1

BEFORE SRI S.K. SETHY ASST. AGCS-CUM-PRESIDING OFFICER, O/O-

THE ASST. AGCS, PURI AUDIT CIRCLE, PURI


In the matter of : - Surcharge proceeding
Case No. 296/02
(U/s- 67 of OCS Act-1962 &
Rule 70 of OCS Rules 1965)
Against
1. Sri Sridhar Mohapatra, Secy.
2. Sri Ram Chandra Mohanty, President
3. Sri Srikrushna Mohapatra, cashier
4. Sri Dinanidhi Dash, CEO
5. Sri Loknath Dixit, Secy.
.. the Opposite parties


Relevant Extract of order No. 10 dtd_26.07.2013

This surcharge proceeding case bearing no. 296/02 was initiated for an amount of
Rs.223251.30 against Sri Sridhar Mohapatra, Secy. Sri Ramchandra Mohanty,
President, Sri Srikrushna Mohapatra cashier, Sri Dinanidhi Dash, Ex-CEO and Sri
Loknath Dixit, Secy. (Hereinafter called as O.P. No.-1, 2,3, 4 and 5 respectively),
basing upon the findings in the Final Audit Report of Sri Ramachandrapur SCS
Ltd. for the year 1994-99 as audited by Sri Laxman Kumar Mallick SARCS (A),as
the above named opposite parties had caused deficiency in the assets of the
society to the like extent of Rs. 2,23,251.30.
Show cause notice vide No. 1428/Dtd.25.04.2003 was sent by Regd. Post
No. 5473 / Dtd.26.04.03. But no replay to the show cause was filed by either of
the Ops. In the interest of natural justice and to give the Ops, the opportunity of
being heard hearing notice vide No. 2069/ Dtd.16/08/2012 was issued by fixing
date of hearing to dt. 22.08.2012. on the said date the O.P. No. 2 and 03
appeared in person, filed their Hazira and w/s as well. The O.P. No. 3 Sri
Srikrushna Mohapatra in his w/s dtd. 22/08/2012admitted the cash mistake of
Rs.40/- shown recoverable from him and owed to deposit the same in Societys
cash. The O.P. No. 2 Sri Ramachandra Mohanty the then president of the
society in his written statement stated than no opportunity of being heard was
2

given to him by audit and the amount was shown recoverable from him. He again
stated that the expenditure incurred towards opening of Mini Bank and excursion
were genuine and it had got the approval of Annual General Body. The higher
authorities like RCS (O); the DRCS Puri; the ARCS, BBSR; the president
UPNCCB Ltd. were present on the date of opening ceremony of the Mini Bank,
he added and stated that he was not liable for such recovery.
Thereafter hearing of the case was conducted on Dt. 21.09.2012,
06.11.2012, 06.12.2012; 19.12.2012, dtd.22.01.2013 and dt. 26.07.2013. Records
of the society as produced by the Secy. of the society were verified and exhibited
and ext. No. 01 to 36 were marked. The O.P. No. 01 Sri Sridhar Mohapatra
appeared in person on different dates, submitted his w/s and affidavit.
The details of recoveries as pointed out in the Final Audit Report for the
year 1994-99 are as follows

A) Recoverable from Sridhar Mohapatra, Secy. (O.P. No. 1)
i) Cash Mistake Rs. 22,637.60
ii) Objectionable Voucher Rs. 27,898.95
iii) Election Case Fee Rs. 3,000.00
iv) Gross Loss (1994-95 to 1997-98) Rs. 10,127.00
v) Excess SSD Refund Rs. 9,226.00
vi) Advance Rs. 1,500.00
vii) Unaccounted Loans & Interest Rs. 34,843.00
viii) Mini Bank Opening Exp. Rs. 9, 581.75
Total Rs. 1,18,814.30
B) Recoverable from Sridhar Mohapatra, Secy & Sri Rama Chandra Mohanty,
Pdt, Jointly (O.P. No-1 & 2)
i) Mini Bank opening exp. Rs. 15,000.00
ii) Excursion Exp. Rs. 1,900.00
iii) Misc. Exp. Rs. 1,053.00
Total Rs. 17,953.00
C) Recoverable from Srikrushna Mohapatra, Cashier (O.P. No.-3)
Cash Mistake Rs.40.00
D) Recoverable from Dinanidhi Das, Ex-CEO (O.P. No.4)
Advance Recoverable Rs. 1000.00
E) Recoverable from Loknath Dixit Secy. (O.P. No.-05)
i) Fertiliser Cost Rs.83,694.00
ii) Cash Mistake Rs. 1,750.00
Total Rs.85,444.00
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Observation of the auditor with regard to the above recoveries in the Audit
Report statement of defence submitted by the Ops in shape of W/s and
observation and decision of the P.O. with reference to the records exhibited and
w/s examined are given hereunder.

