How Global Ayyappa Conclave expenses exceeded sponsorship amounts: Kerala HC to TDB

Kochi, Mar 5 (PTI) The Kerala High Court on Thursday sought an explanation from the Travancore Devaswom Board (TDB) on how the expenses for the Global Ayyappa Conclave exceeded the sponsorship amounts and under what circumstances the additional financial commitments were undertaken.

A bench of Justices Raja Vijayaraghavan and K V Jayakumar also directed the auditing firm to file a statement detailing the anomalies, deficiencies and lapses noticed by it in the course of the audits of TDB's accounts conducted over the years.

The court sought the TDB's explanation after perusing the entire audited records related to the event and on the basis of the TDB's earlier statement that the event's expenditure would be exclusively met from the sponsorship amounts.

"As noticed earlier, the expenses incurred for the Conclave appear to be substantially higher than the amounts received by way of sponsorship.

"It is, therefore, for the Travancore Devaswom Board to explain before this court the apparent inconsistency in its conduct, particularly in the light of the statement made in the counter affidavit that the expenditure for the event would be met exclusively through sponsorship," the bench said.

It further said that if the expenditure has exceeded the sponsorship received, the Board shall place before the court the circumstances under which such additional financial commitments were undertaken.

The bench also said that the audited records indicate that the financial discipline of the TDB "leaves much to be desired".

"The records presently available indicate that substantial amounts have been committed and disbursed without vouchers and receipts and without sufficient clarity as to the financial approvals obtained.

"There is serious slackness in recording the basis on which the expenditure was sanctioned, and the safeguards adopted to ensure proper utilisation of funds. Such issues assume significance in the context of an institution entrusted with the administration of temple funds and contributions made by devotees," the court said.

It further said that the magnitude of the amounts involved, the multiple sources from which funds were mobilised, and the manner in which advances appear to have been released without a transparent accounting framework, "prima facie indicate a disturbing lack of financial prudence and internal financial control".

The audited records were placed before the court pursuant to its direction in that regard on March 2.

The court, on March 2, had impleaded the independent auditor -- Vijayan Associates -- as a respondent in the matter and directed it to produce all primary and foundational records forming the basis of the audit of the event's expenditure.

The auditor placed the records before the bench on Thursday.

The court found that Vijayan Associates has been auditing the records of the Board for the past decade.

It, therefore, directed the auditing concern to file a statement detailing the anomalies, deficiencies and lapses noticed by it in the course of the audits conducted over the years.

"The auditor shall also indicate the procedural or financial safeguards that, in his view, may be necessary to improve financial management and accountability in the functioning of the Board so that appropriate directions can be issued," the court said and listed the matter for further hearing on April 1.

The directions were issued on a plea initiated by the court on its own based on the audit report of the conclave.

The court had called for an audit report while dismissing the petitions challenging the holding of the conclave in September last year. PTI HMP OZ KVK KVK