In a landmark ruling, the Himachal Pradesh High Court has said that money donated to Hindu temples must be used only for religious and dharmic purposes. The court made it clear that temple funds cannot be diverted to government schemes, public works, or welfare activities unrelated to the temples.
A Division Bench of Justice Vivek Singh Thakur and Justice Rakesh Kainthla gave the judgment while hearing a petition by Kashmir Chand Shadyal. He had asked the court to ensure proper enforcement of the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984. In his plea, Shadyal pointed out irregularities in how temple money was being used and demanded more transparency in accounting.
The Bench said that temple donations “belong to the deity, not the government.” It noted that trustees are only caretakers of these sacred funds and that using the money for other purposes amounts to a “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 mentioned.
The judges stated that “every rupee of temple funds must be used for the temple's religious purpose or dharmic charity". The money cannot be treated as part of the state’s general income or used for unrelated public projects.
The court also spoke about the deeper meaning of Hindu Dharma, describing it as a way of life based on compassion, equality, and the pursuit of knowledge. Citing ancient texts and Supreme Court judgments, the Bench urged temples to return to their traditional role as centers of learning, culture, and social service.
The judges further said that discrimination on the basis of caste, creed, or gender goes against true Dharma. They referred to reformers such as Raja Ram Mohan Roy, Swami Vivekananda, and Dr BR Ambedkar, who worked to bring equality and reform within Hindu society.
Quoting Article 25(2) of the Constitution, the court said while India is a secular country, the government can regulate temple administration to prevent misuse. However, it cannot treat temple money as state property.
“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 judges observed.
Referring to Section 17 of the 1984 Act, the court listed the areas where temple funds can be used, religious and educational work, charitable and dharmic activities, cultural programs, and disaster relief.
At the same time, the Bench strictly prohibited the use of temple funds for building roads, bridges, or government offices, or for running government schemes or private businesses. The court also banned spending temple money on VIP gifts, vehicles for oficers, or souvenirs for officials. It said that temple officers can only claim official reimbursements for work-related expenses.
The court directed that all temples must clearly display their monthly income and expenses on notice boards or websites. If funds are misused, the responsible trustees will face personal liability, and the money must be recovered.
"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.
The High Court has now instructed the Himachal Pradesh government and all temple authorities to follow these directions strictly, conduct regular audits,
and maintain full transparency in the use of temple funds.
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