Supreme Court affirms temple funds are 'sacred' and cannot support failing cooperative banks
Mananthawady Co-operative Urban Society Ltd and Thirunelly Service Cooperative Bank Ltd filed appeals against the high court's directive. The court had ordered five cooperative banks to close the Devaswom's fixed deposits and return the full amount within two months.
The Supreme Court of India on Friday (December 5) said emphatically that funds belonging to temple deities must not be used to support financially struggling cooperative banks. This decision came while hearing appeals from several cooperative banks challenging a Kerala High Court order directing them to return fixed deposits to the Thirunelly Temple Devaswom.
The sharp observations were initially made by a bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi while hearing appeals filed by a few cooperative banks challenging a direction of the Kerala HC.
Here is the background of the case
The dispute arose after multiple cooperative banks refused to release matured fixed deposits belonging to the Thirunelly Temple Devaswom, despite repeated requests. Subsequently, the Kerala High Court ordered five cooperative banks- including Thirunelly Service Cooperative Bank Ltd, Mananthawady Co-operative Urban Society Ltd, and others- to close the temple’s fixed deposits and refund the entire amount within two months.
Supreme Court’s strong observations
The Supreme Court bench, led by Chief Justice Surya Kant and Justice Joymalya Bagchi, questioned the banks’ attempt to use temple funds as a lifeline. The Chief Justice remarked, "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 court clarified that temple money is sacred and belongs to the deity. It must be "saved, protected and utilised only for the interests of the temple" and should not serve as a financial crutch for cooperative banks. The bench expressed skepticism over the banks’ claims that the sudden court order was causing hardship, emphasizing that banks must build their own credibility to attract and maintain deposits.
Know more about court’s rulings and directions
The Supreme Court declined to entertain the appeals filed by the cooperative banks, firmly supporting the High Court’s directive. However, it allowed the banks to approach the Kerala High Court to request an extension of the deadline to comply with the order.
The verdict reiterates the principle that sacred temple funds are not to be mixed with financial liabilities of cooperative banks. It ensures protection of religious funds while reinforcing accountability in the banking sector.