ALL INDIA ENGINEERS AND VALUERS ASSOCIATION (AIEVA)

Transcription

1 Date: From To ALL INDIA ENGINEERS AND VALUERS ASSOCIATION (AIEVA) V.SUBRAMANIAN. B.E., A.I.T.P., B.L., President, All India Engineers and Valuers Association, No.18,Sivasamy Nagar, North Gate of CEOA School, A.Kosakulam, Madurai Tamil Nadu State Mobile: E mail: aievaengineers@gmail.com 1. UNION OF INDIA represented by The Secretary to the Government of India Department of Financial Services Banking Division Ministry of Finance New Delhi RESERVE BANK OF INDIA represented by The Governor Reserve Bank of India Central Office Building 18 th floor, Shahid Bhagat Singh Road, Mumbai INDIAN BANKS ASSOCIATION represented by The Chairman Indian Banks Association World Trade Centre, 6 th Floor Centre 1 Building World Trade Centre Complex Centre- Cuffe Parade Mumbai NATIONAL HOUSING BANK National Housing Bank, Core-5-A, India Habitat Centre, Lodhi Road, New Delhi

2 2 5. SCHOOL OF PLANNING AND ARCHITECTURE The Registrar, School of Planning and Architecture(SPA), 4-A,Ring Road, Indraprastha Estate, New Delhi STATE BANK OF INDIA The Chairman, State Bank of India, State Bank Bhavan, Madam Cama Road, Mumbai ALLAHABAD BANK, Allahabad Bank, 2,N.S.Road, Kolkata ANDHRA BANK Andhra Bank, Dr.Pattabhi Bhawan, ,Saifabad, Hyderabad Telungana 9. BANK OF BARODA Bank of Baroda, Head Office Suraj Plaza-1 Syaji Ganj Vadodara BANK OF INDIA Bank of India C-5, G Block, Bandra Kurla Complex, Bandra (East), Mumbai BANK OF MAHARASHTRA Bank of Maharashtra, Central Office, Lokmangal 1501,Shivaji Nagar, Pune

3 3 12. CANARA BANK Canara Bank, 112,Jaya Chamrajendra Road, Bengaluru CENTRAL BANK OF INDIA Central Bank of India, Central Office, Chander Mukhi, Nariman Point, Mumbai CORPORATION BANK Corporation Bank, Bharath Building, G.H.S. Road, Mangalore DENA BANK The Chairman and Managing Director Dena Bank, Dena Corporate Centre, C-10 G Block Bandra Kurla Complex, Bandra East, Mumbai INDIAN BANK Indian Bank, 31,Rajaji Road, Chennai INDIAN OVERSEAS BANK Indian Overseas Bank, Central Office, 762, Anna Salai, Chennai ORIENTAL BANK OF COMMERCE Oriental Bank of Commerce, E-Block, Connaught Place, New Delhi

4 4 19. PUNJAB & SIND BANK Punjab & Sind Bank, Bank House, 4 th Floor, 21, Rajendra Place, New Delhi PUNJAB NATIONAL BANK The Chairman and Managing Director Punjab National Bank Head Office 7,Bhikhaji Came Place, Africa Avenue, New Delhi SYNDICATE BANK Syndicate Bank, Manipal , Karnataka State 22. UCO BANK UCO Bank, 10, Biplabi Trailokya Maharaj Sarani, Calcutta UNION BANK OF INDIA Union Bank of India, Union Bank Building, Central Office, 239,Backbay Reclamation, Nariman point, Mumbai UNITED BANK OF INDIA United Bank of India, 16, Old Court House Street, Calcutta VIJAYA BANK Vijaya Bank, Administrative Office, Janardhan Towers No.2, Residency Road, Bangalore

5 5 26. IDBI Bank Ltd., represented by The Chairman and Managing Director IDBI Bank Ltd., IDBI Towers WTC Complex Cuffe Parade Mumbai AXIS BANK Axis Bank Limited, Corporate office, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai CATHOLIC SYRIAN BANK Catholic Syrian Bank, Head office, 3 rd Floor, D J M Building, Market Road, Ernakulam Kerala 29. CITY UNION BANK City Union Bank, 706, Anna Salai, II floor, Chennai DEVELOPMENT CREDIT BANK Karimabad Cooperative Housing Society Limited, 116,Imamwada Road, Bhendi Bazar, Mumbai DHANALAKSHMI BANK Dhanalakshmi Bank, Unit No.13, 8 th Floor, Innovator Building, ITPL, Whitefield Road, Bangalore

6 6 32. FEDERAL BANK Federal Bank, 1 st floor, Rajabahadur Mansions, 32, Bombay Samachar Marg, Fort, Mumbai HDFC BANK HDFC Bank, HDFC Bank House, 1 st Floor, C.S.No.6/242, Senapati Bapat Marg, Lower Parel, Mumbai ICICI BANK ICICI Bank, CPC-Transactions Unit, ICICI Towers, Plot No.24, Block No.1, Ambattur Industrial Estate, Ambattur, Chennai INDUS IND BANK The chairman and Managing Director, IndusInd Bank, 81/82,Mittal Towers, 8 th Floor, Nariman Point, Mumbai ING VYSYA BANK ING Vysya Bank, Hara Chambers, 4 th Floor, 22,KH road, Bangalore JAMMU & KASHMIR BANK Jammu & Kashmir Bank, Corporate Head Quarters, M.A.Road, Srinagar Jammu & Kashmir State

7 7 38. KARANATAKA BANK Karnataka Bank, , Vardaman Chambers, Cawasji Patel Street, Fort, Mumbai KARUR VYSYA BANK Karur Vysya Bank, D-Block, North Wing, 6 th Floor, Tel Park, Taramani, Chennai KOTAK MAHINDRA BANK Kotak Mahindra Bank, 6 th Floor, Bldg.No.21, Zone No.3, Infinity Park, Malad (East), Mumbai LAKSHMI VILAS BANK Lakshmi Vilas Bank, 25-31,Aban House, 4 th Floor, Sri Saibaba Marg, Kalaghoda, Fort, Mumbai NAINITAL BANK Nainital Bank, Seven Oaks Building, Mallital, Ninital, Uttarakhand RATNAKAR BANK Ratnakar Bank, Corporate Office, One Indiabulls Centere, Tower 2B,6 th Floor, 841,Senapati Bapat Marg, Lower Parel(W), Mumbai

8 8 44. SOUTH INDIAN BANK South Indian Bank, II floor, SIB Building, Market Road, Kochi TAMILNAD MERCANTILE BANK Tamilnad Mercantile Bank, 269/2-4, 2 nd Floor, Avvai Shanmugam Road, Royapettah, Chennai YES BANK Yes Bank Limited, Corporate Head Quarters, Nehru Center, 9 th Floor, Discovery of India, Dr.A.B. Road, Worli, Mumbai Notice issued under the Writ Procedure and Practice Sirs, Sub: Valuation of properties and empanelment of valuers- Registration, Standards and procedures for empanelment of valuers in Banks are prescribed in the Indian Banks Association(IBA),National Hosuing Bank(NHB) and School of Planning and Architecture(SPA) Hand Book on Policy, Standards, and Procedures for Real Estate Valuation by Banks and Housing Finance Institutions(HFIs) in India (2011) Meaning of Real Estate and Real Estate Valuation are not defined in the said Handbook Report of the Group constituted by the Department of Financial Services, Ministry of Finance, Government of India to Standardize Procedures for

9 9 Valuation of Assets submitted during August Report of the IBA working group on Standardization of Procedures for Empanelment of Valuers by Banks in November rd Respondent 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 - Reserve Bank of India (RBI) is the competent authority to prescribe the procedures for valuers empanelment in the Banks in India - Individual Public Sector and Private Sector banks have to act as per the RBI guidelines only Request submitted to 1 st and 2 nd Respondents to direct 3 rd Respondent 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 6 th to 46 th Respondents to stop the activities based on the aforesaid Report and further to direct the Banks (6 th to 46 th Respondent) to follow the RBI guidelines vide RBI No /224 DBOD. BP.BC.No. 50/ / dated January 4, 2007 dated with immediate effect in the matter of valuation of properties and empanelment of valuers - Regarding. Ref: 1. Representation cum legal notice sent to all the above Respondents along with other inter-related and interconnected 95 Respondents dated Prior to this legal notice we already sent the representation cum legal notice dated to inter-connected, inter-related and inter dependant of 95 Respondents as necessary parties with 17 prayers. In the said notice the prayers No.12 to 15 are related to the above mentioned Respondents herein are as follows:

