Indemnity Bond by Central Bank of India, Mumbai, 1 lakh FDR

anildhope · Joined: 17 Jun 2008 Posts: 518

Er. Vijay Bhatt

204,Hassanand Complex, Nr. Handloom House,

Nanpura Main Road, SURAT - 395001

ph:0261-2474278 m: +91 9925112810

From: jigesh mehta <jigeshj@yahoo.com>

Dear Valuers,

We are all aware of the debate going on about Banks requiring Undertakings / Indemnity Bond from valuers at the time of empanelment. Inspite of several representations made at various levels including the Indian Banks Asociation (IBA), there seems to be no favourable outcome for valuers. On the contrary, the Central Bank of India has gone a step further by demanding Rs.1 lac deposit that may even be forfeited.

Attached is a copy of the letter issued by Central Bank to valuers in Mumbai. Your attention is drawn to pt. no.4 on page 1 and Undertaking on page no.3 of the letter. Other towns are likely to follow. Be prepared ....

Regards..

anildhope · Joined: 17 Jun 2008 Posts: 518

anildhope · Joined: 17 Jun 2008 Posts: 518

anildhope · Joined: 17 Jun 2008 Posts: 518

hitesh · Joined: 19 Sep 2008 Posts: 135

The future of valuation professionals is in dolldrum. Our Institutions should come forward in the interest of their member & ask RBI/ IBA to protect the interest of our valuers, like wise Insurance Surveyors Institute did. They should also take a third party group insurance to protect financial loss to the members for any future claim by any bank. Such practice is common in Europian & American countries.

pravinpunj · Joined: 10 Feb 2009 Posts: 61

System of professional indemnity insurance for valuers in Denmark

The Danish Property Transaction Act covers all property transactions in which a consumer is involved. According to this Act a professional indemnity insurance is obligatory for all professionals involved and furthermore, in order to be registered as an estate agent you have to put up a guarantee of not less than 2.5 million DKK (US$1.2 million) against any claim from consumers. In other words, If an estate agent makes a wrong valution the consumer can claim his loss covered by the insurance company. All members of our association are covered by such an indemnity insurance and this will cover any loss suffered because of a wrong valuation, even if we are talking about a commercial property, where no consumers are involved.

sookthai · Joined: 03 Oct 2008 Posts: 55

Danish Property Purchase Fees

The purchaser is liable for the following costs:
Bullet Point half the fees for final contracts, which are calculated as 0.6 percent of the property value plus €175;
lawyers’ fees, approximately €400 to €1,000, depending on the value of the property and the amount of legal work required;
legal fees associated with the mortgage, 1.5 percent of the mortgage value plus €175;
Bullet Point stamp duty and other costs, 0.6 percent to 1.5 percent of the property value.

The vendor would normally be expected to pay the estate agent’s fees of around 6 percent of the property’s value.

mohit_mehta1 · Joined: 17 Apr 2009 Posts: 80

Dear Fellow Valuers,

Being a learned professional I request you all to use a very simple principle of common sense. Rather than making noise in magazine or web site or sometimes in seminars, you guys are very learned and understand law. Why not file a PIL immediately after consulting a learned solicitor? The language the bankers use and the way they treat valuers is very insulting. I do not think even a bonded labour is treated this way in any country. I have heard lot of noise from valuers about this however there was no action seen or courage to fight. Valuers surrender finally at the feet of the bankers instead of taking any action. Please let's get united and fight for the betterment of personal, family, staff, friends, society and country at large.

By accepting less fee officially and then asking higher fees in cash to manipulate valuation is the game bankers play along with few manipulative people. If you do not discontinue to do this this practice wil continue and you will be forced to quit even if your reports are genuine , correct and without any problems. Banks will keep threatening each valuer by forfeiting it's security deposits, black listing from panel and so on........

If you think that you have right to earn and pay tax for the country's betterment please join in campaigning against such dirty actions by central bank as well as other banks.

rashmi · Joined: 03 Oct 2008 Posts: 60

Dear Mr Mehta,
I have read your comments on CBI Indemnity bond. Only the valuers like you can change our valuers fraternity.Our fraternity accepts whatever is thrust on them, without knowing pro & cons.

shahconsultant · Joined: 30 Aug 2008 Posts: 49

[quote="mohit_mehta1"]

dear mr mehta,

congratulation for such a bold opinion. But the young or new valuers can’t go for such actions as they try hard to settle first, they don’t dare to speak against banks or their officers. Such actions are expected to be taken by institution or group of sr. valuers who can dare to speak and act against such rules and conditions imposed upon for betterment of valuers of india. All valuers will be thankful to them if they do this noble work. I have a question for institution of valuers that why are not they doing anything against such acts by banks besides proud representatives of maximum number of valuers in India? What the office bearers are doing after such a big outcry by valuers from long time back against banks illegal rules and conditions. Is there any say in govt. by this big institutions of valuers? institution Please act immediately, sr. valuers do something.

mohit_mehta1 · Joined: 17 Apr 2009 Posts: 80

Dear Valuers,

In regards to BOI Rajsthan empanelement advertisement did they anounced valuers panel ? why are they charging Rs.1,000/- fees for empanelement ? any views on this ?

Recently Central Bank of India Mumbai Zone has announced their panel for year 2012, many conditions are against the agreed policy of IOV and Indian Bank Association Hand Book as well as language is very unporfessional treating valuers as a bagger and thief. and trying to say that by empanelling valuer and issuing assignments bank is obligdiging valuers.

what do you say ? does valuation reports are obtained by bank to safeguard bank's interest ? i mean is it a advisory and due dilligenece assignment conducted by bank or to support valuers living bank give them the work as a charity ?

Please write letters to IOV Vice President in massess to pressurise him to correspond with bank to get it clear about idemnity, Rs.1 lac deposits and other fees related and language related issues.

