Kerala High Court Uncovers Financial Irregularities in Global Ayyappa Sangamam Event
The Kerala High Court has raised significant concerns regarding the financial management of the Global Ayyappa Sangamam, a major religious conclave organized by the Travancore Devaswom Board (TDB) at Pamba last year. In a detailed observation on Thursday, the court highlighted multiple discrepancies that point to a lack of financial prudence and transparency in the event's execution.
Contract Awarded Without Competitive Bidding
The court specifically flagged the controversial decision to award the program's contract to the Indian Institute of Infrastructure and Construction (IIIC) without inviting competitive quotations. This departure from standard procurement practices raised immediate red flags about the selection process and potential favoritism.
Substantial Unvouched Expenditures
Upon reviewing audit records, the bench comprising Justices V Raja Vijayaraghavan and K V Jayakumar discovered that substantial amounts of money were both committed and disbursed without proper vouchers, receipts, or clear documentation of financial approvals. The court noted with concern that there appeared to be serious slackness in recording the basis for expenditure sanctioning and the safeguards implemented to ensure proper fund utilization.
The magnitude of the amounts involved, the multiple sources from which funds were mobilized, 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 observed in their findings.
Expenditures Exceeding Sponsorship Revenue
The court further noted that expenses incurred for the conclave appeared to be substantially higher than the amounts received through sponsorship. This discrepancy prompted the bench to direct the board to provide detailed explanations regarding the circumstances under which such additional financial commitments were undertaken when sponsorship fell short.
Auditor's Detailed Findings
The court was considering submissions from Vijayan, a partner at chartered accountants M/s Vijayan and Associates, who serves as the independent auditor appointed by TDB to audit the conclave. The auditor personally appeared before the court as per previous directives and presented concerning findings from the audit process.
The bench has now directed the auditor to file a comprehensive statement detailing all anomalies, deficiencies, and lapses noticed during audits conducted over the years, given that his firm has been auditing TDB records for the past decade.
Specific Budgetary Discrepancies
The audit revealed significant variations from the approved budget. While the overall expenditure reported by IIIC remained within approved budget limits under certain heads, numerous instances showed expenditures substantially exceeding the originally sanctioned budget allocations.
Specific discrepancies identified in the joint measurement report included:
- Entries relating to a wooden-framed center table with glass top finish
- Food serving charges in the VIP area
- Supply of 50 beds amounting to Rs 1.73 lakh
Cultural Events Expenditure Questions
Under the cultural events head, expenses were recorded for musical programs featuring artists including Vijay Yesudas, Sudeep, and Nandagovindam Bhajans. Additional expenses under this same category included production tech rider and instruments, as well as accommodation and travel arrangements for all artists and their accompanying troupes.
The court has posted the case for further hearing on April 1, where additional details and explanations regarding these financial irregularities are expected to be examined more thoroughly. The findings represent a significant challenge to the financial management practices of the Travancore Devaswom Board and raise questions about accountability in religious event organization.
