Investigations into alleged donation embezzlement at the Ayodhya Ram Temple have widened, with reports emerging that the State Bank of India (SBI) had advised replacing the outsourced counting staff three months ago. Following an FIR registered on June 25, police have arrested eight individuals and seized nearly Rs 80 lakh. The probe, led by a state-appointed Special Investigation Team (SIT), is now examining banking procedures and supervision protocols.
What Happened
Recent investigations into the alleged embezzlement of donations at the Shri Ram Janmabhoomi Temple in Ayodhya have uncovered that the State Bank of India (SBI) had reportedly flagged concerns about the cash-counting staff months before the current controversy came to light. According to reports from the ongoing investigation, the bank had recommended the replacement of the outsourced personnel tasked with counting donations nearly three months ago. The issue gained significant attention following an FIR registered on June 25, 2026, which led to the arrest of eight individuals and the seizure of approximately Rs 80 lakh in cash. The probe is being conducted by a Special Investigation Team (SIT) constituted by the Uttar Pradesh government.
The Warning and Oversight Questions
The outsourcing of cash-counting operations to third-party agencies has become a central point of scrutiny. While the bank deployed a specialized team to count the large volumes of daily donations, reports indicate that the specific staff members in question were hired by an outsourcing agency on relatively low wages. Questions are now being raised regarding why the suggested changes in personnel were not implemented earlier. The SIT investigation is looking into whether these procedural lapses created an environment where the alleged diversion of funds could occur without immediate detection.
Status of the Investigation
As the SIT continues its probe, legal proceedings have intensified. On June 29, a local court in Ayodhya remanded the eight arrested individuals to 14 days of judicial custody. The police are widening their investigation to include the roles of bank employees who supervised the counting process. Additionally, notices have been issued to multiple banks, including the SBI, to examine financial transactions and account details linked to the accused. The Ayodhya Bar Association has also taken a stance, resolving that its members will not provide legal representation to the accused in this case.
Business and Governance Implications
The management of large-scale cash donations involves complex logistics, including high-frequency counting, secure storage, and transportation. This case has highlighted the operational risks inherent in outsourcing critical financial tasks in high-traffic, high-cash environments. The investigation is now forcing a re-evaluation of the oversight mechanisms used by the temple trust and the banking partners involved. The bank has also initiated a review of its internal procedures and safeguards related to the counting exercise to prevent similar issues in the future.
What To Watch Next
Observers are looking for the final report from the SIT, which will clarify the exact scale of the alleged embezzlement and identify any broader systemic failures. The judicial proceedings and the outcome of the financial investigation into the accounts of the accused will be critical. Additionally, any structural changes in how the Trust manages donation counting—such as moving toward more permanent staffing or increased digital oversight—will be a key area of focus to ensure future transparency.