Supreme Court Declares Temple Funds Must Serve Deities, Not Banks
Supreme Court's Firm Stance on Temple Funds
New Delhi: On Friday, the Supreme Court emphasized that funds from temples are meant solely for the deity and should not be diverted to support struggling cooperative banks.
This statement was made by a Bench led by Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi, as they dismissed special leave petitions (SLPs) from cooperative banks in Kerala that were contesting a directive from the Kerala High Court to return fixed deposits belonging to the Thirunelly Temple Devaswom.
The CJI's Bench refused to intervene with the High Court's ruling, asserting that donations from devotees should be 'preserved, safeguarded, and utilized exclusively for the temple's benefit' and should not serve as a financial lifeline for any cooperative bank.
"Are you suggesting that temple funds should be used to rescue the bank? Temple funds fundamentally belong to the deity," the Supreme Court remarked while rejecting the cooperative banks' appeal against the High Court's order to repay matured deposits and transfer the funds to nationalized banks.
In their argument before the Supreme Court, the cooperative banks claimed that the High Court's 'sudden' two-month deadline posed significant challenges for compliance.
"You need to build trust with the public. If you cannot attract customers and deposits, that is your issue," the CJI's Bench stated, emphasizing the necessity for timely release of deposits upon maturity.
While the Supreme Court dismissed the petitions, it allowed the banks the option to approach the Kerala High Court for an extension on the repayment timeline.
The SLPs were filed by Mananthawady Co-operative Urban Society Ltd and Thirunelly Service Co-operative Bank Ltd after the Kerala High Court ruled that temples under the Malabar Devaswom Board are prohibited from maintaining deposits with cooperative societies, in violation of established circulars.
The Kerala High Court's detailed judgment highlighted that the Malabar Devaswom Board's circulars explicitly prevent temples from holding deposits in cooperative banks. After examining audit results, it concluded that the banks had 'no right whatsoever' to refuse the closure of these deposits.
"Any temples governed by the Malabar Devaswom Board that have funds deposited in any Cooperative Society must withdraw these deposits upon maturity and re-deposit them in authorized banks and financial institutions," stated a Bench of Justices Raja Vijayaraghavan V. and K.V. Jayakumar.