10 10 1. To quash the Hand book on Policy, Standards and Procedures for Real Estate Valuation by Banks and Housing Financial Institutions-2011 which was prepared by Indian Banks Association (IBA), National Housing Bank(NHB) and School of Planning and Architecture(SPA) by the Secretary, Ministry of Finance, the Secretary, Department of Financial Services and the Governor, Reserve Bank of India as arrayed as the 49 th, 50 th and 51 st Respondents in our earlier notice dated as arbitrary, illegal, unconstitutional and void ab intio. 2. To quash the Report of the Group constituted by the Department of Financial Services, Ministry of Finance, Government of India to Standardize Procedures for Valuation of Assets To quash the Report of IBA Working Group on standardization of Procedures for Empanelment of Valuers by the 49 th Respondent Indian Bank Association(IBA). 4. To direct the - Reserve Bank of India (RBI) (arrayed as 48 th Respondent) to direct the Public and Private sector banks which were arrayed as 53 rd to 95 th Respondents of Banks to follow the RBI Circular No.DBOD. BP.BC.No.50 / / dated January 4, 2007 in the matter of Valuation of Properties and Empanelment of Valuers in Banks. The aforementioned Respondents herein have been arrayed as 47 th to 51 st and 53 rd to 95 th Respondents in the said representation dated So far there is no specific reply from the Respondents with reference to the prayers mentioned above. Hence, we are sending this 2 nd notice to the above mentioned Respondents based on the prayer related to them. To achieve the above object, the aforementioned 46 Respondents are necessary parties in administrative hierarchy of the

11 11 subject matter and in our proposed court case for filing writ petition under Article 226 of the Constitution of India for having the final and effective legal remedy based on the laws of the land and on the following facts and grounds. FACTS 1) The 1 st Respondent- Department of Financial Services, Ministry of Finance is the apex authority in the administrative hierarchy on the subject matter of banking in India. It is the appellate authority for the 2 nd Respondent (Reserve Bank of India). 2) The 2 nd Respondent (Reserve Bank of India) constituted under the Reserve Bank of India Act, The 2 nd Respondent (RBI) performs the following functions: (i) to regulate the issue of bank notes, (ii) keeping reserves for securing monetary stability in India, (iii) to operate the currency and credit system of the country to its advantage, (iv) deals with incorporation, capital, management and business of the bank, (v) banker to the Government and all the banks of the nation, (vi) lender of last resort, (vii) collection and furnishing of credit information, (viii) acceptance of deposits by non-banking financial institutions, (ix) general provisions regarding reserve fund, credit funds, publication of bank rate, audit and accounts and (x) penalties for violation of the provisions of the RBI Act or the directions issued there under by the 2 nd Respondent to Banks and other Financial Institutions. The 2 nd Respondent has the power to determine policy and issue directions to regulate the financial system of the country. All other banks are the agents to RBI in our country. 3) The Banking Regulation Act, 1949 gives enormous powers to the 2 nd Respondent, and enables to it control the banking institutions of India. The primary object of the Banking Regulation Act, 1949 is to control frauds and embezzlement of public funds in banking industry. This Act has given vast powers to the RBI so that it can control the entire banking sector in every corner of the country. This Act empowers the RBI to issue directions, which should strictly be followed by all banking companies in India. According to

12 12 this Act, the RBI has the responsibility of determining the policy in relation to advances to be followed by banks and of giving directions to the bank in that regard. The RBI acts as the controller of credit to banks and exercises as supervisory and controlling authority over all the Banks. Every banking company is necessarily be bound to comply with the directions given by the RBI. 4) The major powers of the 2 nd Respondent in the different roles as regulator and supervisor can be summed as follows: 1. to issue license; 2. appointment and removal of banking boards / personnel; 3. to regulate the business of banks; 4. to give directions; 5. to inspect and supervise banks; 6. to audit of banks; 7. to collect, collate and furnish credit information; 8. in relation to moratorium, amalgamation and winding up and 9. to impose penalties. 5) The 1 st Respondent Department of Financial Services, Ministry of Finance, Government of India is the apex body in the administrative hierarchy in relation to financial system of our Nation. The 2 nd Respondent (RBI) is the primary regulator of banks. But the 1 st Respondent has also been conferred with extensive powers under the RBI Act, 1934 and Banking Regulation Act, 1949 either directly or indirectly over the banks. The 1 st Respondent holds the entire capital of the 2 nd Respondent and appoints the Governor and the members / directors of the Central Board and has the power to remove them. The 1 st Respondent has also the power to issue directions to the 2 nd Respondent (RBI) whenever considered necessary in public interest after consultation with the Governor of RBI. Thus, the 1 st Respondent can exercise control over banks by influencing decision-making by the 2 nd Respondent and has also got appellate authority in respect of several matters in which the 2 nd

