Telangana HC Rules Mutts Cannot Engage in Real Estate, Must Focus on Religious Activities
The Telangana High Court has ruled that religious mutts, including the Nizam-era Shri Udasin Mutt, cannot engage in real estate business or alienate their properties. The mutt, which owned about 540 acres of land in Kukatpally, had entered into lease transactions for the lands. The court upheld the endowments department’s decision to appoint an executive officer to manage the mutt due to mismanagement.
Telangana High CourtReal EstateReligious MuttsMismanagementEndowments DepartmentReal EstateOct 01, 2025
Justice Nagesh Bheemapaka made these observations while upholding the endowments department’s 2009 decision to appoint an executive officer (EO) to the Shri Udasin Mutt. The mutt had entered into lease transactions for its lands, which it challenged, arguing that the department had no authority to interfere in its management.
The Udasin Mutt had leased its land at Kukatpally to Indian Detonators Limited and IDL Chemicals Limited for 99 years. These leases were later transferred to Gulf Oil Corporation Limited. Allegations later surfaced that the lessees had failed to protect the property, with nearly nine acres even being converted into a burial ground. Following prolonged litigation, including proceedings before the Supreme Court, possession of the land was restored to the mutt in October 2022.
However, citing mismanagement and acting on the Lokayukta’s 2009 observations regarding temple and mutt lands, the endowments department appointed an EO to administer the petitioner-mutt. The mutt challenged this, arguing that under the AP Charitable and Hindu Religious Institutions and Endowments Act, 1987, such intervention was unconstitutional and violated Article 26 of the Constitution, which guarantees religious institutions the right to manage their own affairs. The mutt further contended that it had consistently fought legal battles to protect its lands and relied on earlier rulings, particularly the Ahobilam Mutt case, where the appointment of executive officers was held unconstitutional.
The endowments department countered that the property was clearly mismanaged, pointing to long-term leases in violation of the Act, failure to protect lands, and encroachments. It cited the Lokayukta’s recommendations and argued that appointing executive officers was a protective measure under Sections 8, 28, and 55 of the Act, used in multiple cases to safeguard endowed properties.
Rejecting the mutt’s arguments, Justice Bheemapaka held that the case of Shri Udasin Mutt was distinct from the Ahobilam mutt matter. The court found violations including long-term leases contrary to the Act, neglect of properties by lessees, and unlawful land conversion. It emphasised that administration and management of a mutt are inseparable, and in cases of mismanagement, State intervention is justified to protect endowed property.
Frequently Asked Questions
What did the Telangana High Court rule about religious mutts?
The Telangana High Court ruled that religious mutts cannot engage in real estate business, alienate their properties, or divert resources. They must confine their activities to religious purposes.
Why did the Shri Udasin Mutt challenge the appointment of an executive officer?
The Shri Udasin Mutt challenged the appointment of an executive officer, arguing that the endowments department had no authority to interfere in its management and that such intervention violated Article 26 of the Constitution.
What were the allegations against the lessees of the mutt's land?
The allegations against the lessees included the failure to protect the property, with nearly nine acres even being converted into a burial ground.
What was the endowments department's justification for appointing an executive officer?
The endowments department justified the appointment of an executive officer by citing mismanagement, long-term leases in violation of the Act, failure to protect lands, and encroachments.
What was the court's final decision?
The court rejected the mutt’s arguments and upheld the endowments department’s decision to appoint an executive officer, emphasizing that State intervention is justified in cases of mismanagement to protect endowed property.
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