Dharmasthala Inc? Why This Religious-Business Empire Must Face A Full Financial Audit

Despite its towering presence in Karnataka’s cultural and developmental landscape, the financial structure of the Dharmasthala Group remains disturbingly opaque. Revered for its religious legacy and praised for its philanthropic work, the group operates an extensive empire—yet there is no clarity on one simple question: How much does it actually earn every year—and how much of it is taxed?

The temple itself enjoys tax exemption on the specious ground that it is not a Hindu temple but owned by Jains as a family deity. Offerings from devotees, revenue from agricultural land, and interest income from temple endowments are untaxed—provided they are used for religious or charitable purposes. But the modern Dharmasthala Group is much more than a shrine.

Under various trusts—most prominently the SDM Trust—it runs a vast web of educational institutions, medical colleges, private hospitals, ayurveda centers, microfinance units, renewable energy projects, rural development programs, and co-operative institutions. These generate enormous income from student fees, medical bills, hostel and mess charges, diagnostics, consultancy, rentals, and more.

So what portion of this income is taxed? Which institutions claim exemption, and are they legally entitled to it?

Indian tax law is clear: only institutions solely dedicated to education or medical relief, and operating without profit motive, can claim exemption under Sections 10(23C) or 12A. Recent Supreme Court rulings have further clarified that commercialization, capitation fees, or reinvestment of profits for expansion disqualify trusts from exemption. If any Dharmasthala-run institution charges high fees or functions as a profit-making entity, it must pay tax like any other private body.

Have these rules been enforced?

Has the Income Tax Department ever conducted a comprehensive audit of the SDM Trust and its allied bodies? Have their income, expenditure, and asset declarations been reviewed? Have any exemptions been revoked, or reassessments triggered under Sections 147 or 148?

Even at the state level, the Karnataka government provides land leases, subsidised electricity and water, and logistical clearances to Dharmasthala institutions. These benefits are meant for non-profit activity. Can the state assure citizens that these public resources are not subsidising commercial ventures under religious camouflage?

Transparency should not be seen as hostility to religion. Rather, it is about upholding public accountability. A religious trust that runs colleges, hospitals, industries, and microfinance arms is no longer just a spiritual body—it is a corporate conglomerate with sacred branding.

If Dharmasthala has nothing to hide, it should voluntarily publish its audited accounts, tax filings, and a full list of asset-holding institutions. Until then, the public and elected representatives have every right to ask: Is this a sacred trust—or an unregulated empire?

The government must act—not in antagonism to faith, but in defence of constitutional duty and fiscal fairness. No spiritual institution should be allowed to operate above the law.