Supreme Court Rules Temple Funds Cannot Bail Out Cooperative Banks

The Supreme Court ruled that a temple's funds must remain dedicated to its interests and cannot be used to support struggling cooperative banks. The case involved a petition from Thirunelly Temple, demanding the return of its fixed deposits. The court upheld a Kerala High Court decision mandating banks to return these funds.

The Supreme Court of India declared that funds belonging to a temple cannot be repurposed to support cooperative banks facing financial difficulties. The ruling emphasized that temple money should solely serve temple interests, thereby rejecting an appeal from several cooperative banks in Kerala.

The case arose when the Thirunelly Temple Devaswom filed a petition for the return of its deposits held by the banks. When the banks failed to release the funds, the Kerala High Court had instructed them to refund the deposits within two months.

In its ruling, the Supreme Court bench, led by Chief Justice Surya Kant, reinforced the directive, criticizing the banks' inability to attract customers. The banks could seek additional time for compliance from the high court, but their pleas against the existing order were dismissed.

(With inputs from agencies.)