Antony Dominic, J.

Petitioner was the Secretary of the Kulakkada Grama Panchayath during the period from 21/06/1997 to 18/11/1999. Subsequently, he retired from service on 31/10/2004. Ext. P1 is a circular issued by the Government of Kerala on 05/01/1998 regulating the mining of river sand and its distribution by the local bodies. In pursuance to Ext. P1, the District Collector issued circular Ext. P2 dated 31/03/1998 which inter alia laid down the procedure to be followed for fixing the value of river sand. Clause 4 of this Circular provides that 50% of the value realised, shall be paid to the workers and that out of the balance, 25% each shall be paid to the Local Authorities and to the River Management Fund. This appropriation of the sale proceeds is in line with Clause 7 of Ext. P1 circular.

2. Despite the above provisions of Exts. P1 and P2, on 02/02/1999, the third respondent Panchayath passed Exts. P3 to P5 resolutions. For the reasons mentioned therein, the Panchayath resolved that 90% of the sale proceeds will be distributed among the workers. Audit was conducted as provided u/s 215 of the Panchayath Raj Act and in Ext. P6 audit report, which was served on the peti