Professional Documents
Culture Documents
Handbook On Policy
Handbook On Policy
Final Report
November, 2009
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
November, 2009
This document has been prepared by Prof.Dr.P.S.N.Rao, Professor and Head, Department of
Housing, School of Planning and Architecture, New Delhi ( SPA ) on behalf of the Indian
Banks Association ( IBA ) and National Housing Bank ( NHB ).
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
CONTENTS
________________________________________________________________________
Preface
Acknowledgements
PART A - POLICY
1.1
1.2
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
2.5
2.6
a) Introduction
b) Scope
c) Definitions
d) Statement of Standards
e) Disclosure Requirements
f) Departure Provisions
Code of Conduct
Application of Standards to Secured Bank Lending
a) Introduction
b) Scope
c) Definitions
d) Application
e) Reporting Requirements
f) Departure Provisions
PART C PROCEDURES
3.1
3.2
3.3
3.4
3.5
3.6
Procedure
Procedure
Procedure
Procedure
Procedure
Procedure
for
for
for
for
for
for
Annexures : 1)
2)
3)
4)
Appendix :
(i)
(ii)
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
Preface
-----------------------------------------------------------------------------------------Over the last one decade, the Indian economy has witnessed many changes in
the backdrop of globalisation and liberalization, significant amongst them being
investments from outside the country. For the conduct of any economic activity, real
estate or immoveable property is a basic resource. It is a prerequisite for all activities.
Obviously, real estate markets have become extremely active in the recent past.
Housing finance markets have also become alive to the emerging scenario and mortgage
lending, particularly in the housing sector, has been gaining ground. As a consequent
outcome, the subject of immoveable property valuation has been at the centre stage of
attention. Valuation of properties is required for a variety of purposes. In the
particular case of banks in India, valuation of properties is required initially for
ascertaining loan amounts and latter to assess the value of assets periodically. Further
in the case of NPAs and under the provisions of the SARFAESI Act also, valuation is
necessary. Further, the SEBI guidelines also make valuation necessary for the purpose
of Real Estate Mutual Funds ( REMFs). As banks and housing finance institutions (
HFIs ) require the services of immoveable property valuers, they regularly empanel them
on their panels in order to get valuations done. Further, with the Valuers Bill on the
anvil, the importance of streamlining the valuation regime in the country cannot be
undermined.
Whilst valuation of immoveable properties is very important to conduct the
business of banks, the status of the profession of valuation still has many inadequacies
as compared to global benchmarks. Therefore, in order to assess the situation of the
valuation profession in India and develop a policy, standards and procedures for
valuation, the Indian Banks Association has embarked on this initiative with an
objective of developing a streamlined regime of valuation in the country, with respect to
banks in the first phase, and with respect to related larger issues of valuation at a later
date. The objective of this initiative is to take stock of various emerging issues facing
the banking sector by holding consultations with bankers, HFIs as well as the valuer
community in various parts of the country. Based on the above, it has been agreed that
there is an urgent need to develop a HANDBOOK ON POLICY, STANDARDS AND
PROCEDURES FOR REAL ESTATE VALUATION BY BANKS AND HFIs IN INDIA so that
working can be streamlined on a pan India basis across the large number of banks and
housing finance institutions.
This document has been prepared after due discussion and deliberation by the
IBA Sub Committee on Mortgage & Valuation and the Steering Group as well as with
various sections of valuers who are key stakeholders. In all, seven meetings were held
and all the emerging issues were discussed in detail. Suggestions were received from
various stakeholders and now this final report has taken shape.
This document is now placed for approval and implementation by the Indian
Banks Association. It is hoped that all the Banks and HFIs in India would adopt this
document in their respective Boards at an early date and initiate the implementation
steps in order to move towards a streamlined regime of real estate valuation in India.
November, 2009
( S.Sridhar )
Chairman and MD-National Housing Bank,
Chairman-Central Bank of India,
Chairman-IBA Sub-Committee on Mortgage and Valuation of Property
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
Acknowledgements
-----------------------------------------------------------------------------------------There are a large number of people who have played a role in contributing to the
preparation of this document. We are extremely grateful to all the persons who have
been involved in one way or the other for their valuable contributions.
First and foremost, we express our thanks to Shri S Sridhar, Chairman and
Managing Director, National Housing Bank and Central Bank of India for playing a key
role in initiating this work. Way back in early 2008, he had initiated a series of
discussions on the subject which led to the organization of our thoughts and develop a
structure to formalize various concepts. As Chairman of the Sub-Committee on
Mortgage and Valuation of Property of the Indian Banks Association, Shri Sridhar
played the role of a leader and motivator to inspire us and take up this monumental
task. Ably supporting Shri Sridhar was Shri N Udaya Kumar, DGM, NHB who has been
closely working with me on this project. We are very grateful to Shri Udaya for his
positive attitude and keen support, particularly in the data collection for this project as
well as other administrative matters.
