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Indian Express
22-05-2025
- Business
- Indian Express
Delhi HC stays CAG audit of 2 societies representing Ajmer Dargah priests
The Delhi High Court last week stayed the Comptroller and Auditor General's (CAG's) audit proceedings of two registered societies representing the khadims or hereditary priests at the Ajmer Dargah. The stay, granted as an interim measure until the next date of hearing scheduled on July 28, was granted after the court surmised that requirements under a provision of the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971, were not complied with. In an order on May 14, Justice Sachin Datta noted that the terms and conditions for conducting the audit had not been agreed upon when the budget division of the Department of Economic Affairs under the Ministry of Finance communicated to CAG in January this year, as is required under the Act. Justice Datta also noted that CAG had not agreed to the conduct of the audit of the petitioner societies as of March 15, 2024, when the Ministry of Minority Affairs had notified the registered societies of the audit. Justice Datta noted that this 'lends credence to the petitioner's contention that the requirements under Section 20 of the CAG Act have not been applied/satisfied in the present case'. Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Syedzadgan and Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Shakhzadgan, two registered societies and representative bodies of hereditary priests who carry out traditional and religious activities at the Ajmer dargah, had moved the Delhi High Court seeking that CAG be restrained from conducting an audit, highlighting that it would be in utter contravention of the provisions of the CAG Act, 1971. As per the petitioners, the mandatory statutory procedure for such audits, as set out in Section 20 of the CAG Act, stipulates that the ministry concerned should send a communication to CAG. The communication should seek to have the petitioner society audited by CAG, the terms and conditions based on which the audit should be conducted should be agreed upon between CAG and the ministry concerned, and subsequently the said terms and conditions should be served on the petitioner, following which the petitioner is entitled to make a representation to ministry concerned. It also requires, first, the President's or the governor's assent before the terms of audit are agreed to. In the current case, on March 15, 2024, a notice was issued by the Ministry of Minority Affairs, upon instructions from the Ministry of Home Affairs, notifying the khadims of the audit, 'to improve the administration and management of Dargah affairs at Ajmer'. The notice was challenged before the Delhi High Court, and during its pendency, CAG moved on with the audit, with the Ministry of Finance notifying that it had received presidential assent for the audit, and a committee had been formed for the same. The petitioners had highlighted before the court that a committee has been formed for the audit, and is making the pending petition infructuous, despite receiving no presidential assent before issuance of notice. The petitioners had also submitted that at the time of issuance of the March 15, 2024 communication, the CAG had not even assented to the conduct of audit pursuant to proposal of the concerned ministry and thus the opportunity to the petitioner to make a representation in terms of communication was a 'farcical/pre-mature exercise'.
Indian Express
29-04-2025
- Politics
- Indian Express
Delhi High Court directs CAG to take instructions regarding audit proposals for Ajmer Dargah
The Delhi High Court Monday asked the Comptroller and Auditor General to 'take instructions' while orally expressing that the court is 'inclined to stay the audit' initiated by CAG of a registered society representative of the khadims or hereditary priests at Ajmer Dargah. Justice Sachin Datta was dealing with a request for an early hearing of a petition moved by Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Syedzadgan and Shakhzadgan, two registered societies and representative bodies of hereditary priests who carry out traditional and religious activities at the Ajmer dargah. The petitioners said they are not the administrators of the properties, assets or funds of the dargah estate. The dargah already has a committee under the Dargah Khwaja Saheb Act, constituted by the Centre, for the management of the estate. The petitioners said they only receive charitable contributions and do not receive any grant or fund from the government, and thus there is no ground for CAG to audit their accounts, which is otherwise a private registered society. The petition was moved for an early hearing where the petitioners sought that CAG be restrained from conducting an audit of the society, highlighting that it would be in utter contravention of the provisions of the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971. As per the petitioners, the mandatory statutory procedure for such audits, as set out in Section 20 of the CAG Act, stipulates that the ministry concerned should send a communication to CAG. 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 said terms and conditions be served on the petitioner, following which the petitioner is entitled to make a representation to ministry concerned. It also requires, first, the President's or Governor's assent before the terms of audit are agreed to. While considering the early hearing application, and addressing CAG's counsel, Justice Datta orally remarked, 'I'm inclined to stay the audit. You'd better clarify your stand and take instructions on what you're doing. His point is very clear. He has a right to representation. First, you have to agree to the terms otherwise [Section] 20C (of the CAG Act) is very difficult. The occasion has not arisen. He hasn't been served even with the order.' The petitioners highlighted before the court that a committee has been formed for the audit, and is making the pending petition infructuous, despite receiving no presidential assent before issuance of notice. A notice was issued on March 15, 2024, by the Ministry of Minority Affairs, upon instructions from the Ministry of Home Affairs (MHA), notifying the khadims of the audit, 'to improve the administration and management of Dargah affairs at Ajmer'. The notice was challenged before the Delhi High Court, and during its pendency, CAG moved on with the audit, with the Ministry of Finance notifying that it had received presidential assent for the audit, and a committee had been formed for the same.
Hindustan Times
28-04-2025
- Politics
- Hindustan Times
Inclined to stay CAG order to audit Ajmer Dargah, says Delhi HC; seeks its reply
The Delhi high court on Monday asked the Comptroller and Auditor General (CAG) if it would stay its own order to audit the accounts of Ajmer Sharif Dargah because of procedural lapses, saying that it was inclined to stay the decision if CAG did not. A bench of justice Sachin Datta has granted CAG time till May 7 to clarify its stand. The court was hearing a petition filed by Anjuman Moinia Fakhira Chistiya Khuddam Khwaja Sahib Syedzagdan Dargah Sharif, Ajmer, challenging the CAG's decision to audit the accounts of the Dargah for the period of five years from 2022-23 to 2026-27. Dargah's counsel Atul Agarwal, who sought an early hearing on the petition, submitted that a three-member team has been formed for the purpose of audit without serving either the terms of the audit or the presidential assent for the same. The CAG's counsel Pavan Duggal sought time to seek instructions. Agarwal further informed the court that the decision was in contravention of Section 20 of the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 which mandates service of the terms and conditions of the audit to the institution whose audit is to be conducted. Further, the same Act allows the institution to file a representation against the audit terms before the ministry concerned. The counsel further argued that the Centre was attempting to pre-empt its pending petition challenging union ministry of Minority Affairs' March 15, 2024, decision of conducting the audit, by relying on another communication issued by Union finance ministry on January 30, entrusting Dargah's audits to CAG. 'Have you (CAG) started the audit or not yet? Your (CAG) counter says that the audit has not yet begun. Should I record that? You take instructions. I'm inclined to stay the audit. You better clarify your stand and take instructions on what you're doing. You better hold your hands,' justice Datta said to advocate Pavan Duggal, representing CAG. The judge added, 'His (Dargah's counsel) point is very clear. He (Dargah's counsel) says that he has a right to make representation, but that occasion has not arisen because you (CAG) have not served him even with the order (terms of audit). First you have to agree to the terms.' The court asked CAG if it was willing to stay its decision on its own and granted time for Duggal to seek instructions. Advancing the date of hearing, previously fixed for May 20, justice Datta posted the matter on May 7. In its petition, filed by advocate Ashish Singh, the Dargah had challenged CAG's action of visiting its office without any prior notice and sought to restrain CAG from conducting the audit. The plea went on to add that the audit was arbitrary, since the Centre was already in control of the administration of Dargah's assets and funds. On March 26, the high court sought Centre and CAG's stand on the petition.
