Supreme Court Rules: Temple Funds Belong to Deity, Cannot Be Used to Save Cooperative Banks
Court says sacred offerings must be protected and used only for temple-related purposes.
Kerala cooperative banks ordered to return deposits; temple money to be shifted to nationalised banks.
By Our Legal Reporter
New Delhi: December 06, 2025:
In a landmark ruling, the Supreme Court of India has declared that temple funds belong exclusively to the deity and cannot be diverted to rescue financially distressed cooperative banks. The judgment, delivered on December 5, 2025, reinforces the principle that sacred offerings made by devotees must be safeguarded and used only for the benefit of the temple.
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The ruling came in response to appeals filed by cooperative banks in Kerala, which challenged a directive from the Kerala High Court ordering them to return deposits belonging to the Thirunelly Temple Devaswom. The apex court dismissed the appeals, stressing that temple money cannot be treated as a tool to support struggling financial institutions.
Background of the Case
The dispute began when several cooperative banks in Kerala, including the Mananthawady Co-operative Urban Society Ltd and the Thirunelly Service Cooperative Bank Ltd, faced financial difficulties. These banks had accepted fixed deposits from the Thirunelly Temple Devaswom.
When the deposits matured, the Kerala High Court directed the banks to return the funds within two months and transfer them to nationalised banks for better financial security. The cooperative banks challenged this order, arguing that the funds could remain with them to help stabilize their financial condition.
The matter reached the Supreme Court, where a bench led by Chief Justice Surya Kant and Justice Joymalya Bagchi upheld the High Court’s directive.
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Supreme Court’s Observations
The Supreme Court made strong remarks during the hearing:
- Temple money belongs to the deity. It must be “saved, protected and utilised only for the interests of the temple.”
- Banks cannot rely on temple funds. Cooperative banks cannot expect sacred offerings to serve as financial support.
- Better financial security. Temple deposits should be placed in healthy nationalised banks that can provide maximum interest and safety.
Chief Justice Surya Kant asked pointedly: “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?”.
Why This Judgment Matters
This ruling has wide implications:
- For temples: It ensures that sacred offerings are protected and used only for religious and temple-related purposes.
- For devotees: It reassures worshippers that their donations are safeguarded and not misused.
- For cooperative banks: It highlights the need for financial discipline and prevents them from depending on religious funds for survival.
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The judgment also sets a precedent for similar disputes across India, where temple trusts often deposit large sums in local banks.
Impact on Cooperative Banks
Cooperative banks in Kerala have long relied on deposits from temples and religious institutions. However, many of these banks are facing financial stress due to poor management and rising non-performing assets.
The Supreme Court’s ruling means:
- They must return temple deposits promptly.
- They cannot use temple funds as a lifeline.
- They must strengthen their financial health through proper governance and accountability.
This decision may accelerate reforms in the cooperative banking sector, which has often been criticized for weak oversight.
Protection of Religious Funds
The Court emphasized that temple funds are not ordinary deposits, but sacred offerings made by devotees. These funds carry spiritual significance and must be treated with utmost respect.
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By directing that temple money be transferred to nationalised banks, the Court ensured:
- Financial safety: Nationalised banks are more stable and secure.
- Better returns: Temples can earn higher interest, benefiting their operations.
- Transparency: Funds remain protected from misuse.
Expert Opinions
Legal experts and social commentators have welcomed the ruling.
- Lawyers: They say the judgment strengthens the principle of protecting religious funds.
- Economists: They believe it will encourage cooperative banks to adopt better practices instead of relying on external deposits.
- Devotees: Many worshippers expressed relief that their offerings will remain safe and dedicated to temple activities.
According to legal analyst Prof. Anil Kumar, “This ruling is not just about financial management. It is about respecting the sanctity of religious offerings and ensuring they serve their intended purpose.”
Challenges Ahead
While the ruling is clear, challenges remain:
- Implementation: Cooperative banks must comply with the directive and return funds promptly.
- Monitoring: Authorities must ensure temple deposits are transferred safely to nationalised banks.
- Awareness: Temples across India must be informed about their rights to protect sacred funds.
Experts suggest that temple trusts should adopt stronger financial management practices to prevent similar disputes in the future.
Broader Implications
Also Read: Supreme Court Rules: Temple Funds Belong to Deity, Cannot Be Used to Save Cooperative Banks
The Supreme Court’s ruling reflects a broader principle: religious funds are sacred and cannot be treated as ordinary financial assets.
This principle may influence future cases involving:
- Church or mosque funds deposited in local banks.
- Religious trusts investing in risky financial instruments.
- Disputes over the use of donations for non-religious purposes.
By prioritizing the sanctity of offerings, the Court has set a strong precedent for protecting religious institutions across India.
Conclusion
The Supreme Court’s ruling that temple funds belong to the deity and cannot be used to rescue cooperative banks is a milestone in protecting religious and financial integrity.
For temples, it ensures that sacred offerings remain dedicated to spiritual and religious purposes. For devotees, it provides reassurance that their donations are safe. For cooperative banks, it is a reminder to strengthen their financial systems without relying on external lifelines.
As India continues to balance tradition with modern financial practices, this judgment stands as a powerful example of respecting faith while ensuring accountability.
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