New Delhi [India], May 22: The Delhi High Court has granted an interim stay on the Comptroller and Auditor General’s (CAG) audit of the Khadim’s Society at Ajmer Sharif Dargah, citing procedural irregularities in the audit approval process.
Justice Sachin Datta, in an order dated May 14, stayed further action under a January 30, 2025 communication from the Ministry of Finance instructing the CAG to initiate the audit.
“In the circumstances, as an interim measure, it is directed that till the next hearing date, no further steps shall be taken by the CAG pursuant to communication dated 30.01.2025,” Justice Datta stated.
The order comes in response to petitions filed by the society—Anjuman Moinia Fakhria Chistiya Khuddam Khwaja Sahib Syedzagdan Dargah Sharif, Ajmer—represented by Advocates Ashish Singh and Atul Agarwal.
During the hearing, the court posed two specific queries to the CAG:
- Whether the CAG had agreed to conduct the audit as of March 15, 2024, when the Ministry of Minority Affairs first ordered the audit.
- Whether, as of January 13, 2025, the audit terms and conditions had been agreed upon.
The CAG’s counsel admitted that neither condition was met, supporting the petitioner’s contention that Section 20 of the CAG Act—which governs audits of non-government bodies—had not been properly followed.
The court noted that, as per the CAG’s own statement, the audit had not yet commenced, further supporting the case for a stay.
Advocate Agarwal, representing the petitioner, argued that the audit was ordered without serving the terms and conditions, a step mandated under the CAG Act. He added that the society was also denied the opportunity to make a representation before the concerned ministry.
The petition challenges the audit for the financial years 2022–23 to 2026–27, stating that the March 15, 2024, decision by the Ministry of Minority Affairs and the subsequent January 2025 communication from the Ministry of Finance were both flawed.
The High Court has asked the CAG to clarify its position and indicated it may consider further action based on compliance with legal procedures.