SC slams Kerala Co-op Banks for withholding temple deposits
The Supreme Court on Friday said that money belonging to a temple Deity cannot be used to prop up financially distressed cooperative banks. The sharp observations were made by a bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi while hearing appeals filed by a few cooperative banks challenging a direction of the Kerala High Court asking them to return the deposits to the Thirunelly Temple Devaswom in Northern Kerala.
“You want to use the temple money to save the bank? What is wrong with directing that the temple money, instead of being in a cooperative bank which is breathing with great difficulty, should go to a healthy nationalised bank which can give maximum interest,” the CJI asked. Temple money belongs to the deity and hence, the money has to be “saved, protected and utilised only for the interests of the temple” and it cannot become a source of income or survival for a cooperative bank, the CJI said.
The pleas against the High Court order were filed by Mananthawady Co-operative Urban Society Ltd and Thirunelly Service Cooperative Bank Ltd. The High Court had directed five cooperative banks to close the Devaswom’s fixed deposits and refund the entire amount within two months, following repeated refusals by the banks to release the matured deposits. The bench was unconvinced by the submissions of the banks that the abrupt direction of the High Court was causing difficulties. The bench said the banks should establish credibility among the people.
“If you are unable to attract the customers and deposits, that is your problem,” it said. The apex court refused to entertain the pleas. It, however, permitted the banks to approach the Kerala High Court for extension of time to comply with the impugned order. The case arose from a plea filed by the Thirunelly Devaswom after several cooperative banks refused to repay the temple’s fixed deposits despite repeated requests.
The High Court had directed Thirunelly Service Cooperative Bank Ltd, Susheela Gopalan Smaraka Vanitha Cooperative Society Ltd, Mananthawady Cooperative Rural Society Ltd, Mananthawady Co-operative Urban Society Ltd, and Wayanad Temple Employees Cooperative Society Ltd to return the funds within two months.
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