STANDARD PROCEDURE FOR EMPANELMENT OF VALUERS

1. Criteria for Empanelment of Valuers

The empanelled valuers shall carry out valuation of different types of assets as under:

— Land and Building

— Plant & Machinery
— Stocks and Trade
— Agricultural Land

Based on the guidance note of the Working Group of IBA, it is recommended that Persons
possessing the following Educational Qualifications and Work Experience shall be eligible for
empanelment as valuers for different types of assets.

a) Valuation of Land & Building / Real Estate

The educational qualifications for empanelment as valuers of Land & Building / real estate from
01.01.2016 till 31.12.2019 shall be as under:

S.No. Educational Work Experience Remarks

Qualifications
1 Bachelor‘s degree in Civil 5 Years Work The Applicants with these
Engineering/ Architecture experience in the field of qualifications should preferably
/Town Planning or valuation of real estate possess an additional qualification
equivalent after completion of the
in the form of a certification
degree or equivalent
examination on or before
31.12.2019 of duration of one
semester or above in the subjects
which are vital for valuation of real
estate and not covered in course
curriculum of civil engineering,
architecture and town planning and
which is conducted by recognized
university established under state or
central Acts.

Note: The applicants empanelled

on the basis of criteria laid down
under Sr.no.1 shall be eligible for
empanelment even after 1.1.2020

2 Diploma in Civil 8 years‘ work They should preferably complete

Engineering /Architecture. experience in the field of the certification course in valuation
valuation of real estate of real Estate as prescribed under
after completion of the Sr.no.1 above.
diploma
Note: The applicants empanelled
on the basis of criteria laid down
under Sr.no.2 shall be eligible for
empanelment even after 1.1.2020
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

3 Pass in examination in 2 years‘ work

valuation of real estate experience in the field of
recognized by the Govt. of valuation of real estate
India for recruitment to after completing the
superior services or posts examination
conducted by any
institution
4 Master‘s degree in 2 years‘ work
Valuation of real estate experience in the field of
awarded by a recognized valuation of real estate
University in India i.e. after completing the
University established examination
under State or Central
Acts

5 Chartered / Professional Since the process of procurement

membership of the Royal of membership with these
Institution of Chartered organizations includes training as
Surveyors (RICS)/ an integral component, no further
American Society of experience requirement is being
Appraisers (ASA)/ prescribed.
Appraisal Institute (AI),
USA/ other Internationally
reputed institutional
players who fulfill the
criteria - obtained by
passing an examination
equivalent to
examinations mentioned
under Sr.No. (3) & (4)
above.

The Diploma Holders in Civil Engineering / Architecture are eligible for empanelment to
undertake valuations with value upto 1 crore only.

From 01.01.2020, for fresh empanelment, Preferably, only academically qualified valuers
possessing following qualifications in valuation of Land & Building / Real Estate shall be
empanelled.

(i) Post Graduate degree in valuation of real estate from a recognized university i.e. the
universities established under State or Central Acts with 2 years‘ experience in valuation
of real estate.

b) Valuation of Plant and Machinery

Educational qualifications and experience for Empanelment as Valuers of plant &

machinery:

The educational qualifications for empanelment as valuers of plant & machinery from
17.11.16 to 31.12.2019 shall be as under:
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

S.No. Educational Work Experience Remarks

Qualification
1 Bachelor‘s degree in 5 years work experience The Applicants with these
mechanical, electrical, in the field of valuation of qualifications should preferably
chemical, production, plant & machinery after possess an additional qualification
electronics,computer completion of the degree in the form of a certification
engineering,industrial or equivalent examination of duration of one
engineering etc. semester or above on or before
31.12.2019 in the subjects which
are vital for valuation of plant and
machinery and not covered in
course curriculum of mechanical,
electrical,electronics,chemical,
production,computer,industrial
engineering, and any other stream
of Engineering as required by the
Banks for conduct of valuation of
Plant and Machinery and other
equipments and which is conducted
by recognized university
established under state or central
Acts.

Note: The applicants empanelled

on the basis of criteria laid down
under Sr.no. 1 shall be eligible
for empanelment even after
1.1.2020

2 Diploma in mechanical, 8 years work experience They should preferably complete

electrical, production, in the field of valuation of certification course in valuation of
chemical, electronics, plant and machinery after plant and machinery prescribed
completion of the
computer, industrial under Sr.no.1 above.
diploma
engineering and any
other stream of The applicants Empanelled on
Engineering as required the basis of criteria laid down
by the Banks for conduct under Sr.no.2 shall be eligible for
of valuation of Plant and empanelment even after 1.1.2020
Machinery and other
equipments

3 Master‘s degree in 2 years work experience

Valuation of plant & in the field of valuation of
machinery awarded by a plant & machinery after
recognized University in completing the
India i.e. University examination
established under State
or Central Acts
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

From 1.1.2020, preferably, only academically qualified valuers possessing following qualifications
in valuation of plant & machinery shall be empanelled.