CASH MISTAKE RECOVERABLE FROM SRIDHAR MOHAPATRA, SECY,
(O.P. NO.-1) RS.22637.60
A) Observation of Audit: -
The auditor in his reporting in the Audit Report stated that Sri Sridhar Mohapatra
Secy. caused deficiency in the assets of the Society by way of Cash Mistake
during the year 1998-99 to the extent of Rs.22637.60.
B) W/s of the O.P.:-
The O.P. in his w/s dtd. 06.11.2012 stated that out of the total recovery
shown in the Audit Report for the year 1994-99, he has deposited Rs.68246.60, in
societys cash towards his recovery.

C) verification observation and decision of the P.O.
On verification of the records of the society it is noticed that the O.P. has
actually deposited Rs.68,246.60 in the societys cash and the same has been
credited to the societys account. The details of the realization as verified and
exhibited is given hereunder.
Sl. No. MR No. Date Amount Exhibit No.
1 21682 31.03.12 45857.00 02
2 21683 31.03.12 9226.00 03
3 21684 31.03.12 11663.60 04
4 21685 31.03.12 1500.00 05
Total Rs. 68,246.60 -


The amount so realized vide the Money receipt Nos. stated above have been
credited to the societys account as per details given below.
Sl. No. Day Book Folio Amount Exhibit No.
1 44 & 45 22389.60 29
2 285 45857.00 30
Total 68246.60

Thus for the cash mistake recovery of Rs.22637.60 Sri Sridhar Mohapatra is not
liable as he has deposited the same in Societys cash.
4


OBJECTIONABLE VOUCHER RECOVERABLE FROM SRIDHAR
MOHAPATRA, SECY, RS. 27898.95

The above recovery of Rs. 27898.95 relates to the period from 1994-95 to 1998-
99, the details of which is given here under.

1994-95
(i) T.A. paid to president Rs.300.00
Observation of the Auditor:
In his observation the auditor has stated that the T.A. shown paid to the president
Sri Rama Chandra Mohanty on Dt. 21.11.94, Dt. 7.12.94 and Dt. 27.12.94 against
vr. No. 118, 136 and 146 @ Rs.100 each donot bear the signature of the
president, hence shown recoverable.
Defense of the O.P.:-
THE O.P. SUBMITTED NO WRITTEN STATEMENT OF DEFENCE IN THIS
REGARD.
VERIFICATION AND OBSERVATION OF THE P.O.-
On verification of the Cash Book page No.-98/ Dt.21.11.94 (ext.No.31)
page No. 105/dt.07/12/1994 (ext. No. 32) and page No. 114/dt.27/12/94 (ext.
No.33) it is noticed that total amount of Rs.300.00 @ Rs.100.00 on each date has
been debited in the Cash Book towards T.A. to president. On two dates i.e.
dt.07.12.94 and dt.27.12.94 there has been mention in the day book T.A. to
BBSR twice. On Dt.21.11.1994 there has been mention in the Day Book, T.A. to
Puri twice.
The O.P. No-1 in his w/s dtd. 6.12.12 and affidavit dtd. 19.12.2012 stated
that the voucher of the society for the year 1994-95 to dt.20.05.1998, sub-
committee meeting book and resolution Book from dt.22.06.95 to dt.20.7.10 had
not been handed over to him by his predecessor for which he could not produce
them at the time of hearing for verification. Again in his w/s dtd.06.11.2012 he
stated that at the time of audit no opportunity of being heard was given to him by
audit in shape of half margin memo.





