Palani temple land fraud: How an old sacred endowment resurfaces in a Rs-100-cr scam

A Rs 100-crore, 1.40-acre plot at the foothills of the famous Arulmigu Dhandayuthapani Swamy Temple in Palani, Tamil Nadu — currently a free devotee parking lot — is at the centre of a fraud row. It was allegedly sold and registered to two private individuals for just Rs 2 crore earlier in July, defying several court orders, restrictions in the original endowment deed and objections from temple authorities, sparking a state government probe.

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The fallout includes a police probe by the CB-CID, suspended registration officials, a departmental inquiry, court-ordered cancellation of the registration and conditional anticipatory bail, besides political charges of cover-up and benami dealings.

About the case

The dispute dates to 1888, when Kuppusamy Maniyakkar of Balasamuthiram gifted the land to Thandapani Swamy, who founded a mutt there for spiritual activities and service to Lord Murugan.

Thandapani Swamy's deed permanently dedicated the land solely to religious, spiritual, and charitable purposes, specifically for Murugan temple service and devotees’ benefit, barring any sale, transfer, or commercial exploitation. It was meant to remain under the temple’s control permanently.

However, Thandapani’s family’s naming tradition complicated the matter. For instance, Thandapani's son was Murugadas, his son again Thandapani, and so on—creating confusion allegedly exploited in the fraud.

In 1998, a descendant identified as Thandapani (son of Murugadas) allegedly sold the land to VVR Venkatachalam of Chennai for Rs 1 crore, violating the endowment's restrictions. The temple administration raised an objection the next year, and the dispute reached the Madras High Court and the Supreme Court.

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Both courts ruled decisively in the temple’s favour, scrapping the illegal sale deed and restoring ownership to the Thandapani Swamy Mutt/Devasthanam. They also laid down broader guidelines for handling similarly dedicated properties.

Following the court orders, the temple administration cleared over 20 encroachments/shops from the land. In 2025, it took full possession and converted the site into a free parking facility for devotees and tourists, a use fully aligned with the original religious and charitable intent.

But the matter didn’t end there. Despite documented legal history, an encumbrance certificate showing restrictions, and binding court verdicts, the land was allegedly re-sold on or around March 27 this year via an agreement, with deed registration on July 6 (data entry reportedly began July 3). Sellers linked to the mutt/trust, reportedly identified as Murugadas and the trust administrator/descendant, transferred it to Sethupathi and Velladurai, both hailing from and around Palani, Dindigul.

Police sources say the deal was shown at Rs 2 crore against the market value of Rs 100 crore, with the buyers reportedly lacking funds — suggesting a benami transaction with fake or no real transfer of money.

The registration allegedly bypassed the Palani Temple Devasthanam or the state’s Hindu Religious and Charitable Endowments Department authorities, despite the temple’s Joint Commissioner Marimuthu's prior written objections flagging the land’s restrictions. Many written objections were reportedly submitted against any private registration.

Suspicious land-resale proceedings

CB-CID sources reveal suspicious timing of the registration at the Palani sub-registrar office: regular Sub-registrar Balachandar was transferred days earlier, and Joint Sub-registrar Justin Manikandan—already facing allegations of illegal registrations worth Rs 20 crore in Kodaikanal and Rs 10 crore in Theni —was given additional charge. The registration reportedly went through on or around his very first day of handling the office.

A case was registered against Manikandan, Murugadas (trust administrator/seller side), and the two buyers under sections including cheating, forgery, criminal conspiracy, and fraudulent registration of documents. Three of them (Murugadas, Sethupathi, and Vellathurai) are reportedly absconding with CB-CID teams on the lookout.

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The Madurai Bench of the Madras High Court, however, granted Manikandan conditional anticipatory bail, requiring him to report to CB-CID at Dindigul between July 27 and August 3. It questioned the selective targeting of Manikandan, besides the role of the previous sub-registrar who initiated data entry, ordered a thorough network probe by the CB-CID and an interim report. Additionally, the court also cancelled aspects of illegal registration.

DMK slams Vijay govt, TVK minister hits back

The matter triggered a political outrage soon.

I Paranthamen, a Dravida Munnetra Kazhagam (DMK) MLA and an advocate, slammed the state’s “Vijay regime”, accusing it of tampering with the probe and attempting to shield the accused.

He said, “Summoning a Sub-Registrar from 67 kilometres away instead of the local one suggested foul play. Inconsistencies in statements by ministers (including HR&CE Minister S Ramesh and Registration Minister D Logesh Tamilselvan). Possible benami/proxy transactions and ministerial efforts to shield criminals.”

Tamil Nadu Law Minister C T R Nirmal Kumar denied any “power centre” involvement in the case and promised due process. He accused the previous DMK regime of rampant corruption in the registration department, alleging registrations occurred even at 9 pm and that former minister P Moorthy collected bribes via agents in every office. Nirmal Kumar vowed that the state’s current TVK-led government would overhaul the department with zero tolerance for corruption, acting swiftly on fake registration complaints.

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The minister assured that those connected to the Palani case’s fraudulent registration would be arrested soon. He also added that strict exception-free measures would be initiated wherever irregularities are found.

The dubious registration stands cancelled following the court intervention, and the land remains under temple control as free devotee parking. With CB-CID and court-monitored probes ongoing to trace any higher-level involvement, devotees and activists have demanded swift arrests and transparency, highlighting persistent threats to protecting dedicated religious endowments from illegal alienation.