The Delhi High Court has temporarily stayed the CAG’s proposed audit of Ajmer Sharif Dargah’s accounts, citing procedural lapses under the CAG Act. The court found a prima facie case suggesting violations in audit initiation.
New Delhi: The Delhi High Court has temporarily issued stay on the proposed audit of the Ajmer Sharif Dargah’s accounts by the Comptroller and Auditor General of India (CAG), citing prima facie procedural lapses under the CAG Act.
Justice Sachin Datta granted this interim relief in response to petitions filed by the Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Syedzadgan Dargah Sharif, Ajmer, and another registered society connected to the dargah.
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The court noted that the requirements outlined in Section 20 of the CAG Act, 1971, regarding the audit of non-governmental entities did not seem to have been met.
The court stated in its May 14 order, which was made public on May 21,
“It is also informed by the counsel appearing for CAG that the audit of the petitioner has not yet commenced… 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 petitioners challenged the legality of the audit initiation, claiming that CAG officials visited their premises without prior notice or proper legal authority, violating both the CAG Act and the Societies Registration Act, 1860.
They argued that the required statutory process necessitating formal communication from the relevant ministry and agreement on audit terms was not followed.
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They also maintained that the audit should have been preceded by authorization from the President or Governor and that the audited body should have been given an opportunity for formal representation, along with full disclosure of the audit’s terms and conditions.
The CAG, represented by its counsel, contended that due legal process had been observed.
According to its response, the Ministry of Minority Affairs had informed the petitioners as early as March 2024 about the proposed audit and invited objections, which were subsequently submitted.
The CAG claimed that these objections were considered and rejected by the Centre in a letter dated October 17, 2024.
Furthermore, the CAG stated that the audit had been authorized by the President of India and formally communicated by the Ministry of Finance on January 30, 2025.
Despite the CAG’s arguments, the court found it necessary to intervene at this interim stage, suspending any further audit actions until the next hearing scheduled for July 28.
The matter remains sub judice, and the court has yet to deliver a final ruling on the legality of the audit proceedings.