Himachal HC's Landmark Ruling: Temple Funds Protected From Govt Diversion

A Division Bench comprising Justice Vivek Singh Thakur and Justice Rakesh Kainthla delivered the landmark verdict while disposing of a petition filed by Kashmir Chand Shadyal, who sought strict enforcement of the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984. IN the plea, Shadyal had highlighted irregularities in the use of temple funds and called for transparency in accounting and expenditure.

The Bench ruled that temple donations "belong to the deity, not to the government," emphasising that trustees are merely custodians of sacred funds. Any diversion of these funds, the Court said, "amounts to criminal breach of trust."

"When the government appropriates these sacred offerings, it betrays that trust. Such diversion is not just a misuse of public donations; it strikes at the core of religious freedom and institutional sanctity," the order stated.

The Court also declared that "every rupee of temple funds must be used for the temple's religious purpose or dharmic charity" and cannot be treated as part of the state's general revenue or used for unrelated public projects.

Further, the Court also elaborated on the philosophical foundation of Hindu Dharma, describing it as a "way of life" rooted in compassion, equality, and the pursuit of knowledge. The Bench drew upon Supreme Court rulings and ancient scriptures, urging temple institutions to revive their historical role as centres of education, culture, and social welfare.

The judges stressed that discrimination based on caste, creed, or gender "is antithetical to true Dharma," citing reformers such as Raja Ram Mohan Roy, Swami Vivekananda, and Dr B.R. Ambedkar for restoring equality within Hindu society.

Citing Article 25(2) of the Constitution, the Court reiterated that while India remains a secular state, the government may regulate the secular management of religious institutions to prevent misuse of funds, but cannot appropriate temple revenues as public money.

"The donations made by devotees to temples are sacred and must be utilised for purposes consistent with the tenets of Dharma and not for general state revenue," the Bench observed.

Evoking Section 17 of the 1984 Act, the High Court has highlighted the areas in which temple donations may be utilised. The permissible areas include religious and educational activities, dharmic and Charitable Work, cultural promotion and disaster relief.

In contrast, the Bench has categorically barred the use of temple funds for the construction of roads, bridges, or buildings unrelated to temples, Funding of government welfare schemes or private enterprises, purchase of VIP gifts, vehicles for officers, or souvenirs such as prasadam or chunnis for dignitaries. The court also emphasised that officials, including temple commissioners, may only claim reimbursement at official rates for expenses incurred during temple-related work.

However, the Court directed all temples to publicly display their monthly income, expenditure, and audit summaries on notice boards or official websites. Where misutilisation is found, the erring trustee will be held personally liable, and recovery proceedings shall be initiated to restore misused funds.

"Every temple must maintain proper accounts, to be audited annually, and the results published to ensure that the funds are being utilised for the intended purpose," the order said.

Hence, the High Court directed the Himachal Pradesh Government and all temple authorities to implement these directions in letter and spirit, ensure periodic audits, and maintain complete transparency in the management of temple funds.

- ANI