REVISED COMPREHENSIVE GUIDELINES ON VALUATION AND VERIFICATION OF BANKS

OWN PROPERTIES AND THE PROPERTIES CHARGED AS PRIMARY/COLLATERAL

SECURITIES

1. Empanelment of Valuers
1.1. Criteria for empanelment of Valuer for corporate loans
The Valuer must
be professionally qualified to value assets. Preference will be given to a
firm with accounting/engineering professionals depending upon the
requirement.
be registered with the Institute of Valuers, as also under Section 34 AB of
the Wealth Tax Act.
The registration of the firm of the valuer must be at least 5 years old.
have at least 5 years experience in the valuation of assets for public sector
banks. The firm working as the valuer with debt recovery tribunals and
high courts will be preferred.
have completed at least 10 assignments successfully with public sector
banks.
The firm of the valuer and the valuer(s)/associate valuer(s) each must
have PANs.
have thorough knowledge of the industry concerned and also the type of
assets to be valued.
A valuer against whom complaints have been registered with the CBI,
Serious Fraud Investigation Cell and court(s), and is blacklisted by any
bank need not apply.
1.2. Criteria for empanelment of Valuer for retail loans are as follows:
The minimum age of the valuer must be 25 years; there is no maximum
age limit.
The empanelled valuer must be preferred if member of any one of the
professional valuer bodies Institution of Valuers, Institution of Surveyors,
Institution

of

Government

Approved

Valuers,

Practicing

Valuers

Page 1 of 30

Association of India, The Indian Institution of Valuers, Centre for Valuation

Studies, Research and Training, Royal Institution of Chartered Surveyors,
India Chapter, American Society of Appraisers, USA (ASA), Appraisal
Institute, USA.
The valuer must be a graduate in civil engineering/architecture/ town
planning (or equivalent) with work experience of 5 years in the field of
valuation after completing the degree.
The valuer must have completed the 6-month long prescribed course in
valuation within a period of 5 years from the date of empanelment.
In case the valuer has a diploma in the aforementioned disciplines, he
must have work experience of 8 years in the field of valuation after
completing the diploma.
In case the valuer has passed the valuation examination, he must have 2
years of relevant work experience.
In case the valuer is a chartered/professional member of the Royal
Institution of Chartered Surveyors or American Society of Appraisers or
Appraisal Institute, no work experience is required. Training is an integral
component of the process to become a member of these organisations.
The valuers

will be categorised as shown below based on work

experience:
Category

Work

experience

in Value

of

property

for

of value

undertaking valuations

assignment of valuation work

More than 10 years

No limit

More than 5 years and less Up to INR 25 crore

than 10 years

C
1

Up to 5 years

Up to INR. 1 crore1

In case of metropolitan cities, the limit will be INR 3 crore.

1.3. Empanelment procedure

An Empanelment Committee will be constituted for empanelment of
valuers comprising of six General Managers. The members of the
committee will be GM (Premises), GM (Credit Monitoring), GM (Law),
GM (Inspection), GM (Credit) and GM (F&A). The eligible valuers will

Page 2 of 30

submit the application for empanelment to zonal offices, which will

send the same to the Premises department, Head Office with their
recommendations.

The premises department upon receipt of

applications from zonal offices will submit them to the Empanelment

Committee after verification of eligibility criteria requirement of
valuers etc. The department will also dispose them off to the zones
according to the committees directions. Further, empanelment of all
categories of valuers, namely, A, B and C will henceforth be done
from Head office. SARFAESI valuers will continue to be selected as
per the extant procedure being followed by the Bank and approved
by the Bank.
The committee meetings will have a quorum of 3 members.
The meeting will be conducted atleast once in every quarter or as
and when necessary.
The Bank will receive applications throughout the year from valuers
seeking empanelment.
All such applications will be received in the prescribed format (as per the
enclosed formats in Annexure A/B/C).
The application format will always be available on the website for easy
download.
As and when needed, the number of valuers required will be empanelled;
once empanelled, the valuer will 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.
A list of all empanelled valuer will be available on the website of the Bank.
1.4. Duration of Empanelment
The duration of empanelment will be for 5 years.

