KNOWLEDGE BANK FROM B KANAGA SABAPATHY
LET KNOWLEDGE SPREAD
Message from B. K. sir 24.03.2023
Question :
It is a newly constructed marriage hall. Mr. X is the owner of the land of 1 acre and he has given the land on lease for 15 years to his wife Mrs. Y. The land is situated on the main road. Mrs. Y has constructed a marriage hall after obtaining loan from the bank. The bank has directed me to issue valuation report. How to value the property consisting of lease land and the building?
Opinion :
• I think you are unable to understand the scope of valuation.
• The bank has given loan for the construction of a marriage hall to Mrs. Y and she has constructed the building. It is a primary security.
• Since the construction is fully completed, the bank has directed the panel valuer to issue completion certificate indicating the cost incurred by the borrower in the construction.
• For primary securities, cost is to be certified.
• Certifying the value of land is not in the scope.
With best wishes,
B. KANAGA SABAPATHY
bkvaluer@gmail.com
www.bkanagasabapathy.com
About the Author:-
- Mr. B. Kanaga Sabapathy born in 1951, is a Civil Engineer who belongs to the 1972 batch of Regional Engineering College, Tiruchirappalli in Tamilnadu.
- He is a Registered valuer of the Central Board of Direct Taxes, a Professional Engineer and also a Chartered engineer. Valuation is his main profession..
- He was the National Vice-President of the Institution of Valuers (India) for 11 terms.
- He is a regular contributor of articles in the Indian Valuer Journal from the year 1985. His articles especially his regular column “Questions & Opinions” are very popular among the practising valuers in India.
- His book “Guidelines on Valuation for Banks” (2002) is used to be referred by many banks. The valuation formats designed by him were accepted and adopted as the formats by many banks in the country.
- His son K. Arun and daughter B.K. Aruna are also approved valuers and they also contribute articles to the Indian valuer journal.
- His guru: Mr. C.H. Gopinatha Rao, Chennai.
- His mentor: Mr. R.K. Gandhi, Mumbai.
- His role model: Mr. S. Rajaratnam, Chennai.
- His best students: Thousands of valuers in the country