5

DECISION OF THE P.O.
As the Secy., could not produce the voucher for verification the authenticity
of the charges could not be verified. But the O.P.is liable for the recoverable
amount of Rs.300.00 as he has stated nothing about such recovery in his w/s
dtd.06.11.2012.
The details of objectionable recovery (objectionable vr.) for the period from
1995-96 to 1998-99 are given here under.
1995-96:
(i) Printing Exp. Rs. 451.00
(ii) Purchase of bata article = Rs. 261.95
(iii) Tour to BBSR = Rs. 1000.00
Total Rs. 1712.95
1996-97
(i) Printing material Rs.6240.00
1997-98:-
(i) Purchase of calculator Rs. 480.00
(ii) Purchase of Steel Almirah Rs. 8000.00
(iii) Purchase of Rain coat Rs. 400.00
(iv) Adv. To Loknath Printers Rs. 1000.00
(v) Exp. On election of President Rs. 1000.00
Total Rs. 10880.00


1998-99:
(i) Purchase of contingent Rs. 466.00
(ii) Purchase of forms Rs. 3800.00
(iii) False deposit in Bank Rs. 4500.00
Total Rs. 8766.00

OBSERVATION OF THE AUDITOR IN THE AUDIT REPORT

In most of the cases the auditor has observed that the vouchers are plain
vouchers instead of being printed ones and dont bear the signature of the passing
authority. As regards tour to BBSR the auditor has remarked that there was no
tour diary and it was not passed.
6

In respect of purchase of calculator the auditor has state that the article
was not handed over to his successor by Sridhar Mohapatra (herein after called
the O.P. No.-1)
With regards to the false deposit in CCB the auditor has remarked that the
amount so debited in the societys account was not actually deposited at branch
bank level as observed by him during verification at branch bank level.

DEFENCE BY O.P.:
The O.P. Sri Sridhar Mohapatra in his w/s dtd.06.11.2012 sated his
defence.In his defence he stated that printed vouchers were obtained and they
were passed by the president.
As regards purchase of calculator he stated that the article was actually
purchased and handed over to the cashier of Mini Bank section. But in the charge
list it was mistakenly left.
In respect of purchase of steel Almirah he stated that the article was
actually purchased through a printed voucher and the said Almirah is still available
at society level and it appears in the stock verification report.
In respect of purchase of Bata article and Rain Court the O.P. in his
defence he stated that such articles were purchased for the peon of the society
after being resolved in the meeting of the committee of management. And the
vouchers were passed by the president.
As regards advance to Lokananth Printers, he stated that the advance was
given for purchase of form which should have been adjusted later on.
The O.P. No. 1 who himself is the Present Secy.in his w/s dt.6/11/12 and
affifavit dtd.19.12.2012 stated that the vouchers of the society for the year 1994-
95 to dt.20.05.98, sub-committee meeting book from dt. 22.06.95 to 20.07.10 had
not been handed over to him by his predecessor for which he could not produce
them at the time of hearing for verification. Again in his w/s dtd.06.11.2012 he
stated that at the time of audit no opportunity of being heard was given to him by
audit in shape of half-margin memo.
As regards false deposit in CCB the O.P. stated nothing in his W/s.

VERIFICATION AND OBSERVATION OF THE P.O.
In absence of vouchers and minute book the cash book of the society
along with stock verification Report and charge list as produced by the Secy. were
verified and exhibited the details of which in given here under.
7

Sl.
No.
Cash Book
Folio No.
Date Nature of
Expenditure
Amount Ext.
No.
1. 22 24.06.95 Contingent 451.00 06
2. 49 11.8.95 Contingent (Bata
Article)
261.95 07
3. 147 31.03.96 T.A. 1000.00 08
4. 199 31.03.97 Printing of Forms 6240.00 09
5. 04 24.04.97 Purchase of
Calculator
480.00 10
6. 55 30.6.97 Purchase of Steel
Almirah
8000.00 11
7. 60 04.07.97 Purchase of Rain
Coat
400.00 12
8. 90 02.09.97 Adv. To Lokanath
Printers
1000.00 13
9. 107 03.12.97 Election Exp. 1000.00 14
10. 08 18.4.98 Purchase of forms 3800.00 15
11. 08 18.4.98 Interest deposit in
CCB
4500.00 15
12. 06 16.04.98 Purchase of
Contingent
466.00 16


Except Sl. No. 3, 9 and 10 the auditor has put tick to the debit entries in
the cash book. Out of the above recoveries the O.P. is liable for Rs. 480.00 at Sl.
No. 05, Rs.1000.00 at Sl. No. 8 and Rs.4500.00 at Sl. No. 11. Liability is fixed on
him on the following grounds.

