Kerala High Court Pulls Up Travancore Devaswom Board Over Financial Mismanagement; Orders Immediate Digitisation Of Accounts

The Kerala High Court has ordered immediate digitisation of accounts of Travancore Devaswom Board (TDB) while observing that the continued reliance on archaic manual record-keeping and failure to conduct timely audits revealed gross administrative indifference by the board. The division bench comprising Justice Raja Vijayaraghavan V and Justice K V Jayakumar passed the order in a matter which arose based on a report by Ombudsman referring to a complaint filed by retired Deputy Devaswom Board Commissioner, regarding non - payment of pensionary benefits.“The divine assets of the temples cannot be left vulnerable to outdated ledgers and missing records,” the Bench remarkedThe Devaswom Ombudsman had filed an interim report noting that audit objections amounting to ₹21,03,471 had been raised against the officer due to missing vouchers. Although vouchers worth ₹15,89,724.39 were later traced, an outstanding liability of over ₹7,00,226.61 remained unverified. The Ombudsman recommended that the retirement benefits of the employee be released on the strength of a bond pending verification of the remaining vouchers.The High Court looked into the broader issues within the TDB's financial administration. The report revealed that the audit report of the financial year 2014-15, of accounts of nearly 150 temples, Schools, offices and other institutions under the Travancore Devaswom Board remained incomplete even after a decade. The bench observed concern over the continued reliance on manual registers and paper vouchers, observing that such systems enabled misappropriation of temple funds. “The continued reliance on manual registers and paper vouchers has made the accounting system vulnerable to manipulation, falsification, and defalcation. It is this lack of transparency and failure to enforce accountability that has enabled misappropriation of temple funds to persist unchecked,” the bench observed. The Court cited recent cases, including the Nilakkal petrol pump embezzlement, where a ₹40 lakh short remittance was detected due to missing records, unverified cash books, and lack of reconciliation.Referring to Sections 32, 102, and 103 of the Travancore-Cochin Hindu Religious Institutions Act, 1950, the Court underscored the statutory duty of the Board to maintain accurate, auditable accounts and ensure annual audits by auditors appointed by the High Court. Failure to do so, the Court observed, constitutes a fundamental lapse in management and a serious dereliction of statutory responsibility.“The continued reliance on archaic manual record-keeping, absence of digitised accounting systems, and failure to conduct timely audits reveal a pattern of gross administrative indifference. Such neglect has rendered the Board a passive enabler, and in effect, an active participant in financial indiscipline. When vouchers disappear, receipts remain unverified, and audits are delayed for years, opacity becomes institutionalised, creating fertile ground for misappropriation and corruption. This abdication of statutory responsibility has allowed errant employees to misuse temple funds with impunity, secure in the knowledge that systemic weaknesses will shield their misconduct.” the bench noted.The Court thus directed the Devaswom Board to implement a centralized financial management system for bills and vouchers which is accessible to both audit and supervisory authorities. The Court further added that the digital registers, online reconciliation of bank transactions and automated alerts of discrepancies should form part of the structure of the system. “An immediate systemic overhaul and a culture of strict financial accountability must be established within the administrative machinery of the Devaswom Boards.” the bench observed. The Court has summoned the Director, Kerala State Audit Department to appear before the Court on October, 30 and submit a detailed action plan outlining the steps to modernise accounting practices, including software adoption, digital record maintenance and monitoring mechanism. The Court concluded that the sanctity of temple finances can be preserved and the public confidence in administration of the Devaswom institutions can be restored only through such comprehensive reforms. The same bench has previously ordered appraisal of valuables in Sabarimala Temple when alleged loss of weight of gold came to light during the Court's intervention while considering a suo motu petition initiated on the basis of a report of the Special Commissioner stating that the gold platings from the dwarapalaka idols were removed without prior intimation to it. A special investigation team have been constituted for the investigation of the alleged gold lossCase Title: Joint Director v The Secretary, Travancire Devaswom BoardCase No: DBAR 2/ 2018Counsel for Respondent: G Santhosh Kumar (SC - Travancore Devaswom Board) Click Here To Read/ Download Interim Order

Kerala High Court Pulls Up Travancore Devaswom Board Over Financial Mismanagement; Orders Immediate Digitisation Of Accounts

Anamika MJ

Tags