Shimla, October 15, 2025: In a significant ruling that underscores the need for religious institutions to remain financially autonomous, the Himachal Pradesh High Court on Tuesday issued an order strictly prohibiting the use of donations made to Hindu temples for government welfare schemes or any activity unrelated to the propagation of religion. The decision reinforces the legal framework governing religious endowments and emphasizes the sanctity of donations made by devotees for dharmic purposes.

The order was passed by a division bench comprising Justice Vivek Singh Thakur and Justice Rakesh Kainthla while disposing of a petition filed by Kashmir Chand Shadyal, a concerned citizen who sought the court’s intervention to ensure strict adherence to the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984. The petition raised concerns over the potential misuse of temple funds by government authorities for purposes not directly linked to religion or dharmic activities.

In its ruling, the court made it clear that every rupee collected as donation or contribution to temples must be used exclusively for religious purposes or dharmic charity. The bench emphasized that temple funds cannot be treated as general revenue for the state or diverted to finance public welfare schemes, even if these schemes are intended to benefit the general population. “Every rupee of temple funds must be used for the temple’s religious purpose or dharmic charity. It cannot be treated like general revenue for the State or general public exchequer,” the court stated.

The bench further clarified that any attempt to divert, transmit, or donate temple funds to government welfare programs or any other unrelated activities would be a direct violation of the provisions laid down in the 1984 Act. The judges stressed the importance of preserving the integrity of temple donations, which are given by devotees with the specific intention of promoting religious activities, supporting temple operations, and conducting charitable works aligned with dharmic principles.

The court’s order comes at a time when questions over the management and utilization of temple funds have gained prominence across India. While temples have historically played a central role in the socio-cultural and religious life of communities, there have been instances where their funds have been controversially used for purposes beyond the religious mandate, including funding public infrastructure projects, welfare schemes, and other government initiatives. The court’s decision seeks to eliminate ambiguity and ensure that donations intended for religious purposes are not misappropriated for unrelated government activities.

Transparency and accountability were central to the court’s directive. The bench instructed that all temples should publicly display detailed information regarding their income and expenditure on a monthly basis. This includes outlining the projects funded by donations and making available audit summaries either on notice boards within the temple premises or on official temple websites. Such transparency, the court noted, is essential to instill confidence among devotees that their contributions are being used as intended, for the propagation of Hindu religion and for dharmic charity.

“Temples should publicly display their monthly income and expenditure, details of projects funded by donations, and audit summaries on notice boards or websites to instill confidence in the devotees that their donations are being utilised for the propagation of the religion and welfare of Hindus,” the bench stated. The court emphasized that devotees, as contributors, have a legitimate right to know how their funds are being managed and applied.

To further strengthen accountability, the court mandated that all temples must maintain accurate and up-to-date accounts of their income and expenditure. These accounts are required to be audited annually by competent authorities, and the results of these audits must be published to ensure that funds are used for the intended purposes. The ruling underscores that proper accounting practices are not merely administrative formalities but critical measures to preserve the sanctity of religious contributions.

In cases where trustees or temple authorities are found to have misused or caused the misuse of temple funds, the bench was unequivocal in assigning personal liability. The court ordered that any misappropriated funds must be recovered directly from the responsible individual, who will be held personally accountable for the misutilization. “Where it is found that any trustee has misutilised or caused to misutilise 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 order read. This directive ensures that temple officials act responsibly and are deterred from diverting donations for unauthorized purposes.

The Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984, under which this ruling was issued, was designed to regulate the administration of Hindu religious institutions and their charitable endowments within the state. The legislation outlines the responsibilities of temple authorities, the procedures for budget preparation, accounting, audits, and spending of funds. It explicitly prohibits the use of temple resources for non-religious purposes, and the recent ruling reaffirms the legal framework, making it binding on all temples and trustees across Himachal Pradesh.

Historically, temples in India have served not only as places of worship but also as centers of social welfare, education, and community service. Devotees contribute generously to ensure the smooth functioning of these institutions, the maintenance of temple structures, and the funding of religious rituals and festivals. Misuse of these funds for government schemes or unrelated projects would not only violate the legal provisions but also breach the trust of devotees who donate with faith and sincerity. The high court’s ruling strengthens this bond of trust by clearly demarcating the boundaries within which temple funds must operate.

Experts note that the court’s directive may also influence how state governments interact with religious institutions in the future. By establishing a clear legal and ethical framework, the ruling prevents potential conflicts between government authorities and temple administrations over the allocation and usage of resources. This ensures that temples maintain their financial independence while simultaneously fulfilling their dharmic and religious responsibilities.

In addition to compliance with the law, the court’s order encourages temples to adopt best practices in financial management. Maintaining proper records, conducting timely audits, and ensuring transparency not only protect the temple’s assets but also enhance its credibility among devotees and the public at large. Trustees are now legally obligated to act in the temple’s best interests, knowing that mismanagement can result in personal liability and mandatory restitution of misused funds.

The ruling also reflects a broader judicial trend in India that seeks to safeguard religious institutions from undue interference and ensures that funds designated for specific purposes are not diverted for unrelated activities. By explicitly prohibiting the diversion of temple funds to public welfare schemes, the Himachal Pradesh High Court has reaffirmed the principle that religious contributions must be used solely for the advancement of religion and associated charitable purposes.

Legal analysts suggest that this decision may prompt other states to review how temple funds are managed and whether similar safeguards are necessary to prevent misuse. It reinforces the importance of strict compliance with statutory provisions and ensures that the intent of donors is respected. The judgment also serves as a reminder to trustees and religious authorities that transparency, accountability, and adherence to legal mandates are non-negotiable aspects of temple administration.

As a result of this ruling, all temples across Himachal Pradesh are expected to strictly adhere to the following key directives: funds must be used exclusively for religious or dharmic purposes; monthly income and expenditure must be publicly displayed; annual audits are mandatory, and audit results must be published; trustees found misusing funds will be held personally liable; and all spending must comply with the provisions of the 1984 Act. These measures collectively aim to protect the sanctity of temple donations and promote ethical and responsible management.

The Himachal Pradesh High Court’s decision marks an important step in balancing religious freedom with accountability, ensuring that the resources donated by devotees for sacred purposes are neither compromised nor co-opted for unrelated public projects. It is expected that this ruling will have a long-lasting impact on temple management practices in the state and may serve as a benchmark for similar cases elsewhere in India.

In conclusion, the court has sent a strong message: donations made to temples are sacred and must be treated with the utmost respect and integrity. They cannot be diverted to fund government welfare schemes or unrelated projects. By mandating transparency, accountability, and strict adherence to the law, the Himachal Pradesh High Court has reinforced the principle that religious institutions must operate within the bounds of their dharmic purpose while safeguarding the trust of devotees who contribute to their upkeep and activities.