13 13 Respondent has been conferred with the power to decide at the first instance. 6) The 2 nd Respondent (RBI) has issued a guidelines on the subject of Valuation of Properties Empanelment of Valuers vide RBI No /224 DBOD.BP.BC.No.50/ / dated January 4, In the aforesaid guidelines, the 2 nd Respondent directed the 6 th to 46 th (public and private sector banks) Respondents herein to formulate a policy on three heads as follows: (a) Policy for valuation of properties, (b) Revaluation of bank s own properties and (c) Policy for Empanelment of Independent Valuers. It further stated that the each Bank (6 th to 46 th Respondents) should have a Board approved policy in place for valuation of properties including collaterals accepted for their exposure and Banks (6 th to 48 th Respondents) may prescribe a minimum qualification for empanelment of valuers. Different qualifications may be prescribed for different classes of assets (e.g. land and building, plant and machinery, agricultural land, etc.). While prescribing the qualification, banks (6 th to 46 th Respondents) may take into consideration the qualifications prescribed under Section 34 AB (Rule 8A) of Wealth Tax Act, ) The 3 rd Respondent-Indian Banks Association (IBA) is a private association of banks. In response to RTI application, the 3 rd Respondent (IBA) has openly admitted that it is not a Public Authority. Based on our correspondence with 3 rd Respondent, it seems to be an unregistered organization. Being a private organization, IBA cannot direct the banks. 8) The 4 th Respondent (National Housing Bank) is constituted under the National Housing Bank Act, NHB has been established to achieve the following objectives among others: a) To promote a sound,healthy, viable and cost effective housing finance system to cater all segments of the population and to integrate the housing finance system with overall financial system, b) To promote a network of dedicated housing finance institutions to

14 14 adequately serve various regions and different income groups, c) To augment resources for the sector and channelize them for housing, d) To make housing credit more affordable, e) To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act, f) To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country and g) To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing. The 4 th Respondent (NHB) is also comes under the control of the 2 nd Respondent (RBI) and in the year 2009 prepared a Hand Book on Policy,Standards and Procedures for Real Estate Valuation by Banks and HFIs in India and implemented in the year In that Hand Book, no where mentioned that which authority has directed NHB and IBA to prepare this Hand Book either by Department of Financial Services, Ministry of Finance or Reserve Bank of India. 9) The 5 th Respondent-School of Planning & Architecture (SPA) New Delhi is a specialized University, only one of its kinds, which exclusively provides training at various levels, in different aspects of human habitat and environment. Recognizing the specialized nature of the fields in which the School had attained eminence, in 1979, the Government of India, through the Ministry of Education and Culture, conferred on the School of Planning and Architecture the status of Deemed to be a University. Then it was recognized as An Institute of National Importance under the Act of Parliament in The SPA offers planning, architecture and design courses both at undergraduate and post graduate levels. The first report in the name of Hand Book on Policy, Standards, and Procedures for Real Estate Valuation by Banks and HFIs in India has been prepared by the 5 th Respondent(SPA) from the year 2008 to ) The Government of India set up Indian Valuation Reform Project (IVRP) and final report has been submitted by jointly IBA- NHB-SPA under IVRP titled Hand Book on Policy, Standards,

