ie u"d as a reflrence to the Chief Auditor, Local Fund Accounts
*uy"onrt
be, the Depuiy bhi"f A"dltor, Local Fund Accounts'l
"ur" lt[
Liability of 4. The accounts qf any local authority whose accounts are declared by the
in the [ Official G.azettef to be subject to audit
13
[State] Governmentl, by a notification
local 12

authorities to under this Act shall, noiwithstanding anything contained

in any enactment by which
submit their thereunder, be subject to audit
accounts for
such local authority is constituted or in any rules made
audit. in all respects in the manner provided by or under this Act'
1 Clauses (aa) arrd (ab) were inserted by Bom'12 of 1949' s' 2(1)'
2 This portion was substituted for the woids "the President or Chairman of
the local authority"
by Mah. 3 of 1961,s, 6(1)(b)'
3 This portion was a""*i-ui*uy, to hav-e.been inserterl by Mah. 35 of 1963,
s. 80, Sch.
+ Ctour" (aaa) was inserted by Mah 3 of 1961,s' 6(1) tt:)'
5 These words were inserted by Mah 39 of 191'7' s' 2"
6 Clour. (b) was deleted, by Mah' 3 of 1961,s' 6(/)(d)' Education
7 These words and figures ,rere substituted for the words and figures "Bombay Primary
Act, t92i," ibid.' s. 6(1)(e).
g This portion was 0""..i'rL*uy, to havg .been inserred by Mah. 35 of 1963, s. 80, sch.
9 This *tt added by Bom' 12 of 1949' s' 2(2)'
"luur. (2) was added by Mah' 3 of 1961' s 6(2)'
10Sub-section
words "the Government" by
I 1 The words "the Provincial Government" were substiiuied for the
ihe Adaptation of Indian Laws Order in Council'
1 2 This word was substituted for
the word "Provincial" by the Adaptation of Laws order, 1950'
words
,,official coriitr,,were substituted for the words "Botnbay Govenunent Gaz,ette" by
--
13 The
the Adaptation of Indian Laws Order in Council'
\

1930 : Bom.'XXVI Bombay Lacal Fund Aurtit Act, 1930

5. tlThe chairman]
of every local authority, whose accounts are declared
section 4 to be subject to audit und,er under Accounts to
this Act, sharl present or cause to be presented be submitted
for audit all accounts of its locar fund in for audit at
the manner and form prescribed by rules
section 15 to the audiror yearry or at under such period
Euch period or 0..,"1, J rl, ie requirea by the or periods as
Commissioner. may be
required.

6' (1)
For the purpose of any audit under this Act,
an auditor may-_
2l(a) require Power of
in writing the production at the head office auditor to
of the local authority of require
such vouchers, statements, returns, correspondence, notes
relation to the accounts as he may think
or other documents in production
fii;l of
and
documents
(b) tequite in writing any salaried servant ofthe
local authority
accountable for, or attendance
the custody or control of persons
of 3 [such vouchers, statements, retums, correspondence, concerned,
l1:"*
notes or other documentsl or any person
having directly or, etc.

I These wordswere substituted for the

.original by Bom. 12
2 This clause was subsrituted ro. ,r,. o.i!i"?i)"-itii.,i. of rcag, s.-3,.
3 These words were substitutei ior;r;ffi ,il,i +,
ioJ,.n"or,, ,rz
lil

rili

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p"- a'c9 |p

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 Bombal, Local Fund Audit Act, I930 [1930 : Bom. XXV

indirectly, by himself or his partner, any share or interest in any contract with or under
the Iocal authority to ippear in person before him at the head office of the local
authority. answer any question I
(c) in the event of an explanation being required from the l*Chairman or other
honorary officer or member of a local authority, in writing invite such person to meet
him at the head office of the local authority and sha1l in writing specify the point on
which his explanation is required.
(2) The auditor may, in any requisition or invitation made under sub-section (1), fix
a reasonable period 2* ,< * * *
within which the said requisition or invitation shall be complied with.
(3) The auditor shall give to the local authority not less than two weeks' notice in
writing of the date on which he proposes to commence the audit:
3[Provided that, notwithstanding anything
contained in this sub-section, the auditor
may, for special reasons which shall be recorded in writing, give shorter notice than two
weeks or commence special or detailed audit on the authority of a [the State Government,
Commissioner or Chief Auditorl without giving notice.l
who wilfully neglects or refuses to comply with any requisition
disobeying
lawfully made under clause (a) or clause (6) of sub-section (1) of section 6
I9QulSltlOO ij
'
IeqUlSrUOn
"
,no"f'phall be liablii o ion before a Magistrate, to a fine which may extend to one
section,Po hundred rupees :
,j {*r

