Dena Bank invites applications on prescribed format from well establis - PDF document

1 Dena Bank invites applications on prescribed format from well established and experienced valuers to assist the Bank in valuation of assets under SARFAESI Ac t , 2002 as per Bank‟s guidelines. Last date for receipt o f application is 15.05.2015 . Asst. General Manager (Legal) 2 GUIDELINES It is proposed to empanel valuers under SARFAESI Act to assist the Bank in valuation of assets as per Bank‟s approved scheme for which appliactions are invited from eligible valuer for empanelment as valuers under SARFAESI Act in the Bank. Criteria for Empanelment of Valuers: The valuer to be appointed should be a valuer registered under Section 34AB the Wealth Tax Act having prescribed qualifications and experience as provided in the Act. The following qualifications and experience are prescribed to become eligible for registration as a valuer for valuation of various types of asset under Wealth Tax Act: For Corporate Loans For Retails Loans: 1 . The valuer should be professionally qualified to value assets. Preference should be given to a firm with accounting / engineering professionals; 2 . Valuers should be registered with the Institute of Valuers, as also under Section 34 of the Wealth Tax Act; 3 . The registration of the firm of the valuer shall be at least 5 years old; 4 . The valuer should have at least 5 years experience in the valuation of assets for PSBs. Firms working as valuers with DRTs and H igh Courts should be preferred; 5 . The valuer should have completed at least 10 assignments successfully with public sector banks; 6 . The firm of the valuer and the valuer (s) / associate valuer(s) each should have PANs; 7 . The valuer should have thorough knowledge of the industry concerned and also the type of assets to be valued; 8 . A valuer against whom complaints have been registered with the CBI, Serious Fraud Investigation Cell and court(s), and is blacklisted by any bank is not eligible 1 . Minimum age of the valuer should be 25 years; there is no maximum age limit; 2 . Valuer to be preferred if Member of any one of the professional valuer bodies Institution of Valuers, Institution of Surveyors, Institution of Government Approved Valuers, Practicing Valuers Association of India, The Indian Institution of Valuers, Centre for Valuation Studies, Research and Training, Royal Institution of Chartered Surveyors, India Chapter, American Society of Appraisers, USA (ASA) , Appraisal Institute, USA; 3 . Should have a graduation degree in civil engineering / architecture / town planning (or equivalent) with work experience of 5 years in the field of valuation after completing the degree; 4 . should have completed the 6 - month long prescribed course in valuation within a period of 5 years from the date of empanelment; 5 . In case the valuer has a diploma in the aforementioned disciplines, he should have work experience of 8 years in the field of valuation after completing the diploma; 6 . In case the valuer has passed the valuation examination, he needs to have 2 years of relevant work experience; 3 For Corporate Loans For Retails Loans: 7 . In case the valuer is chartered / professional member of the Royal Institution of Chartered Surveyors or American Society of Appraiser s or Appraisal Institute, no work experience is required; Categorization for assignment of valuation work based on work experience: Assignment of work to the Valuers has been linked with their experience as under: Category of Valuer Work experience in undertaking valuations Value of property for assignment of valuation work A More than 10 years No limit B More than 5 years and less than 10 years Upto ` 25 crore C Up to 5 years Upto ` 1 crore. DURATION OF EMPANELMENT : The duration of empanelment shall be 5 years. However, the quality of service provided by the valuers shall be reviewed annually by the Branch/ZO. If the performance is not satisfactory, the valuer can be removed from the panel at the discretion of the ban k. EMPANELMENT PROCEDURE: 1 . Power for empanelment shall continue with the Board of Directors. 2 . Year - round system to receive applications from valuers seeking empanelment. 3 . All such applications shall be receive d in the prescribed format and kept in a list. 4 . The application format shall be available on website of Bank for easy download . 5 . All applications need to be accompanied by relevant documents to substantiate the educational qualification, experience, membership, Wealth Tax registration etc. REMOVAL AND RE - EMPANELMENT: In case where the valuer is found to indulge in unfair practice, guilty of professional misconduct and violates the code of ethics and professional practice, he/she shall be removed from panel. The powers for removal from the panel shall continue with the Board of Directors. Valuers once removed from the panel of any Bank could be re - empanelled only after a spec ified time period, based on the recommendations of the Bank‟s Conflict Resol ution Committee. The names of valuers removed shall be reported to the Indian Banks Association (IBA) for placing on its caution list. The valuer empanelled will be paid fee as per bank‟s guidelines from time to time. 4 Bank reser ves the right to empanel any valuer at its discretion. Bank also reserves the right to reject any offer without assigning any reason. Interested valuer may submit their offers at the following address by 15.05.2015 . The application should be made on the format of application placed below . Address: Sreejith.K Asst. General Manager (Legal) Dena Bank , Legal Department Dena Corporate Centre, 5 th Floor, C - 10, G - Block, Bandra Kural Complex Bandra (E) MUMBAI - 400051. 5 APPLICATION FOR EMPANELMENT OF VALUERS WITH BANKS To, ............................................ ............................................ ............................................ Date ............................................ Dear sir/madam, I am a valuer of immovable properties (Land and buildings/plant and machinery) and desire to apply to your organisation for empanelment. My particulars are given below; Name :.......................................................................................................................... Sex: .................................. Date of Birth:........................................ Age:.................. Address:...... ............................................................................................................. ............................................................................................................................. .... ................ ................................................................................................................. Tel No:........................................ Mobile:................................................................. E - Mail:............. ............................ Fax:..................................................................... Educational /Professional qualifications: S No. University / Institute/ Examining Body Qualification Date of Awards Number ofyears of experience in the field of valuation............................................. (attached evidence in the form of reference letters/copies of valuation reports /any other evidence) 6 Name and address of previous employers (if applicable): .............. ......................................................................................................................... ............................................................................................................................. .......... ............................................................................................................................. .......... ......................................................................................................................... ............. Details of previous empanelment, if any, with dates/duration: ............................................................................................................................. ........ .............................................. ..................................................................................... ............................................................................................................................. .... Membership of professional valuers Assoc iation (name and membership number) ............................................................................................................................. ......... ..................................................................................... .............................................. Registration with CBDT under Wealth Tax Act (Reg. No. and date): ............................................................................................................................. ...... ............................................................................................................................. .... Permanent Account Number (PAN) of Income Tax Department:.............................. Reference: 1).......................... ......................................................................................................... 2) .......................................................................................................................... ....... 3) .............. ..................................................................................................................... The above information about me is true to the best of my knowledge and if found incorrect, I will be fully responsible for the consequence s Enclosed: Attested photocopies of all certificates /documents of proof Signature....................................... Name :........................................... ***** 7 Formats of undertaking to be submitted by the valuers for empanelment UNDERTAKING I ................................................................................................so/daughter of ................................................... ....................... do hereby solemnly affirm and state that,  I am a citizen of india  I have not been removed /dismissed from service/ employment earlier  I have not been convicted of any offence and sentenced to a term of imprisonment  I have not been found guilty of misconduct in professional capacity  I am not an undischarged insolvent  I have not been convicted of an offence connected with any proceeding under the Income Tax Act, 1961 Wealth Tax Act 1957 or Gift Tax Act 1958 and  My PAN Card number/S ervice Tax number as applicable is .........................  I have read and understood the “Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in india 2010”of the IBA and fulfil all the conditions of criteria for Emp anelment as listed therein  I undertake to keep you informed of any events or happening which would make me ineligible for empanelment as a valuer  I have not concealed or suppressed any material information, facts and records and I have made a complete and full disclosure. Dated................................................. Signature............................ Name ............. ......................... Address............................................ ........................................................ ......................................................... ******** 8 TERMS AND CONDITIONS Empanelment shall be subject to the followings Terms and Conditions: 1 . The Valuer shall not undertake any valuation in which he/she has direct or indirect interest; 2 . The Valuer shall make an impartial and true valuation of the assets required to be valued; 3 . The Valuer shall agree to charge fee at rates prescribed under the Bank‟s rules; 4 . The Valuer shall maintain secrecy of the information received by him from the Bank / Bank‟s constituent; 5 . The Valuer shall personally inspect the property to be valued; 6 . The Val uer shall submit Valuation Report strictly as per the format prescribed . 