The Court pulled up the administration for missing records, manual accounting, and failure to comply with statutory obligations

In a significant intervention, a Division Bench of the Kerala High Court comprising Justice Raja Vijayaraghavan V. and Justice K.V. Jayakumar reprimanded the administration of the Koodalmanikyam Devaswom for decades of financial mismanagement, unresolved audit objections, and failure to comply with statutory obligations under the Koodalmanikyam Devaswom Act, 1971. The Court ordered the Administrator and the Director of the Kerala State Audit Department to appear in person and directed the implementation of a comprehensive, tamper-proof digital accounting system.

A Temple of Historic Significance, Plagued by Modern Mismanagement

The Koodalmanikyam Temple in Irinjalakuda, Thrissur district, is the only ancient temple in India dedicated to Bharata, brother of Sri Rama. Dating back to the 9th century, with inscriptions from Chera king Stanu Ravi Varman, dated 854 A.D., the temple is an architectural marvel and a vital part of Kerala’s Nalambalam circuit. Despite its historic significance and substantial annual income exceeding ?4.46 crores, the Court found the temple’s financial administration in a deeply unsatisfactory state.

252 Audit Objections, Missing Records, and Manual Accounting

The petition, filed by Jayasankar S. and Jinoy K.J. with the assistance of the legal team of the Indic Collective Trust, claimed that around 252 audit objections pertaining to the period from 1990-1991 to 2016-2017 remain unresolved. The audit reports disclosed gross financial and administrative mismanagement, persistent irregularities, and serious governance lapses, spanning decades.

In compliance with the Court’s directions, the Administrator of Koodalmanikyam Devaswom filed a statement revealing that the Devaswom’s total income for 2025 was ?4,46,92,312, with annual expenditure of ?4,10,06,194 and cash and bank balances of ?1,47,17,293.

Shockingly, despite this substantial turnover, the accounts are still maintained manually under the double-entry bookkeeping system, and computerisation has not become fully operational, reportedly due to financial constraints.

The minutes of a meeting held on March 17, 2026, convened by the Commissioner to address pending audit issues, revealed even more alarming facts. Records pertaining to the period from 1990-1991 to 2003-2004 are no longer available, reportedly due to termite infestation and damage caused by water leakage.

For the audit period from 2004-2005 to 2009-2010, the Devaswom had not furnished any response at all to the majority of audit objections. A similar pattern was discernible for 2015-2016 to 2016-2017. Despite the absence of any explanation or supporting materials, authorities proposed closing many of these audit paragraphs on the premise that no further action was required.

Court’s Strong Reprimand

The Court expressed serious concerns over this approach, observing that such a course of action renders the entire audit exercise largely ineffective and undermines the very object of the statutory mechanism intended to ensure financial discipline, accountability, and transparency. “This Court cannot shut its eyes to such glaring deficiencies in the administration of an institution which manages substantial public funds and properties held in trust for the benefit of the deity and the devotees,” the Bench observed.

The Court noted that the annual ten-day Ulsavam festival costs approximately ?1.68 crores, with the entire amount generated through public donations, sponsorships, and by leasing out Devaswom grounds for temporary exhibition stalls. “When such substantial amounts are received from the public and expended for the conduct of the festival and the day-to-day administration of the Devaswom, it becomes imperative that every receipt, expenditure, voucher, and supporting record is properly documented, digitally recorded, and capable of being independently verified,” the Court stated.

Statutory Framework and Obligations

The Court extensively referred to the Koodalmanikyam Devaswom Act, 1971. Section 23 mandates that the Committee shall keep regular accounts of all receipts and disbursements, with accounts subject to concurrent audit. Section 25 requires auditors to specify all cases of irregular, illegal, or improper expenditure. Section 26 empowers the Commissioner to initiate surcharge proceedings against the Committee or officers guilty of misappropriation or gross neglect resulting in loss to the Devaswom, directing them to personally reimburse the amount.

The Court found that the maintenance of accounts and conduct of audit were not in conformity with this statutory mandate. “The absence of such vital financial records seriously undermines the accountability and transparency expected in the administration of a public religious institution,” the Bench observed.

A Pattern of Judicial Intervention

This judgment is part of a growing trend of judicial intervention in the administration of Devaswom boards in Kerala. In recent months, the same Bench has ordered the Travancore Devaswom Board to digitize accounts across its 1,250 temples following a ?40 lakh embezzlement at a petrol pump run by the Board. The Court observed that “continued reliance on archaic manual record-keeping, the absence of digitized accounting systems, and the failure to conduct timely audits reflect gross administrative indifference”. The Court has also directed the digitization of Sabarimala temple accounts and flagged financial deficiencies in the management of the Travancore Devaswom Board.

Court’s Directives

The Court issued the following directives:

The Administrator shall appear in person and furnish complete particulars of the vendor engaged for implementing the computerisation project, including the Request for Proposal (RFP), Functional Requirement Specification (FRS), technical specifications, scope of work, and implementation schedule.

The Director, Kerala State Audit Department, shall appear and explain the reasons for recommending the closure of several audit objections despite the absence of satisfactory responses from the Devaswom.

The Devaswom shall implement a comprehensive, fully functional, and tamper-proof software system covering all activities, capable of tracking all receipts in real time, monitoring tender processes, ensuring transparent procurement, capturing every transaction through a secure digital audit trail, and integrating human resources records.

The Court emphasized that “transparency, accountability, and the adoption of robust technological safeguards are no longer matters of administrative discretion. They are statutory obligations which the Devaswom is legally and morally bound to discharge without exception.” The Court further cautioned that any failure to act could lead to the inference that the committee is only interested in perpetuating the present state of affairs.

(The matter was to be heard again on July 8, 2026, with the Administrator and the Director of the Kerala State Audit Department directed to appear in person)

Note: This article is based on the judgment in WP(C) No. 32408 of 2025 delivered by the Division Bench of Justice Raja Vijayaraghavan V. and Justice K.V. Jayakumar on July 1, 2026.

The Indic Collective Trust (ICT) is a Chennai-based non-profit organization committed to safeguarding India’s civilizational ethos through constitutional and legal means. Established in 2017 and comprising activists, intellectuals, and legal experts, ICT addresses challenges to Indic traditions and values.