ASCARD bank loan scam: Verify documents in locked almirah, Gauhati HC to DCP

Staff Reporter

Guwahati: The Gauhati High Court, taking into view the contradictory stands of the parties involved and the court's earlier orders in the Assam State Co-operative Agriculture and Rural Development Bank Ltd (ASCARD Bank) loan case, directed the DCP, Central in Guwahati, to verify whether there is any almirah under lock and key and, if necessary, to break open such almirah and ascertain whether the relevant documents are available in it.

A co-ordinate bench of the HC, in its order dated June 24, 2022, relating to the case of non-repayment of loans by the loanee of the ASCARD Bank, took a prima facie view that such action resulted in the precarious financial condition of the Bank and accordingly directed that the entire balance sheets of the Bank as well as a detailed statement of loans given to all persons be produced before this court.

The court directed the Director General of Police, Assam, to act through the concerned Superintendents of Police, where 28 branches of the ASCARD Bank are located, to take custody of the possibly voluminous documents pertaining to the transactions of the bank as well as the records available in the headquarters at Ulubari, Guwahati, and keep them under their safe custody.

Later, this court, in its order dated January 9, 2025, modified the earlier order dated June 24, 2022, and provided that the Registrar of Co-operative Societies by himself or through his representative may approach the concerned Superintendent of Police or Commissioner of Police, as the case may be, and the records be handed over to the concerned officials.

It was submitted that except for the records of the bank's head office at Ulubari, all other records are being handed over to the concerned authorities. This court then sought assistance from K. Gogoi, Public Prosecutor, Assam, regarding the status of such handing over, to which Gogoi submitted that there is no record of seizure from Ulubari Branch in the jurisdictional Paltan Bazar Police Station.

On the other hand, SK Talukdar, standing counsel representing the bank, submitted that there is a definite seizure list, and therefore, the authorities cannot take a stand that there was no seizure.

M Bhagawati, counsel for the petitioner in WP(C) 3189/2020, submitted that the records were duly seized in terms of this court's order; however, they were not taken to the police station but kept in a locked Almirah in the Headquarter itself.

In view of the aforesaid contradictory stands and taking note of this court's earlier order dated December 21, 2022, as well as January 9, 2025, the court directed the DCP, Central, to verify whether there is any Almirah under lock and key and whether those documents are available in the said Almirah, and if necessary, the DCP is permitted to break open the said Almirah.

Further, it was submitted that the Cooperative Department will assist the DCP in finding out those papers and verifying the documents.

Accordingly, the court directed that the DCP, Central, do the needful by June 23, 2025. The liquidator is allowed to put his representative, and the DCP asked to intimate the liquidator as regards the time of opening of such Almirah.

The matter is listed again on June 25, 2025, as part-heard, when the DCP and the liquidator are directed to file a short instruction each in this regard.

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