Page 3 of 30

1.5. Independence and objectivity

All valuers empanelled by Bank must act with independence, integrity and
objectivity. They must undertake all valuation works with an independent mind
and not be influenced by anybody. The empanelled valuer must not be related to
any personnel in the Bank in the department/division dealing with the
valuation work.
2. Professional fees
S. No.

Value of Property/ Plant & Machinery

Valuation Fee

1.

Upto Rs. 25 Lacs

Rs. 1500.00

2.

Above Rs. 25 Lacs to Rs. 1 crore

Rs. 2500.00

3.

Above Rs. 1 crore to Rs. 3 crore

Rs. 4000 .00

4.

Above Rs. 3 crore to Rs. 10 crore

Rs. 6000.00

5.

Above Rs. 10 crore to Rs. 25 crore

Rs. 10000.00

6.

Above Rs. 25 crore

Rs. 15000.00

a. The fee structure as above will be for each property to be valued and in
each case, out of pocket expenses for cost of photograph and other
incidental charges shall also be payable on actual basis.
b. In case the properties are located at a distance from the city,
actual cost of conveyance by road/ train (or as permitted by Zonal
Head in respect of high value properties), will be paid.
c. The Branch Manager/ Zonal Head may negotiate with the valuer for
reducing the fees, in view of the value of connection particularly in
respect of High Value properties, in consultation with the owner of the
property. The same should also be explored in the cases where the valuation
fee is being borne by the Bank.
d. If found necessary, the ZLCC, depending upon the local practice or the
type of property to be valued may fix the uniform valuation fee structure
for all the branches in the Zone not exceeding 25% of the above stipulated
fee.
e. The payment shall be made direct to the Valuer preferably through
demand Draft / Pay Order to the debit of borrowers account.

Page 4 of 30

3. Performance Review of Valuers

3.1. The quality of service provided by the valuers will be reviewed annually by
ZLCC or as and when felt necessary.
3.2. The review reports containing inter-alia suggestions or recommendations
regarding the valuers will be sent by the Zones to the respective Functional
Departments at Head Office i.e. Functional department will be Recovery for
SARFAESI Valuers, Credit for borrowal accounts and Premises for valuation
of Banks own property.
3.3. The respective functional departments will examine the review reports and
further submit them with their views to the Premises department for
presenting to the Empanelment Committee for consideration at the time of
fresh or renewal of empanelment.
4. De-Empanelment of Valuers
4.1. Composition of Forum
A forum comprising of 6 General Managers i.e. GM (Law), GM (Retail Credit),
GM (Credit Monitoring), GM (Inspection & Audit), GM (Premises) & GM &
CVO will be set up to evaluate the role of valuers involved in fraud/ loss to the
Bank. The GM (law) would act as coordinator and the members will not act
as Investigators in any of the cases placed before the Forum for evaluation.
An officer of Law Department will act as Link officer who will assist the Coordinator in convening meetings, sending communications from forum to
user- departments (functional Departments) and performing various related
jobs. Details of vigilance guidance in this regard are enclosed as Annexure
I. Any change in this regard as brought out by Vigilance department will be
followed.
4.2. Quorum
The forum meetings will have a quorum of 4 members whereas the
presence of GM (Law) along with CVO & GM (Credit Monitoring) is
compulsory.

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4.3. Periodicity of Meetings

a) The meeting of the Forum will be convened as and when the
department which had used the services of empanelled valuers,
submits fraud/loss event investigation report containing evidencebased conclusion about the involvement of concerned valuer in the
perpetration of fraud.
b) The meeting of the forum will be convened by the co-ordinator within
10 working days after submission of the evidence-based Investigation
report by the concerned department.
c) The proceedings of the meeting will be recorded and kept in file
properly so that immediate retrieval at future date is possible.
5. Procedure for Valuation
5.1. Key principles in asset valuation
A robust asset valuation approach is expected to be transparent, consistent and
independent.
5.1.1. Transparent: Communicate clearly to user the specific methods and
processes used to value assets when determining the price for loan
sanctioning or any type of sale
5.1.2. Consistent: Use the same techniques or method every time and
ensure that the valuation is reproducible by a third party
5.1.3. Independent: Involve an unbiased and disinterested party to value the
asset to ensure no conflict of interest.
5.2. Valuation methodology
Valuation methodologies can be broadly classified into two categories
5.2.1. Market-based valuation of assets
Market value is defined as the estimated amount on the date of valuation for
which an asset must be exchanged between a willing buyer and a willing
seller. The transaction must be at arms-length and after proper marketing.
Each party should act knowledgeably, prudently and without compulsion.