15 15 and Procedures for Real Estate Valuation by Banks and HFIs in India in the year The said IBA Hand Book came into force from February The said hand book had not addressed any key issues in the field of valuation profession. Key issue of role of immovable property valuers in the valuation work when the forged documents are submitted by the loan beneficiary in the financial business of Banks is not addressed in the Hand Book ) The report of the Group constituted by the 1 st Respondent - Department of Financial Services, Ministry of Finance, Govt. of India to Standardize Procedures for Valuation of Assets- August In the Report -2012, under the head 3.2 Selecting valuers for empanelment and sub-head Criteria for empanelment of vlauers including qualification and rating have prescribed some criteria as essential one as follows: For retail loans the empanelled vlauer should be preferred if member of any one of the professional 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. For corporate loan Valuers should be registered with the Institution of Valuers. It is an open illegal act of favoritism to one particular professional body-institution of Valuers which is a private body. The above mentioned all the professional bodies are privately managed one including foreign professional bodies such as Royal Institute of Chartered Surveyors-UK. The American Society of Appraisers- USA and Appraisal Institute-USA. The USA based two professional bodies have no branches in our Country. The above mentioned institution / organization by the 1 st Respondent (Department of Financial Services, Ministry of Finance) for the valuers are private and non-statutory bodies. 12) By taking advantages of undue recognition of the 1 st Respondent, the non-statutory private body the Institution of Valuers misguiding the entire valuation field in India. For

16 16 example the Institution of Valuers had requested unnecessarily and arbitrarily and colluded with the Annamalai university started the illegal course in the name of M.Sc.(Real Estate Valuation) in the year On the sole request from the Institution of Valuers, the then privately managed educational institution-annamalai University (Civil Engineering Faculty) also started the illegal course of M.Sc.(Real Estate Valuation) without getting any approval from University Grants Commission-UGC, Distance Education Bureau- DEB, All India Council for Technical Education-AICTE, Tamil Nadu State Council for Technical Education-TNSTCTE for the persons from all degree holder including arts and science discipline. It further directed all the members of immovable property category of Institution of Valuers should complete the illegal course namely M.Sc.(Real Estate Valuation) conducted by Annamalai University for this current academic year Valuers are forced to join the said illegal course during this year due to sole direction from the Institution of Valuers and the valuers are in panic about future survival in this profession. Further the Institution of Valuers selecting the persons who are degree holders from the AICTE unapproved and unrecognized engineering colleges as a member. 13) The 3 rd Respondent (IBA) is once again prepared a Report on 3 rd November 2014 to standardizing the procedures for empanelment of valuers based on the aforesaid two reports of 3 rd Respondent Handbook-2011 and 1 st Respondent Report of the Group constituted by the Department of Financial Services of Ministry of Finance ) In the Report of IBA working Group-2014, it mentioned that the diploma holders in Civil Engineering / Architecture are eligible for empanelment to undertake valuations. This educational qualification is considered as one of the eligibility criteria for empanelment of valuers in Banks. It is contrary to the basic meaning of engineer. The National Building Code of India 2005 published by Bureau of Indian Standards, defined the engineers as follows: the minimum qualification for engineers shall be graduate in engineering / architecture of recognized Indian or

17 17 Foreign University. So, the diploma holders are not at all engineers based on the educational qualification. The unequal qualified persons cannot be equal to do any work based on practical experience alone. It is against the fundamental rights enshrined in the Constitution of India. 15) The 3 rd Respondent-IBA directed the member Banks- 6 th to 46 th Respondents (public and private banks) to follow the procedures mentioned in the Report of the IBA working group on Standardization of Procedures for Empanelment of Valuers by Banks dated 3 rd November The 6 th to 46 th Respondents (public and private banks) are insisting the existing valuers in their panel to study the illegal course of M.Sc.(Real Estate Valuation) and M.Sc.(Plant and Machinery) from a Recognized University and they have to complete the said illegal course before the date of The 3 rd Respondent directed the 6 th to 46 th Respondents (public and private banks) that from only academically qualified valuers Post Graduate Degree on M.Sc.(Real Estate Valuation or Plant and Machinery) shall be empanelled. While renewal of empanelment of valuers, the 6 th to 46 th Respondents asked the valuers to give undertaking to complete the illegal course M.Sc.(Real Estate Valuation) before ) Based on the 1 st representation dated and this 2 nd representation cum legal notice dated , we request the 1 st to 5 th Respondents to withdraw / cancel / recall the Report of Indian Banks Association (IBA) Working Group on standardization of Procedures for Empanelment of Valuers by Banks dated 3 rd November 2014 and to stop the activities based on the aforesaid Report and further to direct the Banks (6 th to 46 th Respondent) to follow the RBI guidelines vide RBI No /224 DBOD. BP.BC.No.50/ / dated January 4, 2007 in the matter of Valuation of Properties and Empanelment of Valuers dated with immediate effect. 17) If the above mentioned relief is not granted to us at pre-litigation stage, we will be constrained to file a writ petition under the Article

