LTTE alive in Tamil Nadu

I happened to visit a temple outside the temple city, Kumbakonam, Tamilnadu. It's a small village, where I doubt if the temple priests make enough money, in spite of temple being centuries old. Here is a place where right outside the temple gate, you see the banner/poster of LTTE supporters. I am not surprised at the fiery looks of the photographs in the banner.

What is Tamilnadu doing with LTTE? Why in India are we very open minded, all inclusive to this extent? What kind of politics encourages, supporters to such terrorist organization in India?