How Ram Temple donation row risks eroding Ayodhya's economy

The alleged pilferage of devotee donations from the Ram Temple in Ayodhya is beginning to have an impact beyond the ongoing criminal investigation. In the city, where the temple has transformed the local economy over the past two years, traders, transport operators and pilgrims say the controversy is affecting both visitor sentiment and spending.

While there is no official data yet comparing footfalls before and after the allegations surfaced, conversations with shopkeepers, hotel owners, e-rickshaw drivers and devotees suggest a noticeable slowdown. Many acknowledge that the summer heat may have contributed to the decline in number of visitors, yet locals insist that previous summers did not witness a similar drop.

The impact is visible not only around the Ram Temple complex but also at other major religious sites, such as Hanuman Garhi and Kanak Bhawan, where business owners say pilgrim numbers appear lower than usual. For many in Ayodhya, the concern is not simply about the criminal case but about a growing perception among devotees that donations may not be reaching their intended purpose.

A few kilometres from the temple, opposite Ram Ki Paidi, Nikhil Singh runs the Flow of Saryu Restaurant with his family. He says business has slowed down considerably since the controversy began dominating headlines. “Ever since these allegations surfaced, footfalls have dropped by nearly 50 per cent. People may blame the heat, but last year we did not see anything like this. Business has definitely gone down,” Singh told INDIA TODAY.

According to him, almost every group of customers eventually discusses the allegations. “Everyone who comes here talks about it. They discuss what happened, whether it is true and how it gives Ayodhya a bad name. This city has earned recognition because of the Ram Mandir. Nobody wants it to be known for something like this,” he said.

The hesitation is also beginning to influence how some pilgrims choose to donate. Shambhu Sharan, who travelled from Muzaffarpur in Bihar with his family, said he deliberately chose not to contribute to the temple’s donation boxes. “Had we come earlier, we would have offered whatever we could,” he said. “But now, when we know what is allegedly happening to our hard-earned money, we have decided not to give anything. I would rather use that money for some good work,” Sharan reasoned.

His view was echoed by several devotees who spoke to INDIA TODAY. While they stressed that their faith in Lord Ram remained unchanged, some admitted that the donation pilferage allegations had made them think twice before making cash offerings at the temple.

The impact is also being felt by those whose livelihoods depend directly on pilgrim traffic. An e-rickshaw driver who has been ferrying visitors to the Ram Temple and nearby areas said daily passenger numbers have fallen sharply. “Earlier, hundreds of thousands of devotees used to come. Now, on many days, it feels like only a few thousand are visiting. Our earnings have reduced significantly,” he said.

Although such estimates are anecdotal and cannot be independently verified, similar concerns were expressed by transport operators and small traders across the city.

The concern extends beyond immediate business losses. Since the consecration of the Ram Temple in January 2024, Ayodhya has witnessed an unprecedented economic and infrastructure boom. Hotels, restaurants, transport services, shops, guesthouses and small businesses have expanded rapidly to cater to the pilgrim rush. The temple has become the centrepiece of the city’s new economy, with thousands of families now dependent on tourism linked directly or indirectly to it.

Mahant Dinendra Das, member of the Shri Ram Janmbhoomi Teerth Kshetra, the trust which manages the Ram Temple, had earlier expressed concern that the donation controversy could affect both pilgrims’ confidence and offerings. While welcoming the investigation, he said the episode was likely to have a lasting impact on the temple’s image and financial contributions.

Whether the current decline in footfall proves temporary or develops into a longer-term trend will become clearer only after official tourism data is available. Much may also depend on the outcome of the ongoing investigation and the confidence it restores among devotees. For now, investigators say the temple has been defrauded of around Rs 7.9 crore worth of donations.

Many in Ayodhya believe the controversy has created an atmosphere of uncertainty. The crowds continue to arrive, prayers continue to be offered and the temple remains the city’s biggest attraction. But for the first time since its inauguration, questions about the handling of devotees’ donations have become part of the pilgrimage itself, affecting not only public trust but also the economy that has grown around it.

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