18 of the Constitution of India before the Hon ble Madras High Court on the following among other GROUNDS a) The Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and Housing Finance Institutions (HFIs) in India have been prepared by 3 rd,4 th and 5 th Respondents of IBA,NHB, SPA in the year 2009 and implemented in the year The said Handbook has been prepared the School of Planning and Architecture, New Delhi (SPA) on behalf of the Indian Banks Association (IBA) and National Housing Bank (NHB). The 3 rd Respondent (IBA) has no legal authority to direct to prepare the Hand Book. The 3 rd Respondent itself declared that it is not a Public Authority and it is purely a private organization. Further it seems to be an unregistered organization. In that Hand Book the terms of reference or legal frame work to prepare the said Handbook is not mentioned. The role of 1 st and 2 nd Respondents - Department of Financial Services and Reserve Bank of India are not mentioned in anywhere in the said Handbook. b) Without any legal frame work the 3 rd, 4 th and 5 th Respondents have been prepared the said Handbook. As far as the subject of banking is concerned, the 2 nd Respondent is solely responsible and the 1 st Respondent is only an appellate authority to the 2 nd Respondent. The 3 rd Respondent (IBA) is a non-statutory and a private organization. The 3 rd Respondent cannot steps into the shoes of the 2 nd Respondent without any legal framework. All other Banks are the agents to the 2 nd Respondent-RBI in our country and also RBI is the primary regulator of Banks. Every banking company is necessarily being bound to comply with the directions given by the 2 nd Respondent-RBI. Therefore it is very clear that the 3 rd Respondent (IBA) has

19 19 no direct jurisdiction in the subject of banking and cannot deal the subject matter without any direction from the 2 nd Respondent. The role of 3 rd Respondent (IBA) in the subject of banking is arbitrary, illegal and unconstitutional. c) The scope of the said Hand Book on Policy, Standards, and Procedures for Real Estate Valuation by Banks and HFIs in India mentioned as This standard is applicable for the estimation of the value of real estate is supposed to be for sale in the open market and not for estimation of value of assets as a part of a going concern or for some other purpose. But it has miserably failed to define the very important and necessary terms related to valuation of real estate such as real estate, real estate valuation and real estate valuer. The said Hand Book reproduced several terms such as market value, property, etc. from the Red Book published and maintained by The Royal Institution of Chartered Surveyors (RICS). Whereas RICS valuation- Professional Standards defined the term real estate as follows: Land and all things that are a natural part of the land (e.g. trees, minerals) and things that have been attached to the land (e.g. buildings and site improvements) and all permanent building attachments (e.g. mechanical and electrical plant providing services to a building), that are both below and above the ground. But the IBA Sub- Committee on Mortgage and Valuation of Property and IBA Steering Group on Developing Valuation Standards for Real Estate Financing in India have miserably failed to define very primary term real estate. Without knowing the primary meaning of the real estate, the further related terms of real estate valuation, real estate financing and real estate valuer cannot be defined by any person. But, the 3 rd to 5 th Respondents have prepared the Hand Book for the sole purpose of real estate valuation. Hence, the said Hand Book-2011 is legally invalid document.