7 . The valuer shall report both Market Value and Realisable Value of properties; 8 . The Valuer shall not use Bank‟s logo or name for his/her publicity / marketing of business; 9 . The Bank shal l have right to delist the Valuer at any time particularly in case of any misconduct or negligence or any act of commission or omission detrimental to the interests of the Bank is noticed; 10 . The Valuer shall not accept valuation work unless the Branch issues a letter & the Valuer shall submit his/her original valuation report directly to the Branch; 11 . The Valuer shall attend Bank‟s branches / offices / officers in giving his / her valuable guidance and services as and when approached; 12 . The Valuer shall not deleg ate or assign the work to any other Valuer and the work assigned by the Bank shall be handled by him / her personally; 13 . The Valuer shall not engage any other Consultant or Valuer / Senior Valuer on behalf of the Bank without the written consent of the Bank ; 14 . The Valuer shall not use any legend containing the Bank‟s name or emblem such as “panel valuer of Dena Bank” or “panel valuer to Dena Bank” etc on his / her letter head, visiting card or any other stationery used. 15 . The Valuer shall not at any time claim l ien or charge on the documents and files received by him / her from the Bank towards his / her fees / charges; 16 . The Bank shall be at liberty to circulate his / her name to Indian Banks‟ Association (IBA) or other Banks / Institutions and persons for neglige nce / misconduct if any, found by the Bank at any time. 9 17 . The Valuers opinion / certification would be an input for Bank‟s decision making. In the event of Valuer‟s opinion / certification turns out to be untrue and factually incorrect causing loss to the Bank, Bank may seek such clarifications as may be required to investigate the matter and fix the responsibility. In the event, it is established that there was gross negligence on the Valuer‟s part or he / she had colluded with the Bank‟s customer/s in cau sing pecuniary damage / loss to the Bank, Bank may recommend his / her name for including in the caution list being maintained by the IBA for circulation amongst member Banks. Apart from this, the Bank may take appropriate action under Criminal Laws for gi ving false certificates; 18 . Any other conditions or rule, as may be decided and stipulated by the Bank, in this regard, from time to time, will be applicable on the Valuer. 19 . The empanelled Valuer shall accept the terms and conditions of empanelment by signin g on the letter of empanelment and submitting undertaing in the prescribed format. 20 . Bank may amend / alter any of the terms of empanelment without giving prior notice. ******** 10 Following formats have been devised by IBA. The valuer shall submit the reports of valuation strictly in the format prescribed annexure as under ;  Annexure - 1 Format : Asset with value less than ` 5 crores  Annexure - 2 Format : Asset with value more than ` 5 crores;  Annexure - 3 Format : Undertaking to be submitted by the Valuers  Annexure - 4 Format : Application for empanelment. Formats of Valuation reporting (to be used for assets of value more than Rs. 5 Crore S No. Chapter Content I Introduction 1 . Name of Valuer 2 . Date of Valuation 3 . Purpose of Valuation 4 . Purposes of Valuation 5 . Name of Owner/s 6 . Name of Bank as applicable 7 . Name of Developer of the Property (In case of developer built properties) II Physical Characteristics of the asset 1 . Location of the asset 2 . Municipal Ward No. 3 . Postal address 4 . Area of the plot/land (supported by a plan) 5 . Layout plan of the layout in which the asset is located 6 . Details of Roads abutting the asset 7 . Demarcation of the asset under valuation on a neighbourhood layout map 8 . Description of Adjoining properties 9 . Surve y No. if any 10 . Detail of the building/ buildings and other improvements in terms of area, height, no. of floors, plinth area floor wise, and year of constructions with details, full detail of specifications to be appended along with building plans and elevat ions. 11 . Any other aspect III Town planning parameters (if applicable) 1 . Master plan provisions related to the property in terms of land use 2 . Planning area/zone 3 . Development controls 4 . Zoning regulations 5 . FAR/FSI permitted and consumed 6 . Ground converge 11 7 . Transferability of development rights if any, building bye - law provisions as applicable to the property viz, setbacks, height restriction, etc. 8 . Comment on surrounding land uses and adjoining properties in terms of usage 9 . Comment on unauthorised construction s if any 10 . Comment on demolition proceeding if any 11 . Comment on compounding/regularisation proceedings 12 . Comment on whether OC has been issued or not Any other aspect IV Legal aspects Description of legal aspects to include: 1 . Ownership documents, 2 . Names of Owner/s 3 . Title verification, 4 . Details of leases if any, 5 . Ordinary status of freehold or leasehold including restrictions on transfer, 6 . Agreements of easements if any 7 . Notification for acquisition if any, 8 . Notification for road widening if any, 9 . Heritage restri ctions if any, All legal documents receipts related to electricity, water tax, property tax and any other building taxes to be verified and copies as applicable to be enclosed with the report, 10 . Comment on transferability of the property ownership 11 . Comment on existing mortgages/ charges/ encumbrances on the property if any. 12 . Comment on whether the owners of the property have issued any guarantee (Personal or corporate) as the case may be. 13 . Building plan sanction, illegal constructions if any done without plan sanction/violations. 