Panchkula, Oct. 2 -- Haryana has given its Local Audit Department sweeping powers to impose personal financial liability on officials for illegal payments, negligence,, and losses in local bodies, universities, and institutions handling public money. This replaces a decades-old framework with a law that makes audit findings hurt where they matter: in the pocket.

A state gazette notification stated that the Haryana Local Audit Act, 2026, now in force, turns the auditor from a passive reviewer into an active enforcer. The auditor can disallow payments, impose surcharges, and trigger recovery proceedings against individuals whose misconduct or carelessness drains public funds.

The centrepiece of the new law is the power vested in the Directo...