Karnataka High Court flagged major issues with valuation of 39-acre coffee and cardamom plantation in Kodagu district . Sold for fraction of worth in bank auction. Initial 2014 valuation over ₹3.12 crore; by 2024, appraised at just ₹61 lakh. Auctioned for ₹99 lakh.
Leetha Abraham brought this to light. Mortgaged plantation to Canara Bank in Mangaluru for loan,defaulted. Bank used SARFAESI Act,2002,auctioned property in 2023-24. Abraham challenged legality of sale, sparking court review.
Justice M. Nagaprasanna, who oversees case, found bank’s valuer Y.R. Srikanth’s actions shocking. Though he claimed expertise,his certificate barred him from valuing agricultural lands,plantations. Court demanded he explain why he shouldn't face prosecution for a potentially false affidavit.
Court called valuation process “appalling state of affairs.” Government-fixed guidance value for land ₹2.73 crore in 2023, crops not counted . Srikanth’s valuation raised doubts about appraisal integrity.
Court said, “The disparity is not merely substantial; it is startling. Such a valuation prima facie defies commercial logic and invites serious suspicion.” Judge stressed property’s value drop needs deeper look.
Adding complexity,Abraham used RTI Act,found discrepancies in Srikanth's qualifications. I-T Department confirmed his registration covered only immovable properties, excluding agricultural lands, plantations. His February 2024 affidavit contradicted April RTI findings.
Court's interim order shows rising worry over bank auction valuation practices, especially for high-value agricultural properties. Case shows need for strict standards, accountability in property appraisals, financial deals.
As legal proceedings unfold,court's findings could trigger wider scrutiny of valuation practices in banking. Could change how agricultural,plantation properties are valued, sold in future auctions…
