To maintain the secular character of the Indian polity, not only does the Constitution of India guarantee freedom of religion to individuals and groups, but it is also against the general policy of the Constitution of India that any money be paid out of the public funds for promoting or maintaining any particular religion. Accordingly, it is provided in the Constitution of India that no person shall be compelled to pay any taxes, the proceeds of which are specifically appropriated in payment of expenses for the promotion or maintenance of any particular religion or religious denomination. This does not prohibit the State from enacting a law to incur expenses for the promotion or maintenance of any particular religion or religious denomination, but by such law, no person can be compelled to pay any tax, the proceeds of which are to be so utilized. This, however, does not invalidate levy of a fee to provide some service. Thus, a fee can be levied on pilgrims to a religious fair to meet the expenses of the measures taken to safeguard the health, safety and welfare of the pilgrims. Such fee levied by a State will be valid because the object of such contribution is not to foster or preserve religion, but to control secular administration of religious institutions.

Communal riots between religion ‘A’ and religion ‘B’ resulted in the destruction of places of worship of both religions in a State. As a result, the State government utilized public funds for restoring the places of worship of both religions ‘A’ and ‘B’. In the given situation, which of the following statements is correct?