The Supreme Court of India has ruled that funds belonging to temples and kept in cooperative banks cannot be used to support financially weak banking institutions. The Court said that temple assets are the property of the deity and must be used only for religious purposes and temple welfare, not as a means to rescue struggling banks.
The case stemmed from petitions filed by two cooperative banks challenging directions to release fixed deposits belonging to the Thirunelly Temple Devaswom. The Kerala High Court had ordered the banks to return the funds immediately, which the banks argued would worsen their financial condition.
While dismissing the petitions, the Bench stressed the sacred nature of temple wealth. The Chief Justice observed that money offered by devotees must be protected and cannot become a tool to keep distressed banks afloat. The Court also questioned why temple money should remain in unstable institutions when secure nationalized banks were available.
The Supreme Court upheld the High Court’s direction to return the deposits. The banks were given the option to approach the High Court for additional time to repay the amount based on their financial situation.
This decision reinforces the principle that a deity is a legal person and that temple assets are trust property dedicated to religious and charitable purposes.
Case Details:
- The Thirunelly Service Cooperative Bank Ltd. and Anr. v. Sree Thirunelly Devaswom and Ors., SLP (C) No. 34386/2025
- The Mananthawady Co-operative Urban Society Ltd. and Anr. v. Ravi Ulliyeri and Ors., Diary No. 64079/2025
- Coram: Chief Justice of India, Justice Joymalya Bagchi
- Order Date: December 5, 2025
