TN govt offers sovereign guarantee for temple funds
August 3, 2026
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Home Politics

Temple Funds in TNPFC: Tamil Nadu govt offers sovereign guarantee for Rs 2,700 crore deposits after HC Scrutiny

In a significant development in the Madras High Court case over temple funds deposited in Tamil Nadu Power Finance Corporation, the TVK government has agreed to provide a sovereign guarantee for ₹2,700 crore belonging to Hindu temples, mutts and religious endowments, while further financial compliance issues remain under judicial scrutiny

TS VenkatesanTS Venkatesan
May 30, 2026, 02:30 pm IST
in Politics, Bharat, Tamil Nadu
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Amid a petition pending in the High Court challenging the earlier DMK government’s deposits of temple funds in loss-making state PSUs, the TVK government has agreed to provide a sovereign guarantee for the Rs 2,700 crore of Hindu temple funds that were deposited in the state-owned Tamil Nadu Power Finance Corporation (TNPFC).

When the PIL filed by temple activist T.R. Ramesh came up before a vacation bench comprising Justice G.R. Swaminathan and Justice V. Lakshminarayanan on May 29, 2026, the Tamil Nadu government informed the court about providing a sovereign guarantee to the funds (₹2,700 crore) in TNPFC. Earlier, the court had raised concerns about the financial security of these deposits, as TNPFC primarily lends its funds to the highly debt-ridden state power utility, TANGEDCO.

It is learnt that, to protect the deposits of Hindu religious institutions and prevent potential liquidity concerns, the state government undertook to back these investments with an official sovereign guarantee.

The High Court division bench has granted the government and TNPFC an eight-week timeframe to file detailed replies regarding further financial compliance in the case.

Hailing the decision of the state government, T.R. Ramesh, in a post on X, said: “Great victory for temple-worshipping Hindus in Madras High Court today! Afraid of losing ₹2,700 crores of funds of Hindu temples, mutts and endowments from Tamil Nadu — and more afraid of a ‘run on the bank’ situation — TN Govt undertakes to give a sovereign guarantee for the deposits of Hindu religious institutions with TNPFC in the PIL filed by me. It was the Hon’ble Bench’s suggestion at the previous hearing that the Government can give a sovereign guarantee for these deposits. Regarding huge financial violations, the Government and TNPFC are given eight weeks’ time to file their replies.

Great Victory for Temple Worshipping Hindus in Madras High Court today! !

Afraid of losing ₹2700 Crores of Funds of Hindu Temples, Mutts and Endowments from Tamil Nadu – and more afraid of a “run on the bank” situation – TN Govt undertakes to give a sovereign guarantee for… https://t.co/nXgAS60E6m

— trramesh (@trramesh) May 29, 2026

In the earlier hearing, Ramesh had asked: “Will the Government of Tamil Nadu give a sovereign guarantee to the deposits of Rs 2,700 crores of temple funds in Tamil Nadu Power Finance and Infrastructure Development Corporation?”

Also Read: Tamil Nadu: Activist flags Rs 2,700 crore temple money in to TNPFC, seeks rollback of DMK-era HR&CE amendments

In a post on X on May 27, Ramesh said: “The Hon’ble Division Bench of Madras High Court asked this question to the Learned Advocate General and Learned Additional Advocate General today in my PIL. I had challenged the TN Government’s amendment of Investment Rules under the TN HR&CE Act, 1959, by which TNPFC was added as an approved entity many years after illegally depositing ₹2,700 crores of temple funds. It was a knee-jerk reaction after the Government and @tnhrcedept received my legal notice in January 2026. Learned Senior Counsel Shri S. Ravi, who presented my case, told the Court that TNPFC had borrowed in excess of the limit allowed by RBI — at least ₹12,000 crores of excess public deposits. Senior Counsel said these funds will have to be returned to the investors. Government counsels had no answer for this. The matter will be heard by the Hon’ble Division Bench again on Friday (May 29).”

Will Govt of Tamil Nadu give a sovereign guarantee to the deposits of ₹2700 Crores of temple Funds in Tamil Nadu Power Finance and Infrastructure Development Corporation ?

The Hon’ble Division Bench of Madras High Court asked this question to the Learned Advocate General… https://t.co/RAc1nCYjtm

— trramesh (@trramesh) May 27, 2026

In another development, TN HR&CE Minister S. Ramesh, who made a surprise inspection at Tiruchendur temple, found irregularities. The staff failed to identify the minister and allegedly asked for money for quick darshan. He ordered an inquiry and the suspension of the staff involved.

பணம் பெற்றுக் கொண்டு பக்தர்களை திருக்கோயிலுக்குள் அனுமதித்த பாதுகாவலர்கள் இருவர் பணிநீக்கம் செய்து உத்தரவு https://t.co/cAqMtRyLRr pic.twitter.com/3aCV1U290x

— Vignesh Theni (@Vignesh_twitz) May 29, 2026

After HR&CE Minister S. Ramesh caught a couple of archakas and staff of Tiruchendur temple allegedly taking bribes from devotees for facilitating darshan and sought an explanation, archaka Iyappan Iyer admitted to having committed the offence. The EO and Joint Commissioner barred him from conducting temple rituals with immediate effect, according to an order issued by the department.

After the HE and CE Minister S. Ramesh caught a couple of priests and staff of #Tiruchendur temple taking bribes from devotees for facilitating darshan and called for explanation, priest Iyappan Iyer admits to have committed the offence

The EO and Joint Commissioner has barred… https://t.co/eqzvsj9ABK

— Vijay Kumar S (@vijaythehindu) May 29, 2026

Hindu Munnani, which held a protest standing on one leg seeking a CB-CID inquiry into the alleged irregularities in darshan fee collection by temple staff, has appreciated TN HR&CE Minister Ramesh for bringing to light what it said were its allegations of collecting money from devotees for quick darshan. It has demanded stern action against the staff and not merely suspension followed by reinduction after obtaining an undertaking not to repeat such acts. It said such a measure would not help and alleged that a powerful cartel was operating. According to the organisation, temple staff, without knowing the identity of the minister, collected ₹4,000 through GPay and allowed him darshan. It demanded action against HR&CE officials who were allegedly aware of the practice.

சபாஷ் அமைச்சரே!
திருச்செந்தூரில் அமைச்சரிடமே வசூல்…
கோயிலின் அவல நிலையை வெளிச்சத்திற்கு வந்ததற்கு பாராட்டுக்கள்..

முன்னதாக சில தினங்களுக்கு முன்பு கோயிலின் அவல நிலையைக் கண்டித்து, இந்து முன்னணி சார்பில் ஒற்றைக் கால் போராட்டம் நடத்தப்பட்டது.. அதன் எதிரொலியாக நடந்த ஆய்வு..… pic.twitter.com/V0JlEXx2or

— Hindu Munnani (@hindumunnani_tn) May 29, 2026

Meanwhile, the Madras High Court heard a plea seeking the abolition of VIP darshan and special darshan in temples. The Court asked Additional Advocate General P.V. Balasubramaniam whether the closing of Tirupparankundram Subramaniaswamy Temple had been delayed for the darshan of a minister.

The public, in general, hopes that the new TVK government will act in the interests of devotees and not follow the approach adopted by the earlier DMK minister P.K. Sekar Babu. His tenure as HR&CE Minister was marred by a slew of alleged irregularities.

Topics: HR&CE departmentHR & CE DeptTVK govt on temple fundsMadras High CourtTemple fundsTemple EconomyTR Ramesh
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