 Post Graduate degree in valuation of plant & machinery from a recognised university i.e. the
universities established under State or Central Acts with 2 years‘ experience in valuation of
plant & machinery.

c) Valuers of Agricultural land

Educational qualifications and experience for Empanelment as Valuers of Agricultural Land:

Valuer of agricultural land ought to have knowledge of following principles of valuation

 Cost, price, value and worth

 Various types of value
 Value elements – ingredients – characteristics
 Annuities – capitalization – rate of capitalization – redemption of capital
 Three approaches to value viz. Income, Market and cost
 Laws applicable to agricultural land

There are no courses available in our country to qualify as a valuer of agricultural land. Till the
courses are available the empanelment may be carried out as per criteria laid down as under:

i. he must be a graduate in agricultural science of a recognised university and must have worked as a
farm valuer for a period of not less than five years; and

ii. he must be a person formerly employed in a post under Government as Collector, Deputy
Collector, Settlement Officer, Land Valuation Officer, Superintendent of Land Records, Agricultural
Officer, Registrar under the Registration Act, 1908 (16 of 1908), or any other officer of equivalent
rank performing similar functions and must have retired or resigned from such employment after
having rendered service in any one or more of the posts aforesaid for an aggregate period of not less
than five years.

d) Valuers of Agricultural Land (Plantations)

Educational qualifications and experience for Empanelment

A valuer of coffee plantation, tea plantation, rubber plantation or, as the case may be, cardamom
plantation shall have the following qualifications, namely:-

(i) He must have, for a period of not less than five years, owned, or acted as Manager of a coffee,
tea, rubber or, as the case may be, cardamom plantation having an area under plantation of not less
than four hectares in the case of a cardamom plantation or forty hectares in the case of any other
plantation; or

(ii) he must be a person formerly employed in a post under Government as a Collector, Deputy
Collector, Settlement Officer, Land Valuation Officer, Superintendent of Land Records, Agricultural
Officer, Registrar under the Registration Act, 1908 (16 of 1908), or any other officer of equivalent
rank performing similar functions and must have retired or resigned from such employment after
having rendered service in any one or more of the posts aforesaid for an aggregate period of not less
than five years, out of which not less than three years must have been in areas, wherein coffee, tea,
rubber or, as the case may be, cardamom is extensively grown.
 Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

e) Valuers of Stock (inventory), Shares

In the case of these assets, criteria laid down as under shall be adopted:

A Valuer of stocks, shares, debentures, securities, shares in partnership firms and of business assets,
including goodwill but excluding those referred to in sub-rules (2) to (6) and (8) to (11) of Wealth
Tax Rules, shall have the following qualifications, namely,

i. he must be a member of the Institute of Chartered Accountants of India or the Institute of Cost and
Works Accountants of India [or the Institute of Company Secretary of India]; and

ii. he must have been practicing as a chartered accountant or a cost and works accountants or a
company secretary for a period of not less than ten years and his gross receipts from such practice
should not be less than fifty thousand rupees in any three of the five preceding years.

f) Valuers of Mines and Quarries:

In the case of valuation of Mines and Quarries, the valuer shall be a Graduate in Mining of a
recognized University.

However in exceptional circumstances and non availability of above mentioned category of qualified
persons, valuers with other qualification/service certificate, membership of professional and reputed
institutions in valuation may be considered. It shall be ensured that such valuers have prior
experience in valuing the type of assets being valued by them. The valuer shall have thorough
knowledge of the industry concerned and also type of assets to be valued.

1.1 Evidence of previous experience needs to be provided to the Bank while empanelling valuers
under all the above types of assets. In case of companies / partnership firms undertaking valuations,
the qualification and experience shall apply to the lead valuers of the company / all partners of the
partnership firm.

2. Disqualifying Factors: The following relevant disqualifying factors are required to be looked
into while empanelling the valuers.

a) Not dismissed or removed from Govt. Service.

b) Not convicted of an offence connected with any proceeding under the Income tax, wealth tax or
Gift tax acts.
c) No Penalty has been imposed on him under the sections of above Acts.
d) The valuer is not an un-discharged insolvent.
e) Not convicted of any offence and sentenced to a term of imprisonment.
f) Not found guilty of misconduct in his professional capacity.
g) Valuer should not have been blacklisted earlier.

3. Educational Qualifications and Previous Work Experience

It is necessary that a valuer possesses proper educational qualifications which make him competent
to carry out the task of valuation of securities. In addition, relevant work experience is also
important.

