IMPORTANCE OF LEGAL ASPECTS OF VALUATION TECHNICAL WEBINAR BY ALL INDIA VALUERS ASSOCIATION (AIVA)

IMPORTANCE OF LEGAL ASPECTS OF VALUATION TECHNICAL WEBINAR BY ALL INDIA VALUERS ASSOCIATION(AIVA)

    Article by:-Vr. Mainak Ghosal (Prof), Consultant Indian Banking & Consultant Industry & Member of Council of Engineers & Valuers

LUCKNOW 14th MAY (CTN NEWS): Recently on 14th May 2022, a technical webinar on the above topic was organized in pursuance of AIVA’s policy of conducting online webinars every 2nd Saturday of every month.

The webinar started at 6.20 PM with Hon’ry President, AIVA, Mr. Shyam Sunder Dash citing that recently many controversies were raised regarding the issue of the Indemnity bond clause that was being made a part and parcel of Banks’ empanelment policy and hence the topic of legal aspects was chosen.

The Guest of Honour was Shri P.K. Kanaujiya (retd. Circle head of PNB) who with his 37 years of experience in PNB suggested that the experienced valuers should keep in mind 3 aspects before valuing any property due to deteriorating asset qualities.

P.K. KANAUJIYA (RETD. CIRCLE HEAD OF PNB ) DELIVERED THE GUEST LECTURE WHILE PRESIDENT, AIVA,  MR.S.S.DASH LOOKS ON FROM BEHIND

They are – proper identification of the property (at least one independent inspection by the Valuer without taking the help of Borrower/Bankers), GPS (latitude/longitude) verification of it, and lastly to conduct a realistic valuation of a property via prevalent circle rates recounting his vast experience with Mr. Dash.

Next Er.O.P. Sharma of Lucknow who is an Electrical Engineer by profession & Fellow Member of the Institution of Engineers (India) & Institution of Valuers with 4 years of overseas experience talked about the threats to Plant & Machinery(P&M) valuation like less scope of work, poor fees, lackadaisical approach by Bankers, Non-availability of relevant documents, etc. as a result of which P&M valuers are shifting to Land & Building valuation.

He further added that in the majority of P&M valuations the correct prices of machines can’t be ascertained as the invoices are inflated along with the other relevant information/documents regarding the design of machines, control & automation rules, safety rules, Intellectual property rights, and energy efficiency, suppliers’ protocols, operating & maintenance records, etc., etc. are also not available.

He ended by saying that P&M valuers are not shown the actual machine but are called when it goes NPA so actual normal valuation can’t be carried out.

The 3rd speaker was Shri O.P. Verma from Delhi who talked about legal aspects like Indemnity & Tort, their differences, similarities, applications in Banking valuations, etc., etc. and ended by citing a recent Bombay High Court judgment.

Whereby during hearing a petition against SBI, the HC observed that the ‘indemnity clause doesn’t hold the valuer to a higher standard of care & secure SBI’s interest by way of express contract rather than SBI having to base any action only on a tortuous or civil action of professional negligence or fraud’.

The 4th speaker Shri Anand Singh from Kanpur reiterated that though the indemnity clause has yielded any major casualties so far, in the future, no guarantee holds good and thus stressed the issue of insurance to safeguard from indemnity.

He added on to say the valuers have little knowledge about the legal aspects and many AIVA members have already signed indemnity bonds but refrain from any signing before carefully cross-checking the documents.

Last but not the least, Prof.Vr. Mainak Ghosal from Kolkata lectured about the legal conformity of Indian Valuation reports and that though there are so many statutes safeguarding real estate valuation, they have poor implementations and about the mushrooming of professional bodies, he added that they lacked acceptability standards.

He hoped that the Valuers’ Bill sees the light of the day not like the Engineers’ Bill which is still in a pipedream for more than 2 decades. The meeting ended with a vote of thanks by Jt. Secretary, AIVA.

 

 

🔹 *PROFESSIONAL WORLD*
👉👉 SUBSCRIBE FOLLOWING PLATFORMS TO STAY UPDATED FOR ALL EMPANELMENT & PROFESSIONAL NEWS
1. WWW.VALUERSCLUB.COM
2. WWW.ENGINEERSCLUB.IN
3. https://t.me/+dbHNkNO22xsyYTY1
4. https://twitter.com/cevindia?t=XbqlvnwUVz1G3uPgs749ww&s=09
5. ADD 9872777297 IN YOUR WHAT’S APP GROUPS TO GET ALL UPDATES & EMPANELMENT NEWS REGULARLY

 

error: Content is protected !!
%d bloggers like this: