HC stays order on auditing gram panchayats' accounts

Chandigarh, October 14

The Punjab and Haryana High Court has stayed the operation of an order issued on September 23, vide which the Director, Rural Development and Panchayat Department, appointed a retired employee to conduct the audit of gram panchayat accounts.

In his petition against the state of Punjab and other respondents placed before Justice Sudhir Mittal’s Bench, Mandvi gram panchayat through counsel Manish Kumar Singla submitted that they were aggrieved by the order vide which the retired employee was appointed to conduct the audit of petitioner gram panchayat’s accounts from 2017-18 to 2021-22.

Singla contended that the respondent-director had no jurisdiction to pass such order as complete procedure was prescribed for auditing the gram panchayat accounts. Besides, the petitioner gram panchayat’s accounts had already been audited. There was no provision under the Act/rules, vide which the respondent-director had any jurisdiction to pass any such order.

Singla added that an order was passed on October 11, to conduct audit of 37 gram panchayats, including the petitioner.

Taking up the matter, Justice Mittal observed it was submitted that audit of gram panchayats’ accounts was governed by Section 97 of the Punjab Panchayati Raj Act, 1994. The state government has the jurisdiction to depute prescribed authority for carrying out such audits, which was examiner of local fund and accounts. As such, the order dated September 23, issued by the Director, Rural Development and Panchayat Department, was without jurisdiction.

Issuing notice of motion for May 3, Justice Mittal asserted: “Meanwhile, the operation of order dated September 23 shall remain stayed.”