4. Minimum Age Requirement

Age is an important criterion while empanelling valuers. The minimum age for empanelment shall be
25 years and there is no maximum age limit for a valuer to remain on the panel.
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

5. Membership of Professional Bodies

It is important that a valuer actively participates in professional activities in various professional

bodies. It shall be necessary that every valuer empanelled by Banks in India be a member in good
standing of any one of the valuer associations.

6. Categories of Valuers

The objective of categorization of valuers is to ensure that whilst lesser value assignments are
handled by relatively junior valuers, the senior valuers can handle higher order valuations.

The empanelment of valuers therefore shall be in the following categories:

Sl. Category of Work Experience in Undertaking Value of property for assignment of

No. Valuers Valuation Valuation Work
1 A More than 10 years No limit

2 B More than 5 years and less than 10 Upto ` 50 crore

years

3 C Upto 5 years Upto ` 5 crore

Valuers need to furnish proof of experience. Any one of the following may be accepted as proof of
experience:

1. Letter of empanelment by any Bank / FI

2. Letter of empanelment by any Court of India
3. Registration Certificate under Wealth Tax Act, 1957
4. Letter of appointment as valuation consultant by Government of India / any State Government /
any Municipality / any Municipal Corporation
5. Letter of appointment as valuer employee by Government of India / any State Government / any
Municipality / any Municipal Corporation
6. Letter of appointment as a valuer employee by any Limited Company engaged in the business of
valuation
7. Letter of appointment as a valuation consultant by any Limited Company.
8. Letter of appointment as a valuer employee by any partnership / proprietorship / private limited
company engaged in the business of valuation for the last five years

The Experience of the Valuer shall be calculated from the date of his first empanelment with any
Bank / Financial Institution / High Court or registration under Wealth Tax Act, 1957.

7. Registration with Government

Registration with the Central / State governments is desirable but not compulsory. However, it may
be noted that for undertaking valuations under the SARFAESI Act, valuation has to be obtained from
Registered Valuer under the Wealth Tax Act (Sections 34 AA to 34 AE). While assigning /
outsourcing valuation work to valuers, it is necessary that banks take the provisions of the
SARFAESI Act into account and comply accordingly.
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

8. References

Carrying out a reference check is extremely important in order to verify the competence of a valuer.
Valuers need to submit at least 3 reference letters and banks need to verify the quality of services
provided by the valuer in the previous instances before empanelling the valuers on their panel. The
referees shall be either

(i) Bank Managers where previously the valuer had done valuations or

(ii) Companies for whom the valuer had previously done valuations.

The reference letter shall be on the letter head of the bank / financial company / any other company
where valuations have been done and shall be duly signed by a senior level Manager / Officer.

9. Other Conditions

In addition to the above, the other conditions to be fulfilled by the valuers for empanelment are as
under:

(1) The valuer is a citizen of India;

(2) The valuer has not been removed / dismissed from valuation related service (previous
employment) earlier;

(3) The valuer has not been convicted of any offence and sentenced to a term of imprisonment;

(4) The valuer has not been found guilty of misconduct in professional capacity;

(5) The valuer is not an un-discharged insolvent;

(6) The valuer has not been convicted of an offence connected with any proceeding under the Income
Tax Act 1961, Wealth Tax Act 1957 or Gift Tax Act 1958;

(7) The valuer possesses a PAN Card number / Service Tax number as applicable (Service Tax No. is
a must for Category ―A‖ Valuer).

At the time of empanelment, the valuer shall give an undertaking to this effect.

10.Empanelment procedure:

The Valuers may be empanelled under any one of the following two types:

(1) Valuers for undertaking valuations ‗Other than under SARFAESI Act‘

(2) Valuers for undertaking valuation „Under SARFAESI Act‟. In addition to fulfilling all other
eligible criteria, Valuers who are registered under Section 34 AA to 34 AE of Wealth Tax Act shall
only be empanelled under this category.

The Valuers empanelled „Under SARFAESI Act‟ may be entrusted with valuation of assets
falling under the category „other than Under SARFAESI Act‟ also but not vice-versa

The following guidelines with regard to the empanelment procedure shall be adhered to for the both
type of Valuers:

Bank shall have a year round system of receiving applications from intending valuers seeking
empanelment.
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

All applications from the valuers for empanelment shall be received by the branches/ROs in the
prescribed Format A-1 & Format A-2 and kept in a list.

 The application format and Annexure are made available on the website for easy download.
 The application shall undergo a final scrutiny and if found suitable the Regions shall prepare a
panel of the valuers who would be empanelled as and when required.
 As and when needed, the number of valuers required shall be empanelled; once
empanelled, the valuer shall remain on the panel for 5 years unless and until she/he is
removed or dismissed.
 All applications need to be accompanied by relevant documents to substantiate the educational
qualifications and experience, etc.