14 . Any other aspect V Economic aspects 1 . Reasonable letting value 2 . Details of monthly rents being received if any including status of tenancy rights 3 . Taxes and other outgoings 4 . Property insurance 5 . Monthly maintenance charges 6 . Security charges, etc. 7 . Any other aspect VI Socio - cultural aspects Descriptive account of the location of the asset in terms of the social structure of the area, population, social stratification, regional origin, age group, economic levels, location of slums/ squatter settlements nearby, etc. VII Functional and Utilitarian Description of the functionality and utility of the asset in terms of: 12 aspects 1 . Space allocation 2 . Storage spaces 3 . Utility of spaces provided within the building 4 . Any other aspect VIII Infrastructure availability a ) Description of aqua infrastructure availability in terms of 1 . Water supply 2 . Sewerage/sanitation 3 . Storm water drainage b ) Description of other physical infrastructure facilities viz 1 . Solid waste management 2 . Electricity 3 . Roads and public transportation connectivity 4 . Availability of other public utilities nearby c ) Social infrastructure in terms of 1 . Schools 2 . Medicals facilities 3 . Recreation facilities in terms of parks and open spaces IX Marketability Analysis of the market for the property in terms of 1 . Locational attributes 2 . Scarcity 3 . Demand and supply of the kind of subject property 4 . Comparable sale prices in the locality X Engineering and technology aspects Description of engineers and technology aspects to include 1 . Type of construction 2 . Materials and technology used, 3 . Specifications 4 . Maintenance issues 5 . Ages of the building Total life of the building 6 . Total life of the building 7 . Extent of declaration 8 . Structural safety 9 . Protection against natural disasters viz, earthquakes 10 . Visible damage in the building if any 11 . Common facilities viz lift, water pump, lights, security systems, etc., 12 . System of air - conditioning 13 . Provision for fire fighting Copies of plans and elevations of the building to be included. XI Environmental factors 1 . Use of environment friendly building material, Green building techniques if any, 2 . Provision for rain water harvesting 13 3 . Use of solar heating and lighting systems , etc Presence of environment pollution in the vicinity of the property in terms of industries, heavy traffic etc. XII Architecture and aesthetic quality Descriptive account on whether the building is modern, old fashioned, etc., plain looking or with decorative elements, heritage value if applicable, presence of landscape elements etc. XIII Valuation Here, the procedure adopted for arriving at the valuation has be highlighted. The valuer may consider various approaches of valuation and state explicitly the reasons for adoption of a particular approach and the ba se on which the final valuation judgement is arrived at. Detailed analysis and descriptive account of the approaches, assumptions mad, basis adopted supporting data (in terms of comparable sales), reconciliation of various factors, departures, final valua tion arrived at has to be presented here. XIV Declaration I hereby declare that, a ) The information provided is true and correct to the best of my knowledge and belief. b ) The analysis and conclusions are limited by the reported assumptions and conditions. c ) I have no direct or indirect interest in the asset valued. d ) I/my authorised representative by the name of ................................. who is also a „valuer‟ has inspected the subject property on.................... e ) I am a „valuer‟as per th e existing provisions in category ...... and fulfil the education, experience and other criteria laid out therein. Name of and address ......................................................................................... .......................... ................................................................ ........................................................................................ ....................................................................................... Name of Value r Association of which I am a bonafied member in good standing .................................................. Membership Number ............................................................ 14 Signature of the Valuer..................................... ............... Date .................................. Tel No. ................................. Mobile no..................................................................... E - Mail.......................................................................... Enclosures  Layout plan of the area in which the asset is located  Building plan  Floor plan  Photographs of the property being valued  Any other relevant documents/extracts 15 FORMATS OF VALUATION REPORTING (TO BE USED FOR ASSETS OF UPTO RS. 5 CRORE) 1 Customer details Name Apl No. Case Type 2 Asset Details Address Nearby Landmark 3 Documents Details Layout Plan Yes/no Name of approving Auth. Approval No. Building Plan Yes/no Approval No. Construction Permission Yes/no Approval No. Legal Documents Yes/no List of Documents 4 Physical Details Adjoining properties East West North South Matching of Boundaries Yes/no Plot Demarcated Yes/no Approved Landuse Type of propert Plotted /Flat No. of rooms Living/ Dining Bed rooms Toilets Kichen Total no. of floors Floor on which the property is located Approx age of the property Residual age of the property Type of structure RCC framed/ stone/ BB masonary 5 Tenure/ Occupancy Details Status of Tenure Owned/ Rental No. of years of occupancy Relationship of tenant to owner 6 Stage of construction Stage of construction Under construction/ completed If under construction, extent of completion 7 Violation if any observed Nature and extent of violations 8 Area Detail of the property Site area Plinth area Carpet area Seleable area Remarks 9 Valuation (Mention the Valuation as per Govt Approved Rates also) 10 Assumptions / Remarks 11 Declaration 1 ) The property was inspected by the undersigned on............. 2 ) The undersigned does not have any direct/ indirect interest in the above property. 3 ) The information furnished herein is true and correct to the best of our knowledge. 12 Name of address & signature of Valuer Signature of the Valuer Date of Valuation 13 List of documents enclosed 14 List of photos enclosed