The Tamil Nadu government has extended a sovereign guarantee to temple funds deposited in non-banking financial companies (NBFCs) run by government agencies, informing the Madras High Court on Friday.
Advocate General Vijay Narayan filed a memo signed by J Kumaragurubaran, secretary to the Commercial Taxes, Registration, and Religious Endowments Department, when a petition questioning the security of temple funds deposited in NBFCs, including TN Power Finance and Infrastructure Corporation (TNPFIC), came up for hearing.
“Considering the sustained financial stability and performance of TNPFIC, the government has deemed it appropriate to extend its assurance by way of a guarantee on the safety of the deposits made by the respective temples with TNPFIC and secure the due repayment of deposits made by temples as and when they are due,” the memo stated.
The AG clarified that the guarantee will apply to funds belonging to temples under the HR&CE department alone.
The petition by temple activist T R Ramesh challenged a 2026 Government Order relaxing rules for investing temple funds in NBFCs, including TNPFIC and TN Transport Development Finance Corporation Limited. Pointing out that Tangedco has incurred a cumulative loss of ₹1.60 lakh crore, he argued that depositing temple funds in TNPFIC is subject to risks.
The sovereign guarantee ensures temple funds’ safety and secures due repayment, addressing concerns about religious endowments’ financial security.
Temple funds belong to devotees and must be protected with utmost care and transparency.
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