Delhi High Court rebukes CAG for issuing orders to audit Ajmer Sharif Dargah accounts

Coming down heavily on the Comptroller and Auditor General (CAG) for issuing orders to audit the accounts of Ajmer Sharif Dargah, the Delhi High Court asked CAG to clarify by May 7, whether it was willing to stay its decision.

The Bench, presided over by Justice Sachin Datta, recently passed the order on a petition filed by Anjuman Moinia Fakhira Chistiya Khuddam Khwaja Sahib Syedzagdan Dargah Sharif, Ajmer, challenging the CAG’s order to audit the Dargah’s accounts for a five-year period, from 2022–23 to 2026–27.

Appearing for the petitioner, Advocate Atul Agarwal apprised the High Court that a three-member audit team had already been constituted without serving the terms of an audit or obtaining presidential assent.

He argued that the decision contravened Section 20 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971. The section required that audit terms be served to the concerned institution and allowed the institution to file a representation before the ministry concerned.

The Counsel contended that the Centre attempted to pre-empt the Dargah’s pending petition, challenging the Ministry of Minority Affairs’ decision dated March 15, 2024, by relying on a January 30 communication from the Union Finance Ministry, which entrusted the audit to the CAG.

The Bench asked Advocate Pavan Duggal, representing the CAG, whether the audit had commenced.

The High Court observed that the Dargah had a right to make a representation against the audit, but such an opportunity had not yet arisen, as the government agency failed to serve the necessary order outlining the audit terms.

Noting that it was inclined to stay the audit, the Bench directed the Counsel to take instructions from CAG on whether it would stay the audit order and advance the date of the hearing to May 7, instead of the earlier scheduled May 20.

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