Kerala High Court Flags 'Systemic Deficiencies' In Travancore Devaswom Board Accounts, Orders Centralised Financial System

The Division Bench of Justice Raja Vijayaraghavan V and Justice K.V. Jayakumar was considering a suo motu petition initiated on the basis of the Sabarimala Special Commissioner's report regarding the audited accounts of the Travancore Devaswom Board relating to the conduct of the Global Ayyappa Sangamam on September 29, 2025.

The event was conducted with the approval of the High Court on the assurance by the State and the Board that it would be financed by sponsorships alone. It was also directed that the accounts be subjected to audit and to furnish a copy to the Special Commissioner within 45 days of the event for placing before the Court along with a report.

On the failure of production of the audit reports within the stipulated time, the Court had previously directed the production of all records relating to the Global Ayyappa Sangamam.

The Court had also previously directed the Auditor of Travancore Devaswom Board to file a statement detailing the anomalies, deficiencies and lapses noticed by him in the course of audits conducted over the years.

The Court thus took note of the report submitted by the Auditors which highlighted systemic deficiencies and structural gaps affecting financial discipline, transparency, and accountability.

The Report highlighted a three-year delay in finalizing accounts, leading to loss of transaction traceability and unreliable financial data. It also highlighted the continued reliance on a cash-based accounting system, with incomplete transition to modern double-entry practices.

It further highlighted inability to determine the Board's true financial position, including assets, liabilities, and statutory dues and statutory non-compliance, including delays in GST and income tax filings, exposing the Board to penalties and litigation.

The Report also noted the ;ack of centralized systems for tracking receivables, assets, and liabilities, resulting in fragmented and unreliable records.

The audit also flagged issues such as non-recognition of non-monetary donations, improper classification of expenditure, unreconciled bank transactions, long-pending advances, and the use of the Board's PAN by affiliated entities without proper accounting.

The Court recorded the submissions in the Report and noted that the issues are not isolated irregularities but systematic in nature.

“Having gone through the detailed report and the submissions placed before us, we find that the issues highlighted are not isolated irregularities, but are systemic in nature, reflecting deep-rooted deficiencies in the existing accounting and administrative framework of the Travancore Devaswom Board. These deficiencies have far-reaching consequences on financial governance, statutory compliance, and overall transparency in the functioning of the institution.” the Court said.

To address the issues, the Court has issued a series of binding directions to the Travancore Devaswom Board:

i) Implementation of a fully centralized computerized system for administration and accounting across all temples.

ii) Preparation of a structured data migration plan, including standardization and validation of legacy records.

iii) Phased rollout of the system, starting with pilot temples.

iv) Mandatory training programs for staff to ensure effective adoption.

v) Introduction of robust internal controls, including audit trails and role-based access.

vi) Preservation of historical data before transitioning from existing systems.

The Court has also directed that the audit findings be integrated into the ongoing computerization project being implemented in coordination with the Kerala Infrastructure Investment Fund Board (KITFRA).

The matter has been tagged with DBAR 2/ 2025 which has ordered for digitalisation of Travancore Devaswom.

Case No: SSCR No. 6 of 2026

Case Title: Suo Motu v. State of Kerala and Ors.

Counsel for Respondents: S Rajmohan (Sr. GP), G Biju (SC- TDB),

Amicus Curiae: Sayujya Radhakrishnan