ings under this section shall be instituted except on the

lssloner :

i*.,-' Jrovided further that giving such sanction the Commissioner shall cail upon
proceedings are to be instituted to show cause why the

Audit report inferior to that of a Magistrate of the first class shall try any offence
to be sent to
against this Act.
certain
officers and 8. 5
[As soon as practicable after the completion of the audit, but not later than three
bodies as
ElSratel months thereafter,l the 6 [Chief Auditor] shall prepare a report on the accounts audited
Government and examined and shall send such report to the local authority concerned and copies
may direct.
thereof to such officers and bodies as 7 [the s fState] Governmentl may direct.

I The word "President" was deleted by Bom. 12 of 1949, s. 3.

.2The
rfls portion Deglnrung wrtn
portron beginning Deln8 less and ending with ,,Municipal
with. not bein_g.less" "Municipal Boroughs Act, 1925"
was deleted by Mah. 3 o{ t96t. s. 7(}).
3 This proviso was added by Bom. 12 of 1949,s. 4.
4 These words were suhstituted for the words, "the Commissioner or the Examiner", by Mah. 3
of 196l ,s.'/ (2 ).
5 These words were sub:i. .,1 bi, Bom. 12 of 1949,s. 4,
6 These words were substlrlrcd tor the word,,Examiner,,by Mah.3 of 1961, s.g.
7 The words "the Provincial tioverument" were substituted for the word "the dovernment" by the
Adaptation of Indian Laws OrtiL r in Council.
8 This word was substituted for word "Provincial" by the Adaptation of Laws Order, 1950.
 1930: Bqm. XXVI Bombay Local Fund Auctit Act, 1930

9' The '[chief Auditor] shalr incrude in his report a

statement of- Audit reoort
(a) every payment which appears to him to what to '
be contrary to law, contain.
(b) the amount of any deficiency or loss which
appears to have been caused by
the gross negligence or miscon{uct of any person,
(c) the amount of any sum received which ought
to have been but is not brought
into account by any person, and
(d) aqy material impropriety or irregularity
which he may observe in the accounts
other than those menrioned in clauses (a), (b) and (c)
above.
10. 'l(1)on receipt of a report under section g,
the chairman shall remedy any Local
defects or irregularities which may have been pointed authority to
out in the report, and shall place
the report, together with a statement of the action remedv
taken o. p.opor"j to be taken thereon defects'.
and an explanation in regard thereto before a Procedure to
meeting of the local authority. He shall also be followed
within 3 [four months] of the receipt of the report,.send after reDort
to the 4[chiefAuditor] intimation of the ^
of his having remedied the defects or irregularities, if alChief
any, pointed out in the report or Auditorlunder
shrill within the said period, supply the a[chief Auditor]
any further explanation in regard section 8.
to such defects or irregularities as the local authority
may wish to give.l
(2) on receipt of such intimarion or explanation
the a[Chief Auditor] may, in respect
of all or any of the matters discussed in his report,
(a) accept the intimadon or explanation given by
the sx +Chairman and
withdraw the objection, 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 irregurarities pointed
out in the report or any of them
have not been removed or remedied.
(3) The r[Chief Auditor] shall send a report
of his decision ro the Commissioner within
one month of the date of the receipt by him
of the intimation or expranation of the
5x * Chairman
referred to in sub-section (1) or in the event of
the5* * Chairman failing
to give such intimation or expranation, on the expiry
of the period of 3[four months]
mentioned in the said sub-section and 6[shall forward
to th" ihair*an a copy of such
report spe€ifying therein in particular the portions
thereof to be published under sub-
section (4))' rf the a[ Chief Auditor] holds that
4ny defects or irregularities have not been
removed or remedied he shail state in the report
whether, in his 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. He shall
also state whether the amounts to which, the defects
or irregularities relate should, in
his opinion, be surcharged or charged :

