This verse appears in Śrīmad-Bhāgavatam (SB 1.1.2). The words mahā-muni-kṛte indicate that Śrīmad-Bhāgavatam was compiled by the great sage Vyāsadeva, who is sometimes known as Nārāyaṇa Mahā-muni because he is an incarnation of Nārāyaṇa. Vyāsadeva, therefore, is not an ordinary man but is empowered by the Supreme Personality of Godhead. He compiled the beautiful Bhāgavatam to narrate some of the pastimes of the Supreme Personality of Godhead and His devotees.
In Śrīmad-Bhāgavatam, a distinction between real religion and pretentious religion has been clearly made. According to this original and genuine commentation on the Vedānta-sūtra, there are numerous pretentious faiths that pass as religion but neglect the real essence of religion. The real religion of a living being is his natural inborn quality, whereas pretentious religion is a form of nescience that artificially covers a living entity’s pure consciousness under certain unfavorable conditions. Real religion lies dormant when artificial religion dominates from the mental plane. A living being can awaken this dormant religion by hearing with a pure heart.
The path of religion prescribed by Śrīmad-Bhāgavatam is different from all forms of imperfect religiosity. Religion can be considered in the following three divisions: (1) the path of fruitive work, (2) the path of knowledge and mystic powers, and (3) the path of worship and devotional service.
The path of fruitive work (karma-kāṇḍa), even when decorated by religious ceremonies meant to elevate one’s material condition, is a cheating process because it can never enable one to gain relief from material existence and achieve the highest goal. A living entity perpetually struggles hard to rid himself of the pangs of material existence, but the path of fruitive work leads him to either temporary happiness or temporary distress in material existence. By pious fruitive work one is placed in a position where he can temporarily feel material happiness, whereas vicious activities lead him to a distressful position of material want and scarcity. However, even if one is put into the most perfect situation of material happiness, he cannot in that way become free from the pangs of birth, death, old age and disease. A materially happy person is therefore in need of the eternal relief that mundane religiosity in terms of fruitive work can never award.
The paths of the culture of knowledge (jñāna-mārga) and of mystic powers (yoga-mārga) are equally hazardous, for one does not know where one will go by following these uncertain methods. An empiric philosopher in search of spiritual knowledge may endeavor most laboriously for many, many births in mental speculation, but unless and until he reaches the stage of the purest quality of goodness—in other words, until he transcends the plane of material speculation—it is not possible for him to know that everything emanates from the Personality of Godhead Vāsudeva. His attachment to the impersonal feature of the Supreme Lord makes him unfit to rise to that transcendental stage of vasudeva understanding, and therefore because of his unclean state of mind he glides down again into material existence, even after having ascended to the highest stage of liberation. This falldown takes place due to his want of a locus standi in the service of the Supreme Lord.