CHENNAI: The Tamil Nadu government on Friday informed the Madras High Court of extending a sovereign guarantee to temple funds deposited in non-banking financial companies (NBFCs) run by government agencies.
Advocate General (AG) Vijay Narayan filed a memo signed by J Kumaragurubaran, secretary to commercial taxes, registration and religious endowments department, in this regard when a petition questioning the security of the 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 for the funds belonging to temples under HR&CE department alone.
The petition by temple activist T R Ramesh, challenged a 2026 GO relaxing the 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 Rs 1.60 lakh crore, he said depositing temple funds in TNPFIC is subject to risks.