Page 6 of 30

Estimating market value should assume the highest and best use of the
subject asset. In estimating this use, one needs to analyse other uses
possible, permissible, feasible and, finally, the highest and best use. The
following four conditions need to be met to estimate the highest and best use:

The use must be legal

The use must be probable and not speculative or conjectural

There must be a profitable demand for such use

It must bring the asset the highest net return for the longest period of
time

A. Valuation of land
To estimate and report the market value of land, the valuer must:
Set forth the valuation in a clear and non-misleading manner
Ensure that the estimate is based on appropriate market data. The market
comparables considered should be plots of similar size and use as the
land being valued. The valuer must conduct adequate and relevant
research for market comparables and analyse it to draw well-informed and
supportable judgements
Apply higher judgement in case of agricultural land to select the
comparables. The valuer should preferably have a graduate degree in
agricultural science and/or have been formerly employed as a collector,
deputy collector, settlement officer, land valuation officer, superintendent
of land records, agricultural officer, or registrar under the registration Act
1908
In case of valuation of agricultural lands, if the valuation is more than Rs.
10 crore, valuer must be a body corporate and should have a Pan India
presence and/or in case of a firm being valuer, all partners should be
members of Institution of Valuers
Ensure that the estimate is reached using the appropriate, widely accepted
methods and techniques
Provide sufficient information to permit those who read and rely on the
report to fully understand its data, reasoning, analyses and conclusions.
Comply with the requirements of the standards and reporting.

Page 7 of 30

Define the value being estimated; state the purpose and intended use of
the valuation, the effective date of valuation and the date of the report
Clearly identify and describe the land and ownership rights or interests
being valued
Physically inspect the land and describe the scope and extent of the
work undertaken
State clearly the assumptions and limiting conditions upon which the
valuation is based. Do not unquestioningly accept the data collected in an
as is where is form, but also consider all pertinent market evidence,
trends, recent transactions, etc.
Explain completely the valuation basis and approaches applied and the
reasons for the applications and conclusions
Include a signed compliance certificate attesting the valuer objectivity,
professional

contribution,

unbiased

opinion,

non-contingency

of

professional fee and other compensation as well as applicability of

standards and disclosures
B. Valuation of buildings
To estimate and report the market value of a building, the valuer must:
Set forth the valuation in a clear and non-misleading manner
Ensure that the estimate is based on market derived data. Market
valuations are generally based on comparable buildings. The valuer must
conduct adequate and relevant research for market comparables and
analyse it to draw well-informed and supportable judgements
Ensure that the estimate is reached using the appropriate, widely accepted
methods and techniques
Provide sufficient information to permit those who read and rely on the
report to fully understand its data, reasoning, analyses and conclusions.
Comply with the requirements of the standards and reporting
Define the value being estimated; state the purpose and intended use of
the valuation, the effective date of valuation and the date of the report
Clearly identify and describe the building and property rights or interests
being valued

Page 8 of 30

Physically inspect the building, describe the scope and extent of the work
undertaken, and the extent to which the building was inspected
State clearly the assumptions and limiting conditions upon which the
valuation is based. Do not unquestioningly accept the data collected in an
as is where is form, but also consider all pertinent market evidence,
trends, recent transactions, etc.
Explain completely the valuation basis and approaches applied and the
reasons for the applications and conclusions
Include a signed compliance certificate attesting the valuer objectivity,
professional

contribution,

unbiased

opinion,

non-contingency

of

professional fee and other compensation as well as applicability of

standards and disclosures
C. Valuation of plant and machinery
To estimate and report the market value of plant and machinery, the valuer
must:
Set forth the valuation in a clear and non-misleading manner
Ensure that the estimate is reached using the appropriate, widely accepted
methods and techniques
Provide sufficient information to permit those who read and rely on the
report to fully understand its data, reasoning, analyses and conclusions.
Comply with the requirements of the standards and reporting
Define the value being estimated; state the purpose and intended use of
the valuation, the effective date of valuation and the date of the report
Identify clearly and describe the plant and machinery, and ownership
rights or interests being valued
Physically inspect the plant and describe the scope and extent of the work
undertaken, and the extent to which the plant was inspected
State clearly the assumptions and limiting conditions upon which the
valuation is based. Do not unquestioningly accept the data collected in an
as is where is form, but also consider all pertinent market evidence,
trends, recent transactions, etc.

