The Tamil Nadu Local Bodies Ombudsman Act, 2014

IV-2 Ex. (266)—1 [ 93 ]
No. 266] CHENNAI, MONDAY, DECEMBER 15, 2014
Karthigai 29, Jaya, Thiruvalluvar Aandu–2045
TAMIL  NADU
GOVERNMENT GAZETTE
EXTRAORDINARY PUBLISHED  BY  AUTHORITY
© [Regd. No. TN/CCN/467/2012-14.
GOVERNMENT  OF   TAMIL  NADU [R. Dis. No. 197/2009.
2014 [Price:  Rs. 10.40 Paise.
Part  IV—Section  2
Tamil  Nadu  Acts and Ordinances
ACTS:
No. 24 of 2014—Tamil Nadu Local Fund Audit Act, 2014 .. .. ..
No. 25 of 2014—Annamalai University (Amendment) Act, 2014 .. ..
No. 26 of 2014—Tamil Nadu Value Added Tax (Amendment) Act, 2014 ..
No. 27 of 2014—Tamil Nadu Local Bodies Ombudsman Act, 2014... ..
No. 28 of 2014—Tamil Nadu Appropriation (No. 4) Act, 2014. .. ..
Pages
94-100
101
103
105-112
113-118
CONTENTS
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY94
The following Act of the Tamil Nadu Legislative Assembly received the assent of the
Governor on the 14th December 2014 and is hereby published for general information:—
ACT No. 24 OF 2014.
An Act  to provide for an effective and efficient audit system to all local
authorities and certain other authorities, bodies or institutions and Funds and for
matters connected therewith and incidental thereto.
WHEREAS the Thirteenth Finance Commission in its report recommended that the
State Government must put in place an audit system for all local bodies and
also recommended that the Comptroller and Auditor General of India must give technical
guidance and supervision over the audit of all the local bodies in the State at every tier/
category;
AND WHEREAS the Second State Finance Commission has also recommended to
enact an Act to provide for and to regulate the audit of the local funds and authorize the
Director of Local Fund Audit to audit the accounts relating to the local authorities;
AND WHEREAS it has become imperative to ensure effective spending of the grants
of the Government of India and the State Government by the local authorities and other
authorities and to promote public confidence on how the public money is expended by the
local authorities and other authorities established by the State Government;
B
E it enacted by the Legislative Assembly of the State of Tamil Nadu in the Sixty-fifth
Year of the Republic of India as follows:-
1. (1) This Act may be called the Tamil Nadu Local Fund Audit Act, 2014.
(2) It extends to the whole of the State of Tamil Nadu.
(3) It shall come into force at once.
2. In this Act, unless the context otherwise requires,—
(a) ‘audit’ includes cent per cent audit, post audit, test audit, special audit and such
other examination of accounts as the Government may, from time to time,
specify;
(b) ‘cent per cent audit’ means a post audit of all the transactions of a particular
account for the whole financial year or for such period as may be specified by
the Director;
(c) ‘concurrent audit’ means a continuous post audit of accounts of day-to-day
transactions;
(d) ‘Director’ means the Director of Local Fund Audit appointed under section 3
and includes any person authorised by the Government to perform the functions of
the Director of Local Fund Audit;
(e) ‘Executive authority’ means the Chief executive officer or any other officer of
a local authority, vested with the power to administer the fund of that authority;
(f) ‘Government’ means the State Government;
(g) ‘local authority’ means,—
(i) any municipal corporation or municipal council or panchayat union council
or village panchayat constituted under the relevant law for the time being in force; or
(ii) any other authority, body or institution established by or under any law or order
of the Government and specified in the Schedule;
(h) ‘local fund’ means the fund administered by a local authority and other fund
specified in the Schedule;
(i) ‘Local Library Authority’ means the Local  Library Authority constituted under
the Tamil Nadu  Public Libraries Act, 1948;
(j) ‘Local Planning Authority’ means the Local Planning Authority constituted
under the Tamil Nadu Town and Country Planning Act, 1971;
Short title,
extent and
commence-
ment.
Definitions.
Tamil Nadu
Act XXIV of
1948.
Tamil Nadu
Act 35 of
1972.
95TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
(k) ‘market  committee’ means the market  committee constituted under the Tamil
Nadu Agricultural Produce Marketing (Regulation) Act, 1987;
(l) ‘post audit’ means the detailed audit conducted after the completion of transactions;
(m) ‘Schedule’ means the Schedule to this Act;
(n) ‘special audit’ means an audit of accounts pertaining to a specified item or series
of items requiring thorough examination, and includes re-audit of the accounts for a period
already covered by audit;
(o) ‘State’ means the State of Tamil Nadu;
(p) ‘surcharge’ means an amount for which the Director makes a person liable for
loss, waste, misapplication or misappropriation of any money or other
property;
(q) ‘University’ means the University established or incorporated by an Act of the State
Legislature.
