The Kerala High Court had ordered five cooperative banks to close the Devaswom’s fixed deposits and refund the entire amount within two months after repeated refusals to release matured deposits
NEW DELHI: The Supreme Court on Friday held that money belonging to a temple deity cannot be used to rescue financially troubled cooperative banks. The observation came while hearing appeals by several Kerala cooperative banks challenging a High Court order directing them to return fixed deposits belonging to the Thirunelli Temple Devaswom.
A bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi rejected the banks’ pleas, questioning why temple funds should be kept in “a cooperative bank which is breathing with great difficulty” instead of a healthy nationalised bank offering better security and interest. The CJI stressed that temple money belongs to the deity and must be “saved, protected and utilised only for the interests of the temple,” not used as a lifeline for struggling banks.
The Kerala High Court had ordered five cooperative banks to close the Devaswom’s fixed deposits and refund the entire amount within two months after repeated refusals to release matured deposits. Dismissing the banks’ claims of hardship, the Supreme Court said, “If you are unable to attract customers and deposits, that is your problem,” while permitting them to seek more time from the High Court to comply.
The dispute arose after the Thirunelli Devaswom approached the court when multiple cooperative banks failed to repay its deposits despite repeated requests.
