(1) In case a DMF :-
(a) fails to maintain an endowment fund as mandated in rule 32:
(b) transfers any fund in violation of rule 26.
(c) fails to comply with any of the clauses in rule 27.
(d) fails to get the accounts audited as mandated in rule12(2):
(e) fails to prepare and publish annual report as mandated in rule 9(ix) and 12(6),
(f) fails to follow directions of State Government in rule 28;
the State Government may direct,
(i) suspension of sanction of any or all new works or execution of any or all of already sanctioned works; and/or
(ii) suspension of release of funds for any or all the works by the bank
(s) where DMF fund is deposited or the bank account of the executing agencies where funds have been transferred from DMF
(2) The State Government may after being satisfied that necessary corrective measures have been taken, withdraw such suspension.
State Level Monitoring Committee