The process of determining the fair market value or forced sale value of a secured asset before SARFAESI enforcement. RBI guidelines require banks to obtain valuations from empanelled valuers before initiating enforcement. The reserve price for auction must be based on the lower of the two independent valuations obtained. Inflated valuations are a major cause of banking fraud — Section 340 BNS (forgery of valuable security) and IPC S.467 are applied when valuers collude with borrowers.
Need Expert Advice on Valuation?
For specific advice on how Valuation applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates