The Delhi High Court has stayed the proposed audit of Ajmer Sharif Dargah’s accounts by the Comptroller and Auditor General of India (CAG), citing procedural lapses under the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, particularly Section 20.
The bench of Justice Sachin Datta passed the interim order while hearing two writ petitions filed by Anjuman Moinia Fakhria Chishtiya Khudd Khwaja Sahib Syedzadgan (Regd.), which manages the historic Dargah Sharif in Ajmer, Rajasthan. The petitions challenged both the proposal initiated by the Ministry of Minority Affairs in March 2024 and the subsequent steps taken by the CAG towards initiating an audit of the Dargah’s financial accounts.
The petitioner society argued that the proposed audit violated Section 20(1) of the CAG Act, which mandates Presidential approval and mutual agreement on audit terms between the CAG and the concerned entity. The Ministry of Minority Affairs’ letter, dated March 2024, referred to a proposal to conduct the audit of two Anjumans associated with the Ajmer Dargah:
- Anjuman Moinia Fakhria Chishtiya Khudd Khwaja Saheb (Syedzadgan), and
- Anjuman Moinia Fakhria Chishtiya Khudd Khwaja Saheb (Shaikhzadgan).
However, the petitioner pointed out that at the time of issuance of this letter, neither the CAG had given formal assent, nor were the terms and conditions for the audit finalized.
During the hearing, the Delhi High Court posed two critical questions to the CAG’s counsel:
- Did the CAG formally agree to audit the petitioner society when the March 2024 letter was issued?
- Were the terms and conditions for the audit finalized when the Ministry of Finance communicated with the CAG on January 13, 2025?
The response to both questions was negative. Additionally, the counsel confirmed that no audit proceedings had commenced against the petitioner society to date.
The Court found prima facie merit in the petitioner’s arguments and stayed the audit proceedings. “In the circumstances, as an interim measure, it is directed that till the next date of hearing, no further steps shall be taken by the CAG pursuant to communication dated 30.01.2025,” the Court ordered.
The matter is now scheduled for further hearing on July 28, 2025, when the Court is likely to delve deeper into the legality of the proposed audit and whether statutory mandates under the CAG Act were properly followed.
Case Details
Case Title: Anjuman Moinia Fakhria Chishtiya Khuddam Khwaja Sahib Syedzadgan (Regd.) Dargah Sharif Versus Union Of India And Anr
Case No.: W.P.(C) 8116/2024 and CM APPL.33353/2024
Date: 14/05/2025
Counsel For Petitioner: Akshay Makhija, Sr. Adv.
Counsel For Respondent: Mukul Singh, CGSC