3. (1) The Government may, by notification, appoint a person, having such qualification
as may be prescribed, as the Director of Local Fund Audit.
(2) The Government may also appoint such other officers of the Local Fund Audit
Department, as it may deem necessary, to carry out the purposes of this Act.
(3) All officers and staff of the Local Fund Audit Department shall be subordinate to the
Director, who shall have general superintendence and control over them in the performance
of their functions under this Act or the rule made thereunder.
(4) Notwithstanding anything contained in sub-section (1), the Director of Local Fund
Audit functioning before the commencement of this Act, shall be deemed to have been
appointed as the Director under this Act.
4. Notwithstanding anything contained in any other law for the time being in force, but
subject to the provisions of the Comptroller and Auditor General  (Duties, Powers and
Conditions of Service) Act, 1971, the  Director shall audit or cause to be audited by an
officer of the Local Fund Audit Department authorised by him by general or special order
in this behalf, the accounts of a local authority or local fund in the manner provided by or
under this Act. The officer so authorised shall exercise such of the powers and perform
such of the functions of the Director in regard to the conduct of audit under this Act.
5. The Director may, with the previous sanction of the Government, and without
prejudice to the provisions of section 4, audit the accounts of any authority, body,
institution or fund not included in the Schedule subject to such terms and conditions as
may be agreed upon between the Director and the person responsible for the administration
of such authority, body, institution or fund.
6. (1) The Director or the officer authorised by him under section 4, shall conduct the
audit annually or at such intervals as he may deem fit. The Director may also
conduct concurrent audit of such of those local authority or local fund as are found
necessary under the provisions of any law governing them or as may be decided by the
Director in consultation with the Government:
Provided that so far as village panchayats are concerned, the Director may conduct
audit of twenty per cent of such panchayats in a financial year, so that all
such panchayats are audited within a span of five years:
Provided further that no audit shall be commenced unless notice in writing for a period
of not less than fifteen days is given to the executive authority concerned:
Provided also that for reasons to be recorded in writing, notice for a lesser period may
be given or the notice may be dispensed with.
(2) The Director may verify the cash balance of the local fund at the time of audit.
(3) An officer not below the rank of Deputy Director, appointed under sub-section (2)
of section 3, may inspect the records relating to the accounts of a local authority or local
fund.
Tamil Nadu
Act 27 of
1989.
Appointment
of the
Director.
Central Act
56 of 1971.
Audit of
Accounts.
Power to audit
accounts of
certain
authorities,
bodies,
institutions
or fund not
included in the
Schedule.
Manner in
which audit
is to be
conducted.
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY96
7. (1) The accounts of a local authority or local fund relating to every financial year
shall be prepared or caused to be prepared by the Executive authority, within
three months from the end of the financial year, in such form and in such manner as may
be prescribed, and presented for audit.
(2) Where an Executive authority makes default in the preparation and presentation of
accounts for audit within the specified period, he shall be punishable with a
fine of not less than one thousand rupees, which may extend to five thousand rupees and
shall also be liable to departmental action:
Provided that no such fine shall be imposed by the Director unless an opportunity of
not less than fifteen days is given to show cause as to why it may not be
imposed.
(3) The Government may withhold release of funds to any authority which fails to
furnish accounts for audit on expiry of three months from the specified period.
8. (1) For the purpose of audit under this Act, the Director may,—
(a) require in writing, the production at the place of audit, such vouchers, statements,
returns, correspondences, notes or any other documents including documents in electronic
form, the perusal or examination of which are necessary for the elucidation of the
accounts;
(b) require in writing, any employee of a local authority or an authority which
administers a local fund accountable for or having the custody or control of such vouchers,
statements, returns, correspondences, notes or other documents including documents in
electronic form or any person having directly or indirectly, any share or
interest in any contract with the local authority or the authority which administers the local
fund to appear in person before him and answer any question and require any person so
appearing to make and sign a declaration with respect to such document or to prepare and
furnish any statement relating thereto; and
(c) in the event of an explanation being required from any officer or member of a local
authority or an authority which administers a local fund, invite such person and shall in
writing, specify the point on which his explanation is required.
(2) The Director may, in any requisition made under sub-section (1), specify a period
of not less than three days within which the said requisition shall be complied with.
9. Any person who wilfully neglects or refuses to comply with any requisition lawfully
made upon him under clause (a) or clause (b) of sub-section (1) of
section 8 shall be punishable with a fine of not less than one thousand rupees, which may
extend to five thousand  rupees:
Provided that no such fine shall be imposed by the Director on any person until he has
been given an opportunity of not less than fifteen days of showing cause
against the fine:
Provided further that in the case of an employee of a local authority or an authority
which administers a local fund, he shall also be liable to departmental action.
10. (1) The audit of the accounts prepared and presented for audit under section 7
shall be completed by  the Director within a period of not exceeding six months as may
be prescribed.
