Court Directs Comprehensive Explanation from Authorities on Prolonged Audit Pendency
In a significant judgment passed by the Kerala High Court, the court has expressed grave concerns over the inordinate delay in completing the statutory audit of the Travancore Devaswom Board for the financial year 2008-2009. The audit process, which remains incomplete 17 years after the period in question, has been deemed a failure to uphold the statutory purpose of financial scrutiny and accountability as outlined under the Travancore-Cochin Hindu Religious Institutions Act, 1950.
The Division Bench, comprising Justice Raja Vijayaraghavan V and Justice K. V. Jayakumar, highlighted the systemic deficiencies and non-compliance with statutory mandates that have resulted in audit objections from 2008-2009 remaining unresolved. The court noted that such delays undermine the objectives of timely financial scrutiny and transparency in the administration of religious institutions.
The statutory framework under Section 32 of the TCHRI Act mandates that the Board's accounts be audited annually and that audit reports are forwarded to the Government within two months of the end of the audit year. However, the prolonged delay in resolving audit objections has raised serious concerns about the efficacy of the audit mechanism and the manner in which audit compliance is monitored.
In response to this situation, the court has directed the Director of the Devaswom Audit, Kerala State Audit Department, to appear before the court and provide a detailed explanation for the delay. The Director is required to submit a comprehensive statement detailing the pending audit objections, their current status, the procedures adopted for finalizing objections, and the reasons for the delay. The court has also sought information on the steps taken to ensure timely compliance with statutory mandates and the timeframe for completing audits up to 2025-2026.
The Kerala High Court has emphasized the need for prompt remedial action to address the deficiencies observed in the audit process and ensure that the objectives of financial oversight and accountability are met. The court has scheduled the next hearing for June 24, 2026, at which the Director is expected to present the required information and propose measures to prevent such delays in the future.
Bottom line:-
Statutory audit delays undermine financial oversight and accountability under the Travancore-Cochin Hindu Religious Institutions Act, 1950 (TCHRI Act). Audit objections from 2008-2009 pending for nearly two decades highlight systemic deficiencies and non-compliance with statutory mandates.
Statutory provision(s):
Travancore-Cochin Hindu Religious Institutions Act, 1950, Section 32
