Chennai’s Sai Baba temple dispute: financial irregularities, unauthorised demolition flagged in interim reports

Alleged financial irregularities, unauthorised transactions and the demolition of the main sanctum sanctorum by past administrators have come under scrutiny in the administration of the All India Sai Samaj (AISS), which manages the popular Sai Baba temple in Mylapore, following a series of reports submitted by a court-appointed interim administration board to the Madras High Court.The temple was established in 1941 on eight grounds of land by Narasimhaswamy, a prominent advocate from Salem district who was involved in the freedom struggle. He initially consecrated a portrait of Shirdi Sai Baba before building the temple. He later founded the AISS, which was registered under the Societies Registration Act in 1956.In September 1956, the Samaj purchased another eight grounds of adjoining land. After Narasimhaswamy died in October that year, his mortal remains were interred within the temple complex. The Samaj subsequently installed a marble statue of Sai Baba and incorporated the recitation of verses from the Quran into its daily rituals alongside Hindu religious ceremonies. In 1967, it established Sai Vidyalaya on the adjoining property.As the temple grew in popularity, donations and contributions increased. However, disputes over its administration surfaced around the year 2000. Karunakaran, a local politician and former Chennai Corporation councillor, allegedly consolidated his control over the Samaj by inducting his supporters into its general body. After his death in 2020, his nephew, K. Thangaraj, took over the administration.Two devotees, R. Hariharan and G. Balakrishnan, approached the Madras High Court in 2001 challenging developments in the administration. The case remains pending before a Division Bench.Retired High Court judge P.N. Prakash, appointed by the court to examine the Samaj’s affairs, submitted a report in August 2025 detailing alleged mismanagement by the former executive committee.The report cited a decline in general body membership from 5,600 to 522, with only about 50 active members, and alleged that relatives, friends and loyalists of the management were added to membership and electoral rolls. Just 40 members, including 15 relatives of Thangaraj, voted in the 2024 election.On August 29, 2025, the court dissolved the erstwhile executive committee, of which Selvaraj was the secretary, and constituted an Interim Administration Board comprising Justices K.N. Basha and P.N. Prakash.The board has since submitted eight interim reports detailing alleged financial and administrative irregularities during the previous committee’s tenure. All these interim reports from the board have been duly incorporated in the orders issued by the court time to time.₹15-crore loan and ₹23.91-crore mandapamOne of the key findings concerns a ₹15-crore loan obtained from Union Bank of India in May 2023 by mortgaging land belonging to the Samaj. The loan was secured without the necessary authorisation from the executive committee or general body and without the court’s permission.The loan has reportedly imposed a monthly equated monthly instalment (EMI) liability of ₹25 lakh on the Samaj. The board has also alleged that false information was provided to the bank in connection with the transaction.The reports have questioned the expenditure of ₹23.91 crore on a kalyana mandapam (wedding hall) built after Sai Vidyalaya was demolished in 2019. The construction was undertaken without obtaining the necessary approvals.The members of the former committee have also been accused of diverting devotees’ funds towards real estate activities, including the purchase of land at Acharapakkam for ₹3.72 crore and the construction of a guest house there at a cost of ₹2.92 crore – 100 kilometers away from the city.Other alleged irregularities include the writing off of ₹1.35 crore without a clear justification in the accounts and the purchase of ghee worth ₹98 lakh during the 2024-25 financial year from R.R. Enterprises, owned by Thangaraj’s wife.Demolition of sanctum without approvalThe demolition of the main Sai Baba temple has emerged as another major issue in the dispute.According to an interim report, the sanctum sanctorum was demolished using an earthmover in the early hours of September 18, 2024, without a structural stability certificate or approval from the Samaj’s general body, executive committee or the Greater Chennai Corporation.It was alleged that the demolition was carried out clandestinely to facilitate the construction of a new temple and for monetary gain of individuals. The report said the alleged act could attract provisions of the Tamil Nadu Public Property (Prevention of Destruction and Loss) Act, 1982.Following the demolition, the main marble deity was kept under lock inside a separate premises and was inaccessible to devotees for more than a year-and-a-half, according to a source associated with the new administration. The source said the absence of access to the deity had affected the number of devotees visiting the temple and the collections from the hundial.Monthly donations, which were earlier around ₹80 lakh, had reportedly fallen to less than ₹30 lakh, the source added.The financial strain was compounded by the expenditure on the mandapam, the Acharapakkam property and the interest and repayment obligations on the bank loan, the court-appointed board said.The findings have brought the Samaj’s financial management, property transactions and handling of the temple’s reconstruction under judicial scrutiny. Further action will depend on the court’s consideration of the reports and the establishment of the alleged violations through appropriate proceedings.ResponseJustice Prakash when contacted, refused to comment on the past and the issues pertaining to the old administration, as the matter was sub-judice. However, he mentioned that all the required funds have been donated by a devotee who has undertaken to complete the entire construction of the temple. “The reconstruction of the temple is being carried out by best-in-class vendors and contractors.He also mentioned that the temple should be completed by March 2027 and things are well under control now.Mr. Thangaraj refused to comment and added, “The matter is pending in the court and it is an allegation. Once the final order is passed by the court, a clear picture will emerge.”