(2) The Director at the time of completion of audit shall verify the correctness of the
accounts, certify the annual accounts in such manner as may be prescribed
and append the certified copy of the accounts with the audit report.
11. As soon as practicable after the completion of the audit, but not later than three
months thereafter, the Director shall send to the Executive authority concerned a
report on the accounts audited by him and copies of the report to such officers and bodies
or institutions, as the Government may direct or as may be specified under the
law governing that local authority or local fund, as the case may be.
Liability of the
Executive
authority to
prepare and
present
accounts for
audit.
Power to
require
production
of accounts
and
attendance
of persons
for audit.
Penalty for
disobeying
requisition
under
section 8.
Completion of
audit of
accounts.
Audit report to
be sent to
Executive
authority
and certain
officers and
bodies.
97TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
12. The Director shall include in the audit report,—
(a) any payment which appears to have been made contrary to any law or order of the
Government;
(b) the amount of any deficiency or loss which appears to have been caused by the
negligence or misconduct of any person in the performance of his duties;
(c) any case of misappropriation or improper utilisation of the fund;
(d) the amount, if any, received which ought to have been brought into account but not
brought into account; and
(e) any other material impropriety or irregularity observed in the audit.
13. (1) On receipt of the audit report sent under section 11, the Executive authority
shall, within a period of two months, either remedy the defects or irregularities, if any,
pointed out therein and place the audit report together with a statement of action taken or
place the audit report together with a statement of action proposed
to be taken thereon before a meeting of the governing body of the authority concerned.
The Executive authority shall also, within a month from the date of the said
meeting, send to the Director a report of having remedied the said defects or irregularities
or submit any explanation in regard to such defects or irregularities.
(2) On receipt of such report or explanation, the Director may,—
(a) accept the report of having remedied the defects or irregularities or the
explanation in regard thereto and drop the objection; or
(b) hold that any or all of the defects or irregularities pointed out in the audit report
have not been remedied.
(3) The Director shall, within two months from the date of receipt of the report or
explanation, or if no such report or explanation is received, on expiry of the total
period of three months referred to in sub-section (1), pass an order thereon. If the Director
holds that any defect or irregularity pointed out in the audit report has not been remedied,
he shall state in the order,—
(a) whether the defect or irregularity can be regularised and, if so, by what
method; or
(b) if the defect or irregularity cannot be regularised, whether they can be
condoned and, if so, by what authority; and
(c) whether the amount to which the defect or irregularity, relate to, in his opinion,
be charged and, if so, against whom.
(4) The local authority or the authority, body or institution which administers the
local fund shall publish in its next administrative report, extract of the defect or
irregularity, if any pointed out in the audit report, the explanation, if any, given by the
Executive authority under sub-section (1) and the order passed thereon by the
Director under sub-section (3) and shall also keep the same open to inspection for the
public at its office for a period of one month from the date of the receipt of the
order of the Director.
(5) Nothing in this section or section 12 shall preclude the Director, at any time,
from bringing to the notice of the Government for such action as may be
necessary, any information which appears to the Director to support a presumption of
criminal misappropriation or fraud or, which, in his opinion, deserves special attention
or immediate investigation.
14. (1) The Director may disallow any payment which appears to him to be contrary to
any law or order of the Government, or the amount of any deficiency or loss
caused by negligence or misconduct or any sum received, which ought to have been
brought into account but not brought into account and surcharge the person or the person
authorising the same and shall, in every such case, certify the amount due from such
person:
Provided that no such surcharge shall be imposed by the Director on any person until
he has been given an opportunity of not less than fifteen days of showing cause
against the surcharge.
Contents of
audit report.
Procedure to
be followed
on receipt of
audit report.
Director to
surcharge
illegal
payments
and loss
caused by
negligence or
misconduct.
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY98
(2) Any person aggrieved by the surcharge may, within one month from the date
of receipt of the decision of the Director, apply to the District Court, to set aside the
surcharge and the Court, after taking such evidence as is necessary, may confirm, modify
or remit the same.
(3) Every sum certified to be due from any person by the Director under this Act
shall be paid by such person to the Executive authority within one month from
the date of intimation to him of the decision of the Director unless, within that time, such
person has filed an application before the District Court against the decision under sub-
section (2) and such amount, if not so paid, or such amount as the District Court shall
declare to be due, may be recovered as if it were an arrear of land revenue and for the
purpose of such recovery, the Director shall have the powers of a Collector under the
Tamil Nadu Revenue Recovery Act, 1864.
15. (1) The  Director shall exercise general supervision and control over the officers
and staff of the  Local Fund Audit Department.
(2) The Director shall have the power to settle the audit objections included in the
audit report.
(3) The  Director may approach the Principal Accountant General of the State
to provide necessary technical guidance and support on the audit and maintenance of
accounts of a local authority or local fund.