Shri K.Unnikrishnan, Dy. Chief Executive of the Indian Banks Association
played a crucial role in mobilizing all the senior banking officials from various banks as
well as HFIs to participate in all the meetings starting from early 2008 onwards. We
express our thanks to him as well as Shri V.Ramachandran, Senior Vice President, IBA.
We are also grateful to Mr Pai and Ms Swati who took deep interest in this project and
gave us their unstinted support.
All the members of the IBA Sub-Committee on Mortgage & Valuation of Property
as well as the IBA Steering Group on Valuation have actively participated in all the
discussions and have cooperated and offered constructive suggestions at various stages
of the work. We thank all of them.
We are particularly grateful to all the office bearers of the various valuer
associations namely the Institution of Valuers, Institution of Surveyors, Institute of
Government Approved Valuers of India, Indian Institution of Valuers and Practicing
Valuers Association of India, Royal Institute of Chartered Surveyors and Centre for
Valuation Studies, Research and Training for their active support and providing key
inputs.
We are also thankful to all the banks and HFIs who have enthusiastically
responded to our survey and provided us valuable inputs to take this initiative to its
logical conclusion.
We wish to place on record and acknowledge that some portions of this
document, particularly the standards, have been developed, based on the International
Valuation Standards 2007 ( Eighth Edition ) of the International Valuation Standards
Committee.
This handbook has been prepared in the interest of the banking industry,
including the HFIs as well as in the interest of the valuation profession and the public
at large and it is hoped that over a period of time, the valuation regime in the country
would get streamlined.
November, 2009
( Prof.Dr.P.S.N.Rao )
Professor and Head, Department of Housing
School of Planning and Architecture
Indraprastha Estate, New Delhi
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
PART A
POLICY
1.1
1.2
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
1.1
Educational
Qualification
Work
Experience
Remarks
5 years work
experience
in
the
field
of
valuation
after
completion
of
the degree or
equivalent
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
2 years work
experience
in
the
field
of
valuation
after
completing the
examination
2 years work
experience
in
the
field
of
valuation
after
completing the
examination
-
Since
the
process
of
procurement of membership
with
these
organizations
includes training as an integral
component,
no
further
experience requirement is being
prescribed.
Note : Diploma Holders in Civil Engineering / Architecture or equivalent with 8 years of experience are
also eligible for empanelment and shall be permitted to undertake valuations with value upto Rs.50
lakhs only.
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
10
d) Categories of Valuers
The objective of categorization of valuers is to ensure that whilst
lesser value assignments are handled by relatively junior valuers,
the senior valuers can handle higher valuations.
The empanelment of valuers therefore shall be in the following
categories :
S.No.
Category
Valuer
1
2
A
B
of
Work
Experience
Undertaking Valuations
in
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
11
Duration of Empanelment
The duration of empanelment shall be for a period of five years.
However, the quality of service provided / performance of the
valuers shall be reviewed annually by the banks / housing finance
institutions. An annual performance review shall be carried out by
a committee comprising of senior officers of the bank.
The
composition of the committee shall be decided by the concerned
bank / HFI. In the performance is not satisfactory, the valuer can
be depanelled at the discretion of the bank/HFI.
1.4
Removal
In extreme cases where the valuer has been found to be indulging
in unfair practices, guilty of professional misconduct, violating the
code of ethics and professional practice, he shall be removed from
the panel. The procedure to be followed by the banks / housing
finance institutions shall comprise of the following steps :
- issue of show cause notice
An IBA NHB SPA Initiative
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
12
- hearing
- appropriate action, including removal from the panel for a period
of five years, if charges are found serious
1.5
Re-Empanelment
Valuers once removed from the panel of any bank or housing
finance institution could be re-empanelled again after a specified
period, based on the recommendations of the bank Conflict
Resolution Committee.
Names of valuers removed shall be
reported to the Indian Banks Association which in turn shall place
the names on its caution list.
1.6
Professional Fees
Depending on the nature of work involved and the value of the
property, the valuer and the bank / HFI may negotiate the fees.
