Supreme Court Rejects Kerala Co-op Banks’ Pleas, Affirms Return of Thirunelly Temple Deposits

Overview

• A bench led by Chief Justice Surya Kant with Justice Joymalya Bagchi held that temple money belongs to the deity and must be preserved for temple interests, not used to rescue cooperative banks.
• The court dismissed special leave petitions by Mananthawady Co-operative Urban Society Ltd and Thirunelly Service Cooperative Bank Ltd challenging the Kerala High Court’s directive.
• The High Court had ordered five cooperative institutions to close the Thirunelly Devaswom’s fixed deposits and refund the full amount within two months after refusals to release matured deposits.
• Questioning reliance on temple deposits, the Chief Justice asked why funds should remain in struggling cooperative banks instead of being placed in healthier nationalised banks offering better security and interest.
• The High Court’s reasoning referenced Malabar Devaswom Board circulars barring temple deposits in cooperative societies, and the Supreme Court allowed the banks to seek only an extension of time for compliance.