l These words were substituted for the word "Examiner" by

Mah. 3 of 1961, s. 9
2 This sub-section was substituted for the original
by tsom 12 of 1949, s.6.
,ffi,T rvords were substitutecl ro, trr" *o.ar?;;il.;"";;*il.:'ui'iid,"a'ol
,ru,, ss. r0(2) and
4 These words, were substituted for the
words ,,Examiner,, ibid., s. l0 (l).
5 Jhe words "president or" were deleted
bt Sotn. f Z of 1949,s. 6.
6 These words' brackets and figure ,r".. rrurtitut"d
report to the chairman', by Bom. 9.
for the *oid, irhull forward a copy of such
of 1955, s. 2(l).
 I

6 Bombay l-ocal Fund Audit Act, 1930 [1930: Bom. XXV

Provided that in the case of reports on the accounts of school boards
and of such local
authorities as-are specially notified by 1[the 2[State] Governmentl in this
behalf the report
referred to in this sub-sectipn shall be 3[sent by the Chief Auditor to the
head of a
department or such other officer as the State Government may direct,
specifying in the
report in particular the portions thereof to be published under sub-section (4).
Such
officers shall take such action as may be necessary regarding any defects
or irregularities
falling under clause (c) of sub-section (2) which may have been brought to notice
in the
report' If he is of the opinion that the amounts to which any such defects
or irregularities
relate should be surcharged or charged he shall forward the report to
the Commissioner
together with his recommendation in that behalf. :

.::'l : a[ Provided
further that
, where the amount involved in any defect or irregularity to
which objection has not been withdrawn under clause (a) of sub-section
ei,-
(l) does not exceed two hundred and
fifty rupees, the Deputy Chief Auditor, Local
Fund Acounts (Senior), or the Deputy chief Auditor, Local Fund Accounts
;

(ii) does not exceed five hundred rupees, the Chief Auditor, Local Fund Accounts,

may, if he considers that it ought to be condoned, condone such defect or irregularity.

On such condonation, however, the officer concerned shall make a note
to that effect
in his report.l

(4) The local authority concerned shall publish in its next administration
report, such
portions ofthe report under section 8 as deal with defects and irregularities
falling under
clause (c) of sub-section (2), together with the explanation thereof, if
any, given under
sub-section (l) and the final report of the 5[ Chief Auditor] thereon under
sub-section
(J). Such report of defects and irregularities, explanation and final report
shall be open
to the inspection of the public at the office of the local authority for a period
of one month
from the date of their receipt and shall also be 6[published in Marathi in
such newspaper
circulating within the jurisdiction of the local authority as may be selected
by the local
authority.l within one month of the receipt by it of the copy of the report
sent to the
Commissioner under sub-section (3/:

I The words "the Provincial Government" were substituted for the

word .,Government,, by the
Adaptation of Indian Laws Order in Councit.
2 This word was substituted for the word "Provincial" by
the Adaptation of.Laws Order, 1950.
3 This portion was substituted for th-9 portion beginning *iir,
G ;;;e-.b;;;t"d,, and ending with
the words "State Government may. direct,. by friafr. iof fS6i, ,.-i0f,
4This proviso was substiruted by Mah, 39-of 197j, s.3. iDi.'
5 These words were substituted for the word ,,Exarniner" by
u Mah. 3 of 1961, s. 10(1).
6 These words were substitured jor w.ords ,t" ;;&; j;o;;rg. of the district in
.the
any newspaper circulating in the district selected-"published-in
by the local autho"rity,, ty{fan. 4A of Dyl, s. 2
(1) (a).

