Valuers Problems

[pl_khushu]

Present Problems with suggested remedies

in the field of Valuation

By - Er. P.L. Khushu

           B.Sc. Engg. (Civil),

                 F I E, FICA, F I V

    Chartered Engineer (India)

 

The present problems in the field of Valuation are many, but the basic & the fundamental one, which is the base or the mother of all such problems is the non-recognition of this field of national economic activity, within the peripherals of State Governance, and the economic and administrative set ups, of various fields of developmental activities pertaining to the country. In this regard, if it is said that this field of economic activity, viz, the ‘Valuation’ is still unrecognized within the definitions of the constitutional guarantees and provisions, the presumption shall not be wrong. Maybe that under some ascribed limited scopes, like the ‘Wealth tax Act,’ and some of its provisions, this limb of socio-economic factor of national economy has a micro-structural recognition, yet this does not guarantee a full fledged structural essence and recognition to it, which can be regarded as one of the fundamental factors having a permanent and a perfect guarantee under the “Constitution of India”. This is the tragedy and the travesty of the time which has squeezed this subject and made it a victim of “Pluralism” and “Polarity” at the hands of various governing and administrative bodies of the state, which require the services of this subject often.

 

To quote appropriate examples and instances in this regard, reference is invited to the processes of valuation for banks of the country, required for different uses of the economic activities, concerning the State. Here every such factor right from the empanelment of Valuers, obligations to accept the valuation reports, and then the fee structure for valuation fee, differs in its pattern and form from one bank to another bank, even though the interest of the National economy has to be the same and unique, for each and every bank of this country. Qualified and competent valuers are hardly able to persuade such governing bodies of the banks to rationalize their systems, for want of proper cover and protection under a specific mandatory or even a statutory law which would regulate and regularize such processes. The end results are evident. The size and quantum of the NPA’s is known to all of us. It is alarming. The regulatory systems of empanelment are arbitrary and monopolist in nature and character. The resultant effect is that unscrupulous Valuers too are in the field of Valuation, and they come down to any sad extent, to accept any lowest amount, as valuation fee, and thus make inept valuation reports which cannot with stand and sustain the testimony of legal scrutiny and investigative onslaughts of various investigation agencies. The net result is that the profession of valuation, is becoming murkier, and defamed, at the hands of these unscrupulous valuers.

 

Similarly the banks have devised their own fee structures which have no relevance to the government prescribed fee structures, through the Wealth Tax Act. In utter disregard to the stipulations of valuation fee structure as per Wealth Tax Act, the banks have prescribed a fee structure for valuation which is just nominal and have attached so many if and buts with it apart from asking for signing of an indemnity bond by the valuer concerned, in lieu, of his guarantee for his valuation report. This is un-heard of as a document of valid legal sequence and a valid proprietary guarantee, on the part of a valuer as also a valuation report. But who will ask such bodies as to how it is being done and under what specific rule or authority. It needs a proper regulatory body to counter such bitter propositions.

TO READ COMPLETE ARTICLE, PLEASE DOWNLOAD .

[tdsb]

Dear P.L.Khushu,

Your article very much figures out our situation.But unfortunately there is  no response from our valuer friends.Is their silence mean that they are afraid of their elected leaders or the situation itself? that they do not want even to activate one single finger?!?! Very sad?!?! Like leaders the followers did not take seriously valuation as their profession and as their long time career and like their leaders  have taken valuation  "business" as their "fly by night operation" part time past time. Very Sad!?!?!

If majority wants no emancipation and ensure sure death of the profession let God save my fellow friends.

Till then Good bye?!?!

[bishnujee]

Dear Er. P.L. Khushu,

I think I did made comment on this article in some other forum message board.As mentioned previously that recognition of Valuers Profession as Registered Professional Approved Valuer should be legalised by Parliament Act for IOV Approved Valuers.Chartered Status which is mentioned in the article is only applicable to Institutions created under Royal Chartered or Chartered Institutions under Engineering Council in UK under Her Majesty Queen.This is not applicable for IOV or other Indian Professional Institution which were created after the end of British rule in India.

Regulation of Professional Valuer legalisation by Parliament is very much needed and their should be no exception or doubt in this regard if the Profession of Valuer is to survive in India.

All responsible Council members of IOV requested to act in this regard.

 

Kind regards

 

EUR ING Bishnujee Singh  ,P.E FIEAust
Fellow Engineers Australia
Fellow Chartered Management Institute FCMI (UK)
Fellow Institution of Valuers
Chartered Professional Engineer (Australia)
Chartered Engineer (EC-UK)
Chartered Mathematician (IMA-UK)
Chartered Scientist (SC-UK)
Chartered Physicist (IOP-UK)
APEC Engineer,Int.P.E (Australia) Int PE(UK)
Associate Fellow CASI(Canada)
APPROVED VALUER
Fellow RAS(UK),MInstPhys
MSc(UK),BAe,MRAeS(UK),MAeSI(India),
Sr.MAIAA(USA),MAOPA(Pilot)
CAYLEY AEROSPACE INC
CHIEF EXECUTIVE OFFICER
18830,38th Ave W
Lynnwood,WA,98037
USA
Tel:4252330440
Tel:2012527643
Fax:646-219-1010
Fax:702-995-1881
Email:bishnujee.singh@cayleyaerospace.com
http://www.cayleyaerospace.com />  

 

[tdsb]

 Are we following this philosophy! We should be silent to situations!

 

[Gnyoganarasimhan]

 Dear sir,

many banks are insisting that the maximum age for empanelment of valuers is65years.Kindly let me know whether it is correct.

I came to know that one Valuer sought court to intervene and the age limit gas been raised to 70 years.

i want clarification from my fellow valuers to clarify this.

woth warm regards

g.n.yoganarasimhan

be(civil)mie,fiv,pgdv

 

[ValueAddConsultants]

Dear Sir,

It is not correct Age limit should not be kept 65 years. Having said that your fellow valuers discussion in this forum will not help to solve your problem. My advice is you should contact Managing Commitee of Professional Organisation you are attached with to represent your and other similar age presons problem and you may approch legal system as one of the valuer did which i learnt from your posting.

Hope you will update us in the forum what action you have taken how far you have progressed in the matter.

My request to all valuers, we should come up with an agenda of our routine problem and wish list as a valuer, and minimum non negotiable program at request our professional bodies to work on that.

Valuers Act etc are necessary however we can not afford to wait till it get enacted there should be some workable solution and win - win solution for both.

Regards,

Mohit Mehta