10.1 Authority / Procedure for Empanelment

The Authority for empanelment of both the type of Valuers is as under:

Particulars Valuers „Other than under Valuers under SARFAESI Act

SARFAESI Act‟

Authority for RLCAC-I at Regional Office CO: NPAM &LD shall place the list of Valuers
empanelment recommended for empanelment to the Board of
Directors for Approval.

Procedure for On receiving the RLCAC I at the RO level shall forward the
empanelment applications for applications with their recommendations to CO:
empanelment, ROs shall NPA Management & Legal Dept. for empanelment.
screen the application as to On receiving the applications for empanelment along
their eligibility and with recommendations from RLCAC-I, the NPA
genuineness and if eligible Management & Legal Department at Corporate
may empanel them as Office shall place before CLCAC III for screening.
valuers under the category Empanelment shall be got approved by the Board of
„Other than under Directors.
SARFAESI Act‟ ONLY.
ROs shall ensure that the
names of the applicant is not
appearing in the caution list
of Third Party Entities
(TPEs) circulated by the
IBA. The caution list of
TPEs updated from time to
time shall be obtained from
CO: Retail Credit
Department.
The names of valuers
empanelled under this
category shall be informed
to CO:NPAM &LD
immediately as per
Annexure-2
 Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

10.2. Duration of empanelment:

The duration of empanelment shall be 5 years. The services of the existing empanelled valuers may
be continued till the expiry of their term.

10.3 Authority / Procedure for renewal of services after expiry of the term:

Particulars For both the type of i.e., Valuers „Other than under SARFAESI
Act‟ & Valuers “under SARFAESI Act”
Authority for renewal RLCAC-I at Regional Offices
Procedure for Renewal On expiry of the term of service of the empanelled valuer, ROs shall
obtain a renewal request from the valuer.
Renewal of the services of the valuers on the Bank‘s list is subject to
fulfilling the eligibility criteria in terms of the revised policy
guidelines and submission of required documentary proof. However,
the quality of service provided/performance of the valuers shall be
reviewed by the committee formed at RO level in terms of para 19
mentioned below at annual intervals. If the performance is not
satisfactory, the valuer can be removed from the panel at the
discretion of the Bank. If found satisfactory the services can be
renewed for a further period of five years. List of valuers whose
services have been renewed shall be furnished to CO: NPAM&LD in
Annexure-2 immediately.

11. Compliance of Standards and Procedures

All valuers empanelled with the bank shall comply and abide by the laid down standards and
procedures and code of conduct specified in Annexure-1.

12. Independence and Objectivity

All valuers empanelled by the bank shall act with independence, integrity and objectivity. They shall
undertake all valuation works with an independent mind and shall not come under any influence of
anybody. The empanelled valuer shall also not be related to any of the personnel in the bank in the
department / division dealing with valuation work directly.

13. Obligations of the Bank with regard to empanelment of Valuers:

 All appointments / empanelment of valuers shall be done in accordance with the

provisions / guidelines / modifications stipulated from time to time.

 All instructions to the valuer are to be given by the bank in writing.

 A maximum of 10 days time shall normally be given to the valuer to carry out the
valuation. Maximum time for valuation will be mutually decided by the Valuer and
Bank depending upon the nature of the valuation job and circumstances on a case to
case basis. In case of outstation properties or in case of large property valuations,
more time shall be given, depending on the circumstances, on a case to case basis.

 No security deposits or any other indemnity money should be taken from the valuers
as security for the professional services that they provide.
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

 In case of valuations under SARFAESI Act, provisions under the Act have to be
followed.

 Where ever the value of the property is more than Rs 10 crore, Valuation shall be
obtained from two independent valuers in Category A or B. In case the difference in
the valuation arrived at by both the valuers is not more than 15 percent, the average
value may be considered. In case the difference is more than 15 percent, then, a third
valuation shall be obtained from a senior valuer, in the A category.

* where ever there are two valuations done and in case of discrepancy, third valuation is required
to be done, then, the securities shall be valued at average of the least two valuations (of the three
valuations).

14. Continuing Education

All valuers shall constantly update their knowledge base by actively participating in various
continuing education programmes including seminars, conferences, workshops, training
programmes, capacity building programmes, etc.

15. Procedure for Annual Performance Review:

The Regional Office concerned shall review the performance of the valuers every year as at 31st
December. The review report shall be placed before RLCAC I at respective ROs which is called as
Annual Valuation Review Committee (AVRV). A representative from any Recognized Institutions
of valuers/engineers/chartered accountants etc., may also be invited to the deliberations of the
committee. It will review the performance of the valuers in respect of the following points:

 Credibility
 Professionalism/ professional competence
 Integrity and fairness
 Quality of service
 Adherence to guidelines, rules and regulation
 Disqualifying factors if any stated under para 2
and recommend to CO: NPA Management & Legal Dept or CO:RMD/GAD as the case may be, for
continuity or removal of the valuer from the panel.

