The Delhi High Court on Monday observed that it is inclined to stay the Comptroller and Auditor General's (CAG) audit of the Ajmer Sharif Dargah.

Justice Sachin Datta noted that the Dargah's management committee had not been provided with the terms of the audit, a procedural requirement.

"I am inclined to stay the audit... His [Dargah counsel’s] point is very clear. He says he has the right to make a representation, but that occasion has not arisen because you [CAG] have not served the terms of the audit... You better hold your hands," the Court remarked during the hearing.

The matter was adjourned to May 7 for further consideration after the counsel representing the CAG sought time to obtain instructions.

The observation came while the Court was hearing a petition filed by the Dargah of Khwaja Moinuddin Chishti, challenging the CAG's decision to conduct an audit.

The Dargah’s counsel submitted that, according to media reports, President Droupadi Murmu had approved the audit, and a team of two officials had been assigned to undertake it.

However, the counsel argued that under Section 20 of The Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971, the audit’s terms must be formally communicated to the Dargah, giving it the opportunity to respond through a representation — a step which, he claimed, had not been followed.

As per reports, the audit is set to cover the two Anjumans — associations of Khadims (hereditary custodians of the Dargah) — over the past five financial years. The decision to audit reportedly follows allegations of mismanagement and misuse of funds received through foreign donations and pilgrim offerings during ziyarat (pilgrimage).