L' -\---_
 1930: Bom. XX\ll Bombay l,ocal Fund Audit Act, l93a
t[Provided
that_
(i) 2t a local
-Yuh' a.uthority (not being a Zilta
x.L^
-oj council for "c" ci"tJ Mrrrffi i[u.*itr,in llrjshqd, panchayat samitior a Municinal
rh; ;;;;ffis of the * Maharashtra
''or Municiparities Act, ist:,I ,ir,"r'J"",i,rir in.om" i;-i#;il;'frs.
r.00,000 bur exceeds
Rs. 50,0@ mav.. instead;r l""iruiirrirt
ri,i;i;ff#;; report of defects and

(ii) a locar authority whose annual incg,m.e

is Rs- 50,000 or less, a[a
f"i .*t 1Ua;r, Municipal Zlla parishad
Panchayat Sonrili:,p:,, n,*i"Uf El,1ri."1
unJli{'rii,i"",, expranationareai may,
and rnii
fi:"'itfi,i3,t'll[l;:l U*,ir6l;#er"'t'
at such o*i"i.onrpi"i,ous'praces
*iihi; ii: lmfl;:'f*;"gv*tti:i"5i;il';rr;;"'ill
:","'lf Tifff .':::::;l"r{iril;#il;'"'1dil'iil;;"p'"fi i"t#[:lhlt"rf"i{**[l*
This proviso was added by Bom.
2
1

r.nls ponion was substituted for the

9 of 1955, s. 2(2).
words "a Iocal authority', by Mah.
(b)(i)(A). 40 of 1971, s. 2(l)
J substituted for the words "in the regional language
Tiliri,i;,^i,,|jire or the district;, ibid.,
4 This ponion was inserted ibid., s.
5 rhis porrion was inserted -iii'ii:il',"i.
2( t)(b)(ii)(A,.

6
W.n1in tottl.
substituted ro. trre #oJs";in"ir,r"."giooul
Yit;,[,?;ii;ere ranguage,, by Mah. 40 or teTt
i;:r'?xrir yf':r"'fl1,"unicipal councils, Nagar Parrchavars and rndustriar
rownships Act,
 1930 [1930 : Bom' XXV
' Bonrbery Locol Fwtd
Audit Act'
8

fa's to q'"
:1::::[il:ffiix,]:[HfiTI::l;jj^:jjl
'I(s) rf the Chairman

il:rir*"r:|!'rti$ft.i*i,::t::,il{;jlH}il,:{i:.'I':i#il!;.l:f
clrcl ri'::#
in any'newspaper

t*:;[:::,::X.l;f t.ilf L'='.',";:"-1,i'J;:';;;il111-if

,*n p;tl."iion siralt be forthwith
paid bv 'lheCommissioner
the

on ."#;]in"
such "* ", mav make an order
may make
local authorit,
is nor so ffi,;il-it'io'"'
"on""rrlJ.-iri-," "or,
Ji,"ctinganvp:rson',xx",,-$ii[Tt',"''ff*3lltrtltl*ffi ?:ili,!:+:'":t"U
as t time to time' recelve'
the local authoritY' t" t i, t "ri, o' *uy' from
cosr from ,u"n *o.,"11"fi;il;"" ,oJ order. Every puyT:lt made
ob"y
pursuant to
and such person shall
b*e- uouna,.o liabilitv to the local
discharge local authority
such order s1'a11be
"''un'"i"" by t im '"':;;;";;ii#all
ooiot the moneys of the
authority in respect
*tJi, "*""ri";;il
so held bY him :
may-
Provided that, the Commissioner

(i)inthecaseof3[alocalauthorityrefer.redtoinclause(i)of,theprovisotosub- explanalions
(4)1. publish ,,,;;;.; ;f su.h r"port "r'o"ittit ""0andirregularities'
section " in u'y newspaper'
and the final report 'f"i"it'i"'l 'ott'

secrion ( 4 )r c ause, ^ . "J,'