In the respect of purchase of calculator it was the duty of the O.P. as the
then Secy. of the society to make entries in Dead stock register and hand over the
same to his successor. Thus his defence that the same was purchased and
handed over to the cashier of mini Bank section is not acceptable as he could not
produce the acknowledgement of the cashier. Hence he is liable for Rs.480.00.

Similarly as regards advance to Lokananth Printers it was the duty of the
Secy. to adjust it by obtaining necessary forms. It was his lapses for which the
asset became bad. Thus, he is liable for Rs.1000.00.
In respect of false deposit in the bank the O.P. didnt submit any w/s. Thus
he is liable for Rs.4500.00.
The O.P. is not liable for the recoveries at Sl. No. 1, 2, 4 to 8 and 10 on the
following grounds. The O.P. took the advantage of the lapses of the auditor. The
8

auditor has neither issued half-margin memo nor has kept the Xerox copies of
the objection vouchers.
The steel Almirah worth Rs.8000.00 has found place in the stock
verification Report. The deposit position of the society after opening of the Mini
Bank has shown an increasing trend i.e. from Rs.425713.00 during 1996-97 to
Rs.646065.00 during 1998-99. As revealed from the reporting in the Audit Report
the Annual budget for each year has been approved by the general body. The
auditor has not remarked in the report whether the expenditure are beyond
budgetary limit or not. Thus the O.Ps stance in his w/s weighs more and he is
exonerated from the recovery of Rs.21618.95.

ELECTION CASE FEE:
RECOVERABLE FROM SRIDHAR MOHAPATRA RS.3000.00

Charge in the Audit Report:
The amount has been shown recoverable from Sri Sridhar Mohapatra due
to want of Actual voucher.
Defence of the O.P.
The O.P. in his w/s dtd.6.11.12 stated that the amount of Rs.3000.00 was
spent towards Election case Noo.2/94 and the amount was actually paid to the
Advocate. The voucher was passed by the president and the Board of
Management.


VERIFICATION, OBSERVATION AND DECISION OF THE P.O.
In absence of the vouchers the Cash Book was verified and exhibited. On
verification of cash book it was noticed that vide cash Book Folio No.
84/dt.18.09.94 (ext. No.22) and Cash Book folio No. 85 dtd.21.09.94 Rs.1600/-
and Rs.1400/- has been debited respectively towards legal expenditure. On
examination of the Audit Report for the year 1994-95 to 1998-99, it was noticed
that at page No.-04 at Sl. No.05 there has been a mention that as per agenda no.
01 dtd.21.12.94 the committee resolved to bear the expenditure of case No. 02/94
(election).
Neither any half margin memo was issued by the auditor to the then Secy.
Sri Sridhar Mohapatra. Nor the Xerox copy of the objection Vr. Was kept in the
Audit Report to substantiate the proof.
9

Thus, the auditor has shown the amount recoverable arbitrarily without
considering the genuineness and necessity of the expenditure.
Hence, the O.P. is exonerated from the recovery of Rs.3000.00.


MINI BANK OPENING EXPENDITURE FROM RAMA CHANDRA MOHANTY
PRESIDENT AND SRIDHAR MOHAPATRA, SECY. RS.24581.75



Charges in the Audit Report
In the Audit Report Rs.15000.00 has been suggested for recovery from
both president and secretary jointly and Rs. 9581.75 has been suggested for
recovery from the secretary only.
The auditor in his report has remarked that the financial position of the
society is not sound and for this reason such expenditure is unnecessary. As
president had passed the resolution on board meeting dtd.24.02.96 vide Agenda
No. 04 to incur expenditure of Rs.,15000.00, hence both president and secy. are
liable. The auditor has again remarked that as the Secy. has made more
expenditure of Rs.9581.75 than the term and condition of the Board meeting dt.
24.02.96. he is liable for the excess expenses.


