Temple Money Belongs To Deity, Cannot Rescue Cooperative Banks, Rules Supreme Court

The Supreme Court on Friday held that funds belonging to a temple deity cannot be used to support financially troubled cooperative banks. The observation came from a bench of Chief Justice Surya Kant and Justice Joymalya Bagchi, which was hearing appeals filed by cooperative banks challenging a Kerala High Court directive ordering them to return deposits to the Thirunelly Temple Devaswom.

During the proceedings, the Chief Justice questioned why banks expected temple funds to serve as financial support. "You want to use the temple money to save the bank? What is wrong with directing that the temple money, instead of being in a cooperative bank which is breathing with great difficulty, should go to a healthy nationalised bank which can give maximum interest?" the CJI asked. He emphasized that temple money belongs to the deity and must be "saved, protected and utilised only for the interests of the temple," and cannot become a means of survival for a cooperative bank.

The petitions before the Supreme Court were filed by Mananthawady Co-operative Urban Society Ltd and Thirunelly Service Cooperative Bank Ltd, which contested the High Court's order.

The Kerala High Court had earlier instructed five cooperative banks to close the Devaswom's fixed deposits and refund the entire amount within two months, after the banks repeatedly refused to release the matured deposits. The bench remained unswayed by the banks' argument that the High Court's direction was abrupt and posed practical difficulties.

The court noted that banks must build trust among depositors, remarking, "If you are unable to attract the customers and deposits, that is your problem."

The Supreme Court declined to entertain the appeals but allowed the banks to approach the High Court seeking an extension of time to comply with the order.

The dispute began when the Thirunelly Devaswom approached the courts after several cooperative banks refused to return its fixed deposits despite multiple requests. The High Court had directed Thirunelly Service Cooperative Bank Ltd, Susheela Gopalan Smaraka Vanitha Cooperative Society Ltd, Mananthawady Cooperative Rural Society Ltd, Mananthawady Co-operative Urban Society Ltd, and Wayanad Temple Employees Cooperative Society Ltd to return the funds within two months.