Today, On 5th December, CJI Surya Kant remarked that Temple Funds Are Deity’s Property, Not Permitted for Cooperative Bank Rescue. While hearing Kerala cooperative banks’ petitions on returning Thirunelly Temple deposits, the Supreme Court questioned the challenge against the High Court order, reaffirming deity’s ownership.
New Delhi: The Supreme Court reaffirmed that the funds of temples are essentially the property of the deity and cannot be utilized to support cooperative banks.
A bench led by Chief Justice of India Surya Kant, along with Justice Joymalya Bagchi, was examining petitions from several cooperative banks in Kerala that challenged a directive from the Kerala High Court.
This directive mandated them to return deposits belonging to the Thirunelly Temple Devaswom.
During the hearing, the bench raised questions about the validity of the challenge against the High Court’s ruling.
The CJI asked,
“You want to utilise temple funds to revive a struggling bank? What is wrong in directing that such money, instead of remaining in a cooperative bank that is barely surviving, be placed with a financially stable nationalised bank to ensure better interest returns?”
Chief Justice Kant reiterated that temple funds must be safeguarded and used solely for temple-related purposes, stating,
“It cannot become a bailout mechanism for cooperative banks.”
The banks’ counsel argued that the High Court’s sudden order to repay within a two-month period created operational difficulties.
In response, the CJI asserted,
“You must build trust among depositors. If customers are unwilling to keep funds with you, that cannot become their problem.”
Justice Bagchi added that the deposits should have been released immediately upon maturity. The counsel explained that there had been no prior request for withdrawal, as the Devaswom had consistently renewed its fixed deposits.
He contended that the issue was merely the unexpected timeline, rather than the repayment itself.
Also Read: Madras High Court: “Temple Funds Belong To Deity, Can’t Be Used For Govt Projects”
In the end, the Supreme Court decided not to intervene, dismissing the petitions but allowing the banks the option to seek additional time from the High Court.
The petitions were submitted by Mananthawady Co-operative Urban Society Ltd. and Thirunelly Service Cooperative Bank Ltd., aimed at challenging an August ruling that directed multiple cooperative banks including Thirunelly Service Cooperative Bank Ltd., Susheela Gopalan Smaraka Vanitha Cooperative Society Ltd., Mananthawady Co-operative Rural Society Ltd., Mananthawady Co-operative Urban Society Ltd., and Wayanad Temple Employees Cooperative Society Ltd. to close the Devaswom’s deposits and return the funds within two months.
This action followed repeated repayment requests that were overlooked by the banks.
Cases Title: THE THIRUNELLY SERVICE CO-OPERATIVE BANK LTD & ANR. v. SREE THIRUNELLY DEVASWOM & ORS., SLP(C) No. 34386/2025
THE MANANTHAWADY CO-OPERATIVE URBAN SOCIETY LTD. & ANR. v. RAVI ULLIYERI & ORS., Diary No. 64079-2025