16. Obtaining Indemnity Bond from the approved valuers:

With an intention to protect from any loss/damage that Bank may sustain due to erroneous/ over
valuation of the assets by the valuers, an Indemnity Bond shall be obtained (Format B). All
Regional Offices are required to obtain the indemnity bond from the valuers empanelled without fail.

The valuer to be empanelled should also be intimated the following in writing:

“Your opinion/ certification would be an input for our decision making. Therefore, we would
like to state that in the event of your opinion/certification turns out to be untrue and factually
incorrect causing loss to the bank, we may seek such clarifications as may be required to
investigate the matter and fix the responsibility. In the event, if it is established that there was
gross negligence on your part or you had colluded with our customer in causing pecuniary
damage / loss to the Bank, we may recommend your name for including in the caution list
being maintained by the Indian Banks‟ Association for circulation amongst member banks.
The Association has been mandated by the RBI to do so”.
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

Apart from the above, complaint of professional misconduct would be lodged with Institution
of Engineers etc.

17. Terms of engagement for empanelment of valuers:

Empanelled valuers shall be engaged by the branches/ROs on the following terms:

 Commencement of Work – the valuer shall commence the valuation work after a letter of
appointment is issued to the valuer by the bank
 Duties of the Valuer – the valuer shall perform his duties as described in the above paras
 Assistance by Bank officials – the valuer shall be provided support as described above.
 Confidentiality and Non Disclosure – the valuer shall maintain confidentiality of the work
being undertaken and shall not disclose information to any other person other than the person
who has issued the appointment letter to the valuer
 The valuer shall ensure that the employees of his organization also follow the policy of
confidentiality and non disclosure.
 The valuer shall complete the assignment within the stipulated time period as agreed to in the
Appointment Letter. In case the valuer takes up the assignment but does not deliver the
valuation report in a reasonable amount of time even after three reminders, the bank shall
take necessary steps to recommend the case for adjudication by the conflict resolution
committee and in the meanwhile, appoint another valuer to undertake the assignment.
 In case the valuer takes up the assignment but is not in a position to deliver due to any
genuine reason, hardship or contingency, the valuer shall inform the bank of the same and
some extension of time may be given to the valuer to complete the assignment.
 The valuer shall not sub-contract the work to any other valuer but shall carry out the work
himself.
 All communications between the bank and the valuer shall be in writing/e-mail.
 The letter of empanelment shall clearly state the duration of empanelment and that
renewal/extension is subject to fulfillment of Bank‘s policy guidelines as amended from time
to time.
 The letter of empanelment shall state:
i. under which category of Valuers, the valuer has been empanelled i.e, ‗A‘, ‗B‘ or ‗C‘
ii. under which type of valuer he is empanelled i.e, whether under SARFAESI Act / Other than
under SARFAESI Act
iii. for which type of Assets he is empanelled viz., Land & Buildings, Plant and Machineries
etc.,
 The letter of empanelment shall also contain code of conduct for the valuers mentioned as
annexure-1 and acknowledgement obtained.
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

Annexure-1

CODE OF CONDUCT

All valuers empanelled with bank shall strictly adhere to this code of conduct:

1) To express an opinion only when it is founded on adequate knowledge and honest conviction

2) To refrain from misrepresenting qualifications or work experience

3) To treat all information procured during the course of the business as confidential

4) To observe integrity and fair play in the practice of the profession

5) To refrain from undertaking to review the work of another valuer of the same client except under
written orders from the bank or housing finance institution and with knowledge of the concerned
valuer

6) To give unbiased valuation report conforming to standards and conforming to the objective
opinion of the property and not to attempt merely to accommodate the interests of the client

7) To steer clear of situations where interests and duty clash

8) To conduct oneself in such a manner which will not prejudice the professional status or reputation
of the profession

9) To follow this code as amended or revised from time to time

Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

Format A-1

Application for empanelment of valuers with Banks

To
Affix passport
………………………..
size color photo
………………………. and sign across

……………………….

Date: …………………

Dear Madam/Sir,

I am a valuer of immoveable properties (land and buildings/ plant and machinery/agricultural

lands/mines and quarries)/current asset and desire to apply to your organization for empanelment.

My particulars are given below:

Name:…………………………………………………………………………………………………

Sex:……………………Date of Birth:……………… ………..…………Age:…………….….…..…..

Address:…………………………………………………….................................................................

…………………………………………………………………………………………………………

………………………………………………………………………….…………………………….…

Tel No:…………… …………………..…..….Mobile:……………….………………………….……

E-Mail:…………………………………………Fax:…………..…………………...................………..

Educational/Professional Qualifications:

Sl. No University/Institute/Examining Body Qualification Date of Award

Number of years of experience in the field of

valuation:…………………….…………..……………...

