On 27 May 2026, the Tamil Nadu government informed the Madras High Court that it would provide a sovereign guarantee for surplus temple funds deposited in State-owned non-banking finance corporations (NBFCs), including the Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFC) and the Tamil Nadu Transport Development Finance Corporation (TNTDFC).
Tamil Nadu government gives a sovereign guarantee for the temple funds deposited in State owned non banking finance corporations. Justices G.R. Swaminathan and V. Lakshminarayanan of #MadrasHighCourt record the submission made by way of a memo and adjourn by eight weeks a public…
— Mohamed Imranullah S (@imranhindu) May 29, 2026
Recording the submission made by the government through a memo, a division bench comprising Justices GR Swaminathan and V. Lakshminarayanan adjourned by eight weeks a public interest litigation (PIL) petition challenging the deposit of temple funds in the two State-owned financial institutions.
The PIL was filed by temple activist TR Ramesh of Indic Collective Trust, who challenged a Government Order issued on 17 February 2026 amending the Religious Institutions (Custody, Investments and Lending or Borrowing of Moneys) Rules, 1963.
According to the petitioner, the amendment enabled surplus funds belonging to temples under the Hindu Religious and Charitable Endowments (HR&CE) Department to be deposited in State-owned NBFCs such as TNPFC and TNTDFC instead of being restricted to traditional banking institutions.
During the earlier hearing, senior counsel S. Ravi, assisted by advocate B. Jagannath, argued that the amendment exposed temple funds to financial risk by permitting deposits in NBFCs that were allegedly facing financial stress.
The petitioner contended that TNPFC functions largely as a funding arm for the State power sector, including Tamil Nadu Generation and Distribution Corporation (TANGEDCO), which has accumulated losses exceeding ₹1.62 lakh crore. It was further argued that TNPFC had received a BBB-minus credit rating, the minimum rating required for an NBFC to accept public deposits.
In his affidavit, TR Ramesh stated that TNPFC’s ability to continue accepting deposits was largely linked to the fact that it was wholly owned by the Tamil Nadu government and warned that any downgrade below BBB-minus would render it ineligible to accept or renew deposits.
The petitioner also raised concerns regarding TNTDFC, arguing that temple funds should not be utilised to indirectly support State-run corporations facing financial difficulties.
When the matter first came up before the summer vacation bench, the judges observed that the case raised an important question of law and directed the HR&CE Department to file its response. The court had initially proposed taking up the matter for final hearing at an early date.
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