What a priest does is irrelevant. What should matter to us Muslims is to act according to the guidance in Quran and Hadith.Well if a priest cannot announce a death of Muslim in his church,a pandit cannot do such in his temple then why the imam of a mosque is being forced to announce a non Muslim person death in his mosque? A mosque follow a religious decorum in such a announcement which are particularly for Muslims only .
It has nothing to do with religious extremism or hatred. Infact the persons who demanded such from a imam were plain stupid people.
Bait ul maal distributes to non muslims as well and mosques were the bait ul maal for centuries.
It would have been an act of kindness if a maximum 10 second announcement could have been made from mosque speakers. Had such powerful speakers been on another building, I doubt anyone would have bothered with such a request to the imam. Mosque itself was not being used for funeral services of a non-muslim. Heck, take the mic out of the mosque building and make the announcement ... I find such refusal by the imam quite petty.