IN THE HIGH COURT OF JUDICATURE OF ANDHRA PRADESH AT HYDERABAD THURSDAY, THE THIRD DAY OF MARCH TWO THOUSAND AND ELEVEN PRESENT: THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.10044 OF 2007 Between: Bandari Das. … Petitioner AND The Government of Andhra Pradesh, Rep. By its Principal Secretary, Panchayat Raj and Rural Development (PTS.II), Department, Secretariat Buildings, Hyderabad and two others. … Respondents This Court made the following: O R D E R : The former Sarpanch of Ghatkesar Gram Panchayat, Ghatkesar Mandal, R.R.District, the petitioner herein, challenges the proceedings dated 06-07-2005 passed by the Collector (PT Wing), Ranga Reddy District, confirmed in Revision by the Government of Andhra Pradesh in G.O.Rt.No.503, Panchayat Raj & Rural Development (PTS.II) Department dated 10-04-2007. By the proceedings under challenge, the authorities directed a sum of Rs.4,11,019/- to be recovered from the petitioner under Section 265(1) of the Andhra Pradesh Panchayat Raj Act, 1994. 2. The petitioner was the Sarpanch of Ghatkesar Gram Panchayat during the years 1998-2003. The Audit Officer addressed half margin letter dated 30-07-2004 to the petitioner alleging misappropriation of amounts by the petitioner. As per the Audit Rules when such a letter was issued, the petitioner had to comply with the objections, which he did in the present case. However, without waiting for the result of the audit, the Collector (PT Wing), R.R.District, having been made aware of the half margin letter, issued show cause notice dated 16-05-2005 calling upon the petitioner to explain as to why a sum of Rs.4,11,019/- should not be recovered from him. By his response dated 10-06-2005, the petitioner informed the Collector, the second respondent, that the entire records had been submitted to the District Audit Officer pursuant to the half margin letter and therefore requested a month’s time for submitting his explanation with the relevant record. Thereupon, the Collector (PT Wing), Ranga Reddy District, passed the impugned proceedings dated 06-07-2005, wherein he stated that the petitioner’s explanation was not found convincing and thus it was established that he had misappropriated the Gram Panchayat funds willfully. Except for this bald statement, there is no other foundation for the finding that petitioner had misappropriated any amounts. The Collector accordingly directed the petitioner to remit the sum of Rs.4,11,019/-, failing which, the same would be recovered as arrears of Land Revenue. Aggrieved thereby, the petitioner preferred a Revision before the Government of Andhra Pradesh, which met with failure under G.O.Rt.No.503 dated 10-04-2007. Relevant to note, the District Audit Officer, Ranga Reddy District, having completed the enquiry based upon the half margin letter, ultimately concluded that only a sum of Rs.11,619/- was due and payable by the petitioner. Thus, the very foundation for the action initiated by the Collector (PT Wing), Ranga Reddy District, being the half margin letter of the Audit Officer, quantifying the amount misappropriated in the range of Rs.4 lakhs, stood nullified. In that view of the matter, the impugned proceeding dated 06-07-2005, which is clearly bereft of basis being founded only upon the fact that the petitioner had sought further time for submitting his explanation, cannot be sustained. The exercise of revisionary power by the Government of Andhra Pradesh, as evident from G.O.Rt.No. 503 dated 10-04-2007, is equally unsustainable as there is no discussion whatsoever as to the denial of opportunity to the petitioner, who had specifically stated that the records had been submitted to the Audit Officer. Further, in the light of the finding by the Audit Officer himself to the effect that only a sum of Rs.11,619/- was found recoverable from the petitioner, the impugned proceedings to the effect that he was due and liable to pay a sum of Rs.4,11,019/- cannot be sustained. 3. The Writ Petition is accordingly allowed setting aside the impugned proceedings dated 06-07-2005 passed by the Collector (PT Wing), Ranga Reddy District, confirmed in Revision by the Government of Andhra Pradesh under G.O.Rt. No.503 dated 10-04-2007. In the event, the respondents wish to proceed further in the matter basing upon the report of the District Audit Officer, Ranga Reddy District, they shall do so strictly in accordance with A.P. State Audit Act, 1999 and the Rules framed thereunder. In the circumstances, there shall be no order as to costs. _____________________ SANJAY KUMAR, J Date: 03-03-2011. KVS THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.10044 OF 2007 KVS March 3, 2011