However, the minimum fees to be paid to an empanelled valuer for
the valuation of a property will be as under :
Category of Valuer Category of Valuer -
A
B and C
- Rs. 2,500.00
- Rs. 1,500.00
1.8
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
13
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
14
Where ever the value of the property is more than Rs.10 crore,
two valuers of Category A or B shall be appointed in order to get
the valuation done. In case the difference in the valuation
arrived at by both the valuers is not more than 15 percent, the
average value is considered. In case the difference is more than
15 percent, then, a third valuer, who shall be also be a senior
valuer in the A or B category, shall be appointed and the bank /
HFI shall take an appropriate considered decision on the value.
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
15
PART B
STANDARDS
2.1
2.2
2.3
2.4
2.5
2.6
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
2.1
16
Every professional valuer shall bear in mind all the above aspects
while collecting data and conducting an analysis in order to arrive
at the value of the property.
2.2
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
17
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18
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
19
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
20
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
21
define the value being estimated and state the purpose and
intended use of the valuation, the effective date of valuation
and the date of the report
Explanations :
-
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
22
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
23
e) Disclosure Requirements
Valuation reports must be clear and unambiguous and not
misleading. Valuations conducted for the purpose of estimating
and reporting market value shall meet the requirements as
stated in this document. Reports shall contain a specific
reference to the definition of market value as set forth in this
standard, together with specific reference as to how the
property has been viewed in terms of its utility or its highest
and best use and a statement of all substantive assumptions.
In making market value estimates, the valuer shall clearly
identify the effective date of valuation, the purpose and
intended use of the valuation and such other criteria as are
relevant and appropriate to ensure adequate and reasonable
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
interpretation
conclusions.
of
the
valuers
findings,
opinions
24
and
2.3
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
25
define the value being estimated and state the purpose and
intended use of the valuation, the effective date of valuation
and the date of the report
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
26
Explanations :
Examples of bases of value other than market value are a) fair
value b) investment value c) special value and d) synergistic
value. The additional assumptions required in applying these
basis are often more specific than those required for
establishing market value as they may relate to the
circumstances of a particular party.
For this reason, a
valuation reported on one of these bases should ensure that it
cannot be construed as market value.
A basis of valuation describes the fundamental measurement
principles of a valuation. These principles may vary depending
on the purpose of the valuation. A bases of valuation is not a
statement of the method used, nor a description of the state of
an asset or assets when exchanged. Market value is the most
commonly required bases and is defined and discussed in
Standard I.
This standard defines and discusses other valuation bases
which fall into three principal categories viz.
First category - which reflects the benefits that an entity enjoys
from ownership of an asset. The value is specific to that entity.
Although under some circumstances, it may be the same as the
amount that could be realized from the sale of the asset, this
value essentially reflects the benefits received by holding the
asset and therefore, does not necessarily involve a hypothetical
exchange. Investment value falls in this category. Differences
between the value of an asset to a particular entity and the
market value provide the motivation for buyers or sellers to
enter the market place.
Second category which reflects the price that would be
reasonably agreed between two specific parties for the exchange
of an asset. Although, the parties may be unconnected and
negotiating at arms length, the asset is not necessarily exposed
in the wider market and the price agreed may be one that
reflects the specific advantages or disadvantages of ownership
to the parties involved rather than the market at large. This
An IBA NHB SPA Initiative
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
27
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
28
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
29
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
30
c) Definitions
Valuation Report This is a document, also referred to as a
written report, that records the instructions for the assignment,
the basis and purpose of the valuation and the results of the
analysis that led to the opinion of value. The results of a
valuation communicated to a client in writing, ( which includes
electronic communication) is called a written valuation report.
Written reports are detailed narrative documents containing all
pertinent materials examined and analyses performed to arrive
at a value conclusion or abbreviated pertinent narrative
documents, including periodic updates of value, forms used by
governmental and other agencies or letters to clients.
The valuation report should explain the analytical processes
undertaken in carrying out the valuation and present
meaningful information used in the analysis.
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
31
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
32
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
33
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
34
the valuer
requirements
has
satisfied
professional
education
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
reflect an independent,
circumstances.
unbiased
and
fair
view
35
of
the
e) Disclosure Requirements
If a valuer is involved in a valuation assignment in a capacity as
an independent consultant, the valuer should disclose the same
in writing.
The valuer shall disclose the regulatory framework and any
departure required, if any, from these standards, to comply with
local legislation, regulation or custom.
f) Departure Provisions
Any departure from this standard for whatever reason shall be
clearly stated in writing in the valuation report alongwith the
reasons and justification for the same.
The special
circumstances which have warranted a departure from
established norms needs to be adequately explained.
