Ref.No. REVC/IBA/ 01/ Date :

Transcription

1 Ref.No. REVC/IBA/ 01/ Date : To The Chairman Indian Banks Association World Trade Centre, 6 th Floor Centre 1 Building World Trade Centre Complex Centre- Cuffe Parade Mumbai Sir, Sub: The Indian Banks Association (IBA) is a private organization IBA has no legal right to regulate the valuation professionals who are working in the banking sector - Request submitted to withdraw / cancel/ recall the Revised Report of IBA Working Group on standardization of Procedures for Empanelment of Valuers by Banks dated 4 th February 2017 with immediate effect - Regarding. Ref: 1. Our representations dated & IBA Circular No.OPR/CIR/2043 dated In our two representations dated & , we have requested you to withdraw / cancel/ recall the Report of IBA Working Group on standardization of Procedures for Empanelment of Valuers by Banks dated 3 rd November 2014 and to direct Banks to stop the activities based on the aforesaid Report and further to direct the Banks to follow the RBI guidelines vide RBI No /224 DBOD. BP.BC.No. 50/ / dated January 4, 2007 dated with immediate effect.

2 2 The said illegal Report of IBA working group had prescribed the educational qualification for the Valuation of Land & Building / Real Estate as follows: There is no Act to regulate profession of valuation of real estate in our country. From only academically qualified valuers possessing following qualifications in Valuation of Land & Building / Real Estate shall be empanelled. a) Post Graduate degree in valuation of real estate from a recognized university i.e. the universities established under State or Central Acts with 2 years experience in valuation of real estate, b) Examination in valuation of real estate conducted by any institution which is recognized by the Govt. of India for recruitment to superior services or posts with 2 years experience in valuation of real estate. The said Report of IBA Working Group stated that there is no Act to regulate profession of valuation of real estate in our country. When there is no Act to regulate the profession of real estate valuation, the IBA which is a private and non-statutory organization must also have no legal frame work to regulate the profession of real estate valuation such as fixing the academic qualifications for real estate valuers. Knowingly the IBA unwarrantably doing this illegal act. It is not only ultraviries but also mindless action with a mala fide intention on the part of IBA. Because IBA have already admitted that it is a private body and not a public authority. So, the revised report of the IBA working group is open illegal act. Hence, the Report of the IBA working group on Standardization of Procedures for Empanelment of Valuers by Banks must be withdrawn by IBA immediately. In accordance with the UGC notification dated , the said post graduate degree in valuation of real estate is illegal. Due to your illegal report, several universities have started the post graduate degree course without approval from UGC and AICTE, the entry level qualification for post graduate degree has been prescribed as any degree.

3 3 There is no reply in direct manner from your good office to us till date for our two representations. But you have mentioned that the 1 st representation from All India Engineers and Valuers Association (AIEVA) is the main reason for convening the IBA Working Group meeting on 17 th November 2016 to revise the earlier Report of 3 rd November 2014 which was circulated on The said revised report of the IBA Working Group on Standardization of Procedures for Empanelment of Valuers by Banks dated 17 th November 2016 was circulated to the member banks on 4 th February The revised report of IBA working group vindicates our stand in all aspects. The said revised report is also illegal and viod ab initio. Due to implementation of your illegal revised report dated by Banks in India, several educational institutions/ universities are continuously conducting the illegal course in the name of real estate valuation at the post graduate level to extort money from the innocent engineering based valuers and they are continuously exploiting them. Thereafter we sent several representations to the said educational institutions and universities and concerned higher administrative authorities to stop/cancel the course in the name real estate valuation based on several legal grounds. In this situation, based on the replies from the educational institutions/ universities and recent notifications issued by UGC in their web site, we came to know that University Grants Commission (UGC), Distance Education Bureau (DEB) & All India Council for Technical Education (AICTE) have never approved any course in the name of real estate valuation either at undergraduate or postgraduate level to any educational institutions/ universities in our country. Further any institutions/ universities cannot conduct any course with specialization of Real Estate Valuation in India as on date for the reasons submitted in the following paragraphs. 1. Till date the UGC has not defined the term real estate as one of the subject in the existing 15 academic disciplines mentioned in the notification for specification of degrees dated The specialization in the name of Real