(Attach evidence in the form of reference letters/copies of valuation reports/any other evidence)

Name and address of previous employer (if applicable):

………………………………………………………………………………………………….……….

………………………………………………………………………………………………….……….
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

Details of previous empanelment, if any, with dates/duration:

………………………………………………………………………………………………….……….

………………………………………………………………………………………………….……….

Membership of Professional Valuer Association (name and membership number):

………………………………………………………………………………………………….……….

………………………………………………………………………………………………….……….

Registration with CBDT under Wealth Tax Act (Regn. No. and date):
………………………………………………………………………………………………….……….

………………………………………………………………………………………………….……….

Permanent Account Number ( PAN ) of Income Tax Department:……………………..…………….

References:
1)……………………………………………………………………………………………

2)………………………………………………………………………………………………………

3)……………………………………………………………………………………….………………

■ If the firm is partnership concern – Name of the Partners and a Brief profile with their
Qualification & experience

■ Registration number as allotted by ICAI/ other professional bodies

■ Service Tax Registration Number

■ Details of major assignment handled so far ( Furnish Nature of Assignment, Nature of Assets, &
Amount)

■ Whether any allied firms / partners are already empanelled for any other type of audits for the
Bank / FI. If so, furnish details

■ Whether Applicant was delisted from any Bank‘s Panel on any earlier occasion. If so furnish
details.

The above information about me is true to the best of my knowledge and if found incorrect, I will be
fully responsible for the consequences.

Enclosed: Attested photocopies of all certificates/documents of proof

Signature:…………………………..…………………

Name:…………………………………..……………..
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

Format A-2

(undertaking to be submitted by the valuers for empanelment)

UNDERTAKING

I,..............................................................................................................son/daughter of …… ………
………………… …………….…………... do hereby solemnly affirm and state that:

 I am a citizen of India
 I have not been removed/dismissed from service/employment earlier
 I have not been convicted of any offence and sentenced to a term of imprisonment
 I have not been found guilty of misconduct in professional capacity
 I am not an undischarged insolvent
 I have not been convicted of an offence connected with any proceeding under the Income
Tax Act 1961, Wealth Tax Act 1957 or Gift Tax Act 1958 and
 My PAN Card number/Service Tax number as applicable is ……………………..………….
 I undertake to keep you informed of any events or happenings which would make me
ineligible for empanelment as a valuer
 I have not concealed or suppressed any material information, facts and records and I have
made a complete and full disclosure
 I/We understand that my/our opinion/ certification would be an input for the purpose of
decision making by the Bank. Therefore, I/we would like to state that in the event of my/our
opinion/certification turns out to be untrue and factually incorrect causing loss to the bank,
the Bank may seek such clarifications as may be required to investigate the matter and fix
the responsibility. In the event, it is established that there was gross negligence on my/our
part or I/we had colluded with your customer in causing pecuniary damage / loss to the
Bank, the Bank may recommend my/our name for including in the caution list being
maintained by the Indian Banks‘ Association for circulation amongst member banks. I/we
understand that The Indian Banks‘ Association has been mandated by the RBI to do so.

Dated: ………………………………….

Signature……………………………….

Name…………………………………...

Address…………………………………

………………………………………….
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

Format B

Format of Indemnity to be obtained from Valuers

THIS DEED OF INDEMNITY is made on this the ________ day of ________________20______

between Sri/Smt./M/s._________________________ (full name and complete address of the

indemnifier - valuer) hereinafter called "the Valuer" of the one part and Syndicate Bank, a Bank
functioning under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
with its Head Office situated at Manipal in Udupi District, Karnataka, hereinafter called "the Bank".
The terms 'The Valuer" and 'The Bank' shall mean and include their heirs, representatives, the
Executors, Administrators and Assigns.

WHEREAS the Bank has agreed to include/included Sri./Smt./M/s. ____ ____ _________ __ _____

______________ (full name and complete address) in its panel of approved valuers for the purpose
of utilising the services of the valuer to assess the quality and/or quantity of the assets (both
moveable and immoveable) of the existing and proposed borrowers, co-obligants, guarantors, etc.
and to fix the correct and real valuation of the said assets.

WHEREAS the Bank has made it very clear and the valuer has also understood that the Bank would
be taking its credit decision on granting/sanctioning loan facilities to the borrowers, etc. and that the
bank would be taking its decision regarding fixation of upset price for disposal of the assets in
accordance with the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest (SARFAESI) Act 2002, on the basis of the valuation report to be submitted by the
valuer.

WHEREAS the valuer has agreed that he/she/they would assess and value the assets of the borrowers
etc., in a most reasonable and conservative way and without inflating the real valuation.