2.5
Code of Conduct
All valuers empanelled with banks and housing
institutions shall strictly adhere to this code of conduct :
finance
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
36
2.6
a) Introduction
The objective of this application is to provide a framework for
valuation of properties that are placed as security for procurement
of a loan. It is necessary for valuers to consistently apply the basic
valuation concepts and standards and provide a clear and objective
opinion on the value of the property concerned.
b) Scope
This application covers situations where valuation is required of
properties which are or are proposed to be held as security for
lending by way of mortgage.
c) Definitions
Market value The definition of market value is as defined in
Standard I of this document.
Mortgage This term is generally understood to be a pledge of an
interest in property as security or collateral for repayment of a loan
with a provision for redemption on full repayment. In the event the
borrower defaults, the lender has the right to recover the loan by
disposing the property pledged through a due process of law.
d) Application
In performing valuations of properties for lending purposes,
valuers will normally adopt the market value of such property in
accordance with the standards given in this document.
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
37
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
38
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
39
e) Reporting Requirements :
In reporting market value for lending security purposes, the valuer
shall make all disclosures as required under the standard on
Valuation Reporting.
f) Departure Provisions :
In following this application, any departures must be in
accordance with provisions in the standard on Valuation
Reporting.
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
40
PART C
PROCEDURES
3.1
3.2
3.3
3.4
3.5
3.6
Procedure
Procedure
Procedure
Procedure
Procedure
Procedure
for
for
for
for
for
for
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
3.1
41
3.2
3.3
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
42
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
3.5
43
3.6
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
44
ANNEXURE
ANNEXURE 1
Format of Valuation Report
( for all properties of value more than Rs. 5 crores )
S.No.
Chapter
Introduction
II
Physical
Characteristics
of the Property
III
Town Planning
Parameters
IV
Legal Aspects
Content
1.
2.
3.
4.
5.
6.
Name of Valuer
Date of Valuation
Purpose of Valuation
Name of Property Owner/s
Name of Bank/HFI as applicable
Name of Developer of the Property
( in case of developer built properties )
1. Location of the property in the city
2. Municipal Ward No.
3. Postal address of the property
4. Area of the plot/land ( supported by a plan )
5. Layout plan of the layout in which the property is
located
6. Details of Roads abutting the property
7. Demarcation of the property under valuation on a
neighbourhood layout map
8. Description of Adjoining properties
9. Survey no. if any
10. Details of the building/buildings and other
improvements in terms of area, height, no. of floors,
plinth area floor wise, year of construction, year of
making alterations/additional constructions with
details, full details of specifications to be appended
alongwith building plans and elevations
11. Plinth area , Carpet area and Saleable area to be
mentioned separately and clarified
12. Any other aspect
1.
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
of the Property
1.
2.
3.
4.
5.
45
13.
Ownership documents,
Names of Owner/s
Title verification,
Details of leases if any,
Tenureship in terms of freehold or leasehold,
Restrictive covenants if any,
Agreements of easements if any,
Notification for acquisition if any,
Notification for road widening if any,
Heritage restrictions if any.,
All legal documents, receipts related to electricity,
water tax, property tax and any other building taxes
to be verified and copies as applicable to be enclosed
with the report,
Comment on transferability of the property
ownership,
Building plan sanction, illegal constructions if any
done without plan sanction/violations.
Any other aspect
1.
2.
3.
4.
5.
6.
7.
6.
7.
8.
9.
10.
11.
12.
Economic
Aspects of the
Property
VI
Socio-cultural
Aspects of the
Property
VII
Functional and
Utilitarian
Aspects of the
Property
VIII
Infrastructure
Availability
IX
Marketability
of the Property
Locational attributes
Scarcity,
Demand and supply of the kind of subject property.
An IBA NHB SPA Initiative
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
Engineering
and Technology
Aspects of the
Property
46
Type of construction,
Materials and technology used,
Specifications,
Maintenance issues,
Age of the building
Total life of the building,
Extent of deterioration,
Structural safety
Protection against natural disasters viz. earthquakes,
Visible damage in the building if any,
Common facilities viz. lift, water pump, lights,
security systems, etc.,
12. System of airconditioning,
13. Provision for fire fighting,
Copies of plans and elevations of the building to be included.
1. Use of environment friendly building materials, Green
building techniques if any,
2. Provision for rain water harvesting,
3. Use of solar heating and lighting systems, etc.,
Presence of environmental pollution in the vicinity of
the property in terms of industries, heavy traffic, etc.
XI
Environmental
Factors
XII
Architectural
and aesthetic
quality of the
property
XIII
Valuation
XIV
Declaration
b)
c)
d)
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
47
e)
f)
g)
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
48
ANNEXURE 2
Format of Valuation Report
( for all properties of value upto Rs. 5 crores )
1
Customer Details
Name
Apl.No.
