Court In India Rejects Religion-State Challenge To State Financing of Shariah Compliant Finance Company

In India, the Kerala High Court has rejected a constitutional challenge to involvement by a state-created agency in setting up a Shariah-compliant non-bank finance company.  Qatar's Peninsula today reports that Janata Party president Subramanian Swamy sued claiming that the state was unconstitutionally promoting religion when the Kerala State Industrial Development Commission purchased 11% of the equity in Al Barakh Financial Services Ltd.  The court dismissed Swamy's petition. Sec. 26 of India's Constitution bars appropriating tax funds to promote religion.