institution of valuers indian valuer / june, 2016 shri sandip kumar deb, chairman of academic...

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Indian Valuer / June, 2016 3

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COL. B.B. SHARMAB-5 & 6/ 4259, Vasant Kunj,New Delhi-110 070,Ph.: 011-26895923 Mob.: 9811026636E-mail : [email protected]..... GEN GEN GEN GEN GEN..... SECRET SECRET SECRET SECRET SECRETARARARARARYYYYYSHRI VINAY K. GOEL1475, 14th Floor, Agarwal CyberPlaza-II, Netaji Subhash Place,Pitampura, Delhi - 110 034Ph.: 011-42470379, 27355642,Mob.: 9810161103,E-mail : [email protected]. TREASURERHON. TREASURERHON. TREASURERHON. TREASURERHON. TREASURERSHRI NEERAJ KAPOOR28, CSC, Transport Centre, RohtakRoad, Punjabi Bagh, Delhi - 110 035.Ph.: 011-28313406/2406,Mob.: 9811188915, 9311188915,E-mail : [email protected] OF COUNCILMEMBERS OF COUNCILMEMBERS OF COUNCILMEMBERS OF COUNCILMEMBERS OF COUNCILSHRI MAHENDRA S. KAKULECaculo House, Nr. Aquem Post Office,Margao, Goa, Ph.: 0832-2735374Mob.: 9822485550E-mail : [email protected] MILAN C. KALEDE/10, Yogiraj-3, Plot No. 101,Nr. Shivaji Nagar Park, ShivajiNagar, Nagpur, Mob.: 9823050639,E-mail : [email protected] N.R. RAON.R. Associates, 301, Sai Priya Apts.,Jayanagar, Gudimalkapur,Mehdipatnam, Hyderabad-500028.Ph.: 040-23533641,Mob.: 9866733100, 9391033100,E-mail : [email protected]

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AAAAAUDITUDITUDITUDITUDITORSORSORSORSORSM/S. JITENDER R. DEO & COMPANYCHARTERED ACCOUNTANTS233, DLF Towers, 15 Shivaji Marg,New Delhi - 110 015.Ph.: 011-43507965 Mob.: 9810018490E-mail : [email protected]

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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 Indian Valuer / June, 2016

CONTENTS

I. EditorialWhy we Valuers have to be expertsand what we need to do? —Dr. Ashok Nain 7

II. Response 9

III. Articles

1. Valuation of Plumbing Servicesin the building —Er. Khazan Chandra 11

2. Tips for new Valuer —A.L. Kalra 233. Valuation of Plant and Machinery

of M/s AAA Industry —Er. O.P. Sharma 254. Good Bye, Au Revoir to Super Area—Er. S.S.K. Bhagat 305. Valuation vis-a-vis Splitting

of Property —Vikram Arora 336. Valuation for Redevelopment of

property by Owner (Case Study)—Javahar R. Raval 35

IV. General

1. How to inspect the property? —Nitin Lele 432. Valuation by Rent

Capitalisation Method —B. Kanaga Sabapathy 493. Physical inspection of a property is

a must for valuers —P.N. Rao 534. Valuation of Plant and Machinery

Valuation of "Fish and Shrimp" —V.S. Rao &Feed Unit—A brief description —D.S.N. Murthy 61

5. Cost of Construction of aResidential Building bythree methods—Case Study —Er. N. Ravindran 70

6. Exercises in computationof Capital Gains —K. Arun 78

7. Computation of Capital Gainsfor a Flat —K. Arun 82

V. NEWS AND NOTES 85

VI. List of LM enrolled during the month of March 2016 96

INDIAN VALUERMONTHLY

Vol. XLVIII JUNE 2016 No. 6

Non-receipt of the Indian Valuershould be intimated to the Institu-tion of Valuers, Plot No. 3, ParwanaRoad, Adjacent to Bal Bharti PublicSchool, Pitampura, Delhi - 110 034before the end of the month. A re-placement copy will be sent againfree of cost under certificate of post-ing. In case of any complaintafter the schedule period, the re-placement copy will be chargedat Rs. 100/-

Editor in ChiefShri Vinay K. Goel1475, 14th Floor, Agarwal CyberPlaza-II, Netaji Subhash Place,Pitampura, Delhi - 110 034Phone: 011-42470379, 27355642,Mobile No. 9810161103E-mail: [email protected] EditorShri Shiv Lal BatraG-267, Rishi Nagar, Capt. Satish Marg,(Nr. Rani Bagh), Shakur Basti,Delhi - 110 034. Mobile : 9990778615Editorial BoardDr. Ashok NainShri P.K. RanganathanDr. Rajesh BurmanShri Sandeep BickchandaniDr. Satindar Pal TayalS. Ghose

The publisher cordially appeals to allour valuable members to give theiradvertisement so as to reach to 25,000readers across the country.