Defence of the OPs
The O.P. Sri Rama Chandra Mohanty in his W/s dtd. 22.08.12 stated that
on the date of opening of the mini Bank the higher authorities like RCS (O)
;DRCS, Puri;ARCS, Puri and president UPNCCB Ltd. were present on the
inaugural function. And the expenditure incurred was passed in the AGB meeting.
He again stated that he was not given the opportunity of being heard by audit for
such recovery and the mini bank deposit position has increased subsequently. He
also stated not to be lieable for such recovery.
The O.P. Sri Sridhar Mohapatra in his W/s dtd. 06.11.2012 stated that he
was not given the opportunity of being heard at the time of audit. He again stated
that the expenditure was passed by the board of management and the president
and it was incurred for the interest of the society. And he stated not to be liable for
such recovery.

10

VERIFICATION, OBSERVATION AND DECISION OF THE P.O.
In absence of vouchers, the Cash book of the society as produced by the
present custodian of records was verified and exhibited; the details of which are
as follows-


Sl.
No.
Cash
Book
Folio
Date Amount Ext.
No.
Remarks
01 99 15.1.96 1490.00 19 Ticked by Audit pencil and
written as three plastic chairs by
audit.
2 99 15.1.96 40.00 19 Cartage Exp.
3 101 20.1.96 1900.00 0 Written as Dead stock in Audit
Pencil
4 114 8.03.96 18451.75 21 Out of it Rs.1000.00 is adv.
Which has been realized
subsequently.
5 87 28.12.95 1700.00 17 Written as mini Bank Exp. In the
Cash Book.

The O.P is his W/s dtd.6.12.2012 stated that he had not been handed over
the vouchers for the period from 1994-95 to dt.20.05.98 and sub-committee
meeting Book along with Minute Book for the period from 22.06.95 to
dtd.20.07.2010. In his affidavit executed before the notary Puri on dt.19.12.12 he
reiterated the said facts.
On verification and exhibition of the charge list, it was noticed that in
dt.20.05.98 Sri Sridhar Mohapatra had handed over the charges of the society to
his successor Sri Loknath Dixit wherein there has been no mention with regard to
handing over of voucher file to Sri Lokananth Dixit. Similarly in the said charge list
2(two) Minute Books and 07 (seven) plastic chairs have been handed over (ext.
No. 27). when asked Sri Sridhar Mohapatra stated that if he had not handed over
the charges of the vouchers, how the audit of the society for the said period was
conducted and completed subsequently.
Similarly vide charge list dtd.15.03.2012 (Ext. No. 27) Sri Sridhar
Mohapatra had taken the charges of one Vr. File for the period for 1997-98 and
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Old minutes Book for the period from Dt. 24.06.98 to dt.14.10.2000, from Sri
Brundaban Mohapatra Secy.
Thus, it is proved that Sri Sridhar Mohapatra has furnished some false
statement.
On examination of the Audit Report of the Society (Office copy) for the
year, 1994-95 to 1998-99 it is noticed at page No. 08 of the Audit Report that the
auditor has remarked that in the AGB meeting of the society held on
Dt.12.03.1997 the annual budget for 1996-97 has been approved and the annual
receipt and expenditure statement for the year 1995-96 and 1996-97 has also
been approved.
The auditor has also remarked at page No. 17 of the audit report that the
budget for the period from 1994-95 to 1998-99 were placed in the Board meeting
and approved by the AGB. Maximum expenditure has exceeded the budget in
genuine cases. But the detail budgetary analysis has not been furnished by the
auditor in the Audit Report.
Again the auditor at page No. 06 of the Audit Report at Sl. No. 05 has
remarked that the Board of management vide meeting dtd. 24.02.96 had resolved
to spend Rs.15000.00 in the inaugural function of the Mini Bank.
The Auditor has neither given any opportunity of being heard to the parties
concerned nor has appended any proof thereto i.e. Xerox copies of the records
relevant to recovery so as to substantiate his stance. The detail analysis of the
budget has not been made in the Audit Report.
Thus for the expenditure of Rs.15000.00 towards Mini Bank opening
expenditure both the president Sri Ramchandra Mohanty and the Secy. Sri
Sridhar Mohapatra are not liable. As the deposit position of the Mini Bank has
increased subsequently, the expenditure was incurred for the institution.
Out of Rs.9581.75 Sri Sridhar Mohapatra O.P. No. 1 is liable for
Rs.6151.75 and he is exonerated from the recovery of Rs.3430.00 as the
expenditure relate to dead stock i.e. purchase of plastic chair 07 (seven) numbers
which he has handed over to his successor on dt. 20.05.98.


