In a landmark judgment, the First Division Bench of the Madras High Court, led by the Chief Justice, delivered a significant verdict on 9 January 2025, quashing the tender proceedings for the construction of a commercial complex using the funds and properties of Sri Nandeeswarar Temple in Nandivaram village, Chengalpet District. The court ruled that the surplus funds of a temple can only be utilized for purposes explicitly permitted under the Tamil Nadu Hindu Religious and Charitable Endowments (HR&CE) Act, 1959, and not for commercial ventures.
The Public Interest Litigation (PIL), filed by temple devotee P. Baskar, challenged the tender and the proposed construction, arguing it violated the Tamil Nadu Hindu Religious and Charitable Endowments (HR&CE) Act, 1959. Advocate B. Jagannath, representing the petitioner, contended that the Act explicitly restricts the use of temple surplus funds to specific purposes such as promoting Hindu religious practices, constructing annadhanam sheds, and conducting free marriages for poor Hindus, as outlined in Sections 36(1), 36(A), 36(B), and 66(1).
The Bench also heard a contempt petition (Cont. P. 3306 of 2024) against officials of the HR&CE Department for allegedly violating an interim stay order issued earlier, restraining them from proceeding with the construction. The court extended the stay until further orders, and the matters were heard together.
The respondents, including the Commissioner of HR&CE, the District Collector of Chengalpet, and other officials, were represented by Government Pleader Edwin Prabhakar and Special Government Pleader Arun Natarajan. During the final hearing, the Special Government Pleader (SGP) for HR&CE, Arun Natarajan, submitted that steps were underway to appoint a trust board with five trustees for the temple, with three nominations pending government approval. An assurance was also given that no stalls selling alcohol, meat, or tobacco products would be part of the shopping complex, which would be limited to items related to temple activities.
However, Advocate Jagannath vehemently opposed the construction, emphasizing that the legal issue was not about trustee appointments but whether the Act permitted the construction of commercial complexes using temple funds. He argued that the Act’s silence on this aspect rendered such constructions ultra vires to its aims and objectives.
The court agreed with the petitioner’s arguments and noted that no feasibility study or report had been presented to justify the economic viability of the project.
The bench highlighted that the surplus funds could have been deposited in fixed deposits, yielding a 7.5% return, which would have been a more prudent financial decision. The court also noted the absence of a feasibility study or report by the HR&CE department regarding the return on investment from the proposed commercial complex.
In its ruling, the court quashed the impugned tender notification and clarified that the superstructure, if already constructed, should be utilized for purposes permitted under the Act, such as free marriages for poor Hindus or the construction of Anna Dhanam sheds. The writ petition and connected contempt petitions were closed, marking a significant victory for temple devotees and a blow to the HR&CE department’s alleged misuse of temple funds.
This judgment sets a crucial precedent, particularly in cases like the proposed commercial complex construction in Thiruvannamalai, where temple funds are being utilized for similar purposes. It reinforces the need for strict adherence to the HR&CE Act and ensures that temple funds are used solely for the welfare and propagation of Hindu religious practices, as mandated by law.
Very Good News!
A big relief in protecting Temple money in Tamil Nadu ! A blow to @tnhrcedept indulging in illegal constructions with temple funds and properties!
Advocate B Jagannath of Madras High Court – appearing for temple devotee P. Baskar – challenged the… pic.twitter.com/AWyNfKadpr
— trramesh (@trramesh) January 10, 2025
The ruling has been hailed as a major step in protecting temple assets and preventing the depletion of thousands of crores of temple funds through unauthorized constructions and contracts.
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