Madras HC Quashes TN Govt Order Allowing Commercial Use of Kallazhagar Temple Funds

The Madras High Court (Madurai Bench) has set aside a Tamil Nadu government order that permitted commercial activities using the surplus funds of the Kallazhagar temple in Madurai district. Court said that the move violated statutory provisions governing temple administration.

A division bench of Justice Anita Sumanth and Justice C. Kumarappan held that the government order, issued on March 8, 2024, enabling the construction of facilities such as restaurants, shopping complexes and cottages using temple funds, was unsustainable in law.

Court found that the expenditure had been planned without adhering to the mandatory budgeting and approval process prescribed under the Tamil Nadu Hindu Religious and Charitable Endowments Act.

The bench observed that funds belonging to a religious institution could not be diverted for commercial purposes without proper sanction and oversight.

It noted that the HR and CE department had failed to obtain the approval of the board of trustees, as required under the Act, before taking decisions involving substantial financial outlays.

Court also took note of the sharp decline in the temple’s accumulated surplus over a short period. From more than ₹107 crore in March 2023, the surplus had reduced to approximately ₹62 crore by March 2024. The bench observed that such depletion of funds, without a sanctioned budget, amounted to unauthorised expenditure and was impermissible.

Further, the high court pointed out that the term of the temple’s board of trustees had expired and no new board had been constituted, despite statutory requirements mandating its continuance. The absence of a duly constituted board, court said, further weakened the legality of decisions taken by the department concerning the temple’s finances.

While acknowledging the need to provide facilities for devotees, court made it clear that developmental activities must remain consistent with the religious character of the institution and the statutory framework governing temple administration. It directed the authorities to take steps to constitute a new board of trustees and ensure compliance with the provisions of the HR and CE Act.

The government order enabling commercial activities at the temple was accordingly quashed. Moreover, court issued a slew of directions for proper maintenance of the temple premises.