Section 44 – Employees State Insurance (Central) Rules, 1950

44. Impropriety or irregularity in accounts

(1) The auditors shall submit to the Corporation and the Central Government a separate statement, if necessary, in regard to-

(i) any material impropriety or irregularity which they may observe in the expenditure, or in the recovery of moneys due to, or in the accounts of the Corporation; or

(ii) any loss or waste of money or other property owned by or vested in the Corporation which has been caused by neglect or misconduct, with the names of the persons who in their opinion are directly or indirectly responsible for such loss or waste.

(2) The Standing Committee shall forthwith remedy any defect or irregularity that may be pointed out by the auditors and shall report to the Central Government the action taken by it thereon within ninety days of the receipt of the report of the auditors:

PROVIDED that if there is a difference of opinion between the Standing Committee and the auditors, or if the Standing Committee does not remedy any defect or irregularity within a reasonable period, the Central Government may, and on a reference specifically made thereof, shall pass such orders thereon as they think fit and the Standing Committee shall thereafter, take action in accordance therewith within such time as may be specified by the Central Government.

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