Note : The Articles published in this issue arethe authors’ statements and opinions only andare not necessarily endorsed by the Institutionof Valuers as a body. The Editor assumes noresponsibility for the statements and opinionsexpressed herein.


Efforts made by ‘Team IOV’ in making ourstand clear, about one of the several issues i.e.depanelment of valuers by the Banks without givingthem an opportunity for putting forth their version.It has started yielding desired results. Recently abank, in a reversal of its earlier order of depanelment,has issued show cause notice to such valuersgiving them a chance to put forth their version.

The principal agenda of ‘Team IOV’ is tocounter the present day challenges as faced bythe fraternity. With this mind set, our focus is on.Vinay K. Goel,

Hon. Gen. Secretary

• Enhancement in capacity building of the fraternity.

• Plugging the areas of weakness.

• Equipping the fraternity with such tools of knowledge, which fulfill the objectivityof purpose.

Steps taken in this direction are:

• Formalization / consolidation of the qualification criterions as per IBA guidelinesof 2016.

• Preparation and development of guidelines, ethical codes and other professionalparameters for the valuation as a profession i.e. Indian Valuation Standardsfor the first time ever in the country at par with international standards.

• Development of faculty for the educational programmes.

• Development of valuers’ assistants through proper guidance and training.

All these activities require availability and efficient use of human resourcesand infrastructural fabrics. It is the availability of such resources with us, becauseof such a long standing of the Institution, which makes us capable in fulfilmentof such activities.

Branches, throughout the country, have a vital role to play in the fulfilmentof our aims, as it becomes easy for IOV to spread these capacity-building activitiesfor its members. Thus benefits of collective knowledge pool should reach eachand every member of this fraternity. This will lead to a growth in the capabilitiesof valuers, resulting in the enhanced capacity of fraternity, which is bound tostrengthen the relationship amongst the beneficiaries and valuers, relieving muchof doubtful perception in the minds of the beneficiaries regarding our fraternity.

A WORD FROM THE HON. GEN. SECRETARY


Shri SandipKumar Deb,Chairman ofAcademicCommittee, ishanding overthe studymaterial to ShriR.S. Baabu,President andShri Vinay K.Goel, Hon.Gen. Secretaryof IOV.

IOV Puducherry BranchChairman Shri J.R. Ezhil,

Secretary Shri S.Sivakandan, Joint Secre-

tary V.R. Ajitchandranand Treasurer Shri A.

Vijayanarayanan called onPresident Vr. R.S. Baabu

in his office at Chennaiand discussed about theIndian Valuers Congress2016 to be held on 28th,29th and 30th December,

2016 in Puducherry.

Shri P.C. GoelFounder of Institution of Valuers


EDITORIAL

basic understanding and knowledge of the technologies and financial/economicconcepts of the issues involved.

On the technical side of valuation, it is not difficult to identify the academicand technical disciplines which are involved. However, valuation has not onlya technical dimension but also several non-technical dimensions. We areall familiar with the basic disciplines involved in valuation which have nowfound their way into courses conducted by our various Universities orInstitutions.

Additionally several partly non-technical, more general and soft-skill abilitiesare necessary. At first, people are needed who are by themselves nospecialists in the specialized domains of valuation referred above but havean overview about the interconnections and interdependences. These peopleare often referred to as system administrators. They are the ones responsiblefor setting up and organizing the system infrastructure. As an example whena valuation report is made out for loan disbursement by a bank, there is anentire net work of bank administration, which includes bank managers, loanprocessing managers, bank officers responsible for distribution of loans, followup and in general control and user segments including specialized lawyerswho are involved. Finally people are needed who are pioneering servicesand put them into practice.

All this leads us to one conclusion – that we valuers are only a link in

WHY WE VALUERS HAVE TO BE EXPERTS ANDWHAT WE NEED TO DO?