:;":;;
conspicuous
*t :'j*:T;l
(ii)inthecaseof5[alocalauthorityreferredtoinclause(;i)o.ftheorovisotosub-
I,'ff,,*il'""i,,iJ'.Xl?'liii"lli
copv has
il'"';;";;to be kept at such ,dtit" in such newspapef that such
''i::i;'il;;;;;;p*
as he may think fit, "ru " '::: ry9Yed
accordingly'
of the public
been kept for inspect'oir (4)'
of sub-section
to any of the provision's
(5A) If a local authority fails
th e commiioo"' *"'-" oi'se the rel
ss
with
e'r
the provt:
.com1l11ith
a'l y"*;":t *-
::,X? ;: ::Tf T 1il' - t
in accordance or explanarin reQuired
,o"Jrru,ttned to sive the intimatton
be applicable' u' it
th"1t"il"a-Uttn a faiiure 15) shall applv
also for recovery
bv sub-sectio" Uf' "nitr"-pto"i'lon' "f ';:;tii;n
uy ttre commissioner'l
oi costs of such ,roiL,i*?^ae
as the commissioner
(6)Nothinginthissectionorinsectiongshallprecludethe.6lchiefAuditor]atany
til;;;;;" of ttre comm'ls;;;*:;;;
""h i:l:i
time from bringing
mayconsider**,i;:;;'**."i1311::i'i.r"r.:"1-a::*:;milT[i:i".'":'"H:
a presulrrPtru. ur v^r'---
;';;;;;'norcriminar,ll",o-ll""ii"1t'""X.,
rrrrvrrrb----
investigation.]r
nediate
lmmeolilts
special attention or
(-5) bv Mah' 3 of 1961
substituted *"-"Gn" 'ub-section
1 Sub-sections fSt
'-. 'nolil7*
"' ^-a in any
regional language ^nv
newspaper
newspap€
,- \03]l-t""tt"', were. for the words " publish in the
^,-'-,a-,,,uted
)Y"i'i'"n4"i,."iO of 1971. s. l(2)(a).
2 These words di5trict".,",,;'ii;,,;; nd ligures..a local
.i,iur,iing in thc bracrers.iri.".i- *".* i&i/. s'
3 These words. '"j1,',Ylioo
r.rs, rhan Rs. I lft't:,-ili:;'iii'i'fl'"t';:;00"
'.,0,,i,u,.0
1i;il;;ll,,Nl"::^:""-,: 161 the words"-,:l,i,.,..,*i;:,iiil;lki,;,,''if; ir;l;,1't..'ili]i
4 These words' were,.s,'." uni' ii*ur", were substir
5 These words bracK(
aurhority whose annuar
'"0'irl...
,.,i."r."i,'"n' 5900-0^:: if',i'il]tl'"t re6r. s /0(/)
[::;-?,11;
words were ::::X'tt;tr:T'li ]i'l'o'i.
7 These rvords were a ' o
 1930 : Bom. XXVI Bombay Local Fund Audit Act, 1930

11. ( I ) The Commissioner may, after considering the 1[recommendation of the Chief Commissioner
Auditor under sub-section (3) of section 10, or the head of the department, or other to surcharge
officer, under the first proviso to that sub{sectionl, as the case may be, and after taking or charge
illegal
the explanation of the person concerned, or making such further inquiry, as he may payment or
consider necessary, disallow any item which appears to him to be contrary to law and loss caused
by gross
surcharge the same on the person making, or authorising the making of, the illegal negligence
payment; and may charge agianst any person responsible therefor the amount of any or
misconduct.
deficiency or loss caused by the gross negligence or misconduct of that person, or, any
sum received which ought to have been but is not brought into account by that person;
and shall, in every such case, certify the amount due from such person:

Provided that no order of surcharge or charge shall be made under this Act in respect
of any item included, or, which ought to have been included in, but was omitted from.
any accounts I [for any period-
(l) in the case of a local authority in the Bombay area of the State, prior to the
lst April 1930 ;
(ii) in the case of any local authority in the vidarbha region, prior to the
8th October 1932; and
(lil) in the case of any other local aurhoriry prior to rhe lst April 1960l :

3[ Provided further that in making an order of such surcharge or charge in respect of

any expenditure incurred by any Zilla Parishada[or any panchayat samiti] on any item
which appears to the Commissioner to be contrary to law, the Commissioner shall not
question the propriety ofthe expenditure incurred by theZilla Parishada{or any panchayat
Samitil or any of its officers in the exercise of the powers purported to be conferred on
it or him under such law.l
(2) The Commissioner shall state in writing the reasons for his decision in respect of
every surcharge or charge and shall send by registered post a copy thereof to the person
against whom it is made.
(3) If a person to whom a copy of the Commissioner's decision is sent rrnder sub-
section (2) refuses to take delivery thereof he shall be deemed to have duly received it
on the day on which it was refused by hirn.
5l(4) If the Commissioner after considering the recommendation of the Chief Auditor
under sub-section (3) ofsection 10, or ofthe head ofthe department or other officer under
the first proviso to sub-section (3) of section 10. as the case may be, and after obtaining
the explanation of the person concerned, or making such further enquiry as he may
consider necessary, decides not to proceed further in the matter, he may waive the
objection after recording his reasons therefor, and shall communicate the same to the
Chief Auditor or the head of the department or other officer, as the case may be.l

