Madras High Court Quashes Case Against 3 HR&CE Staff in Temple Fund Misappropriation Case

The Madras High Court has quashed criminal proceedings against three Tamil Nadu Hindu Religious and Charitable Endowments (HR&CE) Department employees posted at Suchindram temple in Kanyakumari district who were accused of participating in the alleged misappropriation of temple funds. Court held that the prosecution had failed to produce any oral or documentary evidence connecting them to the alleged conspiracy or embezzlement.

Allowing petitions filed by S. Rameshkumar, a Special Watcher in the HR&CE Department, Tr. N. Kuttalam, a Junior Assistant who was working as the temple cashier, and A. Mohana Kumar, a Junior Executive in the HR&CE Department and Manager of Arigesaperumal Temple at Thiruvattar, the bench of Justice G.K. Ilanthiraiyan held that forcing them to face trial would amount to a mala fide prosecution and an abuse of the process of law. The trial, however, will continue against the remaining accused.

The case arose from an FIR registered by the Vigilance and Anti-Corruption Department in 2018 after an audit and preliminary enquiry allegedly uncovered misappropriation of Rs 2,96,017 from the Suchindram temple in Kanyakumari district between 2004 and 2006.

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According to the prosecution, the then Deputy Commissioner and Executive Officer of the HR&CE Department, Suchindram, along with others, fabricated bills relating to Paditharam and temple festival expenses and misappropriated the temple funds. After investigation, a charge sheet was filed under provisions of the Prevention of Corruption Act and the Indian Penal Code, including offences of criminal breach of trust, forgery, using forged documents, falsification of accounts and criminal conspiracy.

What was the case against the HR&CE employees?

The prosecution alleged that fabricated bills were prepared in the names of various employees for expenses purportedly incurred during temple festivals. Based on these bills, the then Executive Officer sanctioned payments by issuing cheques. These cheques were countersigned by the employees, encashed by cashier Tr. N. Kuttalam and the money was allegedly handed over to the Executive Officer before being shared among the accused.

The petitioners, however, argued that even the prosecution's own case showed that the forged bills had been prepared by the then Executive Officer. They submitted that Kuttalam had merely encashed cheques in the ordinary course of his duties as cashier, while Rameshkumar and Mohana Kumar had signed documents only because they were directed to do so. They contended that there was no material to show that they had fabricated records, forged bills or shared any of the alleged misappropriated funds.

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The State opposed the petitions, arguing that the accused had countersigned the documents and cheques and that there was sufficient material to establish criminal conspiracy. It submitted that the issues raised by the petitioners should be examined during trial and not at the stage of quashing.

Why did the High Court quash the proceedings?

Examining the charge sheet and witness statements, the high court found that the prosecution's own material did not establish any independent role played by the three petitioners in the alleged misappropriation.

Court referred to the statement of the Deputy Commissioner of the HR&CE Department, who stated that the then Executive Officer had prepared the fabricated bills and summoned the employees to his office, where they were compelled and threatened into signing documents showing that they had incurred festival-related expenses, although no such expenditure had actually been made. The witness also stated that after the bills were processed, the cheques were encashed by the cashier and the money was handed over to the Executive Officer.

Court further noted that three shop owners examined during the investigation stated that the disputed bills had never been issued by their establishments, indicating that the bills themselves were fabricated. However, except for these statements, no witness had spoken about any specific overt act committed by the three petitioners.

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Justice Ilanthiraiyan observed that while the materials indicated that the petitioners had signed the bills and countersigned the cheques, the prosecution had failed to produce any oral or documentary evidence establishing that they had participated in the alleged conspiracy or personally benefited from the alleged misappropriation.

"There is absolutely no oral and documentary evidence as against the petitioners. The continuation of trial would not serve any purpose, since there is no basis to proceed with the charges as against the petitioners," court observed.

It added that compelling them to undergo the rigours of a criminal trial in such circumstances would amount to a mala fide prosecution and an abuse of the process of law.

Accordingly, the high court quashed the criminal proceedings against S. Rameshkumar, Tr. N. Kuttalam and A. Mohana Kumar, while directing the trial court to continue the proceedings against the remaining accused in accordance with law. 

Case Title: S. Rameshkumar vs. State & Connected Matters

Order Date: June 16, 2026

Bench: Justice G.K. Ilanthiraiyan