4 4 Estate Valuation is illegal. Because the subject of real estate is inter-disciplinary and combination the three subjects of technical education namely civil engineering, architecture and town planning. The term real estate is not defined in any law, rules or regulations which are in force in India including recently Parliament enacted the Real Estate (Regulation and Development) Act, The said three technical educations are regulated by the UGC and AICTE as a separate discipline in higher education as technical education. Hence, it is very clear that the subject in the name of real estate must be a technical subject and it may be the specialised course either comes under the disciplines of civil engineering, architecture and town planning or the combination of the said three technical disciplines. 2. As far as the valuation is concerned the Wealth Tax Rules, 1957 is the legally valid guideline/norms in our country. The said rules have clearly prescribed the qualification to do valuation for ten different kind properties. The real estate valuation has been classified as immovable property in category-i and the qualification for real estate valuer has been specified for only the graduates in the field of civil engineering, architecture and town planning. So, it is very clear that even graduates from other branches of technical education such as mechanical, electrical, chemical, electronics, computer, etc, cannot do real estate valuation. Therefore, it is very clear that the real estate valuation is inter-disciplinary and combination of three specialized braches in technical education namely civil engineering, architecture and town planning. So, the course in the name of real estate must be come under only technical education discipline. Hence, the said courses in the name either M.V. or M.Sc. or M.Com. or M.B.A. (Real Estate Valuation) is illegal.

5 5 Therefore, Indian Banks Association has no legal or moral or any other right to prescribe the academic qualification for land and building valuers as Post Graduate degree in valuation of real estate from a recognized university i.e. the universities established under State or Central Acts with 2 years experience in valuation of real estate. It is an open fraud. The above act of IBA and its members in the list of working group constituted by IBA who all are senior executives of public sector banks and private sector banks, will attract the IPC offences such as fraud, forgery, cheating, criminal breach of trust and criminal conspiracy apart from the offences under the Prevention of Corruption Act,1989. Hence, we request the Chairman, Indian Banks Association to withdrawal/cancel the illegal Revised Report of IBA Working Group on standardization of Procedures for Empanelment of Valuers by Banks dated 04 th February 2017 with immediate effect. If you failed to withdraw/cancel the illegal Report, we will initiate appropriate legal proceedings against you in both official and individual capacity along with members in IBA working group who are attended in meeting on and other abettors apart from other legal remedies available in civil and writ proceedings. Thanking you sir. Yours truly, (V.SUBRAMANIAN) President All India Engineers and Valuers Association Copy to other Respondents for the necessary action on their parts. 1. Hon ble Shri.Arun Jaitley, Minister of Finance, North Block, New Delhi

6 6 2. The Secretary to the Government of India Department of Financial Services Banking Division Ministry of Finance New Delhi The Governor Reserve Bank of India Central Office Building 18 th floor, Shahid Bhagat Singh Road, Mumbai Shri.K.Unnikrishnan, Deputy Chief Executive, Indian Banks Association World Trade Centre, 6 th Floor Centre 1 Building World Trade Centre, Complex Centre, Cuffe Parade Mumbai Shri.Keshav Baijal, General Manager, Union Bank of India, Union Bank Building, Central Office, 239,Backbay Reclamation, Nariman point, Mumbai Shri.S.Ravi, GM/ZM, Indian Bank, Head Office, 31,Rajaji Road, Chennai Shri. Mahendra Kumar Sahoo, Head (Policy), Bank of Baroda, Head Office Suraj Plaza-1 Syaji Ganj Vadodara Shri.N.Venugopal, Head(Legal), Bank of Baroda, Head Office Suraj Plaza-1 Syaji Ganj Vadodara Shri.Dinesh Pruthi, DGM-CPPD, State Bank of India, State Bank Bhavan,

7 7 Madam Cama Road, Mumbai Smt.R.Shashikala, DGM, Canara Bank, Head Office, 112,Jaya Chamrajendra Road, Bengaluru Shri.V.K.Kapila, DGM, Bank of India- Head Office, C-5, G Block, Bandra Kurla Complex, Bandra (East), Mumbai Shri.P.Augustine, DGM(Legal) Bank of India, Head Office, C-5, G Block, Bandra Kurla Complex, Bandra (East), Mumbai Shri.R.R.Soni, AGM, Punjab National Bank Head Office 7,Bhikhaji Came Place, Africa Avenue, New Delhi Shri.Amrendra Kumar Choudry, Chief Manager, State Bank of India, State Bank Bhavan, Madam Cama Road, Mumbai Shri.Rahul Kelkar, Vice-President, Retail Credit(Central Risk Unit), HDFC Bank Ltd. 16. Shri.Gitendra Gangwar, AVP, HDFC Bank, HDFC Bank House, 1 st Floor, C.S.No.6/242, Senapati Bapat Marg, Lower Parel, Mumbai Shri.Udai Singh, Head-Mortgage Valuation Group, ICICI Home Finance Ltd

8 Copy to Press, Media and all other concerned stake holders for awareness. 8