I This portion was substituted for the words, brackets and figures "recommendation of the
Examiner or of any head of a department under the proviso to sub-sJction (3) of section 10" by
Mah. 3 of 196l,s.ll (1) (a).
2 This portion was substituted for the words and figures "for any period prior to the lst April
1930" by Mah.3 of 1961, s. lt (1)(b).
3 This proviso was inserted by Mah. 5 of 1962,s 2g6,Tenth Sch.
4 These words were inserted by Mah. 35 of 1963, s. g0 Sch.
5 Sub-section (4) was added by Mah. 3 of 1961, s. 11 (2).
\{4-\
 [1930:Bom.XXV
BombaY Local Fund Audit Act'
1930
t0

into the treasurv or bank in

Recoveryoflz.(1)EverysurncertifiedbytheCommissionertobeduefromanypersonunder
,""ir"n 11 shali be paid by such ler.son
sub-sectiorl ir)-"l one month from the
local authoriiy areiodged, within
"*J,:HE::
how made. which the funds of the ""r""rr"a within that time such person
of tr," co**issioner, unless
receipt uy rri. decpion section 13'
"i,rre Governmentl as provided in
tu, uppr,"J'lo;"';;;rJ,"lr*'lstut"1
as provided in
'(2)Thesaidsum,ifnotdulypaidorifanapplicationhasbeenmadetotheCourtor
sub-
r[the 2[State] ug"inriin" a"cisiontt tne Commissioner
Governmentl
to 2[State] Governmentl shall declare
13, such ,;r;;"-a;t or llthe
section (/) of section
;;verable 3[as an arrear of land revenue]'
to u" at'J;;il;
Application13.(1)Anypersonaggrievedbyanyorderofsurchargeorchargemadebythe the receipt
may, within one month from
againsr order commissioner under sub-section (/) oi ,""iioo 11.
of surcharge -"'-'.-
- r-^:^:^- of Cnmmissioner, either-
either-
or charge. by hrm of tn" a""itlon
^f rhe
the Commissioner'

(a)applytotheDistrictCourttosetasidesuchorder;andtheCourtaftertakingsuch
rl or remit such surcharge or
charge
evidence as it thinks necessary,
;;;;-"rar-",.moai!
andmakesuchordersaStocostsasitthinksploperinthecircumstances;or
2[State] Governmentl which shall pass such
such application apply to 1[the
(b) in lieu of
orders thereon as it thinks
fit'

a[(2)Theauthorityhearingtheapplicationmay,ifitthinksfit'stayallproceedingson
tt,""e,tin"ut"pendingdisposaloftheapplication].
authc rrity in complying with any requisition of
Expenses tn 14. All expenses rncurred by a local of its local fund'
respect of
an auditor under sub-sJii,o "-Oi
* section O stratt be payable out
requisitions
of auditors
to be
payable out
of local
fund'

Rules. 15.(1)1[The'z[State]Governmentl5[may'bynotificationintheOficialGazette'm'ake
of carrying into effect the
provtstons
rulesl not inconsistent *i,t, ,t i, Act, for the purpose
of this Act :
6[Providedthat,thestateGovernmentmayunderthisSection,makerulesgenerallyfor
regard being had to
for anV--1las1 of local authorities'
all local authorities, ot "'p""iuffy
p'"'uili'g i" ill relation P-1he area of the local
the special or local
"i';;;';;;' "t
authorityorauthoritiesconierned'o'.,fo'ott'""easonswhichshallbespecified;andthe
StateGovernementmayalsoforthelikereason"""*p,anyclassoflocalauthoritiesfrom
general rules'l
uny of the provisions of the
"the Government" bY
for the words
t ;;as,t* tr-incial Governmen:-^X"t" substituted
': Ir r'Ji*.Lu*s
"iu,.tr,dTlJ"'lTJ;i"it
,r,,.'Lolp[,[i, order in Council'
fol )/orl
li,.i'
2 This word J::'H*i[:.8'il'J
was suostituted "l,'!"Yiiiii:'"J:^:]-,']-' ;il';;;-;' apprication" and ending
,],1fi'::1":,"1,ift]i,3J9'i;.''.'"1,
*iir' ""i'i"n.
ei"tt !
-'Pl^o-Y

