Delhi HC stays CAG audit of Ajmer Sharif dargah's accounts

New Delhi: The Delhi High Court has stayed the Comptroller and Auditor General's (CAG) proposed audit of Ajmer Sharif dargah's accounts.

Justice Sachin Datta granted the interim stay on the pleas of Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Syedzadgan Dargah Sharif, Ajmer in Rajasthan, and another registered society.

The court, in its May 14 order, found credibility in the petitioners' contention that the requirements under Section 20 of the CAG Act were not applied or satisfied in the case.

The provision deals with the audit of accounts of certain authorities or bodies.

"It is also informed by the counsel appearing for CAG that the audit of the petitioner has not yet commenced even thereafter... as an interim measure, it is directed that till the next date of hearing, no further steps shall be taken by the CAG pursuant to communication dated January 30, 2025," the order, made available on May 21, said.

The court then posted the matter on July 28.

CAG opposed the pleas challenging its process of auditing the accounts of the dargah, saying it duly followed the procedure of the law.

The court was hearing the pleas alleging unlawful search or visit of CAG officials in the office premises of the petitioners without notice or information which was contrary to the provisions of the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 and the Societies Registration Act, 1860.

CAG in its reply said the Ministry of Minority Affairs on March 14, 2024 already informed the petitioner that to improve the management of dargah affairs the central authority proposed an audit and provided an opportunity to make a representation against such audit.

"It is a matter of record that representation was duly made by the petitioner wherein they submitted their objections to the proposed audit by the CAG and the same grounds as are being envisaged in this petition were mentioned therein. The respondent 1 (Centre) vide letter dated October 17, 2024 disposed of the objections of the petitioner and thus the mandate of the Act has been duly followed," it said.

CAG said the authorisation of President of India has been received and it was informed to the CAG by the Ministry of Finance through a January 30 this year letter.

The petitioners, however, argued the mandatory statutory procedure for such audits, as set out in the CAG Act, stipulates that the ministry concerned should send a communication to CAG.

It said the communication should seek to have the petitioner society audited by CAG, the terms and conditions based on which the audit should be conducted, be agreed upon between CAG and the ministry concerned, and subsequently the terms and conditions ought to be served on the petitioner, following which it is entitled to make a representation to ministry concerned.

It also requires, first, President's or Governor's assent before the terms of audit are agreed to.