Case Type
Property Details
Address
Nearby Landmark
Document Details
Layout Plan
Yes/no
Building Plan
Yes/no
Construction Permission
Yes/no
Legal Documents
Yes/no
Physical Details
Adjoining
East
Properties
Matching of Boundaries
No. of rooms
Total no. of
floors
6
7
8
List of Documents
West
Yes / no
Living / Dining
Stage of construction
Stage of construction
Violations if any observed
Nature and extent of violations
Area Details of the Property
Site area
Plot
demarcated
Bed rooms
Yes/no
North
South
Approved
Landuse
Toilets
Type
of
Property
Kitchen
Floor
on
which the
property is
located
Approx.
age of the
property
Owned / Rented
Plinth area
Valuation
10
11
Declaration
1)
2)
Approval
No.
Approval
No.
Approval
No.
Residual
age of the
property
Plotted
Flat
Type
of
structure
RCC
framed /
Stone / BB
masonary
Relationship
of tenant to
owner
Carpet
area
Saleable
area
Remarks
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
3)
12
Name,address
& signature of
Valuer
List
of
Documents
enclosed
List of Photos
enclosed
13
14
49
The information furnished herein is true and correct to the best of our knowledge.
Date
of
valuation
Signature of the Valuer
ANNEXURE 3
Terms of Engagement for Empanelment of Valuers
Empanelled valuers shall be engaged by the banks / HFIs on the
following terms :
-
Time for undertaking the work the time for completing the work shall
be as prescribed in the Handbook on Policy, Standards and Procedures
for Real Estate Valuation by Banks and HFIs in India, 2009 issued by
the Indian Banks Association and the National Housing Bank.
Duties of the Valuer- the valuer shall perform his duties as described in
the above Handbook
The valuer shall ensure that the employees of his organization also follow
the policy of confidentiality and non disclosure.
The Bank/HFI shall procure from the owner and provide to the Valuer,
copies of key documents such as the sale letter/sale deed/water
bill/electricity bill/particulars of the owner/rental agreement/lease
deed/plans of the building as applicable, alongwith the Appointment
Letter to the Valuer. All other documents have to be procured by the
Valuer.
An IBA NHB SPA Initiative
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
50
The valuer shall complete the assignment within the stipulated time
period as agreed to in the Appointment Letter.
In case the Valuer takes up the assignment but does not deliver the
Valuation Report in a reasonable amount of time even after three
reminders, the bank shall take necessary steps to recommend the case
for adjudication by the Conflict Resolution Committee and in the
meanwhile, appoint another Valuer to undertake the assignment.
The Valuer shall not sub-contract the work to any other Valuer but shall
carry out the work himself.
Both the parties ie. The Bank/HFI as well as the Valuer shall fully abide
by the policy, standards and procedures laid down in the Handbook.
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
51
ANNEXURE 4
Format of Undertaking to be Submitted by the Valuer for
Empanellment
UNDERTAKING
I,
...................................................................................son
/
daughter
of ... do hereby
solemnly affirm and state that
-
I am a citizen of India,
I have not been removed / dismissed from service/ employment
earlier,
I have not been convicted of any offence and sentenced to a
term of imprisonment,
I have not been found guilty of misconduct in professional
capacity,
I am not an undischarged insolvent,
I have not been convicted of an offence connected with any
proceeding under the Income Tax Act 1961, Wealth Tax Act
1957 or Gift Tax Act 1958 and
My PAN Card number / Service Tax number as applicable is
.
Dated :.
Signature.
Name.
Address.
An IBA NHB SPA Initiative
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
52
.
.
.
Appendix 1
IBA Sub-Committee on
Mortgage and Valuation of Property
Convenor
Shri S Sridhar
Chairman & Managing Director
Central Bank of India
and
National Housing Bank
Members
Shri D C Jain
Chief General Manager Head Audit
IDBI Bank
Shri D S Anandamurthy
General Manager
Canara Bank
Shri S N Mishra
General Manager
Indian Overseas Bank
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
53
Shri V Ramchandran
Sr. Vice-President
Appendix 2
IBA Steering Group on
Project on Developing Valuation Standards
for Real Estate Financing in India
Steering Group Members
Shri P K Ramaswamy Iyer
Dy. General Manager
Bank of Baroda
Shri T Surendranathan
Asst. General Manager
Canara Bank
Shri P S Joshi
Asst. General Manager
Union Bank of India
Shri M C Rustagi
Asst. General Manager
Punjab National Bank
Shri V Ramchandran
Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India, November, 2009.
54
Sr. Vice-President