New rules on real property valuation coming to India

Submitted by retimes on Thu, 2009-01-01 19:21

Valuation of real estate, agriculture, industries and machinery and plants, marine properties etc. is under the consideration of Parliament. In June 2007, Delhi Government has also approved new property valuation rates for registration of property aimed at correcting undervaluation of property in the city, which affects taxes raised. Property will not be registered at values below the minimum value set for different locations and areas.

Initiated by the Ministry of Company Affairs, the draft bill to recognize, regulate and frame rules and regulations is under examination by different agencies and very soon will be tabled in Parliament, according to S S K Bhagat, Vice-President, Institution of Valuers-IIV (India).

He told PTI that the ministry had elicited views from various institutes and submitted its recommendations. Rationalization of valuation techniques is also under the purview of Institute of Chartered Accountants, Institute of Company Secretary, Institute of Cost and Works Accountants of India, Institute of Insurance Surveyors, The Indian Council of Arbitrator's.

The Department of Company Affairs, Government of India (www.mca.gov.in), had also convened different rounds of meetings among various bodies and the draft bill is also under circulation with the ministry of finance, company law, as per PTI.

Efforts to inculcate professional and academic touch to the concept of valuation has been coordinated with leading educational institutions as well, report added. Currently, Periyar Maniammai University, Thanjavur, Annamalai University at Chidambaram, both in Tamil Nadu and Sardar Valabhai Patel University at Anand in Gujarat offer post diploma courses in valuation with focus on real estate, plant and machinery and relevant topics.

The Bengal Engineering and Science University at Shibpur near Kolkata also plans to commission a MBA programme with six semesters on Real Estate Valuation. Similarly Sivaji University at Kolapur in Maharasthra is to offer Master's Degree Programme in Real Estate Valuations. Mysore University is also planning to to start similar PG Degree programs on valuation.

Sources: Livemint, Business Standard, PTI

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