HP High Court: Temple Funds Can’t Be Diverted for Govt Welfare Schemes; Must Be Used Only for Religious Purposes

The Himachal Pradesh High Court has ruled that temple funds cannot be diverted, transmitted, or donated to any government welfare scheme or to activities unrelated to the temple or religion, stressing that devotees contribute with the belief that their offerings will be used for the care of deities, temple maintenance, and the promotion of Sanatan Dharma.

A division bench of Justices Vivek Singh Thakur and Rakesh Kainthla delivered a detailed 38-page judgment on Friday, which was made available on Tuesday, while disposing of a civil writ petition seeking proper utilisation of temple funds under the Hindu Public Institutions and Charitable Endowments Act, 1984.

The bench clarified that temple funds must strictly be used for:

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  • The care and maintenance of deities
  • Upkeep of temple spaces
  • Promotion of Sanatan Dharma
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“The devotees offer donations to temples and through them to the divine with the clear belief that these would be used only for care of deities, maintaining temple spaces and promotion of Sanatan Dharma and when the government appropriates these sacred offerings, it betrays that trust,” the court observed.

It added, “Every rupee of temple funds must be used for the temple’s religious purpose or dharmic charity and cannot be treated like general revenue of the state and diverted, transmitted or donated for any welfare scheme of the government.”

The court listed specific instances where temple funds cannot be spent, including:

  • Construction of roads, bridges, and public buildings meant to be built by the state
  • Government welfare schemes
  • Investment in private businesses or industries for profit
  • Purchasing vehicles for the commissioner, temple officer, or others
  • Buying gifts or mementoes for VIP visitors, including chunni (scarf) and prasadam
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If temple officers or commissioners incur legitimate expenses for temple-related activities, they may only claim reimbursement at government rates for official vehicle use.

To instil public confidence, the court directed all temples to display:

  • Monthly income and expenditure
  • Details of projected funds from donations
  • Audit summaries

This information must be placed on temple notice boards to ensure transparency in fund utilisation.

The court further held that temple trustees are mere custodians, as “the deity is a juristic person and the funds belong to the deity and not the government.” Any misuse of funds would amount to criminal breach of trust.

“Where it is found that any trustee has misutilised the funds of the temple, it will be recovered from him and he will be personally held liable for the misutilisation of such funds,” the bench directed.

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The petition was filed by Kashmir Chand Shadyal, who sought directions to ensure strict compliance with statutory provisions concerning the preparation of budgets, maintenance of accounts, and expenditure under the 1984 Act. The court issued comprehensive instructions to prevent diversion of temple funds and safeguard devotees’ trust.

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