The Madras High Court has dismissed a petition challenging the Tamil Nadu government’s decision to establish self-financing arts and science colleges using the surplus funds of major Hindu temples, while directing that such funds must be utilised strictly in accordance with the provisions of the Hindu Religious and Charitable Endowments (HR&CE) Act, as reported in Dinamalar.
The petition was filed by Chennai-based temple activist TR Ramesh, who challenged a government order issued by the Higher Education Department on 6 October 2021, permitting colleges to be established under the administration of temples managed by the HR&CE Department.
Under the order, the funds of the Kapaleeswarar Temple in Mylapore were to be used for a college in Kolathur; the surplus funds of the Palani Dhandayuthapani Swamy Temple for a college in Oddanchatram; those of the Tiruchendur Subramania Swamy Temple for a college in Vilathikulam; and those of the Tiruchengode Ardhanareeswarar Temple for a college in Tiruchengode.
Ramesh had sought the cancellation of the government order, arguing that the prescribed procedures under the HR&CE Act had not been followed before temple funds were allocated for establishing the colleges.
He also sought directions preventing temple funds from being used for the colleges without following the statutory procedures governing the utilisation of temple surplus funds.
The case came up for hearing before a Division Bench comprising Justices G. Jayachandran and E. Manoharan.
Temple Surplus Funds Can Be Used For Education
Appearing for the HR&CE Department, advocate R. Paraneetharan informed the court that colleges had already been established at Kolathur and Oddanchatram, with three batches of students having completed their courses.
He said that colleges had not yet been established at Vilathikulam and Tiruchengode.
The HR&CE Department also informed the court that Hindu religious studies were being offered at the colleges functioning in Kolathur and Oddanchatram.
Ramesh, however, argued that the statutory procedures required for using temple funds for establishing colleges had not been followed.
While dismissing the petition, the Division Bench held that surplus temple funds can be utilised for educational purposes, subject to the requirements of the law.
The court also made it clear that the utilisation of surplus temple funds must comply with the provisions and rules under the HR&CE Act.
Court Records Lapses In Following Procedures
According to Ramesh, the significance of the judgement is that while the court did not prohibit temples from using their surplus funds for establishing colleges, it recorded that the prescribed legal procedures had not been properly followed in the earlier utilisation of the funds.
The petitioner’s case was not that temples were completely barred from establishing colleges with their surplus funds. Rather, his contention was that the statutory procedures governing such expenditure had been violated.
The court has now directed that surplus temple funds must be utilised strictly in accordance with the applicable legal provisions in future.
The judgement therefore does not amount to a blanket prohibition on temples using surplus funds for educational institutions. Instead, it places the emphasis on ensuring that the statutory safeguards are followed before such funds are spent.
Hindu Religious Studies To Be Included
The court also dealt with the nature of education to be provided in colleges established using temple funds.
The court directed that Hindu religious studies should be offered as an important subject in the colleges established through temple funds.
This assumes significance as, according to the petitioner’s submissions, Hindu religious studies were not being conducted in two of the four colleges contemplated under the original government order.
The court has directed that the required Hindu religious studies be introduced in those institutions as well.
No Use Of General Temple Funds
Another important aspect of the order concerns the distinction between a temple’s surplus funds and its general funds.
The petitioner’s contention that the regular funds of Hindu religious institutions should not be diverted for establishing and running colleges was also addressed by the court.
The order reinforces the requirement that expenditure for such educational institutions must come from funds that can legally be treated as surplus funds, and that the statutory conditions governing their use must be satisfied.
In other words, the judgement does not give the HR&CE Department unrestricted authority to divert temple money towards colleges. The expenditure must remain within the framework prescribed by the HR&CE law.
Government Can Step In If Temples Face Financial Constraints
The Bench also issued directions concerning the colleges that are yet to be established.
As colleges have not yet been constructed at Vilathikulam and Tiruchengode, the court said that if additional funds are required for their establishment, the government can be approached for financial assistance.
The court further left it to the government to take an appropriate decision regarding the construction of the remaining colleges.
This effectively means that temples need not be forced to exhaust their surplus resources if additional expenditure is required for completing the projects. Government assistance can be sought where necessary.
கோயில்கள் தங்கள் உபரி நிதியைக் கொண்டு கல்லூரிகக்ள் தொடங்கலாம் என்று அறநிலையத்துறைச் சட்டமே (பிரிவு 66) சொல்கிறது.
இதற்கு நீதிமன்ற அனுமதி பெற வேண்டும் எனபதில்லை.
1. என்னுடைய வழக்கு – அறநிலையத்துறை சட்டத்தில் சொல்லப்பட்ட வழிமுறைகளை பின்பற்றவே இல்லை.
பல சட்டங்களை மீறி… pic.twitter.com/Q5IRgWRPxn— trramesh (@trramesh) August 12, 2026
What The Judgement Means
The judgement does not strike down the policy of establishing colleges with surplus temple funds. Instead, the High Court has upheld the principle that such surplus funds can be used for education while simultaneously stressing that the statutory safeguards cannot be bypassed.
The key directions emerging from the judgement are:
- Surplus funds of temples can be used for educational purposes, including establishing colleges.
- The procedures prescribed under the HR&CE Act and its rules must be followed before such funds are utilised.
- Hindu religious studies must be included in colleges established using temple funds.
- Regular or non-surplus temple funds cannot simply be diverted for such projects outside the statutory framework.
- The government can provide financial assistance if temples face a shortage of funds for establishing or running the colleges.
- The government can decide how and whether to proceed with the remaining colleges at Vilathikulam and Tiruchengode.
Thus, while the petition challenging the establishment of the colleges has been dismissed, the judgement also places clear legal conditions on how temple surplus funds are to be used and directs the authorities to adhere to the statutory framework in the future.
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