(4) The Director may condone any payment made from a local fund, of a sum not
exceeding rupees ten thousand only, as may be prescribed by the Government,
which appears to him to be contrary to law, if in his opinion, there was no negligence or
misconduct on the part of the person making or authorising such payment.
(5) The Director shall also exercise such other powers and functions, as may be
prescribed.
16. The Director may, by general or special order, delegate all or any of the powers
to be exercised or  functions to be performed by him under this Act or the  rules made
thereunder except the power under sub-section (4) of section 15 to any other Officer of the
Local Fund Audit Department, subject to such conditions, if any, as may be specified in
that order.
17. (1) The cost of audit of accounts shall be paid  by the authority concerned at such
rates as may be fixed  by the Government, from time to time.
(2) The Government may, by general or special order, exempt, either wholly or in
part, any authority from the liability to pay the cost of audit under sub-section (1).
(3) If the cost of audit due under sub-section (1) is not paid within one year from
the date of its becoming due, the Government may adjust the same against the grant or
other sums, if any, payable to such authority:
Provided that if no grant or other sums is payable to such authority, the cost of audit
shall be recovered by the Director in such manner as may be prescribed.
18. The Director may, when circumstances so warrant, dispense with detailed audit of
any account or class of transactions and apply such limited check in relation to such
accounts or transactions as he may deem fit.
19. (1) Whenever any defalcation or loss in money or stores of any local authority or
authority, body or institution which administers a local fund caused due to
misappropriation, theft or natural calamities is detected, the fact shall be promptly reported
by the Executive authority to the Director giving in detail the circumstances which led to
such defalcation or loss.
(2) On receipt of a report under sub-section (1), the Director shall immediately
conduct or cause to be conducted a special audit of the accounts of that authority:
Provided that nothing in this section shall prevent the Executive authority from initiating
criminal proceedings against any person suspected of, or involved in, any defalcation or
loss of money or stores.
Tamil Nadu
Act II of
1864.
Powers and
functions of
Director.
Delegation of
powers and
functions.
Payment of
cost of
audit.
Power to
dispense
with
detailed
audit.
Defalcation or
loss in
money or
stores to be
reported by
the Executive
authority.
99TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
20. The Director shall submit to the Government annually a consolidated report of the
accounts audited by him containing such particulars which he intends to bring to their
notice and the Government shall cause the consolidated report to be laid, as soon as may
be, after it is received, along with the Report of the Comptroller and Auditor General,
before the Legislative Assembly.
21. Save as otherwise provided in sub-section (2) of section 14, no civil court shall
have jurisdiction to entertain any suit or proceedings in respect of any action  taken or to
be taken by the Government or the Director or any officer in pursuance of any power
conferred by or under this Act.
22. All audit of accounts pending at the commencement of this Act in respect of any
local authority or local fund shall, notwithstanding anything contained in this Act, be continued
and completed by the Director, within such time as may be prescribed, as if this Act has
not been enacted.
23. The provisions of this Act shall have effect notwithstanding  anything inconsistent
therewith contained in any other law made by the Legislature  of the State for the time
being in force.
24. No suit, prosecution or other legal proceedings  shall lie against the Director or any
officer for anything which is in good faith done or intended to be done under this Act or
any rule or order made thereunder.
25. The Director or other officers shall be deemed, when acting or purporting to act in
pursuance of the provisions of this Act or any rule or order to be public servants within the
meaning of section 21 of the Indian Penal Code.
26. (1) The Government may make rules for the purpose of carrying into effect
the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:
—
 (a) the manner and the form in which the accounts of a local authority or local
fund shall be kept and presented;
 (b) the procedure to be followed by the Director in the conduct of audit and the
period within which such audit shall be conducted;
 (c) the manner in which the matters required to be published under this Act shall
be published; and
 (d) any other matter which is required to be or may be prescribed under this Act.
(3) Every rule made or notification or order issued under this Act, shall, as soon
as possible, after it is made or issued, be placed on the Table of the Legislative Assembly
and if before the expiry of the session in which it is so placed or the next session, the
Legislative Assembly makes any modification in any such rule, notification or order, or the
Legislative Assembly decides that the rule, notification or order should not be made, the
rule, notification or order shall thereafter have effect only in  such modified form or be of
no effect, as the case may be, so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done under that rule, notification
or order.
27. If any difficulty arises in giving effect to the provisions of this Act, the Government
may, by order published in the Tamil Nadu Government Gazette, make such provisions,
not inconsistent with the provisions of this Act as appears to them to be necessary or
expedient for removing the difficulty:
Provided that no such order shall be issued after the expiry of a period of two years
from the date of commencement of this Act.
Bar of
jurisdiction
of civil
courts.
Special
provision for
pending
audit.
Act to over-
ride other
enactments.
Protection of
action taken
in good faith.
Central Act
XLV of 1860.