b"li.l,"'" uv Yuh.' ? ,ot,l?,u'':

*i'i.'i'i"'"it
,l'
i "r'";;."il-iii *; substituted' ibid'' s'13' ..
"may make rules" by Mah. 3 of 1961' s' l4(1)(a)'
suu'titoJa for the words
5 These words were uaaea'
*u' ibid" s' t4 (tvb)'
; in;;'fi;l

*1***
 1930: Bom. XXVI Bombay Local FundAudit Act. 1930 11

(2) rn particular' and without prejudice to the generality of the foregoing

power such
rules may provide for all or any of the following matters, namely
:_
(a) the manner and form in which the accounts of a local authority,
whose
accounts are subject to audit uder this Act, shall be kept and presented;

(D) the powers and duties

of auditors and the procedure to be followed by them
for conducting an audit and the times at which such audit may be conducted;
and

(c) the manner in which all matters required to be published

under this Act shall
be published.

(3) The making of rules under this section shall be subject ro

the condition of previous
publication. 1[AIl rules made under this section shall be laid
for not less than thirty days
before each House of the State Legislature as soon as possible
after they a." mude, u.rd
shall be subject to such modifications as the State Legislature may
make during the
session in which they are so laid, or the session immediatery following.l

16' fAntendntents made by section l6 have been incorporatecl irt the priucipctl Acs.l.

c' P' '117. on the commencement of this Act in the Vidarbha region of the State, the Repeal of
uiij cent.al Provinces and Berar Local Fund Audit Acr, 1933, in its application
to rhar region, C.P.&
tx of shall stand reoealed : Berar IX
193 3. of 1933
and
Provided that, such repeal shall not affect_ saving.

(a) the previous operation of the Act so repealed; or

(b) the right or liability acquired or incurred under the Acr so repealed;
oro
(c) any penalty' forfeiture or punishment incurred in respect of any
offence committed
against any of the provisions of the Act so repealed; or
(d) any investigation, legal proceeding or remedy in respect of any such
right,
liability, penalty, forfeiture or punishment as aforesaid ;

and any such investigation, legal proceeding or remedy may be instituted,

continued
or enforced, and any such penalty, forfeiture or punishment may be
imposed as if this
Act had not commenced:

Provided further that, subject to the preceding proviso, anything done or

any action taken (including any appointment or delegation
or report made,
notification, order, instruction or direction issued, rule framed,
certificate obtained
or permission granted) under the repealed Act shall, in
so far as it is not
inconsistent with the provisions of this Act, be deemed
to have been
done or taken under under the corresponding provisions of this
Act. and shall
I This portion was substituted for the portion beginning with "Such
rules,' and ending with ,,rescind
,2 the rule" by Mah. 3 of t96t,s. t4e).
Sections i7 and 18 were inserted, l&id., s 1-5..
 : om' XXV
Bombay Incal'Fwnd
Audit Act' t930' t1930
l2 donl or
until superseded by anvfine
accordingtry,: unless'and'
continue to be in force /
action taken under this
Act' {
addition.tq' and not in
dero$adon
"l :}t"
Provisions of
this Act to
aPPIY in
,.J,1.ff.iffi":,T.:t;T'*i"*11'::H;il;"'p""ioiog'i*lu"ai'ot''t'"
addition to Hffi';iuov io"ur authority'l
anY other
law r.elating
to audit of
accounts of i r:;'i
local
authorities'

GPK.-H 4-(1 0,083Bks')-6'2005

i
AffiffiiPRESs' Kor-HA?rrR
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