POINTS TO BE REMEMBERED BY A PANEL VALUER OF A BANK

KNOWLEDGE BANK FROM B KANAGA SABAPATHY

LET KNOWLEDGE SPREAD

Message from B. K. sir 16.03.2023

Points to be remembered by a panel valuer / SARFAESI valuer if he wants to be safe against any criminal proceedings at any future date :

1. Value varies with purpose. Do not forget to mention the purpose of valuation before you proceed with preparing a valuation report.

2. Verify the identification of the property correctly. Perusing the legal opinion first before doing valuation and enclosing the copy along with your report will be ideal in the long run.

3. Never release the valuation report without physical inspection of the property under valuation.

4. There is nothing wrong in having many branches, but see that you can physically inspect all the properties.

5. Do not rely totally ON any report prepared by your sub-ordinate especially if they are non – technical staff. Counter check thoroughly.

6. Do not certify the market value of large extent of land by adopting sq.ft. rate of a plot in a newly formed layout. Be cautious if you want to use development method.

7. While certifying the value of any flat, counter check the value (or the composite rate) by rent capitalisation method also.

8. When there is a huge difference between guideline rate and prevailing market rate, record the values by both methods and explain why there is a difference.

9. Don’t do inflated valuation keeping in mind about the fees you are going to receive. Never be greedy for a quick money. Greediness is always dangerous.

10. When you do valuation of a property in a specific place, do not rely totally on the legal opinion issued by a lawyer from other place.

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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