The Karnataka High Court has ordered a technology-driven overhaul of temple finance and property management

The Karnataka High Court has said that “temple funds are not ordinary funds and that they are trust property, received from the faith of devotees and held for the deity”. | Photo credit: file photo

The Karnataka High Court, observing that “temple funds are not ordinary funds and are trust assets, collected from the faith of devotees and held for the deity”, has issued a series of directions aimed at ensuring transparency and preventing financial mismanagement in all temples inspected by the Department of Hindu Religious Institutions and Charitable Endowments (HRI&CE).

Justice Suraj Govindaraj issued the directions recently, upholding an order passed in October 2020 by the executive officer of the Sri Durgaparameshwari temple in Brahmavar taluk of Udupi district to dismiss a temple employee for embezzling ₹8,750.

The court also found no error in an order issued in 2024 by the Commissioner of Hindu Religious Institutions and Charitable Endowments upholding the dismissal.

Pointing out that there is a large number of litigations related to such misappropriation of temple funds, the court said that the ministry has an obligation to monitor and protect these funds under the provisions of the HRI and CE Act, 1997.

The court directed the commissioner and the e-governance department to create a single, centralized e-financial management system for all temples. It should be designed to ensure that “it is not possible to issue a second receipt with the same number,” the court said, because the dismissed employee in this case was able to generate a second receipt with the same receipt number.

Each receipt should carry a unique QR code to allow devotees to instantly verify authenticity, the court said, adding that the software system must maintain tamper-proof audit logs to ensure that no record can be silently altered or deleted.

The court also ordered real-time reconciliation of all collections with automatic detection of deficiencies or discrepancies, while ordering that cash handling be minimized by supporting digital payments for all payments and all cash collected must be deposited in banks on the same working day.

To prevent abuse of power, the court ordered strict segregation of duties to ensure that no employee has unchecked control over cash counters, while also ordering the introduction of multi-factor biometric authentication for system access.

The court said that comprehensive CCTV surveillance must be present at all collection counters, tills and safes and suggested a strict protocol for counting hundi offerings, which includes body-worn camera for staff counting. Staff at sensitive locations such as collection counters will have to be rotated regularly, the court said.

Acknowledging the risk of theft or confusion of temple jewels and ornaments, the court ordered a complete inventory with unique markings for each item and a protocol for scientific verification (such as X-ray fluorescence) of gold and silver objects before and after any repairs, cleaning or conversion, etc. All immovable temple properties must be digitized and geo-tagged to track and prevent tampering, the court said.

The court also ordered the establishment of a confidential whistleblowing mechanism for employees and devotees to report irregularities. The digital system should have a central dashboard that will enable the commissioner to monitor the financial functioning of each temple on a real-time basis, the court said, while directing the department to submit a status report on the implementation of these guidelines within three months.

Important instructions of the High Court of S

A unified digital system where each receipt has a unique QR code to prevent duplicate receiptsSSS

Biometric authentication and segregation of duties to prevent uncontrolled inspection of any employee

Daily reconciliation to detect cash variances, shortages or discrepancies in real time

Mandatory CCTV coverage at collection counters, counting rooms and vaults, with tamper-proof recording and central monitoring

Strict protocol for counting “hundi”, including double custody of keys, independent witnesses and use of currency counting machines

Scientific verification (such as X-ray fluorescence) of gold and silver objects before and after any repair or work to detect any loss of quality or quantity

Creation of a complete, digitized and geo-tagged register of all immovable temple properties to monitor and prevent encroachment

Generate real-time alerts to authorities for defined red flags such as duplicate receipt serial numbers or unusual transaction patterns

Published – 07 Sep 2026 23:22 IST