Tamil Nadu: CAG slams HR&CE Department for non-cooperation in temple assets audit

Chennai: The Comptroller and Auditor General (CAG) of India has raised serious concerns over the non-cooperation of Tamil Nadu’s Hindu Religious and Charitable Endowments (HR&CE) Department in auditing temple assets and records. The HR&CE, which manages thousands of temples across the state, has been accused of withholding crucial documents, hindering efforts to identify potential revenue leakages.

Audit Attempts Blocked
In its compliance audit report tabled during the two-day session of the Tamil Nadu Assembly, which concluded on December 10, the CAG revealed that it had proposed a special audit in May 2022 to cover the period from 2019 to 2022. This move was prompted by frequent media reports alleging mismanagement and loss of temple properties. However, the HR&CE Department objected, claiming that the CAG had no jurisdiction to scrutinize the records of religious institutions. This objection was escalated to the Principal Secretary and Chief Secretary on multiple occasions in 2022, but no resolution was reached.

The HR&CE’s stance was based on the argument that the CAG’s purview, as per the Duties, Powers, and Conditions of Services Act (DPC Act), did not extend to religious institutions. The state government’s reply in June 2022 stated that HR&CE did not own any assets and that the CAG could only audit grants released by the state government.

CAG’s Counter-Argument
The CAG rebutted this claim, highlighting that the state government collects 4-12% of income from temple assets as lease rent, which is remitted to its administrative fund. To ensure accurate realization of these lease rents, an audit of the total income from temple assets and the expenditure on HR&CE’s operations is necessary under Sections 13, 16, and 23 of the DPC Act of 1971.

The report emphasized that due to the HR&CE’s non-cooperation and refusal to provide documents, the CAG could not ascertain whether revenue from temple assets was being accurately realized or if there were instances of revenue leakage. This lack of transparency raises concerns about potential financial mismanagement.

Significant Assets Under HR&CE
According to the HR&CE Department’s 2022-23 policy note, temples in Tamil Nadu collectively own 4.78 lakh acres of land and 22,600 buildings. Despite these vast assets, the total rent collected between July 1, 2022, and March 31, 2023, was only Rs. 117.63 crore. The disparity between asset value and income has led to suspicions of revenue leakage and mismanagement.

Court’s Stand on CAG Audit
The CAG’s efforts gained support from the judiciary. A special bench of the Madras High Court, comprising Justices R. Mahadevan and P.D. Audikesavalu, noted in a June 2022 ruling that under Article 149 of the Constitution, the CAG could audit the accounts of the state or any department at the government’s request. The court clarified that such audits would not infringe upon the state’s administrative rights but would instead serve the interests of temples and places of historical importance.

The bench highlighted the HR&CE’s failure to maintain proper records of temple assets, income, and leases. It refused to modify earlier directions regarding temple management, emphasizing the need for transparency and accountability.

Allegations of Mismanagement
Temple activists and legal experts have long alleged widespread mismanagement within the HR&CE Department. Reports of embezzlement, alienation of temple properties, under-collection of lease rentals, and leasing or selling temple lands to political allies at nominal rates have surfaced frequently. Activists also accuse the department of failing to reclaim properties from illegal occupants and misappropriating revenue generated by temples.

One of the most contentious issues has been the alleged melting of antique temple jewels, including those adorned with rare and precious gemstones. Critics argue that the current administration’s approach undermines Hindu traditions and temple heritage.

Calls for Transparency and Accountability
At a press briefing on December 10, Principal Accountant General (Audit I) Tamil Nadu D. Jaisankar and Principal Accountant General (Audit) Tamil Nadu and Puducherry K.P. Anand highlighted the lapses committed by the HR&CE Department. They pointed out that the department’s non-cooperation was not limited to temple audits but extended to the dairy department as well.

Temple activists argue that the government’s reluctance to allow CAG audits contradicts its claims of transparency. “If the state government has nothing to hide, why resist an audit?” questioned one activist. “The audit would only benefit temples and ensure their proper management.”

Growing Clamour for Temple Autonomy
The controversy comes at a time when demands to free temples from state control are gaining momentum. Many stakeholders believe that returning administrative control to devotees and independent bodies would ensure better management and preservation of temple properties.

The CAG’s observations lend weight to these demands. By highlighting gaps in accountability and potential revenue losses, the report underscores the need for a robust and transparent mechanism to oversee temple administration.