Page 9 of 30

Explain completely the valuation basis and approaches applied and the
reasons for the applications and conclusions
Include a signed compliance certificate attesting the valuer objectivity,
professional

contribution,

unbiased

opinion,

non-contingency

of

professional fee and other compensation as well as applicability of

standards and disclosures
Additionally, the valuer should clearly and unambiguously make the following
disclosures, as applicable:
Make a proper disclosure where market data is limited or essentially nonexistent, and state whether the estimate is in any way limited by the
inadequacy of data
State clearly whether the market value estimate is based on market
evidence, or upon the valuer judgement because of the nature of the
building and lack of comparable market data
Include specific references on how the land has been viewed in terms of
its utility or its highest and best use, and a statement of all substantive
assumptions
Any departure from this standard should be clearly stated in the valuation
report along with the reasons and justification for the same. The special
circumstances which warranted departure from the established norms need to
be adequately explained.
5.2.2. Bases other than market-based valuation
Valuation on bases other than the market requires valuers to make additional
assumptions. These are often more specific than those required to establish
market value as they may relate to the circumstances of a particular party.
The other valuation bases fall into the following three principal categories:
i.

First category: This includes the benefits that an entity enjoys from the
ownership of an asset. The value is specific to that entity. Although under
some circumstances the same amount could be realised from the sale of
the asset, this value essentially reflects the benefits received from holding

Page 10 of 30

the asset. It therefore does not necessarily involve a hypothetical

exchange. Investment value falls in this category.
ii.

Second category: This reflects the price that two specific parties would
agree upon to exchange an asset. Although the parties may be
unconnected and negotiate at an arms length, the asset is not necessarily
exposed in the wider market, and the price agreed upon may reflect the
specific advantages or disadvantages of ownership to the parties involved
rather than the market at large. This category includes fair value, special
value and synergistic value.

iii.

Third category: This is the value determined in accordance with a

definition set out in a statute or a contract.

The definitions of bases other than market-based valuation:

Fair value: The amount for which an asset could be exchanged between
knowledgeable, willing parties in an arm's length transaction
Investment value: The value of a property to a particular investor, a class
of investors or an entity, with specific investment and/or operational
objectives/criteria. This value is thus a subjective concept
Special value: An amount above the market value that reflects the
particular attributes of an asset that are of value only to a special
purchaser
Synergistic value: An additional element of value created by the
combination of two or more interests, where the value of the combined
interest is worth more than the sum of the original interests
The valuation methodology for assets with bases other than market
should follow similar standards as laid out in sections 5.2.1.A, 5.2.1.B and
5.2.1.C for land, building, and plant and machinery respectively. In addition
to these standards, the valuer should ensure the following:
o Distinguish clearly and unambiguously that the reported value is
not a market value estimate
o Explain fully the valuation basis approaches applied, the
reasons for the applications and the conclusions

Page 11 of 30

o Include all data used for valuation and disclose whether the
estimate is in any way limited by the inadequacy of data
Any departure from this standard should be clearly stated in the valuation report
along with the reasons and justification for the same. The special circumstances
which warranted departure from the established norms need to be adequately
explained.
5.3. Process for valuation
At the time of receipt of proposal, the branch will obtain an under-taking
from the proponent/ borrower indicating the details of the property etc.
The branch will address a letter to the particular Valuer requesting him for
valuation of property, required to be valued as per Annexure F
incorporating clauses of Annexure - G and Annexure H.
If the property to be valued is located at a different location, which is more
than 50 Km, the request for valuation, along with the document required
should be sent to the nearby branch, requesting them to get it valued from
an approved valuer on panel. If it is located in another zone, a similar
request should be sent to the Zonal Office concerned.
The Valuer, only on receipt of request from the branch shall proceed for
valuation of the property and shall take the photographs of the property to be
valued.
In the valuation report, the Valuer shall advise in detail, the particulars of the
property, present occupants of the property, location of the property,
measurement of the property and the name of the persons contacted by
them, at the time of valuation of property and other details as per Annexure
D and Annexure - E.
The valuation report, duly signed by the Valuer himself will be delivered to
the branch concerned along with the photographs of the property.
In respect of properties valued at Rs. 50.00 lacs and above, it shall be
valued by two Valuers. If the variation in value is found to be more than
10% in valuation done by two Valuers, the value should be assessed as per
Para 5.4.
The Valuer, in all cases, apart from advising the present fair market

