The Delhi High Court has recently passed an interim order staying the audit of the Khadim's Society at Ajmer Sharif Dargah by the Comptroller and Auditor General of India (CAG). The order was issued on May 14, by Justice Sachin Datta after hearing submissions from both sides and examining the CAG's response. The court directed that no further steps be taken by the CAG pursuant to the communication dated January 30, until the next date of hearing.
The matter pertains to two petitions filed by the society—Anjuman Moinia Fakhria Chistiya Khuddam Khwaja Sahib Syedzadgan Dargah Sharif, Ajmer—through advocates Ashish Singh and Atul Agarwal. The petitions challenge the legality of the audit proceedings initiated by the CAG.
During the hearing, the court raised two key questions to the CAG’s counsel: first, whether the CAG had agreed to conduct the audit of the petitioner society as of March 15, 2024, when the Ministry of Minority Affairs issued its order; and second, whether the terms and conditions for conducting the audit had been finalised as of January 13, when the Budget Division of the Ministry of Finance communicated with the CAG.
In both instances, the CAG’s counsel responded in the negative. The court observed that this supported the petitioner’s argument that the procedural requirements under Section 20 of the CAG Act had not been fulfilled. It was further noted by the bench that the audit had not been initiated even after the communication from the Ministry of Finance. Based on these submissions, the court expressed agreement with the petitioner’s contention and granted an interim stay.
Also Read: Supreme Court slams ED for 'crossing limits' in TASMAC probe
Earlier, on April 28, the Delhi High Court had sought a response from the CAG after the society challenged the audit order. At that time, the court indicated its willingness to stay the audit if procedural norms were found to have been violated and asked the CAG’s counsel to clarify its position. The ongoing petition challenges the CAG’s move to audit the society’s accounts for the financial years 2022–23 to 2026–27.
During a previous hearing, advocate Atul Agarwal submitted that the petitioner society had not received any formal communication detailing the terms and conditions of the audit. He further argued that this was in violation of the CAG Act, which mandates that any institution subject to audit must be informed in writing about the terms and given an opportunity to present its case before the concerned ministry.
The petitioner is also contesting the Ministry of Minority Affairs’ March 15, 2024 decision to conduct the audit, as well as the subsequent January 30, 2025 communication from the Ministry of Finance authorising the CAG to carry it out. Taking note of these procedural lapses and the absence of a commenced audit, the Delhi High Court issued the interim stay and will continue to hear the matter in the coming weeks.
Also Read: SC dismisses plea seeking FIR against Justice Yashwant Varma
Follow us
