It is unconstitutional for a municipal government to offer city-owned land without charge for the site of a Shinto shrine, the Supreme Court said Wednesday.

The ruling by the top court's Grand Bench upheld the contention of the plaintiffs, reportedly two local residents, that the municipal government of Sunagawa, Hokkaido, violated the Constitution's principle of separation of state and religion by granting the shrine city land free of charge.

"It is inevitable that the general public would believe the local government supports a specific religion if it provides specific benefits to it," the bench said.