Kerala HC Brands TDB's Financial Discipline 'Below Par', Impleads Auditor in Ayyappa Sangamam Probe

In a stern rebuke, the Kerala High Court has declared the Travancore Devaswom Board's (TDB) financial oversight "below par" and taken unprecedented steps to unearth the truth behind the Global Conclave of Ayyappa Devotees held on September 20, 2025. A Division Bench of Justice Raja Vijayaraghavan V and Justice K.V. Jayakumar , in suo motu proceedings (SSCR No. 6 of 2026), impleaded independent auditor M/s. Vijayan and Associates as the additional 8th respondent and ordered the production of exhaustive financial records by March 6, 2026. This comes after repeated delays in submitting transparent accounts for the one-day event at Sabarimala, initially cleared by the court on assurances of zero public funding.

assurances Shattered: From Sponsorship Vows to Audit Alarms

The saga began with writ petitions challenging TDB's plans for the conclave, dubbed the Global Ayyappa Sangamam in media reports. Petitioners argued against using public or devaswom funds for the event. TDB and the Kerala government countered that it would be funded solely through sponsorships and voluntary contributions via a dedicated Dhanlaxmi Bank account (No. 027503500001091) . Citing Section 15A of the Travancore-Cochin Hindu Religious Institutions Act, 1950, TDB defended utilizing such funds for statutory duties.

On September 11, 2025, the court permitted the event but imposed strict conditions, including clause (f): maintaining "clear, detailed, and transparent accounts" of costs and sponsorships, audited and filed within 45 days via the Sabarimala Special Commissioner. Extensions pushed compliance to over three months, but the independent auditor's report—submitted by M/s. Vijayan and Associates —exposed glaring lapses: no tenders for works awarded to Indian Institute of Infrastructure and Construction (IIIC) on a cost-plus-10% basis, Bill of Quantity (BOQ) vs. Joint Measurement Sheet (JMS) mismatches (e.g., 15 vs. 19 centre tables, unaccounted 50 beds worth ₹1.73 lakh), missing values for distributed temple stock like 4,100 Aravana units, unverified GST input credits (₹1.07 crore eligible, only ₹45.76 lakh reflected), absent physical asset verification, and unreported ₹2 crore sponsorships plus ₹2 crore unrecouped from TDB general funds.

The Kerala State Audit Department confirmed no statutory audit occurred, as TDB ignored requests for records despite reminders on November 1, 2025, and February 3, 2026. Devaswom Minister V.N. Vasavan later revealed in the assembly that ₹3.12 crore was spent, with ₹5 crore budgeted under "Religious convention and discourse," temporarily transferred when sponsorships lagged.

TDB's Plea for Time, Court's Zero-Tolerance Stance

TDB filed I.A. No. 1 of 2026, claiming a task force (Devaswom Commissioner, Accounts Officer, Chief Engineer) was verifying IIIC bills, categorizing them under event heads, and seeking clarifications—requesting three more weeks. The State Audit Department reiterated it could not opine without originals.

The bench rejected this outright, noting ample prior leeway for a single-day event. Justices emphasized judicial duty under Section 32(9) of the 1950 Act to probe misappropriation or neglect via surcharge if warranted.

Piercing the Veil: Why the Court Stepped In

No precedents were directly cited, but the order invokes the court's supervisory role over devaswom boards, distinguishing between promised sponsorship exclusivity and evident procedural shortcuts. It probes if audit inputs were manipulated—e.g., inflated payments or fake receipts—questioning the audit's "reasonable assurance" against fraud or error. The impleadment ensures scrutiny of auditor-TDB interactions, like query responses or management letters, while mandating full bank statements (August 8, 2025–February 2, 2026).

This intervention underscores that even devotional events demand ironclad transparency, especially post-Sabarimala controversies, safeguarding temple funds from indiscipline.

Key Observations from the Bench

"If, despite such latitude, the Board is unable to furnish credible and verifiable data regarding the funds expended and the specific purposes for which such expenditure was incurred, it can only lead to the unsettling conclusion that the financial discipline of the Board and its officers is below par ."

"More importantly, if incorrect or inflated payment particulars, or receipts lacking authenticity, have been furnished for the purpose of audit, that by itself is a matter of grave concern. This Court cannot remain a silent spectator in such circumstances."

"Under Section 32(9) of the Travancore-Cochin Hindu Religious Institutions Act, 1950, if it comes to the notice of this Court that the Board or any member thereof has been guilty of misappropriation, wilful waste of institutional funds, or gross neglect... this Court is bound to pass appropriate orders, including an order of surcharge ."

"A clear and complete understanding of the issues can be achieved only upon a careful examination of the records that were made available by the Travancore Devaswom Board to the Independent Auditor."

No More Extensions: Records Due March 6

The court refused further adjournments, directing:

- Vijayan and Associates to file all audit base documents (bills, vouchers, ledgers, agreements, etc.) and audit queries/responses.

- TDB to submit the Dhanlaxmi Bank account statement.

Posted for March 6, 2026, this could trigger surcharges, deepen probes into ₹3+ crore spends, or reform TDB procurement. For devotees and watchdogs, it's a clarion call for accountability in sacred finances.