WHEREAS the valuer has further agreed that in case any or some of his reports are found to be
wrong, inflated, obliging, etc. and that the Bank has found on a subsequent date that the valuer was
black listed earlier by any agencies including RBI/IBA and as a consequence thereof, the Bank is
made to /likely to suffer/incur any loss/damages in its credit decision, the valuer has consented to
indemnify the Bank the loss/damages, etc., besides his removal from the approved panel.

NOW the Deed is executed and witness as follows:

1. That in pursuance of the above agreement, the valuer hereby agrees and consents with the Bank
that he/she/they will, at all times, indemnify and keep harmless the Bank against all losses, costs,
damages and expenses and other outgoings which the Bank may meet, incur, suffer or sustain by
reason of the approved valuer's wrong, inflated, obliging valuation of the assets offered as security to
the Bank and/or caused due to his/her/their voluntary/involuntary act, omission, criminal breach of
trust, neglect or default, which is found out/noticed at a later point of time.

2. That the valuer agrees that his/her/their liability cannot be quantified at present and the quantum
arrived at and demanded by the Bank at a later point of time shall be final and conclusive and the
valuer further agrees that he/she/they will not dispute the same.

3. That the valuer agrees that he is not black listed / disqualified as per section 34AB of wealth tax
earlier and would keep the Bank informed about the disqualifications if any.

IN WITNESS WHEREOF, the valuer signs on the day, month and year stated above written dated

___________________ in the presence of ___________________________________________

WITNESS : VALUER
SINGATURE :
NAME :
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

VALUATION REPORT FORMAT -1

Formats of valuation reporting (to be used for assets of value more than 5 crore)

S. Chapter Content
No.
I Introduction 1. Name of Valuer
2. Date of Valuation
3. Purpose of Valuation
4. Name of Owner/s
5. Name of Bank as applicable
6. Name of Developer of the Property
(in case of developer built properties)
II Physical 1. Location of the asset
characteristics 2. Municipal Ward No.
of the asset 3. Postal address
4. Area of the plot/land ( supported by a plan )
5. Layout plan of the layout in which the asset is located
6. Details of Roads abutting the asset
7. Demarcation of the asset under valuation on a neighborhoods layout
map
8. Description of Adjoining properties
9. Survey no. if any
10. Details of the building/buildings and other improvements in terms of
area, height, no. of floors, plinth area floor wise, year of construction,
year of making alterations/additional constructions with details, full
details of specifications to be appended along with building plans and
elevations
11. Any other aspect
III Town planning 1. Master plan provisions related to the property in terms of land use
parameters (if 2. Planning area/zone
applicable) 3. Development controls
4. Zoning regulations
5. FAR/FSI permitted and consumed
6. Ground coverage
7. Transferability of development rights if any, building bye-law
provisions as applicable to the property viz. setbacks, height restrictions,
etc.
8. Comment on surrounding land uses and adjoining properties in terms
of usage
9. Comment on unauthorized constructions if any
10. Comment on demolition proceedings if any
11. Comment on compounding /regularisation proceedings
12. Comment on whether OC has been issued or not
Any other aspect
IV Legal aspects Description of legal aspects to include:
1. Ownership documents,
2. Names of Owner/s
3. Title verification,
4. Details of leases if any,
5. Ordinary status of freehold or leasehold including restrictions on
transfer,
6. Agreements of easements if any,
7. Notification for acquisition if any,
8. Notification for road widening if any,
9. Heritage restrictions if any, All legal documents, receipts related to
electricity, water tax, property tax and any other building taxes to be
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

verified and copies as applicable to be enclosed with the report,

10. Comment on transferability of the property ownership,
11. Comment on existing mortgages/charges/encumbrances on the
property if any
12. Comment on whether the owners of the property have issued any
guarantee ( personal or corporate ) as the case may be
13. Building plan sanction, illegal constructions if any done without plan
sanction/violations.
14. Any other aspect
V Economic 1. Reasonable letting value
aspects 2. Details of monthly rents being received if any including status of
tenancy rights
3. Taxes and other outgoings
4. Property insurance
5. Monthly maintenance charges
6. Security charges, etc.
7. Any other aspect
VI Socio-cultural Descriptive account of the location of the asset in terms of the social
aspects structure of the area, population, social stratification, regional origin, age
groups, economic levels, location of slums/squatter settlements nearby,
etc.
VII Functional and Description of the functionality and utility of the asset in terms of:
utilitarian 1. Space allocation,
aspects 2. Storage spaces,
3. Utility of spaces provided within the building,
4. Any other aspect
VIII Infrastructure a) Description of aqua infrastructure availability in terms of
availability 1. Water supply,
2. Sewerage/sanitation,
3. Storm water drainage,
b) Description of other physical infrastructure facilities viz.
1. Solid waste management
2. Electricity
3. Roads and public transportation connectivity
4. Availability of other public utilities nearby
c) Social infrastructure in terms of
1. Schools
2. Medical facilities
3. Recreation facilities in terms of parks and open spaces
IX Marketability Analysis of the market for the property in terms of
1. Locational attributes
2. Scarcity
3. Demand and supply of the kind of subject property
4. Comparable sale prices in the locality.
X Engineering and Description of engineering and technology aspects to include
technology 1. Type of construction,
aspects 2. Materials and technology used,
3. Specifications,
4. Maintenance issues,
5. Age of the building
6. Total life of the building,
7. Extent of deterioration,
8. Structural safety
9. Protection against natural disasters viz. earthquakes,
10. Visible damage in the building if any,
11. Common facilities viz. lift, water pump, lights, security systems, etc.,
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