OBJECTIONABLE VOUCHER, RECOVERABLE FROM SRIDHAR
MOHAPATRA SECY. AND RAMACHANDRA MOHANTY PRESIDENT

This recovery includes two items i.e. excursion expenditure of Rs.1900.00
and Misc. Exp. of Rs.1053.00 the total of which comes to Rs.2953.00.
12


CHARGES IN THE AUDIT REPORT
Amount of Rs.1900.00 was paid towards excursion expenditure of staff
and Board of Directors vide Vr.No. 207.00 dtd. 31.03.1995. Hence recoverable
from both president and secretary as the president has passed a resolution on dt.
22.03.95 vide agenda-3.
As regards recovery amount of Rs.1053 the auditor has remarked in the
Audit Report at page No. 25 that the amount was paid towards Misc. Exp. at
registrar office and no detail particulars and seems to be false and kept
recoverable.

DEFENCE OF THE OPS-
The O.P. Sri Ramachandra Mohanty in his w/s stated that no opportunity
of being heard was given to him by audit and the expenditure of Rs.1900.00 was
spent towards excursion of staff and Board Directors as per decision of the Board
of Management and the expenditure was passed in the AGB meeting of the
society. He did not say anything about the misc. exp. of Rs. 1053/-.
The O.P. Sri Sridhar Mohapatra in his w/s dtd. 06.11.2012 stated that the
expenditure of Rs.1900.00 towards excursion was made as per the consent of the
president and the management and the expenditure of rs.1053/- was incurred for
acquisition of land for the society. He also stated that he was given no opportunity
of being heard by the then audit.

VERIFICATION, OBSERVATION AND DECISION OF THE P.O.
In absence of vouchers the Cash Book of the society was verified. On
verification of the Cash Book it is noticed that vide cash book folio no. 175/
dtd.31.03.1995 an amount of Rs.1900.00 has been debited towards travel
expenses (ext. No.24) and vide cash book folio No. 70 / dtd 30.11.1995 an
amount of Rs.1035 has been debited towards Misc. exp.

On verification of the Minute Book for the period from 18.09.1991 to
dt.21.06.1995 it is noticed at page No. 141/dtd.22.03.95 a resolution vide
resolution No. 03 has been made to incur expenditure of Rs.2000.00 for excursion
(Ext. No. 26)

The minute Book of the society was not produced by the present custodian
of records for which the AGB resolution could not be verified.
13

On verification of the Audit Report of the Society for the year 1994-95 to
1998-99 it is noticed at page No. 08 of the Audit Report that the Annual receipt
and expenditure statement for the year 1995-96 and 1996-97 had been passed by
AGB meeting dtd.12.03.1997. The annual budget for the year 1994-95 had been
approved vide AGB dtd.30.09.1994.

Thus, the expenditure towards excursion seems to be genuine for which
both the Ops are freed from such liability of Rs.1900.00.As regards exp. of
Rs.1053 the Secy. Sri Sridhar Mohapatra is liable for such Loss. But he is liable to
deposit Rs.1013.00 as he has already deposited Rs.40.00 in societys cash.

GROSS LOSS RECOVERABLE FROM S. MOHAPATRA SECY, 1994-95 TO
1997-98 RS.10127.00

Charges in the Audit Report
The auditor has framed the charges in the Audit Report (B.O.R.) as follows

The Secretary has purchased fertilizer and give transportation cost but
sale of fertilizer by adjustment of loan without include the transportation cost.
Hence the trading account of the society comes to gross loss during the year
under audit are given here under.

Sl. No. Year Amount of Gross Loss
1 1994-95 2643.10
2 1995-96 1597.95
3 1996-97 3122.15
4 1997-98 2763.80
Total 10127.00

Defence of the O.P.
The O.P. in his w/s dtd. 06.11.12 stated that fertilizer was disbursed to the
loanee members as B component loan as per their sanctioned credit limit.
Addition of transportation cost was surpassing the sanctioned credit limit amount
and the fixed Govt. rate. He again stated that resolution was passed in the AGB
to bear such loss by the society and therefore he is not liable for the recovery.