20 20 d) The 1 st and 2 nd Respondents namely Ministry of Finance, Department of Financial Services, Reserve Bank of India (RBI) are hierarchy of administrative authorities in the field of banking. The 3 rd Respondent is a private body has no legal status to deal the subject allotted to the 2 nd Respondent-RBI. e) The 2 nd Report of a Group constituted by 1 st Respondent- Department of Financial Services August The 2 nd Respondent RBI has not been consulted anywhere in the said Report. f) The minimum qualification for valuers for different kinds of properties are mentioned in the Wealth Tax Rules,1957 and it is governed by the Department of Revenue of Ministry of Finance in the Government of India. It is a mandatory to follow all the institution including banks in the subject of valuation of properties and empanelment of valuers. But the said Report of Group constituted by the 1 st Respondent- Department of Financial Services mentioned in the Report- August 2012 that the valuers should be registered with the Institution of Valuers for corporate loans. The said Institution of Values is a private and non-statutory body and cannot overrule the qualification fixed by the Wealth Tax Act, The said condition is open favoritism to the private professional body as extra-constitutional authority by the 1 st Respondent. Hence, the 2 nd Report of the Group constituted by the Department of Financial Services, Ministry of Finance, and Government of India to standardize Procedures for Valuation of Assets is an illegal document. g) Hence, the 1 st Respondent has to withdraw / cancel / recall the Report of the Group constituted by the Department of Financial Services, Ministry of Finance, Govt. of India to Standardize Procedures for Valuation of Assets-2012 as arbitrary, illegal, unconstitutional and void ab initio. h) The 3 rd Report of the 3 rd Respondent-IBA Working Group on Standardization of Procedures for Empanelment of Valuers by Banks has been finalized on 3 rd November In the

21 21 Report, the 3 rd Respondent IBA stated as follows 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 valuation, the IBA which is a private and nonstatutory organisation must also have no legal right to regulate the profession of valuation. Knowingly the IBA unwarrantably doing this illegal act. It is not only ultravires but also mindless action with a malafide intention on the part of 3 rd Respondent. Because the 3 rd Respondent itself admitted that it is a private body and not a public authority. So, the report of the 3 rd Respondent-IBA is open illegal act. Hence, the Report of the 3 rd Respondent- IBA working group on Standardization of Procedures for Empanelment of Valuers by Banks must be withdrawn by 3 rd Respondent as arbitrary, illegal and unconstitutional. i) The 2 nd Respondent-RBI has issued clear guidelines on Valuation of Properties Empanelment of Valuers in RBI No /224 DBOD. BP. BC No.50/ / dated January 4, In the 1 st Report Hand book on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India-2011 prepared by the IBA-NHB- SPA, the 2 nd Report of the Group constituted by the Department of Financial Services, Ministry of Finance, Government of India to standardize Procedures for Valuation of Assets-August 2012 and the 3 rd Report of the IBA Working Group on Standardization of Procedures for Empanelment of Valuers by Banks have not mentioned about the guidelines issued by the 2 nd Respondent-RBI. The legal necessity of the preparation of the said three reports has not been mentioned. The RBI guideline is still in force. In this situation, the 3 rd Respondent-IBA cannot overrule the guidelines dated issued by the 2 nd Respondent- RBI without any valid reason. Hence, the 3 rd Report by IBA Working Group on Standardization of Procedures for

22 22 Empanelment of Valuers by Banks-2014 based on the two reports is arbitrary, illegal, unconstitutional and void ab initio. j) Hence, the 2 nd Respondent should direct the 6 th to 46 th Respondents to follow the guidelines dated in the matter of Valuation of Properties Empanelment of Valuers and further 2 nd Respondent should direct the 6 th to 46 th Respondents to stop activities based on the illegal Report of Working Group of IBA dated as mentioned in this representation. Hence, based on the above grounds, we request the 1 st and 2 nd Respondents to direct 3 rd Respondent 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 6 th to 46 th Respondents to stop the activities based on the aforesaid Report and further to direct the Banks (6 th to 46 th Respondent) to follow the RBI guidelines vide RBI No /224 DBOD. BP.BC.No. 50/ / dated January 4, 2007 dated with immediate effect. Therefore, if the aforesaid relief mentioned as above is not granted to us with immediate effect, we will be constrained to file writ petition before the Hon ble Madras High Court against the above mentioned authorities as respondents for their willful dereliction of legal duty, violation of fundamental rights and principles of natural justice and for their commission of unlawful activities and for omission of legal duties. Copies submitted to for necessary action: 1. His Excellency the President of India, New Delhi-4 2. Hon ble the Prime Minister of India, New Delhi Hon ble Minister of Finance, New Delhi The Vice-Chairman, NITI Aayog, Sansad Marg, New Delhi-1 5. The Chairperson, Parliamentary Standing Committee on Finance, Parliament House, New Delhi-1 6. Copy to Press, Media and all other concerned stake holders.