N.BHASKARAN Vs. DIRECTOR OF LOCAL FUND AUDIT

JUDGEMENT

(1.) PETITIONER was the Secretary of the Kulakkada Grama Panchayath during the period from 21.06.1997 to 18.11.1999. Subsequently, he retired from service on 31.10.2004.

(2.) EXT .P1 is a circular issued by the Government of Kerala on 05.01.1998 regulating the mining of river sand and its distribution by the local bodies. In pursuance to Ext.P1, the District Collector issued circular Ext.P2 dated 31.03.1998 which interalia laid down the procedure to be followed for fixing the value of river sand. Clause 4 of this Circular provides that 50% of the value realised, shall be paid to the workers and that out of the balance, 25% each shall be paid to the Local Authorities and to the River Management Fund. This appropriation of the sale proceeds is in line with Clause 7 of Ext.P1 circular.

(3.) THEREAFTER , Ext.P8 surcharge certificate as provided under Section 215(a) of the Kerala Panchayath Raj Act was issued for the recovery of Rs.6,16,282.00 for the period 1998-1999. Subsequently, Ext.P9 erratum was issued reducing the liability to Rs.4,43,875.00, the petitioner challenged the surcharge certificate by filing an appeal before the District Court. By Ext.P10 judgment, the District Court allowed the appeal and the matter was remitted with a direction to hear and pass fresh orders. Subsequently, the petitioner was given Ext.P13 enclosing audit reports for the period from 1997-1998 to 1999-2000. As per Ext.P14, his liability was quantified at Rs.75,98,165.00. In the meanwhile, second respondent considered the matter afresh as directed in Ext.P10 judgment of the District Court and the objections raised by the petitioner were rejected.