Page 12 of 30

value of the property, shall advise the forced sale/ distress sale value of the
property.
If the value of the property, is more than Rs.3.00 cr., the same shall be
got verified from the Zonal Office also. The Chief Manager / Senior
Manager (Credit) / Senior Manager as nominated by Zonal Head at Zonal
Office will verify the same. The verification report of the official will be
placed before Zonal Head before sending it to the Branch.
5.4. Resolving differences in valuation by independent valuers
In case of differences in valuation by two valuers, Bank should examine the
following four dimensions to identify the cause of variation:
Basis of valuation
In the case of differences in valuation of assets done by two independent
valuers, the average of the two valuations may be taken as the notional
valuation of the property. It should also be tested whether the two reports
have used the same basis for valuation or not. In case the bases are different,
reports using bases other than market value should clearly lay out the
rationale for doing so. The concerned authority should examine the
justification provided to establish whether the right basis has been used.
Methods/techniques used
Valuers are expected to use methods and techniques that are widely
accepted and used. The use of different methods by valuers can lead to
variation in their findings. Given the situation, Bank should assess the
appropriateness of methods used and thus identify which valuation is more
accurate.
Data
Even if the valuation procedure is aligned with respect to basis and methods,
variation can result from the use of different data sets. Bank should examine
the data and establish which is more appropriate in terms of similarity with the
asset being valued, recency of data, etc.

Page 13 of 30

Underlying assumptions
The difference in value can also be a function of large variation in underlying
assumptions (or minor variation in assumptions which have high sensitivity).
Following a systematic and structured approach will enable to identify the key
assumptions behind the variation in value. A detailed study can then be
conducted of the specific assumptions instead of repeating a full valuation
effort.
6. Revaluation of Banks Own Properties/Assets:
6.1. Details of Properties to be revalued: All the residential/ commercial or
other properties owned by the Bank, as required from time to time.
6.2. Frequency of Revaluation: Normally, every Three Years. In case, the
concerned department decides that value of property has appreciated
sharply, they may decide to get it revalued even earlier, but not less than
one year, from the date of previous valuation. The revaluation shall be
carried out by minimum two Valuers in case the value of property is more
than Rs.50.00 cr.
6.3. Depreciation

of

such

Assets: The depreciation on various types of

properties shall be stipulated/ Charged as per the rates given in the

Schedule XIV of the Companies Act,1956 on all the assets including
revalued value. With the change in method of depreciation, should
reflect the change in expected pattern of consumption of the future economic
benefits of the assets.
6.4. Sale of Revalued Assets: On disposal of a previously revalued item of
fixed asset, the difference between net disposal proceeds and the net book
value is normally charged or credited to the profit and loss statement except
that, to the extent such a loss is related to an increase which was
previously recorded as a credit to revaluation reserve and which has not
been subsequently reversed or utilized, it is charged directly to that
account. The amount

standing

in

revaluation

reserve

following

the

retirement or disposal of an asset which relates to that asset may be

Page 14 of 30

transferred to general reserve.

6.5. Disclosures required regarding revalued assets: Any change in method
of Deprecation, frequency of revaluation, the details of revaluation, such as
the original cost of the fixed assets subjected to revaluation during the year,
and the accounting treatment for valuation/ revaluation shall be disclosed in
the Notes on Account. Regarding the disclosures to be made, other
provisions of the accounting standards 1 and 10 shall also be adhered to
from time to time.
6.6. Other Issues: All other guidelines concerning revaluation/ valuation of
Banks own properties as issued by RBI, Accounting Standards or other
authorities shall also be meticulously adhered to.
7. Valuation of various types of assets charged to the Bank as Primary /
Collateral Security
7.1. Types of securities requiring valuation:
7.1.1. Agriculture land in respect of accounts enjoying limit of Rs.25.00 lacs
and above. (the valuation of land even in case of lower limits may be
got done, if the value of land is not available from revenue authorities)
7.1.2. All Residential / Commercial Properties (land & building) charged/
mortgaged to the Bank as Primary/ Collateral security for credit
facilities of more than Rs.2.00 lacs. This shall exclude the credit
facilities

