All India Webinar cum Press Conference on Valuers Draft Bill-2020
FAKE VALUERS & BLACKMONEY, CURSE FOR BANKS & INDIAN ECONOMY
Techno Reporter: An AGM cum National level seminar on Valuers of Properties & Legal Aspects was organized by the Youngest, Most Dynamic, Reputed & Renowned organization of Engineers & Valuers “Council of Engineers & Valuers” (CEV) through online mode at JALANDHAR .
Around 100 valuers from different parts of country participated in the seminar.
Er. Sundeep Bansal, General Secretary informed media that as per the Gazette Notification of Ministry of Finance, it is mandatory for banks & financial institutions to get valuation from Valuers Registered u/s 34AB of Wealth Tax Act, 1957.
After receiving information from reliable resources in regard with Incompetent persons registered as Approved Valuers, team of Council of Engineers & Valuers under the provisions of RTI Act 2005, demanded the record of valuers at Office of CCIT at Ludhiana, Amritsar & Panchkula and have reported many discrepancies for immediate necessary action. Regular follow up with MoF & Income Tax department is being done by Council of Engineers & Valuers. To eradicate the problem of fake valuers in society, Engineers Bill & Valuers Bill are need of the hour & taking first ever step in the history of Professional Organizations/associations in India, team of CEV has sent several representations in Parliament of India in the recent past & have sent several Petitions for Engineers Bill & Valuers Bill in different government departments & platforms. CEV has been appointed as a Stakeholder by AICTE on “Professional Engineers Bill”.
Er. Sundeep Bansal further informed media it is well known fact that lot of black money is involved in Real Estate Sector due to major difference in Prevailing Market Rates & Collector Rates. Most of the transactions in India are done at collector rates, which are ultimately causing revenue loss to States as well as Central Govt. Our Hon’ble Prime Minister Sh. Narender Modi has shown great concern to eradicate the problem of blackmoney involved in real estate. On demand of objections to collector rates by Govt. of Punjab, Council of Engineers & Valuers Jalandhar has submitted representation Through Deputy Commissioner, Jalandhar to increase collector rates to realistic value & decrease stamp duty accordingly to motivate investors to invest in white money. All the members of Council of Engineers & Valuers are always ready to support Revenue Department for betterment of Indian Economy.
Er. Sundeep Bansal, also Chairman R & D said that Valuers are backbones of Banks. Since value of any property for banks & financial institutions is relied upon the Valuation report given by Approved Valuers, it is fundamental duty of valuers to follow the mandate and practice ethically for growth of Indian Economy. Govt. of India is taking steps to curtail blackmoney involved in Real Estate Sector and Valuers must perform their duties honestly. Unity is the key of Success & with unity & ethical practice, fraudulent persons will find hard to cheat banks.
He added that we, wish to introduce our self as Council of Engineers & Valuers Group of Organisations working for welfare & professional upliftment of Engineers & Valuers in India serving the nation with the following organisations & institutions: –
Registered Trust in the name of CEV Professional Development & Educational Trust (CEV PDE Trust), Registered under Indian Trusts Act-1882, ISO-9001 Charitable Organisation Registered with NITI AAYOG, Ministry of Planning, Registered with UDHYAM, Ministry Of MSME, Government Of India.
Registered Trust in the name of CEV Charitable Institution Trust (CEV CI Trust), Registered under Indian Trusts Act-1882, ISO-9001 Charitable Organisation Registered with NITI AAYOG, Ministry of Planning, Registered with UDHYAM, Ministry Of MSME, Government Of India.
Council of Engineers & Valuers a Trademark registered organization with Controller General of Patents Design & Trade Marks, Government of India the Youngest, leading & most popular association Registration under Societies Registration Act (XXI of 1860) of Government of India, Registered with NITI AAYOG, Ministry of Planning, Registered with UDHYAM, Ministry Of MSME, Government Of India.
