Delhi High Court Stays CAG Audit of Ajmer Sharif Dargah Accounts

On May 22, 2025, the Delhi High Court issued a significant interim order staying the Comptroller and Auditor General's (CAG) audit of the accounts of the Ajmer Sharif Dargah. This decision emerged from a legal challenge initiated by the Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Syedzadgan (Regd.), a society associated with the Dargah. The court's intervention was grounded in concerns over procedural lapses, particularly the alleged non-compliance with Section 20 of the CAG Act, 1971, which mandates specific protocols before such audits can commence.

The controversy began when the Ministry of Minority Affairs, in March 2024, proposed an audit of the Dargah's accounts, citing the need for transparency in managing the shrine's affairs. Subsequently, the Ministry of Finance, on January 30, 2025, formally entrusted the CAG with the audit responsibility, purportedly with Presidential assent. However, the petitioner society contended that they were neither served with the terms and conditions of the audit nor given an opportunity to represent their case, as required by law. They further alleged that a three-member audit committee was formed without any prior notice, and officials conducted visits to their premises unlawfully, violating provisions of the CAG Act and the Societies Registration Act.

Justice Sachin Datta, presiding over the case, found merit in the petitioner's arguments. He noted that the CAG had not agreed to the audit at the time the Ministry's letter was issued and that the terms and conditions for the audit had not been finalized when the Ministry of Finance communicated with the CAG. Given these discrepancies, the court directed that no further steps be taken by the CAG concerning the audit until the next hearing scheduled for July 28, 2025.

This case underscores the importance of adhering to due process, especially when auditing religious institutions with complex administrative structures. The Dargah Committee, established under the Dargah Khwaja Saheb Act, 1955, is responsible for managing the shrine's endowments and ensuring the welfare of pilgrims. The current legal proceedings highlight the delicate balance between ensuring transparency and respecting the autonomy of religious bodies.

As the matter awaits further adjudication, the court's interim order serves as a reminder of the judiciary's role in upholding procedural fairness and the rule of law.