Temple Funds Cannot Bail Out Distressed Banks: Supreme Court Ruling

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In a landmark ruling, the Supreme Court has declared that temple funds, belonging to deities, cannot be used to prop up financially struggling cooperative banks. The court's decision was made in response to appeals filed by two cooperative banks in Kerala, which challenged a high court order to return deposits to the Thirunelly Temple Devaswom. The Supreme Court bench, headed by Chief Justice Surya Kant, emphasized that temple funds are meant to be 'saved, protected, and utilized for the interests of the temple.' The court rejected the banks' argument that the high court's direction to return the deposits would cause difficulties, stating that the banks should focus on establishing credibility among their customers. The case began when the Thirunelly Devaswom filed a plea after several cooperative banks refused to repay the temple's fixed deposits despite repeated requests. The high court had ordered five cooperative banks to return the funds within two months. While the Supreme Court refused to entertain the banks' pleas, it did allow them to approach the high court for an extension of time to comply with the original order. The ruling underscores the importance of maintaining the sanctity of temple funds and ensuring that they are used for their intended purpose.