—Dr. Ashok NainPh.D., FIS, FRICS, FIE, FIV

Member, Editorial BoardKolkata

(F. 1207)

The requirement of human resources in valuation are at leasttwo fold : On the one hand, very specialized valuers for specificassignments and on the other, generalists who are able tounderstand the broader system aspects and decipher thespecialized reports. Decision makers in institutions reading thespecialized valuation reports prepared by experts too need a


IV

a chain of the process of industrial or commercial development in an economicprocess which has been set in our society. It is therefore essential that thislink of ours be strong because any weakness could cause this commercialchain to snap. This may lead to chaos something exactly like what happenedto our banking system – ever increasing amounts of Non Performing Assets.

On the human resources side a new professional academic is needed. Thisspecialist should have at least a full-time degree in valuation from a recognizedUniversity in the specific field of specialization. Of course at the same time,we should try to introduce a separate Bachelor’s degree in valuation at someUniversities and at the Master's degree level, there would be various special-izations preferably as per the categories listed under the Wealth Tax Act.

This concept would create a separate discipline of Valuation like Medicine,Engineering, Law, etc. at the Bachelor's degree level. It would also createexperts in every specific category of valuation services at the Master's degreelevel. Needless to say a doctorate in Valuation would not be too far fetchedfor meritorious students.

At the general level where we need human resources for system admin-istrators as stated above, it might be within our educational parameters to simplyask such people to take short term valuation courses after graduating in anygeneral related academic disciplines.

It is envisaged that implementation of these concepts can only be enforcedwith the introduction and passage of a Valuers Act in Parliament. Unless sucha Bill or Act is passed on these lines, Valuers can never hope to become Expertsor be treated as professionals like Lawyers, Doctors, etc. But this is exactlywhat we really need – Expert Professional Valuers, to differentiate us from thegeneralists. Therefore, there is only one goal – Valuers Act.

Man can conquer the entire world when histhoughts are pure.


Response - Indian Valuer

An article on the subject "LEASE DEED" under the authorship of Shri B.Kanaga Sabapathy was published at page no. 24 to 26 in April, 2016 IndianValuer Journal.A response from Shri Gajendra Paliwal was received and the same wasreferred to the author Shri B. Kanaga Sabapathy. After going through theresponse and reply given by the author the response as well as the replyare published as follows for enrichment of the members/readers of theInstitution of Valuers.

To,The Editor in Chief

Dear Sir,

Mr. B. Kanaga Sabapathy wrote an article "LEASE DEED" which waspublished in Indian Valuer April, 2016 volume. In point no. 6 of his articlehe raised a question "How leasehold rights are coming into effect?" andimmediately gave answer providing six different points of enjoyment ofleasehold right by a lessee. But, in point 4 of his answer he wrote "The Lesseecan sub-lease if so agreed in the lease deed" i.e. if there is nothing specificallymentioned about sub-lease in the lease deed, the lessee doesn't have anysublease right. But Section 108(B)(j) of Transfer of Property Act, 1882 says"Rights and liabilities of lessor and lessee - In the absence of a contractor local usage to the contrary, the lessor and the lessee of immovable property,as against one another, respectively, possess the rights and are subject tothe liabilities mentioned in the rules next following, or such of them as areapplicable to the property leased:- the lessee may transfer absolutely or byway of mortgage or sub-lease the whole or any part of his interest in theproperty and any transferee of such interest or part may again transfer it."That means, "The Lessee can sub-lease in absence of any restriction in thelease deed". Probably this is due to printing mistake and this matter demandsconsideration accordingly.

FromGajendra PaliwalF-17317


REPLY BY AUTHOR :i) If there is a specific covenant in the lease deed that the lessee cannot sub-

lease, then the sub-lease is not possible :ii) Whereas if the lease deed is silent about the sublease, then there two

possibilities :• Sub-lease may not be possible if the local customs or if the local

government’s lease and rent control act do not permit such sub-lease.• In the absence of such things prevailing, the sub-lease is possible as per

the Transfer of property act Section 108(B)(j) of Transfer of Property Act,1882 which says : “Rights and liabilities of lessor and lessee - In the absenceof a contract or local usage to the contrary, the lessor and the lessee ofimmovable property, as against one another, respectively, possess the rightsand are subject to the liabilities mentioned in the rules next following, orsuch of them as are applicable to the property leased:-the lessee may transfer absolutely or by way of mortgage or sub-lease thewhole or any part of his interest in the property and any transferee of suchinterest or part may again transfer it.

