VALUER SHOULD BE EXTREMELY CAREFUL, DILIGENT & RESPONSIVE SAYS AUTHORITY IBBI
In the instant matter, the SBI had made a complaint to CBI on 4th January 2021 requesting it to lodge the complaint and carry out a detailed investigation into the fraudulent activities committed intentionally and knowingly by Shri. Paruchuri Kumar and his family members in collusion with the advocates, valuers, Sri Abdul Rawoof Pasha, and other unknown persons under relevant provisions of Indian Penal Code, 1860 (IPC) and to take action against the persons found guilty as per the provisions of IPC.
The CBI on the basis of the said complaint registered an FIR bearing no. RC0352021A0003, dated 10th February 2021 under sections 420, 468 and 471 of IPC read with sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988. In the FIR, it has been alleged that Mr. Paruchuri Kumar colluded with the valuers with malafide intention to project highly inflated valuation for the said properties offered as security and reports submitted by her for the purposes of obtaining a loan of Rs. 5.10 crore.
The inflated valuation report with an abnormally high value of 350-400% higher than the registered sale value was obtained even prior to the submission of loan document which fortifies the collusion. The SBI complaint mentioned names of valuers including Ms. Rani.
The Authority notes that prior to the SCN, the IBBI vide emails dated 30th April 2021 and 09th May 2021 requested Ms. Rani to provide necessary documents in the matter to which no reply was given by her. After which the SCN dated 25th May 2021, was issued to which no reply was given by Ms. Rani. Again, a reminder email dated 2nd September 2021 was sent to Ms. Rani to submit a reply to the SCN but she did not reply. She attended the hearing on 21st December 2021.
Thereafter, she replied to SCN on 28th December 2021. The Authority further notes that Ms. Rani replied to the emails of IOVRVF in this matter but she did not respond to IBBI in respect to the SCN.
The Authority notes from the submission of Ms. Rani that she was not aware of the SCN issued against her as she did not check her emails regularly. During the hearing, she checked her email and confirmed that she received reminder emails to file a response to the SCN.
The Authority further notes from her submission that there were some problems in her computer system because of which she was not receiving emails from various senders.
The Authority also takes note of the apology by Ms. Rani for the delay in submitting the explanation to the SCN. Regarding the FIR filed by the CBI, the Authority notes the submission of Ms. Rani that she received the information regarding the FIR from IOVRVF and received no communication from the CBI.
Accordingly, she submitted a reply to the IOVRVF. The Authority notes from her submission that she did not submit any report containing the inflated value of the property to SBI.
The Authority further notes that in the FIR registered by the CBI, Ms. Rani has not been named as accused. Further, vide letter no. DPHYD2021/C2/RCHYD2021A0003/1138 dated 21st June, 2021, the CBI informed the Grievance Officer of IOVRVF that “Smt. J Esther Rani is not an FIR accused and as of now, there is no direct allegations on her. The case is under investigation.” Hence, contraventions alleged in the SCN do not appear to be established.
In view of the above, the Authority in the exercise of powers conferred vide notification of Central Government no. GSR 1316(E) dated 18th October 2017 under Section 458 of the Companies Act, 2013 and in pursuance of rule 15 and rule 17 of the Companies (Registered Valuers and Valuation) Rules, 2017, disposes of the SCN without any direction and advises Ms. Rani should be extremely careful, diligent, and responsive while performing duties as a registered valuer under the Valuer Rules.
The Order no-IBBI/Valuation/Disc./02/2022 Dated-24th February 2022 disposes of the Show Cause Notice (SCN) dated 25th May 2021 issued to Ms. Esther Rani Jakkula, who is a member of the IOV Registered Valuers Foundation (IOVRVF) and registered with the Insolvency and Bankruptcy Board of India (IBBI) as a valuer in the asset class of Land and Building with the registration number IBBI/RV/02/2019/11747.