Dear Manish Joshi
Valuers forum only recognize and certify professionals as technically fit for carrying out assignment. They have no authority to decide or recommend for inclusion of any valuer in the panel of a bank. They do not give any undertaking to indemnify a bank for loss incurred due to any lapse on the part of a valuer. Each valuer approaches banks and impress them earn their confidence and get empaneled and work on the terms and conditions of the bank. When such is the prevailing practice an affected valuer cannot question as a matter of right any valuer’s forum how they could be a silent spectator for penal proceedings on him. The forum too do not have any legal or moral standing to condom or caution the bank especially when tax payers money is involved.
Therefore my humble opinion is some system has to be evolved to protect the interest of the bank as well professionals like us servicing the bank in good faith. When bank is benefited and booking profit out of thousands of secured credits using our expertise one or two going wrong should not be taken seriously. In a recent Judgment this was highlighted by the learned Judge.
The problem becomes serious only when bank book a criminal case on valuer. There has to be a tribunal with IBA on one side and valuers forum on other side with some senior and experienced members to analyze the exact reason for the problem and who is responsible. Based on recommendation of such panel only banks should act further. This can at least weed out 50 % of the problem faced presently faced by valuers.
Vr. D. Jagannathan
Thanks for expressing your concern. Please do not worry about tax payers money. Tax payers, Citizen of India and Govt. Bank and RBI has given this responsibility to others.
Valuers job is to do valuation. That what all of us do. Many of them might be doing accurate others may be doing wrong. It depends as you said case to case. There may be mechanism to evaluate their work and renew their membership on yearly basis. Having said that don't tell that to client to evaluate our work. They are not the right person to judge our work. Seeing our expertise they have engaged us.
If you are bothered about tax payers money than why not suggesting to users of our services to higher proper valuers by offering them proper fees to get quality services. It is not only fault of valuers to offer their services at very cheap rate however it is a greater problem from bankers to higher most incompetent valuer to get faster,cheap and high value report.
Sir, by doing over or under valuation as the case may be beneficiaries are not valuer. Beneficiaries are chartered accountant, bankers, agents, borrower etc. So please do proper analysis before blaming any valuer even though his/her work is of poor nature.
It is institute duty to upgrade their knowledge bring proper resolutions for their members to upgrade quality of work offered by their members. However punishment should not come from banks, IBA etc.
In case their is a big fraud where in valuer is beneficiary by way of getting huge some of money out of loan amount than may be as per law processions should happen. However in most cases valuer just offered his report and no way engaged in the entire fraud done by bankers and borrower together.
So be educated about prevailing system in finance world before blaming valuers. I know valuers work is sub standard in nature. That does not mean that we should blame each other. First bank should offer decent fees to protect tax payers money to acquire good quality report. Than only change will come. As good renumeration will attract good talent.
Today most valuers offers their services alone, where is the Carree even they can't afford to keep a assistant. How on earth you thing he/she will be in position to do good work at fast speed required by banking and finance industry. First IOV and others Institute recognize the need of profession than only they will able to over come problems faced by bankers.
1) Capital Loan should be available to valuer at low interest rate to establish his office.
2) Legal aid should be available to valuer at phone call away with reasonable rate to attack day to day problems
3) Skilled and unskilled Office staff should be available to valuer like other profession where in articles need to compulsory work for three years at 2500/- monthly stipend(As in case of CA).
4) Marketing and IT Support as well as brand building support should be available.
5) There should not be Que approach every where and valuers efforts in impalement should be eliminated with single licensing system with banking authorities.
6) Financial security after retirement, disability etc. should be though off in the beginning of career.
7) Yearly award should be presented city wise to do good work.
I have already given a paper in the seminar and published in IOV megazine. My wish list as valuers and do's and don't by valuers , ethics etc.
DO you expect an engineer to work for Rs.500/- a day liek a daily wage worker and do not get moeny if he take one day off and after retirement get nothing as he/she cant save money in Rs.500/- a day and invest for pension after retirement.
Obviously he / she will get greedy for money and go for over valuation or under valuation as the case may be for getting some extra money to satisfied his financial social need.
So come to the right point first and do not suggest something adverse to valuers brothers at-least in this forum where alert valuer like me and TD Suresh Babu are present.
The most dangerous is the valuers who join the profession after retirement from his good paying job. They like to impress their seniority in the career they enjoyed in past. However they are the worst in their dealings. Hence before issuing membership to every one our professional institute should come out with proper rules and regulation for their members.
If they can not control their members than how on earth you are bothered about tax payers money with a such a large tax payers base where non tax payers are most rich and politician bring all the scheme to make their earning non taxable.
Sir live in the present scenario and don't try to take side our institutes who are doing enough to save their reputation and their members interest and just become silent spectator.