Karnataka High Court orders tech overhaul

The Karnataka High Court has ordered a complete technological overhaul of financial and asset management for all temples under the state's Hindu Religious Institutions and Charitable Endowments Department. Justice Suraj Govindaraj issued the directions to bring transparency and prevent mismanagement of funds gathered from devotees.

Observing that temple funds are "trust property" held for the deity, the court acted while upholding the 2020 dismissal of a temple employee for misappropriating 8,750 rupees. The court noted a large volume of litigation related to such misappropriation and stated the department has a duty to safeguard these funds under the 1997 HRI and CE Act.

Unified Digital Financial System

The court directed the HRI&CE Commissioner and the state's e-Governance Department to create a unified, centralized electronic financial management system for all temples. A core feature is that the system must make it impossible to issue a second receipt bearing the same number, a flaw exploited in the case before the court.

Every receipt must carry a unique QR code, allowing devotees to instantly verify its authenticity. The software must also maintain tamper-evident audit logs to ensure no financial record can be silently altered or deleted after the fact.

Enhanced Security and Cash Controls

To prevent misuse of power, the court ordered strict segregation of duties, ensuring no single employee has unchecked control over financial counters. It also mandated multi-factor biometric authentication for system access.

The court has directed that cash handling be minimized by promoting digital payments for all transactions. Any cash collected must be deposited in banks on the same working day. Also, the system must perform real-time reconciliation of all collections, with automatic detection of any shortages or mismatches.

Surveillance and Asset Protection

Comprehensive CCTV camera surveillance is now mandatory at all collection counters, cash counting halls, and strongrooms. The court suggested a strict protocol for counting 'hundi' offerings, which could include body-worn cameras for counting staff. Staff at sensitive posts like collection counters must be posted on a periodic rotation basis.

Recognising the risk of theft or substitution, the court ordered a complete inventory with unique tagging for every item of temple jewellery and ornaments. A protocol for scientific verification, such as X-ray fluorescence testing of gold and silver items, must be implemented before and after any repairs, cleaning, or conversion.

All immovable temple properties are to be digitised and geo-tagged to monitor and prevent encroachments.

Oversight and Reporting Mechanisms

The digital system must include a central dashboard allowing the Commissioner to monitor the financial functioning of every temple in real time. The court also directed the establishment of a confidential whistleblower mechanism for employees and devotees to report irregularities.

The departments involved must submit a status report on the implementation progress within three months. The directions aim to systematically address vulnerabilities in the management of temple assets and finances across Karnataka.