The Kerala High Court has expressed concern over irregularities identified in the audited accounts of the Global Ayyappa Sangamam event held at Sabarimala with the approval of the Court. A Division Bench comprising Justice Raja Vijayaraghavan V. and Justice K.V. Jayakumar considered the independent auditor’s report that had been prepared pursuant to earlier directions of the Court. The auditors had issued a qualified opinion on the financial statements relating to the event, pointing out certain issues in the accounts. Taking note of this, the Court observed that the Travancore Devaswom Board bore responsibility for preparing and presenting financial statements that provide a true and fair view of the financial position in accordance with recognized accounting principles.
The Court emphasized that this responsibility includes maintaining proper books of account and supporting records, safeguarding assets received or procured for the event, and implementing measures to prevent and detect fraud and irregularities. It further noted that the Board is required to design, implement and maintain adequate internal controls relevant to financial reporting so as to ensure the accuracy and completeness of the accounts and to prevent material misstatements arising from error or fraud. The qualified opinion expressed by the auditors indicated deficiencies or uncertainties in the financial records, prompting the Court to seek clarifications.
In view of the issues highlighted in the audit report, the Bench directed that explanations be obtained from both the Travancore Devaswom Board and the Kerala State Audit Department. The Court considered it necessary to receive their responses before passing further orders, particularly to understand why the irregularities had arisen and whether appropriate safeguards and internal controls had been in place. The matter was therefore kept under consideration pending the receipt of these inputs.
The Court’s observations were also made in the backdrop of earlier proceedings in which it had expressed dissatisfaction over delays by the Travancore Devaswom Board in submitting the audited income and expenditure accounts within the stipulated time. The Board had been directed to furnish detailed accounts of estimated costs, sponsorship contributions, participant accommodation and other financial particulars within a fixed period after the event. When it failed to do so, the Court granted a final extension and cautioned that non-compliance could attract action for violation of its directions.
By flagging the irregularities in the audit and calling for detailed explanations, the High Court underscored the obligation of the Travancore Devaswom Board to ensure transparency and accountability in handling funds connected with events conducted under judicial oversight. The proceedings reflect the Court’s insistence that accurate financial reporting, proper record-keeping and effective internal controls must be maintained in matters involving significant public interest and religious events administered by statutory bodies.
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