Kerala HC Flags 17-Year Audit Delay, Summons Devaswom Audit Director to Explain Pending Objections from 2008-09

A Division Bench of the Kerala High Court has directed the Director of Devaswom Audit to personally appear and account for audit objections from 2008-09 that remain unresolved in 2026.

The Kerala High Court has expressed serious concern over the continued non-resolution of audit objections relating to the Travancore Devaswom Board's general administration for the financial year 2008-09. On 10 June 2026, a Division Bench comprising Justice Raja Vijayaraghavan V and Justice K.V. Jayakumar directed the Director, Devaswom Audit, Kerala State Audit Department, to appear in person on the next posting date and explain why the audit process has remained incomplete for over seventeen years. The Bench described the state of affairs as “deeply unsatisfactory” and held that such prolonged pendency defeats the statutory purpose of financial scrutiny and accountability under Section 32 of the Travancore-Cochin Hindu Religious Institutions Act, 1950.

The Audit Proceeding and Its Statutory Framework

DBAR No. 2 of 2011 was registered on 3 June 2011. It arose from a petition by the Joint Director of Local Fund Audit, Travancore Devaswom Board Audit, Thiruvananthapuram, seeking the Court's permission to extend the Annual Audit Report of the Travancore Devaswom Board for the year 2008-09.

The proceeding is rooted in Section 32 of the Travancore-Cochin Hindu Religious Institutions Act, 1950 (TCHRI Act). That provision requires the Board to maintain regular accounts of all receipts and disbursements relating to institutions under its administration, and mandates that those accounts be audited annually by auditors appointed by the High Court itself.

Sub-sections (5) and (6) of Section 32 require the auditor, on completing an audit, to submit a report to the Court. The report must specifically flag irregular, illegal, or improper expenditure; failures to recover money or property due to the Board or its institutions; and any loss or waste caused by neglect or misconduct. Sub-section (7) extends this obligation to any other matters the Court may direct.

Under sub-section (8), the Court forwards a copy of every audit report to the Board, and the Board is duty-bound to rectify the defects and irregularities identified and report compliance back to the Court. Sub-section (8A), inserted by the Travancore-Cochin Hindu Religious Institutions (Amendment) Act, 1994, further requires the Board to forward a copy of the audit report to the Government within two months from the end of the year to which the report relates.

Fifteen Years of Proceedings Before the Ombudsman

By order dated 29 June 2011, a Division Bench of the Court referred the audit report to the Ombudsman and directed the Travancore Devaswom Board to enter appearance and file its response. Over the years that followed, scores of replies were submitted by the Secretary of the Board.

On 10 June 2020, the Audit Party agreed to close all audit objections except those relating to seven specific paragraphs: Paragraph No. 26-3-3 (Chettikulangara Devaswom), Paragraph No. 26-3-4 (Madamon Devaswom, Aranmula Group), Paragraph No. 26-3-6 (Pullivelil Devaswom), Paragraph No. 26-3-7 (Chettikulangara Devaswom, Mavelikkara Group), Paragraph Nos. 26-3-8 and 26-3-9 (Ambalappuzha Devaswom), Paragraph No. 26-3-11 (delay in execution of agreement), and Paragraph No. 33 (Education Fund). Those objections remain unresolved as of the date of the present order.

The Bench's Reasoning on Statutory Purpose and Delay

The Division Bench observed that more than seventeen years have elapsed since the close of the audit period, and yet the audit process remains incomplete. The Court held that such extraordinary delay defeats the very purpose of statutory audit, which is intended to ensure timely financial scrutiny, accountability, transparency, and corrective action in the administration of Devaswom institutions.

The Bench found the delay to be prima facie inconsistent with the statutory scheme. Sub-section (8A) of Section 32 contemplates forwarding the audit report to the Government within two months from the end of the relevant year. The legislative intent, the Court reasoned, is to ensure expeditious completion of the audit process and prompt remedial action on deficiencies noticed. The present case, however, discloses audit objections from 2008-09 continuing unresolved in 2026.

The Court also expressed concern about the manner in which the proceedings before the Ombudsman have been conducted. It directed the Director to specifically explain the circumstances under which matters remain pending for such an unusually long period before the Ombudsman, the necessity for repeatedly obtaining responses from the Board, and the nature of issues that prevented finalisation despite multiple opportunities.

The Bench further directed the Director to state whether the delay is attributable to systemic deficiencies in the audit mechanism, inadequacies in the maintenance of accounts, lack of cooperation on the part of the Board, procedural bottlenecks within the Audit Department, or any other administrative or statutory impediments.

Directions to the Director, Devaswom Audit

The Court directed the Director, Devaswom Audit, Kerala State Audit Department, to appear before the Court on the next posting date and place before it a comprehensive statement covering six specific matters:

First, the complete particulars of all audit objections that continue to remain pending. Second, the present status of each such objection. Third, the procedure adopted by the Audit Department for processing, examining, and finalising audit objections raised against the Travancore Devaswom Board. Fourth, the reasons which occasioned the prolonged delay in resolving the objections from the 2008-09 audit. Fifth, the steps, if any, taken by the Audit Department to ensure timely compliance with the statutory mandate under Section 32 of the TCHRI Act. Sixth, the timeframe within which audits for the period up to 2025-26 would be completed.

The Director was also directed to indicate the measures proposed to ensure that audits under Section 32 of the TCHRI Act are completed within a reasonable period and that audit objections do not remain pending for years, thereby defeating the object of statutory financial oversight and accountability.

Order

The Division Bench posted the matter for 24 June 2026. The order was signed by Justice Raja Vijayaraghavan V and Justice K.V. Jayakumar. The Secretary, Travancore Devaswom Board, was represented by Sri Anil Kumar K.N. Pillai, Smt. A. Sreekala, and Sri Nagaraj Narayanan as Standing Counsel for the Board. The petitioner, the Joint Director of Local Fund Audit, was represented by the Government Pleader.