The Delhi High Court has stayed the proposed audit of 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 the interim relief in response to petitions filed by the Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Syedzadgan Dargah Sharif, Ajmer, and another registered society associated with the dargah. The court observed that the requirements under Section 20 of the CAG Act, 1971—governing the audit of non-governmental bodies—did not appear to have been satisfied.
“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 court noted in its May 14 order, which was made public on May 21.
Petitioners Allege Procedural Violations
The petitioners challenged the legality of the audit initiation, alleging that CAG officials visited their premises without prior notice or proper legal authority, in violation of the CAG Act and the Societies Registration Act, 1860. They contended that the statutory process—requiring a formal communication from the concerned ministry and agreement on audit terms—was not followed.
They also asserted that the audit must be preceded by the President’s or Governor’s authorisation and a formal representation opportunity must be given to the audited body, along with full disclosure of the audit terms and conditions.
CAG, Centre Deny Lapses
The CAG, represented by its counsel, argued that due legal process had been observed. According to its reply, the Ministry of Minority Affairs informed the petitioners as early as March 2024 about the proposed audit and invited objections, which were duly submitted. These objections, the CAG said, were considered and rejected by the Centre through a letter dated October 17, 2024.
Further, the CAG stated that the audit had been authorised by the President of India and formally communicated by the Ministry of Finance on January 30, 2025.
Court Sets Next Hearing for July
Despite the CAG’s submissions, the court deemed it necessary to intervene at the interim stage, halting further audit steps until the next hearing scheduled for July 28. The matter remains sub judice, and the court has yet to issue a final ruling on the legality of the audit proceedings.