14


Observation and Decision of the P.O.
The auditor in the body of the Report has remarked that the sale of fertilizer was
made by adjustment of loan. On verification of the trading account of the society
for the year 1994-95 to 1997-98 vide page No. 61 and 62 in the o/c of the FAR for
the year 1994-95 to 1997-98 it is noticed that the transporting charges for the said
yars have been charged as follows-

Sl No. Year Amount of Transporting Charges
1 1994-95 Rs.1852.00
2 1995-96 Rs.1096.00
3 1996-97 Rs.2476.00
4 1997-98 Rs.2406.00
Total Rs.7830.00
In the audit report the opening stock and closing stock of fertilizer have not been
accounted for in the trading account of the society for the said period. Thus it is
evinced that the gross loss is not only due to transporting charges rather non-
inclusion of opening and closing stock.
Again in the Audit Report the auditor has remarked that the Annual budget
for the year 1994-95 to 1998-98 have been approved by AGB and the Annual
Receipt and expenditure statement have also been approved by AGB.

The auditor has not given any opportunity of being heard to the o.p. For such
recovery.
Because the fertilizer was disbursed as B component loan the Secy. is
not liable for the loss of Rs.10127.00 and he is exonerated from such liability as
the AGB has approved the Annual Receipt and Expenditure statement.



EXCESS SSD REFUND FROM SRIDHAR MOHAPATRA SECY. RS.9226.00

The O.P. Sri Sridhar Mohapatra in his w/s dtd. 06.11.2012 stated that vide M/R
No. 21683 / Dtd.31.03.2012 he has deposited the amount of Rs.9226.00 on
verification of the money receipt Book and Day Book of the society it is noticed
that vide M.R. No. 21683/dtd.31.03.2012 (Ext.03) an amount of Rs.9226.00 has
15

been collected from Sridhar Mohapatra Secy. towards audit recovery and the said
amount has been credited to the societys Day Book Folio-44 and 45 dtd.31.03.12.
Thus the charges framed in the audit report are proved and the O.P. Sri Sridhar
Mohapatra is not liable to pay the said amount as he has already deposited the
same in the Societys cash.


ADVANCE RECOVERABLE FROM SRIDHAR MOHAPATRA, SECY.
RS.1500.00
As the O.P. Sri Sridhar Mohapatra has deposited the recoverable amount of
Rs.1500.00 in society cash vide M.R. No. 21685.00 dt.31.03.12 (Ext. No. 05) and
the same has been credited to the societys Cash Vide Day Book folio 44 and 45
dtd.31.03.12 Sri Sridhar Mohapatra, O.P. is not liable for the amount though the
charges are proved.



UNACCOUNTED LOANS AND INTEREST RECOVERABLE FROM SRIDHAR
MOHAPATRA, SECY. RS.34843.00

As the O.P. has deposited the amount in societys cash by way of deduction from
his salary as per the advice No.446/Dtd.30.12.11(ext.no.34)of B.M.Satyabadi
Branch dt.30/12/11 and the said amount has been credited to the societys cash
vide Day Book folio 285/Dtd.30.12.11; the O.P. is not liable to pay the amount but
the charge in the audit report is proved.


RECOVERABLE FROM LOKNATH DIXIT EX. SECY.
The recovery of Lokananth Dixit Ex-Secy. includes the following
(i) Fertilisers Cost Rs.83694.00 (1998-99)
(ii) Cash Mistake =Rs.1750.00 (1998-99)
Total Rs.85,444.00
As per the advice No. 446/dtd.30.12.11 of the B.M. Satyabadi Branch of UPNCCB
Ltd. (Ext. No.34) an amount of Rs.93633.00 has been realized from Sri Lokananth
Dixit and the said amount has been credited to the societys cash vide Day Book
folio 285 dtd.30.12.11 (Ext. No.30).
16

In the Day Book folio No. 40 dtd.31.03.12 where audit recovery of Rs.45857.00
(Ext.28) had been credited towards audit. Recovery from Sridhar Mohapatra Secy.
has been subsequently cancelled with the narration already posted in Day Book
folio No. 285/dtd. 30.12.11 of B.M. Satyabadi Branch. Hence the Money Receipt
No. 21682 / dtd.31.03.12 showing collection of audit recovery of Rs.45857 from
Sridhar Mohapatra by adjustment stands automatically cancelled.

As the amount of recovery has already been realized from Sri Loknath Dixit Ex
Secy. he is not liable to pay the same but the charges in the Audit report are
proved.
It is to be noted here that the O.P. Sri Lokananth Dixit did not appear for hearing.

