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.