Dear Mr.TD Suresh Babu and all other readers,
Did you write to SBI Chennai why they have kept capping of fees i.e. Rs.10,000/- ( Rupees Ten Thousand Only) ?
Under, which law of Government of India they got power to do contempt of Act of Parliament by imposing such capping ?
By introducing Such capping in fees they like to earn some kickbacks in five manners ?
1) In such less fees valuer will not his make research properly and issue a conservative value report. Hence borrower will get less loan compared to his expectation or demand or like. This will give chance to banker to play with margin or interest rate or various deviation available in his power etc. which obviously has some consideration attached.
2) If, Valuer give lower valuation borrower approach him to increase through bank officials, by giving some cash consideration or in kind or just by requesting him to increase. In such circumstances valuer may increase value either by getting such consideration or without that. In both cases banker influence borrower that see i have get the work done for you. You please do some favor.
3) In any scenario valuer give higher valuation ( Inflated) bank give better loan and official get incentives for that, However after it become NPA again they get chance to manage the account till the time they can drag or do CDR etc. and make some favor out of the same.
4) Soon the account become NPA, and Bank's take possession again there is valuation game and bankers make money out of the same based on the different scenario. from borrower/buyers of assets etc.
5) Overall by empaneling , depaneling , by giving work and by not giving work bankers can ask/get some consideration from valuer.
Hence only solution of the problem is minimum Fees as per Wealth Tax Act,1957 amended up to date.
Better revenue to Valuer to run his profitable successful professional venture.
In that scenario entire fees amount get paid out in cheque, which result in higher service tax payment to Government of India where valuer does not loose as ST is always paid extra on fees. Client / Banks does not loss as ST can get offset/credit against other ST payments.
Higher income tax to Government of India
Better loan facility to valuer if he like to avail based on higher earnings.
He can participate in per qualification process where in it is ask to show some minimum turnover of the valuation fees.
Better recovery of fees as all the fees recoverable by the valuer are documented hence parties can not denied.
Overall better scenario for every one as no cash component involved.
If you all agrees to what i mentioned above please comment if disagree to entire concept of what ever particular issues please do comment accordingly. I will not be upset with adverse remark. However please put the remark after thinking interest of all the stake holders in long terms basis and not just initial reaction.