Tamil Nadu govt gives sovereign guarantee to temple funds invested in TNPFIDC

Chennai: State govt has given a sovereign guarantee before Madras high court for temple funds invested in the Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFIDC).

A vacation bench of Justices G R Swaminathan and V Lakshminarayanan had on Wednesday asked whether govt would extend the sovereign guarantee to the temple funds, similar to how it is backing the debt-ridden TN power distribution corporation’s (TNPDCL) financial health, as the state-owned non-banking financial institution has lent most of its funds to the power utility.

On Friday, an affidavit was filed on behalf of the govt, assuring the court that the temple funds invested in TNPFIDC would be protected. The affidavit said that interest on the investments is paid regularly and that there is no need for concern regarding the safety of the investments.

In Feb this year, the Hindu religious and charitable endowments department issued a GO amending the investment rules under the HR&CE Act to permit surplus temple funds to be invested in state govt-run companies. Seeking to quash the GO and to restrain the investment of temple funds in non-banking financial institutions, a petition was filed by T R Ramesh, president of the Indic Collective Trust and the Temple Worshippers Society.

The plea contended that while the HR&CE Act was enacted to safeguard temple properties and funds, the GO had been issued in violation of the statute. The petitioner had argued that ₹2,700 crore of temple funds had been illegally invested in govt companies and sought directions to the state govt to compensate temples for the alleged losses caused. Recording the govt’s assurance, the judges directed state govt to file its response and adjourned the hearing by three weeks.