ADVANCE RECOVERABLE FROM DINANATH DASH, CEO RS.1000.00
As the O.P. Sri Dinanath Dash is neither an officer nor the office bearer of the
society the case is not maintainable under the provisions of Sec. 67 of OCS Act.
1962. Hence the amount is dropped and the secretary is directed to file dispute
case for realization of the amount.

Basing upon the above discussion; records verified as produced by the Secy.;
defence of the Ops and observations given in the audit Report of the society, the
following order is passed.

O R D E R
I Sri S.K. Sethy, Asst.A GCS-cum-presiding officer O/o the Asst. AGCS
Puri Audit circle Puri in exercise of powers conferred on me U/s -67 of OCS Act-
1962 and Rule 70 of OCS Rules- 1965 do hereby order as follows
The O.P. No. -1 Sri Sridhar Mohapatra is liable for Rs.13444.75. He has
deposited in the societys cash Rs.68246.60 and is exonerated from the recovery
of Rs.55075.95. The OP No. 2 Sri Ramachandra Mohanty is exonerated from
the recovery amount. The OP No. 4 Sri Dinanidhi Dash CEO is neither the Officer
nor the office bearer of the society, hence the recovery amount of Rs.1000.00 is
dropped. The OP No. 3 Sri Srikrushna Mohapatra is liable for Rs.40.00 as he has
admitted the recovery and owed to deposit in the societys cash. The O.P. No. 05
Sri Lokananth Dixit is not liable to pay the recovery amount of Rs.85444.00 as he
has deposited the amount in the societys cash.
17

The OP No. 1 Sri Sridhar Mohapatra is liable for the amount of
Rs.13444.75 which he is to deposit in the societys cash with interest @ 13% P.A.
from the date of occurrence to the date of realization along with interest @13%
p.a. on the amount already realized from the date of occurrence to the date of
realization within 30 days of issue of this order failing which the same shall be
collected through execution u/s 103 of OCS Act. 1962.
The OP No. -3 Sri Srikrushna Mohapatra is directed to deposit the
recoverable amount of Rs.40.00 in the societys cash within 30 days of issue of
the decision with int. @13% P.A. from the date of occurrence to the date of
realization failing which the same shall be realized through execution u/s 103 of
OCS Act 1962.
The Op No. 05 Sri Loknath Dixit is liable to pay interest on the amount
already realized @13% p.a. from the date of occurrence to the date of realization
within 30 days of issue of this order failing which the same shall be realized
through execution u/s 103 of OCS Act.1962.
Processing fees of Rs.150.00 is levied which the O.P. has deposited in
shape of Court fee in this office and kept in the file.
Given the order under my hand and seal of this office today the 27
th
of July
2013.


Dictated, read and corrected by me (S.K. Sethy)
Asst. AGCS-Cum-P.O.

(S.K. Sethy)
Asst. AGCS-Cum-P.O.

18

OFFICE OF THE ASST. AGCS PURI AUDIT CIRCLE PURI

Memo No._____________ Dtd.____________
Copy alongwith the copy of the decision forwarded to the Ops Sridhar Mohapatra/
Ramachandra Mohapatra Ex-pdt/Srikrushna Mohapatra, Ex-Cashier/ Sri Dinanidhi
Das, Ex- CEO/ Sri Lokananth Dixit, Ex-Secy for information and necessary action.

Sub-Asst. AGCS, Puri
Memo No._____________ Dtd.____________
Copy along with the copy of the decision forwarded to the Secy. Sri Ramchandra
SCS Ltd. for information and necessary action. He is instructed to serve the
decision copies enclosed herewith on the Ops immediately.


Sub-Asst. AGCS, Puri
Memo No._____________ Dtd.____________

Copy along with the copy of the decision forwarded to the ARCS Puri for
information and necessary action.

Sub-Asst. AGCS, Puri
Memo No._____________ Dtd.____________
Copy along with the copy of the decision forwarded to the Secy. UPNCCB for
information and necessary action.

Sub-Asst. AGCS, Puri

Memo No._____________ Dtd.____________
Copy along with the copy of the decision submitted to the AGCS (O) BBSR for
kind information and necessary action.

Sub-Asst. AGCS, Puri

**Copy to audit Section II.