Power to
remove
difficulties.
Power to make
rules.
Laying of audit
report.
Director or
other officers
to be
deemed to
be public
servants.
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY100
28. The Government may, by notification, include any body, authority or institution or
fund established by or under any law or order of the Government in the Schedule to
this Act:
Provided that no body, authority or institution or fund shall be omitted from the Schedule
except by the authority of law made by the State Legislature.
29. The provisions of this Act shall not apply to any case, suit, appeal, revision petition
or any other proceeding that may be pending at the commencement of this Act before the
Director of Local Fund Audit, the Government or Civil Court and the law in force immediately
before the commencement of this Act shall, notwithstanding anything contained in this Act,
continue to apply to such cases, suits, appeals, revision petitions or other proceedings.
THE SCHEDULE.
(See clauses (g) and (h) of section 2)
I.  Local authorities.
1. All City Municipal Corporations.
2. All Municipalities.
3. All Town Panchayats.
4. All District Panchayats.
5. All Panchayat Unions.
6. All Village Panchayats.
7. All Universities.
8. All Local Library Authorities.
9. All  Market Committees including the Tamil Nadu State Agricultural Marketing
Board.
10. All Local Planning Authorities.
11. The Tamil Nadu State Council for Higher Education.
12. The Treasurer of Charitable Endowments.
13. Arasar Chatram.
14. Raja Vedapadasalai.
II. Local Funds.
1. The Tamil Nadu Municipal Employees Health Fund.
2. The Tamil Nadu Town Panchayat Employees Health Fund.
3. The Tamil Nadu Panchayat Union Employees Health Fund.
4. The Tamil Nadu Municipal Employees House Building Advance Family
Benefit Fund.
5. The Tamil Nadu Municipal Corporation Employees House Building Advance
Family Benefit Fund.
6. National Social Welfare Schemes.
(By order of the Governor)
G. JAYACHANDRAN,
Secretary to Government,
Law Department.
Power to
amend
Schedule.
Savings.
101TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
The following Act of the Tamil Nadu Legislative Assembly received the assent of
the Governor on the 14th December 2014 and is hereby published for general information:—
ACT No. 25 OF 2014.
An Act to amend the Annamalai University Act, 2013.
BE it enacted by the Legislative Assembly of the State of Tamil Nadu in the Sixty-fifth Year
of the Republic of India as follows:-
1. (1) This Act may be called the Annamalai University (Amendment) Act, 2014.
(2)  It shall be deemed to have come into force on the 22nd day of September 2014.
2.  In section 11 of the Annamalai University Act, 2013 (hereinafter referred to as the
principal Act), in sub-section (1), for clause (a), the following clause shall be substituted,
namely:-
“(a) The holder of the post of Registrar shall be an academician not below the
rank of a Professor of any University and shall possess the qualifications prescribed by the
University Grants Commission;”.
3.  In section 55 of the principal Act, in sub-section (2), for the expression “one year”,
the expression “two years” shall be substituted.
4.  In section 56 of the principal Act, in sub-section (2), for the expression “one year”,
the expression “two years” shall be substituted.
5. (1) The Annamalai University (Amendment) Ordinance, 2014 is hereby repealed.
(2)  Notwithstanding such repeal, anything done or any action taken under the
principal Act, as amended by the said Ordinance, shall be deemed to have been done or
taken under the principal Act, as amended by this Act.
(By order of the Governor)
G. JAYACHANDRAN,
Secretary to Government,
Law Department.
Short title and
commence-
ment.
Tamil Nadu
Act
20 of 2013.
Amendment of
section 11.
Amendment of
section 55.
Amendment of
section 56.
Repeal and
saving.
Tamil Nadu
Ordinance
1 of 2014.
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY102
103TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
The following Act of the Tamil Nadu Legislative Assembly received the assent of
the Governor on the  14th December 2014 and is hereby published for general information:—
ACT No. 26 OF 2014.
An Act further to amend the Tamil Nadu Value Added Tax Act, 2006.
BE it enacted by the Legislative Assembly of the State of Tamil Nadu in the Sixty-fifth Year
of  the Republic of India as follows:-
1. (1)  This Act may be called the Tamil Nadu Value Added Tax (Amendment)
Act, 2014.
(2)  It shall be deemed to have come into force on the first day of November 2014.
2.  In the First Schedule to the Tamil Nadu Value Added Tax Act, 2006 (hereinafter
referred to as the principal Act), in PART-B, after Serial Number (132) and the entries
relating thereto, the following Serial Number and entries shall be inserted, namely:-
“(132-A) Sugar of all kinds, that is, cane sugar, beet sugar, chemically pure sucrose
in solid form and imported sugar of all kinds.”.