Licensed Registered Section-8 Company in the name of CEV INTEGRAL APPRAISERS FOUNDATION (Registered under Section-8 of Company Rules-2013 under Ministry of Corporate Affairs, Government of India), Registered with NITI AAYOG, Ministry of Planning, Registered with UDHYAM, Ministry Of MSME, Government of India.
CEV IAF is a member of INTERNATIONAL VALUATION STANDARDS COUNCIL, UNITED KINGDOM.
Registered Valuers Organization (CEV IAF RVO) Recognition Number-IBBI/RVO/2018/010, being a recognized Registered Valuers Organization by the Insolvency and Bankruptcy Board of India (IBBI) as per the provision of the Companies (Registered Valuers and Valuation) Rules, 2017
CEV Integral Association of Journalists & Reporters Registration under Societies Registration Act (XXI of 1860) of Government of India,
Publishing its own News Paper named CEV TECHNO NEWS (Publication license from Registrar of News papers in India, Ministry of Information & Broadcasting, Government of India).
All the organisations running under the banner of Council of Engineers & Valuers are having following identifications:
All having ISO-9001:2015 QMS Certification,
All having Registration with Ministry of Micro, Small & Medium Enterprises (MSME), Government of India.
Registered with NITI AAYOG, Ministry of Planning, Government Of India.
With more than 2500 members throughout India and abroad and increasing day by day.
Nationwide spread of its technical members network throughout India.
More than 12 Chapters in different major cities in India.
Two Zonal headquarters viz. Mangaluru as Zonal Headquarter of South India & Bhopal as Zonal Headquarters of Central India.
Er Raman Verma Co-ordinator, Patiala Chapter, Er. H S Sekhon Co ordinator Ludhiana Chapter gave lecture on regarding important aspects to be considered while preparing Valuation Report for various purposes.
Besides above, Er. Amarjit Sharma, Patron, Er Sunil Puri Chapter Head, Ar Madhu Garg, Er J S Josan & Ar Mohita Garg from Chandigarh, Dr. Rajwinder Singh, Er Rajesh Kumar, Er Partap Chand from Jalandhar, Er. Sushant Dhoot, Er Rahul Bajaj from Maharashtra, Er. Vijay Kumar Singh, upender Kishore, Shamsunder Bhartia & Er. Sanjiv Shankar from Bihar, Er. Ajay Mittal from Haryana, Er. Amit Gupta, Er Ajay Kaushal, Er P S Virdi & Ar Lokesh Gupta from Patiala, Er. Arpit Aggarwal, from Dehradun, Er. Vineet Garg from Bathinda, Ar Gunjan Rajdev, Er H S Sekhon, Er D Raheja, Er Varun Chandhok from Ludhiana, Rita Minhas from Shimla, Er Dilip Bilani from Gujrat, Er D Karthikeyan From Coimbatore, Er Naveen Bansal, Er Vikas Chopra, Er Kishore Sharma and many others from different parts of Country were present in the seminar.
We had a very successful discussion in the webinar about the Valuers Draft Bill-2020 & The draft Valuers Bill 2020 is expected to be passed soon, Dr Rajwinder Singh, President of the Council of Engineers & Valuers (CEV INDIA), said here on Sunday.
Dr Rajwinder Singh told in the press conference that a Committee of Experts formed by the Central Government had taken inputs from all the stakeholders and drafted the bill. There is a delay in the bill getting the nod because of the pandemic and is expected to be passed soon, even in the next session of Parliament. When passed, the valuation profession will get regularized.
There will be continuous education programs for the professionals and standards will come into place for valuation. Other countries have their own standards for valuation of various assets. “It (standards) will come with the Valuers Bill. It is part of the bill,” he said.
Earlier, speaking at the AGM of the CEV India here, he said that when the Bill is enacted, the valuers will understand the value of the profession. “India will become a “Global valuation hub” he said.
Er Sundeep Bansal, General Secretary of the governing board of CEV, urged the valuation professionals to adopt the advances in technology to capitalize on the opportunities.
