Delhi HC stays CAG audit of Khadim's society in Ajmer Sharif Dargah

New Delhi [India] May 22 (ANI): The Delhi High Court has recently passed an interim order staying the Comptroller and Auditor General Audit of Khadim's Society in Ajmer Sharif Dargah.
Justice Sachin Datta, after hearing the submissions and perusing CAG's response, granted an interim stay on the audit.
"In the circumstances, as an interim measure, it is directed that till the next hearing date, no further steps shall be taken by the CAG pursuant to communication dated 30.01.2025," Justice Datta ordered on May 14.
The high court dealt with two petitions filed on behalf of society, namely Anjuman Moinia Fakhria Chistiya Khuddam Khwaja Sahib Syedzagdan Dargah Sharif, Ajmer, through advocate Ashish Singh and and Advocate Atul Agarwal.
During the hearing, the bench raised two specific queries to the counsel for the CAG: Whether the CAG had agreed to the conduct of the petitioner society's audit as of 15.03.2024, when the letter was issued?
The second query was whether, as of 13.01.2025 (the date the communication issued by the Budget Division, Department of Economic Affairs, Ministry of Finance was issued to the CAG for the conduct of audit), the terms and conditions regarding the conduct of audit had been agreed upon. The counsel for the CAG answered in the negative.
"The same lends credence to the petitioner's contention that the requirements under Section 20 of the CAG Act have not been applied to/ satisfied in the present case. It is also informed by the counsel appearing for CAG that the audit of the petitioner has not yet commenced even thereafter," the bench noted.
On April 28, the High Court sought a reply from the Controller and Auditor General (CAG) on a plea challenging the CAG's order to audit Ajmer Sharif Dargah's accounts.
The High Court said it is inclined to stay the order, given procedural lapses, if CAG doesn't comply. The Court had asked the counsel to take instructions and clarify the stand.
The Delhi High Court is hearing a petition challenging the CAG's order to audit the society's accounts for the financial years 2022-23 to 2026-27.
During an earlier hearing, advocate Atul Agarwal, counsel for the petitioner, argued that they had not been served with the terms of the audit.
It was further submitted that the order itself violates the CAG Act, which mandates the service of terms and conditions of audit to the institution whose accounts are to be audited and allows the institution to make a representation before the ministry concerned.
The petitioner society had filed a petition challenging the decision of March 15, 2024, of the Ministry of minority affairs for conducting the audit.
However, the plea said the Ministry of Finance issued a communication on January 30, 2025, and entrusted the Audit to CAG.
During the hearing, the bench also asked whether the Audit had been started. Referring to the response filed by the CAG, the court said it had not been started. I am inclined to stay it. You take instructions and clarify your stand on what you are doing.
The bench also agreed with the submissions by the petitioner's counsel that they have a right to make a representation. (ANI)