Introduction:

In a significant legal development, the Delhi High Court has issued an interim stay on the Comptroller and Auditor General’s (CAG) proposed audit of the accounts of Ajmer Sharif Dargah, following petitions filed by two registered societies representing the hereditary custodians (khadims) of the shrine. The court found merit in the petitioners’ contention that the procedural requirements under Section 20 of the CAG Act were not satisfied.

Arguments:

The petitioners argued that the audit was initiated without adhering to the mandatory provisions of the CAG Act, particularly the requirement of Presidential assent and mutual agreement on the terms and conditions of the audit. They contended that the Ministry of Minority Affairs had proposed the audit without the CAG’s consent and that the audit had not commenced.

The CAG, in its defense, claimed that the audit was proposed to improve the management of the dargah’s affairs and that the necessary procedures were followed. However, the court noted that the CAG had not agreed to the audit when the Ministry issued its communication and that the terms and conditions for the audit were not finalised.

Judgement:

Justice Sachin Datta, presiding over the case, stated that the requirements under Section 20 of the CAG Act were not applied or satisfied in this instance. Consequently, the court directed that no further steps be taken by the CAG under the communication dated January 30, 2025, until the next hearing scheduled for July 28.

This case underscores the importance of adhering to statutory procedures when initiating audits of religious institutions. It also highlights the delicate balance between governmental oversight and the autonomy of religious organisations.