He added that a National Institute of Valuers will be formed to offer courses in valuation. This year, the CEV has started entering into Memorandum of Understanding with educational institutions to give an insight to students into the opportunities available in the valuation profession. The organization has entered into an agreement with Mehr Chand Polytechnic college, TERII COLLEGE & various other Universities & colleges here.
For conducting different education programs, CEV is having Memorandum of Undertaking MOU with various prestigious & renowned institutions like :-
PPDC, MSME-Technology Development Centre, Ministry Of Micro Small & medium Enterprises.
Mehr Chand Polytechnic College, Jalandhar.
Baba Farid Group Of Institutions, Bhatinda.
Guru Nanak Dev Polytechnic College, Ludhiana.
Technology Education & Research Institutions, Kurukshetra.
DHC International Gem Lab & institute.
Youth Hostel, Burlton Park, Jalandhar.
Shining Star Sr Sec School, Jalandhar.
Career Motives Institute, Jalandhar.
Castor Training Academy, Jalandhar.
Opulent Technologies, Chandigarh.
The number of approved valuers in the country is about 30,000 and registered valuers is nearly 3500. The number is increasing day by day, he added.
RV CA Ankit Goel, Executive Member, CEV & Partner, AAA Valuation Professionals (I) LLP added that the Draft Valuers Bill is a product delivered by IBBI and Dr M S Sahoo (Chairman) after very thorough research on the subject. Anyone who has read the more than 1500 page committee of Experts report on the subject will understand that.
I am eagerly waiting for the bill to become an act. I expect the proposed regulatory framework to bring positive change the valuation profession in India. Consumers for valuation services will have more value for services provided by valuers when there is regulation to create deterrence for issue of casual or non-professional valuation reports. I also expect Indian Valuation Professionals to be recognized across the world under the new regulatory feedback.
Er. Vidya Prakash Agarwal B.Tech ( Civil), M.Engg, Fellow Institution of Engineers, Chartered Engineer (IEI), GOI App. Valuer Cat I, Founder Member, Patron & Executive member of the organization added that the Ministry of Corporate Affairs has attempted to set into motion a process that gives credibility to the profession of Valuation of assets by making a Draft Valuers Bill 2020 which intends to set up a framework to regulate the practice of Valuation. So far the assets of various classes were valued, under guidelines issued by Ministry of Finance, by appropriately qualified individuals Registered under the Wealth Act. But now with setting up of IBBI under IBC (2016), it became imperative that assets of companies be valued by individuals who have taken Registration with IBBI.
This in my humble opinion is the only way forward to establish a niche group of Registered Professional having proper qualifications, experience and have undergone the requisite 50 hour training through a RVO and passed an examination conducted by IBBI. Reports submitted by such Regd Valuers will definitely improve the credibility of asset valuation for the financial institutions desiring fair valuation of company assets.
Some key features of Draft Valuers Bill, 2020 as explained in this seminar are (after passing on official Gazette by CG, the same will be called as Valuers Act, 2020) Overriding Effect : Valuers Act, 2020 has overriding effects – That means, the proposed act will override any other law if there is anything inconsistencies in other existing laws. What about Existing Valuations which are required by various laws? The first question comes to our mind is that, what about the present valuations carried on by different valuers, registered under different laws, having different skill sets and in majority of cases, there is no regulatory body for their governance And,
Whether this new Act has any impact on the same? The answer to that is YES !!! Let me clarify on this, that, Valuers Act, 2020 is suggesting a new era of India where Governance is a pre-requisite. Government has the clear intent of making a common Valuation Institute / Governance / Authority /Regulations etc across India. So that, a valuer can be regulated, inspected and if need arise, can be punished for professional misconduct. Far-reaching impacts can be understood from the below paras: –
It has been drafted that, with effect from such date as the C.G. may appoint, the Companies (Registered Valuers and Valuation) Rules, 2017 made under Section 247 of the Companies Act, 2013 shall stand rescinded. Related changes are suggested in Companies Act, 2013.
