Public Funds Raised In Deity’s Name Cannot Be Used To Acquire Property For Private Samithi: Kerala High Court
The Court nullified the joint ownership of Ernakulathappan ground; and noted that Ernakulam Kshetra Kshema Samithi had a fiduciary duty.
Justice Raja Vijayaraghavan V, Justice K.V. Jayakumar, Kerala High Court
The Kerala High Court observed that funds collected from the public under schemes dedicated to a deity must be utilised exclusively for the benefit of the temple. It found that the Ernakulam Kshetra Kshema Samithi had acted in violation of the Court directions by including itself as a joint purchaser of land acquired using such public contributions.
Accordingly, the Bench directed the Cochin Devaswom Board to initiate appropriate proceedings to ensure that the amounts collected by the Samithi in the name of Lord Shiva are duly accounted for. Further noted that if those entrusted to protect temple property instead usurp it, must be dealt with sternly. It observed that the Samithi, while functioning as a Temple Advisory Committee, occupied a fiduciary position and was legally barred from deriving personal profit or title from trust properties.
Justice Raja Vijayaraghavan V and Justice K. V. Jayakumar observed, “Having examined the Sale Deed produced as Annexure-R2(t), we are shocked to note that the Secretary of the Samithi has been shown as one of the purchasers. Nowhere in the deed, which was executed and registered on 08.04.2013, is there any reference to the orders passed by this Court on 05.12.2012 and 07.02.2013, by which it had been specifically stipulated that the deed should be executed in favour of the temple.…What is even more serious is that, in blatant violation of the directions issued by this Court, the deed came to be executed by conferring one-half share in the property upon the Samithi. This crucial fact was not brought to the notice of this Court either by the Devaswom Board, the Kochi Corporation, or the Samithi. The omission is not minor; it strikes at the very root of compliance with this Court's directions”.
Senior Advocate B.G. Harindranath appeared for the Samithi and K.P. Sudheer, Standing Counsel appeared for the respondent- Devaswom Board.
In the matter, the dispute originated from a suo motu proceeding regarding trade fairs at the Ernakulathappan Ground and a writ petition by the Ernakulam Kshetra Kshema Samithi. The Samithi, registered as a society, was granted the status of a Temple Advisory Committee in 2016. Disputes arose when the Cochin Devaswom Board terminated a revenue-sharing arrangement and initiated steps to elect a new committee.
The Samithi challenged these orders, claiming its tenure had not expired and that it had contributed significantly to temple development.
Historically, the Samithi initiated the "Ernakulathappanu Oradi Mannu" (One Foot of Land for Lord Shiva) scheme to acquire 1.25 acres of land from the Kochi Corporation for the temple. In 2012, the High Court had specifically directed that the sale deed be registered in favor of the temple.
However, the deed executed on April 09, 2013 named both the Devaswom Board and the Samithi as purchasers, effectively conferring a half-share of the property on the private society.
The Court noted that under Sections 51 and 52 of the Indian Trusts Act, 1881 a trustee cannot use trust property for personal profit. It held that property acquired with funds raised from devotees in the name of the deity belongs solely to the deity.
“…A trustee cannot derive any personal benefit, whether directly or indirectly, from trust property, nor can he place himself in a position where his personal interest conflicts with his duty. The statutory scheme, particularly under Sections 49, 51, and 52 of the Trusts Act, strictly prohibits a trustee from dealing with trust property for personal gain or acquiring it in his own name or through another. This prohibition cannot be circumvented by effecting transactions in the name of close relatives, such as a son or partner, as such arrangements would, in substance, result in an indirect benefit to the trustee. In such circumstances, it becomes the duty of the Court to closely scrutinize the transaction and determine whether the trustee has acted bona fide or has committed a breach of trust by indirectly benefitting himself”, the Bench noted.
“…it is evident that the property, which remained in the ownership and possession of the Devaswom Board, was entrusted to the Samithi purely on a temporary basis and only for a limited purpose, namely, to raise the funds required for the purchase of the property situated on the eastern side. It is also discernible that a portion of the amounts realised was intended to be earmarked as the Devaswom Board’s contribution towards the acquisition of the said property, which was viewed as an important and beneficial step for the temple…”, the Bench further noted.
Consequently, the Court quashed the joint ownership and directed the Kochi Corporation to execute a rectification deed to vest absolute title in the Ernakulam Shiva Temple. It upheld the Board's decision to terminate the revenue-sharing arrangement and ordered the constitution of a new Temple Advisory Committee under updated bylaws.
“…we direct the Cochin Devaswom Board to initiate appropriate proceedings forthwith to ensure that the amounts collected by the Samithi in the name of Lord Shiva are duly accounted for, verified, and subjected to audit in accordance with law. Such audit shall be conducted strictly in terms of the provisions contained in Rules and Byelaws, as well as by the competent Audit Department. The Board shall also take steps to secure and produce all relevant records necessary for this purpose”, the Bench directed.
Cause Title: Suo Motu v. State of Kerala & Ors. [Neutral Citation: 2026:KER:29828]
Appearances:
Respondents: K.P. Sudheer, Standing Counsel for the Devaswom Board; Rashmi K.M., Government Pleader.
Other Present: Senior Advocate B.G. Harindranath, K. Saneesh Kumar, Advocate for the Samithi.