sanctioned

under

consortium

arrangement,

where

the

valuation shall be considered as per the consortium arrangement. Upto

the credit facilities of Rs.2.00 lacs valuation may be assessed by the
Branch Manager or Officer of the branch.
7.1.3. The plant and machinery charged to the Bank as security,
where the Bank has sanctioned a Term Loan of Rs.1.00 Cr and
above or as stipulated by the sanctioning authority.
7.2. Periodicity of Valuation:
7.2.1. In respect for Agriculture Land/ Residential / Commercial property:
Initially at the time of sanctioning the credit facilities. Thereafter, the

Page 15 of 30

revaluation will be done at least once in 3 years. However, in case of

material changes (in Structure / Market value of the property), the
revaluation will be done before the stipulated time.
7.2.2. For plant and machinery: In respect of existing units and for take
over

cases,

the valuation must be done before sanctioning

/disbursement of the advance. In case of new unit the valuation must

be done on completion of installation of machinery and before
disbursement of working capital limits. Further the valuation may be
done any time, as per the requirement of the Bank.
7.3. Verification of Valuation of Properties and Use of Funds:
7.3.1. The Branch officials should invariably make an independent visit of
the immovable property offered to secure the loan for proper
assessment of the value of the offered property and their marketability/
genuineness. The assessment made during the visit should be collated
with the valuation report received from valuer to arrive at fair value of
the property.
7.3.2. The visit for aforesaid purposes should be made jointly by two
officers of the Branch in cases where aggregate amount of loan (funded
& non-funded) is Rs 10.00 lacs & above.
7.3.3. In case of projects under implementation, reliance should not be
placed solely on the certificates

produced

by the

borrower/s

but

adequate monitoring of the progress of construction through site

visit by Bank officials at different stages of implementation/ release
of fund should be ensured.
7.3.4. The valuation of immovable properties charged in favor of the
Bank should be reviewed/ renewed once in three years as per laid
down procedure of the Bank and correctness of such valuation report
should be examined as per aforesaid procedure.
7.3.5. The officials who will visit the property/site will submit valuation cum
visit report on the prescribed format and the same should be kept along
with security document of the loan.
7.3.6. In respect of Loans sanctioned for construction of House/ Building,

Page 16 of 30

the end use of funds should be verified as stipulated in the scheme/

sanction letter. If required/ stipulated, the end use of funds should be got
verified from the Valuers of the Bank.
8. Other Guidelines
8.1. All appointments/empanelment of valuers will be done in accordance with the
provisions of this document and its amendments from time to time
8.2. All instructions to the valuer are to be given by the Bank in writing as per the
format.
8.3. Supportive documents, wherever possible, must be provided to the valuer
before the valuation work begins. Any other document will have to be
procured by the valuer and sufficient time will be provided for the same
8.4. A minimum of 3 days and a maximum of 15 days shall normally be given to
the valuer to carry out the valuation. In case of outstation properties or in
case of large property valuations, more time will be given, depending on the
circumstances, on a case to case basis
8.5. Each Branch shall maintain a register of valuers and record of valuation of
properties got conducted by them in the branch, indicating the date on
which request sent by the branch to valuer, name of the valuer, details
of the borrower, details of the properties subjected to valuation, date on
which valuation of report received, value of property and the amount of
fees paid.
8.6. The details of verification of property, giving the name of officers visiting the
property and dates visited shall also be mentioned.
8.7. Every Branch shall ensure that the cases of valuation are distributed
amongst various valuers.
8.8. No security deposits or any other indemnity money will be taken from the
valuers as security for the professional services they provide
8.9. Professional fees/payments to the valuers need to be paid by the Bank
within 45 days of the submission of the valuation report and its acceptance by
the Bank
8.10.

In case the valuation report submitted by the valuer is not in order, the

Bank must bring the same to the notice of the valuer within 15 days of

Page 17 of 30

submission

for

rectification

and

resubmission.

In

case

no

such

communication is received, it will be presumed that the valuation report has

been accepted
8.11.

The Valuer shall not undertake the work of valuation, in which he

or his close relatives have a direct or indirect interest.

8.12.