It is a high time IOV can not escape out of thier duty to act in the interest of valuers by giving some good thoughts.

Every one needs to force IOV to act on war footing basis.you may post your views or email me on vac@consultant.com

Thanks,

Mohit Mehta

mohit_mehta1 · Joined: 17 Apr 2009 Posts: 80

Dear Mr.Shah and Other Valuers Friend,

I am young valuer. Young should date to speak about injustice as seniors are adjusting themselves whatever is going on. IOV does not have a right management or energy to intiate all this taks. I was trying to get empaneled with Central Bank of India since year 2003. Similarly with other bank. Inspite of masters degree in valuation and other excellence in valuation my application was recently accepted on 5th Jan,2012 due to my continous follow up at every lever since 2009 on every week basis.

The terms mentioned in the letter of empanlement like indemnity, Rs.1 lac FD and capping of fee at Rs.50,000/- are not acceptable to me. I have resisted the same. See text of my letter below. Now you will agree that it should be done by young valuers as senior valuers do not bother and get on the panel somehow and get the assignments to maximum level.

You may attend our upcoming free seminar on IBA handbook in Institution of Enineers Mumbai on 24th Feb,2012. Please read my letter below to central bank of india resisting theri act.

You all write letter to IOV and central bank MD and copy to RBI to stop such practise by bank. Asking for indemnity and Rs.1 lac FD is i think since 2009 however many valuer currently providing valuation to Central Bank Mumbai Zone never given such FD or indemnity.

Then why there is a double standards amongst valuer ?

To,

The Assistant General Manager

Central Bank of India

Mumbai Metropolitan Zonal Office

346, Standard Building, Dr.D.N.Road, Fort,

Mumbai-400 023.

Ph # 24044720

Kind Attn :- Mrs.Sulbha Pande / Mr.Abhijit

Sub : - Approval as a “Valuer” on MMZO’s Panel of Central Bank of India

Ref : - Your Letter Vide Reference No.MMZO:Credit:2011-12/18 Dated 05/01/2012

Dear Madam,

Thank you very much for accepting Value Add Consultants application and empanelling “Value Add Consultants” as a Valuer for period of three years.

Your reference letter Dated 05/01/2012 received by me. I have read the terms and condition mentioned in the Ref. letter.

Kindly update your circular to be circulated to branches with our additional office address and contact numbers as under. Please circulate both addresses and all the contact numbers to branches for ease of contacting us in next three years.

Registered Office	Corporate Office
M/s.Value Add Consultants	M/s.Value Add Consultants
A-404,Shivdham Shivkripa CHS Ltd; CTS No.2A, Nr.Jain Derasar, Off SaiBaba Mandir Road, Satya Nagar, Borivali West, Mumbai – 400 092.	Ground Floor, Office No.-209, Raghuleela Mega Mall, Bh.Poinsur Depot, Off S V Road, Poinsur Gymkhana Road, Kandivali West, Mumabit-400067.
Tele Fax # 2808 2583	Tele Fax # 2808 2584
Mobile # 9821456573	Mobile # 98924 89265 / 98200 89265
Email: mohitrmehta@gmail.com	Email :vac@consutlant.com

I wish to bring to your notice fee structure mentioned in para 5 is in conformity with the fee structure prescribed by Government of India under Wealth Tax Act. except for Value Slab above Rs.5,00,00,001 and above. You have mentioned that professional fee for any reported value above Rs.5 Cr.is restricted to Rs.50,000/- . Such capping of fees is nether done in Wealth Tax Act nor by any other nationalized bank as well as Institution of Valuer professional recognized body of valuers.

Kindly remove such fee capping and provide valuers a level playing field and an appropriate remuneration for safeguarding bank’s interest. Hope you will update fee structure and intimate all the empanelled valuers on priority basis.

Regarding your letter’s point No.-6 keeping Rs.1 lac as a security deposit for 3 years with any Central Bank Branch no such conditions are acceptable to us a professionally qualified and Government Registered Valuer empanelled with many nationalized bank. Kindly note that no banks in India ask for such security deposits to get empanelled with bank as a valuer.

Regarding point no.7 for executing indemnity in Format –H, please note that it is not acceptable to us as a valuer. None of the nationalized bank in India insist on providing any such indemnity by valuer.

Even latest hand book published by Indian banking Association about Valuers under initiative of RBI and NHB also strictly denies keeping any security deposit with bank or Indemnity for providing valuation services to bank. This hand book was prepared by Ex.MD of Central Bank when he was with IBA as well. You may refer the handbook to verify such details.

I accepted the empanelment and agreed to abide all the terms and conditions except terms mentioned in point no.6 & 7 of your letter and agree to follow all the laws of the Government time to time following our professional ethics and practices without prejudice to my right as a valuer.

Kindly find attached duplicate Xerox coy of empanelment letter duly signed by me as a token of acceptance. We are looking for long lasting relationships with Central Bank of India.

Mohit Mehta

Value Add Consultants

ersenthilraj · Joined: 30 Aug 2008 Posts: 61

mohit_mehta1 Ji

Can you tell me, When will Policy on Hand book of IBA for Real Estate Valuation Come in to Force

with Regards

Er S Senthil Raj

suchdevs · Joined: 30 Aug 2008 Posts: 348

IBA handbook has been released but there is no clarification if it si binding on banks and valuers or is it merely for guidelines, as well as from when should it come in effect... any update on the same, if available, will be appreciated...

mohit_mehta1 · Joined: 17 Apr 2009 Posts: 80

Central Bank has refused to accept provisions of hand book. and asking for indemnity and 1 lac FD. On my non acceptance AGM has conveyed to me by wrtting letter that if you do not agree then we will cancel your empanlement.

Thanking You,

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