Serious Slackness: Kerala High Court Asks Auditor To File Statement On Financial Anomalies Involving Ayyappa Global Conclave Expenditure

The High Court was considering a matter pertaining to the report filed by the Sabarimala Special Commissioner regarding the furnishing of the audited accounts of the Travancore Devaswom Board in connection with the Global Conclave of Ayyappa Devotees held on September 20, 2025.

The Division Bench of Justice Raja Vijayaraghavan V and Justice K.V. Jayakumar stated, “Having gone through the entire records placed before us, we reiterate that the financial discipline of the Travancore Devaswom Board leaves much to be desired. The records presently available indicate that substantial amounts have been committed and disbursed without vouchers and receipts and without sufficient clarity as to the financial approvals obtained. There is serious slackness in recording the basis on which the expenditure was sanctioned, and the safeguards adopted to ensure proper utilisation of funds. Such issues assume significance in the context of an institution entrusted with the administration of temple funds and contributions made by devotees.”

“In that view of the matter, we direct the auditing concern to file a statement detailing the anomalies, deficiencies and lapses noticed by him in the course of the audits conducted over the years. The auditor shall also indicate the procedural or financial safeguards that, in his view, may be necessary to improve financial management and accountability in the functioning of the Board so that appropriate directions can be issued”, it ordered.

Senior Government Pleader S. Rajmohan represented the Respondent.

Factual Background

On March 2, 20226, the High Court had directed directed the Auditor to place all primary and foundational records forming the basis of the audit, including, but not limited to, bills, vouchers, cash books, ledgers, asset registers, expenditure statements, agreements entered into with vendors, details of final payments effected, and any supporting relevant documentation in connection with the Conclave.

Reasoning

On a perusal of the records of the case, the Bench found that the Travancore Devaswom Board had entrusted the conduct of the Global Conclave of Ayyappa Devotees to the Indian Institute of Infrastructure and Construction (IIIC) for event management and infrastructure activities. The Bench noted that, as per established procedures and manuals of the TDB, works and contracts were to be awarded through competitive quotations/tenders, the awarding of the contract to IIIC was without inviting competitive quotations. The Bench also noticed that no satisfactory explanation or supporting documentation was submitted, and it was in the said circumstances that, in the report, the auditors had mentioned that the handing over of the contract to IIIC was not in order.

The auditors found that IIIC had further subcontracted substantial portions of the work to certain entities without GST. The Bench found that the original supporting bills evidencing the base costs were not produced for verification in a structured and verifiable manner. The auditors had stated that the mismatch between the financial records and the Joint Measurement Report was also reflected in the audit report.

The Bench stated, “The magnitude of the amounts involved, the multiple sources from which funds were mobilised, and the manner in which advances appear to have been released without a transparent accounting framework, prima facie indicate a disturbing lack of financial prudence and internal financial control.”

The Bench found no justification on the part of the Board in seeking further time to justify its actions. The expenses incurred for the Conclave appeared to be substantially higher than the amounts received by way of sponsorship. “It is therefore for the Travancore Devaswom Board to explain before this Court the apparent inconsistency in its conduct, particularly in the light of the statement made in the counter affidavit that the expenditure for the event would be met exclusively through sponsorship. If the expenditure has exceeded the sponsorship received, the Board shall place before this Court the circumstances under which such additional financial commitments were undertaken”, it held.

The Bench thus concluded the matter by directing the auditing concern to file a statement detailing the anomalies, deficiencies and lapses noticed by him in the course of the audits conducted over the years. The matter has now been posted on April 1, 2026.

Cause Title: Suo Motu v. State of Kerala (Case No.: SSCR NO. 6 OF 2026)

Appearance

Respondent: Senior Government Pleader S. Rajmohan, SC Travancore Devaswom Board G.Biju

Amicus Curiae: Sabarimala Special Commissioner Sayujya Radhakrishnan

Click here to read/download Order