All procedures as outlined in this document have to be followed by the

Bank.

Page 18 of 30

Annexure A
APPLICATION FOR EMPANELMENT OF VALUERS WITH BANK

To
..
..
..
Date:

Dear Madam/Sir,
I am a valuer of immoveable properties (land and buildings/ plant and machinery) 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:
University/Institute/ Examining
S.No. 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)

Page 19 of 30

Name and address of previous employer (if applicable):

...
...
...
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)

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:..

Page 20 of 30

Annexure B

FORMATS OF TERMS OF ENGAGEMENT FOR EMPANELMENT OF VALUERS

Empanelled valuers shall be engaged by the Bank 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 Handbook
Assistance by Bank officials the valuer shall be provided support as described
in the above Handbook
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
Any disagreement/dispute which cannot be resolved amicably between the
Bank and the valuer shall be referred to the conflict resolution committee of the
Bank. Such a referral can be made either by the Bank or the valuer.

Page 21 of 30

Annexure C
FORMATS OF 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 have read and understood the Handbook on Policy, Standards and Procedures
for Real Estate Valuation by Banks and HFIs in India 2010 of the IBA and fulfil all
the conditions of Criteria for Empanelment as listed therein

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

Dated: .
Signature.
Name...
Address

Page 22 of 30

Annexure D
FORMATS OF VALUATION REPORTING (TO BE USED FOR ASSETS OF VALUE MORE
THAN INR 5 CRORE)

S. No.
I

Chapter

Content

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 of

2. Municipal Ward No.

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

neighbourhood 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

parameters
applicable)

(if

1. Master plan provisions related to the property in terms of land

use
2. Planning area/zone
3. Development controls
4. Zoning regulations
5. FAR/FSI permitted and consumed

Page 23 of 30

S. No.

Chapter

Content
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 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.

Economic

1. Reasonable letting value

Page 24 of 30

S. No.

Chapter
aspects

Content
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

aspects

social 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

Page 25 of 30

S. No.
IX

Chapter
Marketability

Content
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.

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.,
12. System of air-conditioning,
13. Provision for fire fighting,
Copies of plans and elevations of the building to be included.

XI

Environmental
factors

1. Use of environment friendly building materials, Green

building 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 and Descriptive account on whether the building is modern, old

aesthetic quality

fashioned, etc., plain looking or with decorative elements,

heritage value if applicable, presence of landscape elements, etc.

XIII

Valuation

Here, the procedure adopted for arriving at the valuation has to

Page 26 of 30

S. No.

Chapter

Content
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.

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

..
..
..
..

Page 27 of 30

S. No.

Chapter

Content
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

Page 28 of 30

Annexure - E
FORMATS OF VALUATION REPORTING (TO BE USED FOR ASSETS OF UP TO
INR 5 CRORE)
1

Customer Details
Name

Apl. No.

Case Type
2

Asset Details
Address

Nearby Landmark
3

Document Details
Layout Plan

Yes/no

Building Plan

Name of Approving

Approval

Auth.

No.

Yes/no

Approval
No.

Construction

Yes/no

Approval

Permission

No.

Legal Documents

Yes/no

List of Documents

Physical Details
Adjoining

East

West

North

South

Approved

Type of

demarcated

Land use

Property

Bed rooms

Toilets

Kitchen

Properties
Matching of

Yes / no

Boundaries

No. of

Living/

rooms

Dining

Plot

Yes/no

Plotted/Flat

Total no.

Floor on

Approx.

Residual

Type of

of floors

which

age of

age of

structure

the

the

the

RCC

property

property

property

framed /

is

Stone / BB

located

masonary

Tenure / Occupancy Details

Page 29 of 30

Status of Tenure

Owned / Rented

No. of years of

Relationship

occupancy

of tenant to
owner

Stage of construction
Stage of construction

Under construction / completed

If under construction, extent of

completion

Violations if any observed

Nature and extent of
violations

Area Details of the Property

Site area

Plinth

Carpet

Saleable

area

area

area

Remarks

Valuation

( mention the Valuation as per Government Approved Rates also )

10

Assumptions
/ Remarks

11

12

13

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.

Name,

Date of

address &

valuation

signature of

Signature of the

Valuer

Valuer

List of
Documents
enclosed

14

List of
Photos
enclosed

Page 30 of 30