3.  In the Second Schedule to the principal Act,—
(1)  against Serial Number 2, for item (ii) and the entries relating thereto in columns
(2), (3) and (4) thereof, the following item and entries shall, respectively, be substituted,
namely:-
“(ii) Alcoholic liquors At the 220
of all kinds for second per cent.”;
human consumption, point of sale
other than Beer, in the State.
Wine, Draught Beer
and liquors falling
against Serial
Numbers 1 and 3.
(2) against Serial Number 11, in column (2), for the entry “Sugar and textile
products not produced or manufactured in India”, the entry “Textile products not produced
or manufactured in India” shall be substituted;
(3) Serial Number 12 and the entries relating thereto shall be omitted;
(4) against Serial Number 13, in column (4), for the expression “20 per cent”, the
expression “30 per cent” shall be substituted;
`(5)   in Explanation I, clauses (c) and (d) shall be omitted.
4.  In the Fourth Schedule to the principal Act, in PART-B,—
(1) Serial Number 10 and the entries relating thereto shall be omitted;
(2) against Serial Number 14-A, in column (2), item (i) shall be omitted;
(3) against Serial Number 36, in column (1), for the entry in column (2), the
following entry shall be substituted, namely:—
“Goods covered by Public Distribution System (except kerosene and sugar).”;
(4)  after Serial Number 76 and the entries relating thereto, the following Serial
Number and entry shall be inserted, namely:-
“76-A. Sugarcane of all varieties.”.
(By order of the Governor)
G. JAYACHANDRAN,
Secretary to Government,
Law Department.
Short title and
commence-
ment.
Amendment of
First
Schedule.
Amendment of
Second
Schedule.
Tamil Nadu
Act 32 of
2006.
Amendment of
Fourth
Schedule.
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY104
105TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
The following Act of the Tamil Nadu Legislative Assembly received the assent of the
Governor on the 14th December 2014 and is hereby published for general information:—
ACT No. 27 OF 2014.
An Act to provide for the establishment of Ombudsman for conducting
enquiry on the allegations against the elected members of the local bodies and
the officers and employees working under the local bodies in the State of Tamil
Nadu and for matters connected therewith and incidental thereto.
BE it enacted by the Legislative Assembly of the State of Tamil Nadu in the
Sixty-fifth Year of the Republic of India as follows:-
1. (1) This Act may be called the Tamil Nadu Local Bodies Ombudsman
Act, 2014.
(2) It shall be deemed to have come into force on the 13th day of
November 2014.
2.  In this Act, unless the context otherwise requires,—
  (1) “action” means action taken by way of decision, recommendation, resolution
or finding or in execution thereof or in exercise of administrative or legal functions
in any other manner and includes wilful failure in taking action or omission to act
and all other expressions relating to such action shall be construed accordingly;
(2) “allegation”,—
(a) in relation to a public servant, means any affirmation that such public
servant,—
(i) has abused his position as such for any gain or favour to himself
or to any other person or to cause undue harm or hardship to any other person;
(ii)  was actuated in the discharge of his functions as such public
servant by personal interest or improper or corrupt motives;
(iii)  is guilty of corruption, favouritism, nepotism or lack of integrity;
(iv) is guilty of any action as public servant which facilitates or causes
to make any loss of the fund or other property of the local bodies; or
(v)  has failed to act in accordance with the norms of integrity and
conduct which ought to be followed by public servants of the class to which he
belongs;
(b) in relation to a local body, means and includes any affirmation that
such local body has defaulted or acted in excess of its powers in the discharge
of its functions imposed on it by law or in implementing the orders and directions
of the Government;
(3) “complaint” means a statement of allegation that a public servant or a
local body is guilty of corruption or maladministration and includes any reference
to an allegation in respect of which suo-motu  enquiry has been proposed or
recommendation for enquiry has been made by the Government;
(4) “corruption” includes anything punishable under Chapter IX of the Indian
Penal Code  or under the Prevention of Corruption Act, 1988;
(5) “Government” means the State Government;
Short title and
commence-
ment.
Definitions.
Central Act XLV
of 1860.
Central Act 49
of 1988.