12. System of air-conditioning,

13. Provision for fire fighting,
Copies of plans and elevations of the building to be included.
XI Environmental 1. Use of environment friendly building materials, Green building
factors techniques if any,
2. Provision for rain water harvesting,
3. Use of solar heating and lighting systems, etc., Presence of
environmental pollution in the vicinity of the property in terms of
industries, heavy traffic, etc.
XII Architectural Descriptive account on whether the building is modern, old fashioned,
and aesthetic etc., plain looking or with decorative elements, heritage value if
quality applicable, presence of landscape elements, etc.
XIII Valuation Here, the procedure adopted for arriving at the valuation has to be
highlighted.
The valuer may consider various approaches of valuation and state
explicitly the reasons for adoption of a particular approach and the basis
on which the final valuation judgment is arrived at.
A detailed analysis and descriptive account of the approaches,
assumptions made, basis adopted, supporting data (in terms of
comparable sales), reconciliation of various factors, departures, final
valuation arrived at has to be presented here.

(BOTH MARKET VALUE OF THE PROPERTY AND

REALISABLE VALUE OF THE PROPERTY IN CASE OF
DISTRESS SALE SHALL BE MENTIONED)
XIV Declaration I hereby declare that :
a) The information provided is true and correct to the best of my
knowledge and belief.
b) The analysis and conclusions are limited by the reported assumptions
and conditions.
c) I have no direct or indirect interest in the asset valued.
d) I/my authorized representative by the name of
…………………….who is also a ‗valuer‘, has inspected the subject
property on …………
e) I am a ‗valuer‘ as per the existing provisions in Category …… and
fulfill the education, experience and other criteria laid out therein.

Name and address of the Valuer

……..…………………………………………………………
……..…………………………………………………………
……..…………………………………………………………
Name of Valuer Association of which I am a bonafide member in
good standing ………………………………………………
Membership Number ………………………………………
Signature of the Valuer ……………………………………
Date ………… Tel.No……………………………………..
Mobile no………………….…………………………………
E-Mail …………………………………..……………………

Enclosures: ■ Layout plan of the area in which the asset is located

■ Building plan
■ Floor plan
■ Photographs of the property being valued
■ Any other relevant documents/extracts
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017

VALUATION REPORT FORMAT -2

Formats of valuation reporting (to be used for assets of up to 5 crore)
1 Customer Details
Name Appl. No.

Case Type
2 Asset Details

Address
Nearby Landmark
3 Document Details

Layout Plan Yes/no Name of Approval

Approving No.
Auth.
Building Plan Yes/no Approval
No.
Construction Yes/no Approval
Permission No.
Legal Documents Yes/no List of
Documents
4 Physical Details

Adjoining East West North South

Properties

Matching of Yes / no Plot Yes/no Approved Type of Plotted/Flat

Boundaries demarcated Landuse Property

No. of Living/ Bed rooms Toilets Kitchen

rooms Dining

Total no. Floor on which Approx. Residual Type of

of floors the property is age of age of structure –
located the the RCC
property property framed /
Stone / BB
masonary
5 Tenure / Occupancy Details

Status of Tenure Owned / Rented No. of years of Relationship of

occupancy tenant to owner
6 Stage of construction
Stage of Under construction / completed If under construction, extent of
construction completion
7 Violations if any observed

Nature and extent of violations

8 Area Details of the Property

Site area Plinth Carpet Saleable Remarks

area area area
9 Valuation (BOTH MARKET VALUE AND REALISABLE VALUE IN CASE OF DISTRESS SALE SHALL
BE MENTIONED)

( mention the Valuation as per Government Approved Rates also )

10 Assumptions / Remarks

11 Declaration 1) The property was inspected by the undersigned on…………………..

2) The undersigned does not have any direct/indirect interest in the above property.
3) The information furnished herein is true and correct to the best of our knowledge.
12 Name, address & Signature of the Valuer Date of valuation
signature of Valuer
13 List of Documents
enclosed
14 List of Photos enclosed
Circular No.315-2017-BC-NPAM&LD-11/02-08-2017