Shimla, Oct 14,
In a landmark judgment that redefines the governance of temple finances in the State, the Himachal Pradesh High Court has directed that all temple funds and donations collected under the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984, shall be strictly used for religious, educational and charitable purposes connected with the propagation of Hindu faith, and not for any government welfare schemes or unrelated public works. Delivering the verdict in Kashmir Chand Shadyal versus State of Himachal Pradesh and others, a Division Bench comprising Justice Vivek Singh Thakur and Justice Rakesh Kainthla observed that temple income is sacred and cannot be treated as a part of the State’s general revenue or exchequer.
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The Court remarked, “Devotees offer donations to temples — and through them, to the Divine — with the clear belief that these will support the care of deities, maintain temple spaces, and promote Sanatana Dharma. 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 Bench directed that funds must be used only to further religious, spiritual, and dharmic activities including the teaching and promotion of Vedas, Yoga, Sanskrit, temple renovation, charitable work, and welfare of devotees, while prohibiting their use for any governmental or political purposes.
Emphasizing that the State’s role under Article 25(2) of the Constitution is limited to regulating secular activities associated with religion, the Court said that the government cannot involve itself in managing or appropriating funds beyond what is necessary for administration. “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 public exchequer. It cannot be diverted to or transmitted or donated to any welfare schemes of the Government or other similar purpose or activity unrelated to the temple or religion,” the Bench stated.
Reinforcing the constitutional balance between secular governance and protection of faith, the Court noted, “Freedom of conscience and free profession, practice and propagation of religion, as provided in Article 25 of the Constitution, is subject to public order, morality and health, but not to governmental convenience. The State is not expected to perform religious functions of any religion, yet it is mandated to take every step for the reform of the Hindu society and to ensure that the income of temples and donations of devotees are spent in consonance with the true meaning of Dharma.”
The Court further directed temple administrations to publicly display their monthly income and expenditure and details of projects funded by donations on notice boards and websites to ensure transparency and accountability. Describing temples as vital institutions for spiritual and social upliftment, the Bench recalled that since ancient times temples and maths were “the vibrant heart of society” — centres of education, welfare, art, and culture — and must now reclaim that legacy by becoming “epicentres of seva (selfless service)” and social reform.
Calling upon the government to frame mechanisms to ensure compliance, the Court underscored that temple funds are “not the property of the State, but of the faith and the faithful.”
This historic ruling is expected to have far-reaching implications for the management of temple trusts across Himachal Pradesh and may set a precedent for similar cases nationwide.
