ASCARD Bank Liquidation: Gauhati HC Seeks Fresh Asset Valuation Amid Huge Liability Shortfall

Staff Reporter

Guwahati: The Gauhati High Court stated that an independent valuer needs to properly assess the value of the Assam State Co-operative Agriculture and Rural Development Bank Limited (ASCARD) bank property for liquidation, especially to help pay off its outstanding liabilities.

The fixed assets of the bank are calculated to be Rs. 19,65,03,894.20. However, it is also reflected that such valuation is based on book value and not assessed by any independent valuer inasmuch as such report reflects that outstanding total liabilities of the bank under liquidation are Rs. 207,70,58,156.39, whereas the total assets valued in the aforesaid manner are Rs. 89,64,41,269.94,  leading to a shortfall of Rs. 118,06,16,886.45. The petitioner’s counsel submitted that the fixed assets are situated at a prime location, and if proper valuations are made by a government-registered valuer to arrive at the current market value, probably all these liabilities can be discharged.

The court expected the liquidation process to be completed quickly, particularly because the petitioners are owed salaries, arrear salaries, and pensions, which they have already claimed. In most of the cases, there are directions of this Court and the apex court to that effect.

The Standing Counsel for the Co-operative Societies submits that he will take instruction from the Liquidator, and they will do the needful for the proper valuation of the fixed assets of the bank under liquidation by following due process.

The court directed that, on the next date fixed, the liquidator has to furnish the required instruction as to what method/procedure has been taken to properly value the fixed asset of the bank by an independent authorized valuer. Such instruction may be submitted either by written instruction under the signature of the liquidator or by way of an affidavit.

Further, the court asked for the matter to be listed again on April 28, 2026, along with an updated instruction.

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