3
[204. Accounts to be kept.—There shall be kept in such manner and in such form as may be prescribed
by regulations the General Account of all receipts and expenditures of 4
[
5
[the Corporation]].]
205. Scrutiny of accounts by Municipal Chief Auditor and by the Standing Committee.—(1) The
Municipal Chief Auditor shall conduct a monthly examination and audit of the municipal accounts and
shall report thereon to the Standing Committee who shall publish monthly an abstract of the receipt and
expenditure of the month last preceding, signed by not less than two members of that Committee and by
the Municipal Chief Auditor.
(2) The Standing Committee may also from time to time and for such period as it thinks fit conduct
independently any examination and audit of the municipal accounts.
(3) For the purpose of examination and audit of the municipal accounts the Standing Committee and
the Municipal Chief Auditor shall have access to all the municipal accounts and to all records and
correspondence relating thereto and the Commissioner shall forthwith furnish to the Standing Committee
or the Municipal Chief Auditor any explanation concerning any receipts or expenditure which they may
call for.
206. Report by the Municipal Chief Auditor.—(1) The Municipal Chief Auditor shall—
(a) report to the Standing Committee any material impropriety or irregularity which he may at any
time observe in the expenditure or in the recovery of moneys due to 4
[
5
[the Corporation]] or in the
municipal accounts;
(b) furnish to the Standing Committee such information as that Committee may from time to time
require concerning the progress of the audit.
(2) The Standing Committee shall cause to be laid before 4
[
5
[the Corporation]] every report made by
the Municipal Chief Auditor to the Standing Committee and every statement of the views of the Municipal
Chief Auditor on any matter affecting the exercise and performance of the powers and duties assigned to
him under this Act which the Municipal Chief Auditor may require the Standing Committee to place before
4
[
5
[the Corporation]] together with a report stating what orders have been passed by the Standing Committee
upon such report or statement, and the Corporation may take such action in regard to any of the matters
aforesaid as 4
[
5
[the Corporation]] may deem necessary.
(3) As soon as may be after the commencement of each year the Municipal Chief Auditor shall deliver
to the Standing Committee a report of the entire municipal accounts for the previous year.
(4) The Commissioner shall cause the said report to be printed and shall forward as soon as may be a
printed copy thereof to each councillor and alderman.
1. Ins. by Delhi Act 12 of 2011, s. 15 (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 8, for sub-section (3) (w.e.f. 22-5-2022).
3. Subs. by s. 92, ibid., for section 204 (w.e.f. 1-10-1993).
4. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
5. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
98
(5) The Commissioner shall also forward without delay to the 1*** Government so many copies of the
said report as may be required by that Government with a brief statement of the action, if any taken or
proposed to be taken thereon.
207. Special audit at the direction of the Central Government.—(1) The
2*** Government may at
any time appoint an auditor for the purpose of making a special audit 3
[of the General Account] of the
Municipal Fund and of reporting thereon to the 2*** Government and the costs of such audit as determined
by the 2*** Government shall be chargeable to the Municipal Fund.
(2) An auditor so appointed may exercise any power which the Municipal Chief Auditor may exercise.
Powers and duties of the Municipal Chief Auditor
208. Procedure to be followed by the Municipal Chief Auditor.—(1) The Municipal Chief Auditor
shall audit the accounts of 4
[
5
[the Corporation]] with the assistance of officers and other employees
subordinate to him.
(2) In the discharge of his functions under this section the Municipal Chief Auditor shall—
(a) audit the accounts of expenditure from the revenue of 4
[
5
[the Corporation]], expenditure on
account of loan works and expenditure incurred out of special funds shall ascertain whether moneys
shown therein as having been disbursed were legally available for, and applicable to, the service or
purpose to which they have been applied or charged, and whether the expenditure conforms to the
authority which governs it;
(b) audit the accounts of debts, deposits sinking funds, advances, suspense and remittance
transactions of the Corporation and report upon those accounts and upon the results of verification of
the balances relating thereto.
(3) The Municipal Chief Auditor shall examine and audit the statement of accounts relating to the
commercial services conducted in any department of 4
[
5
[the Corporation]], including the trading,
manufacturing and profit and loss accounts, and the balance-sheets where such accounts are maintained
under the orders of 4
[
5
[the Corporation]],
6
[or the Standing Committee], and shall certify and report upon
these accounts.
(4) The Municipal Chief Auditor shall, in consultation with 7*** the Standing Committee and subject
to any directions given by the Corporation, determine the form and manner in which his reports on the
accounts of 4
[
5
[the Corporation]] shall be prepared and shall have authority to call upon any officer of the
Corporation to provide any information necessary for the preparation of these reports.
209. Power of Municipal Chief Auditor to make queries, etc. and call for returns, etc.—(1) The
Municipal Chief Auditor may make such queries and observations in relation to any of the accounts of
4
[
5
[the Corporation]] which he is required to audit and call for such vouchers, statements, returns and
explanations in relation to such accounts as he may think fit.
(2) Every such query or observation as aforesaid shall be promptly taken into consideration by the
officer or authority to whom it may be addressed and returned without delay with the necessary vouchers,
documents or explanations to the Municipal Chief Auditor.
(3) The powers of the Municipal Chief Auditor with regard to the disapproval of, and the procedure
with regard to the settlement of objections to, expenditure from the revenues of 4
[
5
[the Corporation]] shall
1. The word “Central” omitted by Act 67 of 1993, s. 93 (w.e.f. 1-10-1993).
2. The word “Central” omitted by 94, ibid. (w.e.f. 1-10-1993).
3. Subs. by s. 94, ibid., for “of any of the Accounts” (w.e.f. 1-10-1993).
4. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
5. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
6. Subs. by Act 67 of 1993, s. 95, for certain words (w.e.f. 1-10-1993).
7. Certain words omitted by s. 95, ibid. (w.e.f. 1-10-1993).
99
be such as may be prescribed by the Standing Committee in consultation with the Municipal Chief Auditor
and with the approval of 1
[
2
[the Corporation]].
(4) If the Municipal Chief Auditor considers it desirable that the whole or any part of the audit applied
to any accounts which he is required to audit shall be conducted in the offices in which those accounts
originate he may require that those accounts, together with all books and documents having relation there
to, shall at all convenient times be made available in the said offices for inspection.
(5) The Municipal Chief Auditor shall have the power to require that any books or other documents
relating to the accounts he is required to audit shall be sent for inspection by him:
Provided that if the documents are confidential he shall be responsible for preventing disclosure of their
contents.
(6) The Municipal Chief Auditor shall have authority to frame standing orders and to give directions
on all matters relating to audit, and particularly in respect of the method and the extent of audit to be applied
and the raising and pursuing of objections.
(7) Expenditure sanctioned by the Municipal Chief Auditor shall be audited by an officer to be
nominated by 1
[
2
[the Corporation]].