The Supreme Court on December 5 stated that Mandir funds belong to the deity and cannot be used to benefit cooperative banks. A bench, comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi, was hearing petitions filed by several cooperative banks in Kerala challenging a Kerala High Court order directing them to return deposits to the Thirunelly Mandir Devaswom. During the hearing, the bench questioned what was objectionable about the High Court’s directive.
“You want to use Mandir funds to bail out a bank? What is wrong with directing that the money, instead of being held by a struggling cooperative bank, be placed in a healthy nationalised bank that can generate maximum interest?” asked CJI Surya Kant. He added, “Mandir funds, first and foremost, belong to the deity. They must be safeguarded and used solely for the Mandirs interests. They cannot serve as a source of income or lifeline for a cooperative bank.”
Advocate Manu Krishnan G, representing the petitioning banks, argued that the High Court’s “abrupt” order to return the deposits within two months was creating difficulties. “You should build credibility with the public. If you can’t attract customers and deposits, that’s your problem,” remarked CJI Surya Kant. Justice Bagchi added that the banks were expected to release the amounts immediately upon maturity of the deposits. The counsel responded that no closure requests had been made and there were no complaints from customers. “We have been providing services as per their needs and even set up a special branch on their premises at their request. They have consistently renewed their FDs. And now, suddenly…” he said, clarifying that while the banks were not against returning the deposits, the sudden directive would cause hardship.
The bench ultimately rejected the petitions but allowed the petitioners the option to approach the High Court for an extension of time. The petitions had been filed by Mananthawady Cooperative Urban Society Ltd and Thirunelly Service Cooperative Bank Ltd, challenging a judgment delivered by a division bench of the Kerala High Court in August. The Thirunelly Devaswom had approached the High Court after the cooperative banks repeatedly refused to return their fixed deposits despite multiple requests.
The High Court ordered the banks, Thirunelly Service Cooperative Bank Ltd, Susheela Gopalan Smaraka Vanitha Cooperative Society Ltd, Mananthawady Cooperative Rural Society Ltd, Mananthawady Cooperative Urban Society Ltd, and Wayanad Temple Employees Cooperative Society Ltd, to close the Devaswom’s deposits and return the funds within two months.
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