Valuation Services has been defined in great detail and it means the services relating to valuation of any asset or liability which is required under the following provisions of-
(i) the Banking Regulation Act, 1949 (ii) the Securities Contacts (Regulation) Act, 1956 : SCRA (iii) the Wealth Tax Act, 1957 (iv) the Income Tax Act, 1961 (v) the Securities Exchange Board of India Act, 1992 (vi) the Insurance Regulatory and Development Authority Act, 1999 (vii) the Foreign Exchange Management Act, 1999 (viii) the SARFAESIA Act, 2002 (ix) the Prevention of Money Laundering Act, 2002 : PMLA (x) the Limited Liability Partnership Act, 2008 (xi) the Companies Act, 2013 (xii) the Pension Funds Regulatory and Development Authority Act, 2013 (xiii) the Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act,2015 (xiv) the Insolvency and Bankruptcy Code, 2016 or (xv) any other law, as may be prescribed.
As per opinion of experts in the seminar, this proposed act has covered 15 different acts for the purpose of valuation. And, after passing of OG, valuer under this new act will have wide applicability. At present, valuation practise, which is directly under regulation is as per Companies Act, 2013. Which covers valuation cases for various company matters and also for cases under IBC, 2016. Other 12 are out of the regulations and are presently handled by unregulated practitioners!! What is Proposed New Model of Governance?
National Institute of Valuers : NIV
It’s a special regulatory body under the new Act like, IBBI for IBC-2016. Till that time, IBBI will act at the Institute. Will notify the valuation standards and has role as a regulator, promoter, creating market for valuation services and to protect interest of users of valuation services. It has inspection & investigation rights. NIV decides about Asset classes, add or delete asset class etc – for the purpose of education, examination and Registration of valuers.
Valuation professional organizations : Like any RVO. Shall not act as Valuer.
Valuers – Individuals and Valuer Entity. Total 4 class of valuers.
a) Valuation Entity,
b) Associate Valuer upto 5 years of practise as valuer under the act,
c) Fellow valuers having more than 5 years of practise as valuer
d) Honorary valuer = person having extra ordinary contribution. But he shall not render Valuation services.
Valuer Institute – will deliver educational courses. Shall not act as Valuer.
Some Important Proposals :
Separate Degree “AV” “FV” and “HV” will be allotted to valuers as Prefix.
Draft has the provision to allow Big4s as Multi-disciplinary firms !
All Existing Valuers under Company law 2013 under companies ( Registered Valuers and valuation ) Rules, 2017 – shall be deemed to be an Associate valuers registered under this act.
Valuer can get the opinion from the other valuer only when, that valuer is not dealing in same class of assets. Otherwise, the same may tantamount to outsourcing.
Valuer can get the Expert Assistance from CA, ICWA, CS or any other person who is not a Valuer.
Section 59(7) of the proposed draft, states that, a valuation report shall not carry a disclaimer or condition, which has potential to dilute the responsibility of the valuer under this Act or makes the valuation unsuitable for the purpose for which the valuation was conducted.
Valuation report shall be admissible as expert evidence as per Evidence Act, 1872.
Two Schedules are proposed for professional misconduct of Valuers.
1st Schedule deals with deemed professional misconducts which are not sever but which may lead to penalty extending to Rs 2 Lakh or 3 times the amount of loss – Being higher of the two.
2nd Schedule deals with deemed professional misconducts which are more sever and which may lead to penalty extending to Rs 10 Lakh or 3 times the amount of loss – Being higher of the two.
Criminal complaint can be lodged against valuer for misconducts listed in 2nd Schedule of the proposed draft.
It is expected to have full fledged Valuers Act, 2020 in the near future with required changes in the area of deletion of criminal liability, reduction of penalty clauses etc.
Surely, the Government has done a fantastic job to have an idea of having full fledged “Valuation Professionals” and a separate act dedicated for new breed of professionals.