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY106
(6) “incapacity” means physical or mental illness of a person or otherwise
becoming unable to discharge his functions;
(7) “local body” means,—
(i) the Municipal Corporation of Chennai, Madurai, Coimbatore,
Tiruchirappalli, Tirunelveli, Salem, Tiruppur, Erode, Vellore, Thoothukudi, Thanjavur,
Dindigul or any other municipal corporation that may be constituted under any law
for the time being in force; or
(ii) a Municipal Council constituted under the Tamil Nadu District
Municipalities Act, 1920; or
(iii) a District Panchayat constituted under the Tamil Nadu Panchayats
Act, 1994;
(8) “maladministration” means an action taken or purported to have been taken
in the exercise of administrative function in any case,—
(i) where such action, administrative procedure or practice governing such
action is unreasonable, unjust, oppressive, discriminatory or nepotic and will make
illegitimate gain or loss or will deny deserving benefits; or
(ii) where there is wilful negligence or delay in taking such action, or the
administrative procedure or method regulating such action will cause undue delay
and includes the action leading to loss or waste or misuse of fund by malfeasance
or misfeasance;
(9) “misbehaviour” means, if the Ombudsman is, or becomes, in any way
concerned or interested in any contract or agreement, made by or on behalf of the
Government of India or the Government of a State or participates in any way in the
profit thereof, or in any benefit or emolument arising therefrom otherwise than as
a member and in common with the other members of an incorporated company;
(10) “Ombudsman” means an authority for making enquiries in respect of
charges on any  action involving corruption or maladministration or irregularities in
the discharge of administrative functions in accordance with the provisions of the
relevant law, by the local bodies and public servants working under the local bodies
and for the disposal of such complaint;
(11)  “public servant” means an elected member of the local body including
its Chairperson or Vice-Chairperson, Mayor or Deputy Mayor and includes the officers
and employees working under the local body;
(12) “relevant law” means,—
(i) in the case of Chennai City Municipal Corporation, the Chennai City
Municipal Corporation Act, 1919;
(ii) in the case of Madurai City Municipal Corporation, the Madurai City
Municipal Corporation Act, 1971;
(iii) in the case of Coimbatore City Municipal Corporation, the Coimbatore
City Municipal Corporation Act, 1981;
(iv) in the case of Tiruchirappalli City Municipal  Corporation, the
Tiruchirappalli City Municipal Corporation Act, 1994;
Tamil  Nadu
Act V of 1920.
Tamil Nadu
Act 21 of
1994.
Tamil Nadu Act
IV of 1919.
Tamil Nadu Act
15 of 1971.
Tamil Nadu Act
25 of 1981.
Tamil Nadu Act
27 of 1994.
107TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
(v) in the case of Tirunelveli City Municipal  Corporation, the Tirunelveli
City Municipal Corporation Act, 1994;
(vi) in the case of Salem City Municipal  Corporation, the Salem City
Municipal Corporation Act, 1994;
(vii) in the case of Tiruppur City Municipal  Corporation, the Tiruppur City
Municipal Corporation Act, 2008;
(viii) in the case of Erode City Municipal  Corporation, the Erode City
Municipal Corporation Act, 2008;
(ix) in the case of Vellore City Municipal  Corporation, the Vellore City
Municipal Corporation Act, 2008;
(x) in the case of Thoothukudi City Municipal  Corporation, the Thoothukudi
City Municipal Corporation Act, 2008;
(xi) in the case of Thanjavur City Municipal Corporation, the Thanjavur
City Municipal Corporation Act, 2013;
(xii) in the case of Dindigul City Municipal Corporation, the Dindigul City
Municipal Corporation Act, 2013;
(xiii) in the case of Municipalities and Town Panchayats, the Tamil Nadu
District Municipalities Act, 1920; and
(xiv) in the case of District Panchayats, the Tamil Nadu Panchayats
Act, 1994;
(13) “Secretary” means the Secretary referred  to in section 6;
(14) “State” means the State of Tamil Nadu.
3. (1) There shall be an authority for the local bodies at State level to be known
as “Ombudsman”.
   (2)  The Governor shall, on the advice of the Chief Minister, appoint a person
who has been an officer of the Government not below the rank of Principal Secretary
to Government of Tamil Nadu as Ombudsman.
(3) A person appointed to be an Ombudsman shall, before entering upon
his/her office, make and subscribe before the Governor or some other person appointed
by him in that behalf, an oath or affirmation according to the form set out in the
Schedule.
4. (1) A person appointed as Ombudsman shall hold office for a term of three
years from the date on which he/she enters upon his/her office:
Provided that,—
(a) the person appointed as Ombudsman may, at any time by writing under
his/her hand addressed to the Governor, resign his/her office;
(b) the person appointed as Ombudsman may be removed from his/her
office in the manner specified in section 5; and
(c) the person appointed as Ombudsman shall retire from office if, during
the term of his/her office, he/she completes the age of seventy years.
(2) The Ombudsman shall be entitled for payment of salary and allowances
as may be admissible to the Tamil Nadu State Election Commissioner.
Tamil Nadu
Act 28 of 1994.
Tamil Nadu
Act 29 of 1994.
Tamil Nadu
Act 7 of 2008.
Tamil Nadu
Act 8 of 2008.
Tamil Nadu
Act 26 of 2008.
Tamil Nadu
Act 27 of 2008.
Tamil Nadu
Act 24 of 2013.
Tamil Nadu
Act 25 of 2013.
Tamil Nadu
Act V of 1920.
Tamil Nadu
Act 21 of 1994.
Appointment
of
Ombudsman.
Term of office
and
conditions of
service of
Ombudsman.
TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY108
5. (1) The Ombudsman shall not be removed from his/her office, except by an
order of the Governor, passed after a resolution of Legislative Assembly of the State,
supported by a majority of the members of the Legislative Assembly present and
voting, for such removal, on the ground of proved misbehaviour or incapacity.
(2) The procedure for the presentation of an address under sub-section (1)
and for the investigation and proof of the misbehaviour or incapacity of the Ombudsman
shall be in accordance with the provisions of the rules framed for the purpose by
the Government.
(3) Notwithstanding anything contained in sub-section (1), the Ombudsman
shall be removed from office by the Governor on the advice of the Chief Minister,
if he/she,—
(a) is adjudicated as an insolvent; or
(b) engages during his/her term of office in any paid employment outside
the duties of his/her office; or
(c) is convicted and sentenced to imprisonment for an offence which
involves moral turpitude.
6. (1) The Ombudsman shall have a Secretary, and such other officers and
employees as the Government may determine in consultation with the Ombudsman
to assist the Ombudsman in the exercise of his/her powers and discharge of his/
her functions under this Act.
(2) The appointment and conditions of service of the Secretary, officers and
other employees shall be such as may be prescribed.
(3) The officers and other employees referred to in sub-section (1) shall be
under the superintendence and control of the Ombudsman.
(4) Without prejudice to the provisions of sub-section (1), the Ombudsman
may, for the purpose of conducting enquiry under this Act, utilise the services of,—
(a) any officer or investigating agency of the Government; or
(b) any other State agency.
(5) The Ombudsman may requisition the services of any person who is having
experience and expertise in any particular subject in deciding the questions before
him.
7. The Ombudsman shall perform all or any of the following functions, namely:—
(i) enquire into any written complaint from the Government or that has come
to the notice of the Ombudsman in which corruption or maladministration of a public
servant or a local body is alleged;
(ii) pass an order on the proved  allegation in the following manner, namely:—
(a) where the irregularity involves a criminal offence committed by a public
servant, the matter shall be referred to the appropriate investigating agency for
necessary action;
(b) where the irregularity involves loss of the fund of the local body, order
recovery of such loss from those who are responsible for such irregularity;
(c) where the irregularity is due to wilful negligence or dereliction of duty
of any officer or employee of the local body, recommend for departmental action
by the appropriate authority under the relevant rules.
8. (1) The Ombudsman shall, for the purpose of any enquiry, have all the powers
of a civil court trying a suit under the Code of Civil Procedure, 1908 and, in particular,
in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of complainant or witnesses
and examining him/her on oath;
Removal of
Ombudsman.
Officers and
employees
of
Ombudsman.
Functions of
Ombudsman.
Powers of
Ombudsman.
Central Act V
of 1908.
109TAMIL  NADU  GOVERNMENT  GAZETTE  EXTRAORDINARY
(b) requiring the discovery and production of any relevant and necessary
document;
(c) receiving evidence on affidavits;
(d) requisitioning any public record, or copy thereof from any court or
office;
(e) issuing commission for the examination of witness and documents;
and
(f) any other matter which may be prescribed.
(2) Where the Ombudsman finds after enquiry that the allegation contained
in a complaint is without any substance, he/she may, by an order, direct the complainant
to pay to the opposite party an amount specified in the order by way of cost.
(3) Where the allegation contained in a written complaint is about the loss
of the fund of the local body, the Ombudsman may, during enquiry, collect evidence,
determine the loss and direct in his/her order, the amount to be realised from the
person responsible.
(4) If the amount payable as per the order passed by the Ombudsman under
sub-section (2) or sub-section (3) is not paid within the period specified by him/her,
the same shall be recovered as if it were an arrear of land revenue under the Tamil
Nadu Revenue Recovery Act, 1864.
9. The Government may, at the request of the Ombudsman, make available the
services of officers and employees of the Government including police personnel to
assist the Ombudsman in the conduct of enquiry.
10. (1) Notwithstanding anything contained in this Act, the Government may refer
any allegation of corruption or maladministration against a local body or a public
servant which is within their knowledge or brought to their notice, to the Ombudsman
and the Ombudsman shall enquire into it as if it was a complaint filed under this
Act.
   (2) The Ombudsman may, on receipt of a complaint, examine the complaint
and supporting documentary proof and where there is prima facie  case, he/she may
enquire into it.
(3) The Ombudsman shall not enquire into matters relating to,—
(a) any matter in respect of which a formal and public enquiry has been
ordered by the Government;
(b) any matter in respect of which an enquiry has been ordered under
the Commission of Inquiries Act, 1952 or any matter pending before a Court;
(c) any complaint filed after the expiry of five years from the date on
which the occurrence is said to have taken place.
(4) After an enquiry, if the Ombudsman is satisfied that,—
(a) the complaint is frivolous or vexatious or is not made in good
faith; or
(b) there is no sufficient ground to continue

Excerpt shown. Open the full act in Lexace.

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