Supreme Court: Temple funds cannot be used to bail out cooperative banks

New Delhi: The Supreme Court on Friday clarified that temple funds belong solely to the deity and cannot be diverted to rescue financially troubled cooperative banks.

The bench, headed by Chief Justice Surya Kant, made the observation while hearing appeals filed by a few cooperative banks challenging the Kerala High Court’s direction to return deposits to the Thirunelli temple Devaswom.

“Should temple funds be used to save banks? Banks must earn public trust. If they fail to attract depositors, that is their problem,” the court observed, rejecting the appeals.

The apex court emphasized that temple funds are meant exclusively for the welfare of the deity and cannot serve as a source of income or protection for cooperative banks. “The funds must be preserved and used only for the interests of the temple,” the bench stated.

The appeals were filed by the Mananthavady Co-operative Urban Society Limited and the Thirunelli Service Co-operative Bank Limited, challenging the High Court order mandating the return of fixed deposits to the temple.

The High Court had intervened after the cooperative banks refused to repay the temple’s fixed deposits, directing that the money be returned within two months. The Supreme Court’s ruling upholds the High Court’s order and reinforces that temple funds cannot be repurposed for financial bailouts.

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