FromB. Kanaga SabapathyF-1890

****To,The Editor in Chief

Sub: Compliments for the improvement in the Indian ValuerSir,I extend my compliments for improvement in the Indian Valuer.It is very nice change that now the articles are of better use for the Valuers.More compliments for the fact that articles of Shri. B. Kanaga Sabapathy arein the journal. I am sure that there were some reasons, best known to the earliereditor, that for a long time, we were deprived of his valuable articles.Additional compliments for having agreed / convinced (though late) that articlesare being published alongwith the photo of the writer. For this simple matter,I as an Editorial Board Member and Council Member had tough time to convincefor the same.It may not be out of way to suggest to restore the articles in form of questionsand answers. They are simple practical and away from clumsy theoreticalformulas.FromP.C. GuptaF-10305


ARTICLES

of the building. The services means PLUMBING and ELECTRIFICATION bothinternal and external. The cost of other external items like approach roads, pathways,compound walls land development etc is added on measurement basis and are nottreated as pert of services. As a valuer you have to justify each of your actionwhen challenged or questioned by the accepting authorities or even by the client himself.As such it is very necessary that the provisions made should be rational. In the lasttwenty years of my profession career I have not read any article on services. Assuch I have taken up one part of services in my topic on PLUMBING.

2. Valuation of Plumbing work in the building : The cost of plumbing worksin the building is calculated at the following rates as per CPWD Plinth area rates.

A. Non Residential buildings Percentage of rates of load bearing building

a. For office building & colleges 4%

b. For hospitals 10%

c. Schools 5%

d. Hostels 15% with attached toilets

10% with common toilets

B. Residential buildings : Percentage of rates of load bearing building

Till 01.01.1992 the cost of plumbing was prescribed per residence, and the costof plumbing per sqm of plinth area works out as under:-

VALUATION OF PLUMBING SERVICES IN THE BUILDING—Er. Khazan Chandra

MIE, FIVRegd Valuer

Lucknow(F. 5291)

1. Introduction : The plumbing is an essential part of the building, aswithout plumbing, building cannot be properly used. Part 9 of NationalBuilding Code 2005 deals with this subject in detail.

While doing valuation, the provision of services is made on percentagebasis say 18% or 20% or 24.5% or 29.50% or so of the civil value


a. Type V (plinth area 199.20) Rs 43,800 for 2375.00 per Sqm PA rates

43800/ 199.2 = 219.88 per Sqm

or 219.88 / 2375.00

= 9.26 % of civil cost

b. Type IV (plinth area 102.0) Rs 22,000 for 2210.00 per Sqm PA rates

22000/ 102 = 215.69 per Sqm

or 215.69 / 2210.00 = 9.76 % of civil cost

c. Type III Qrs (Plinth area 78) Rs 18,300 for 2010.00 per Sqm PA rates

18,300/ 78 = 234.61 per Sqm

or 234.61 / 2010.00 = 11.67 % of civil cost

d. Type II Qrs (Plinth area 54) Rs 15,400 for 2010.00 per Sqm PA rates

15,400/ 54 = 285.19 per Sqm

or 285.19 / 2010.00 = 14.19 % of civil cost

e. Type I Qrs (Plinth area 34.2) Rs 14,600 for 2010.00 per Sqm PA rates

14,600/ 34.2 = 426.90 per Sqm

or 426.90/ 2010.00 = 21.24% of civil cost

In the plinth area rates of 01.10.2007 and afterwards, plumbing cost has beenprescribed at 12% of plinth area rates of load bearing structure.

The provision of 12% for Type V building is much on higher sideas the cost of plumbing on actual execution is certainly less than 12%. Similarlya provision of 12% will be insufficient in the case of Type I & Type II quarters, thoughthe valuation cases of such type of building are seldom .

As a matter of fact in the case of residential units the value of plumbingshould be based on units and not on the plinth areas of the building. Onetoilet with bath, WC & Washbasin can be considered as one unit, full-fledgedkitchen can be taken as half unit, because value of plumbing depends mostlyon the number of units provided. But for the valuation in the case of IncomeTax cases we have to be dependent on plinth area rate method.

The rates sanctioned by the Central PWD or State PWD are basedon best Engineering practice and based on the standard norms for thatclass of building and with standard type of material. As such it is very


necessary that the Valuer should know the standard norms for differenttypes of buildings and should value the plumbing cost to the extent theplumbing have been provided. Similarly regarding type of material used withrespect to the standard material.

3. Standard material for Plumbing on which plinth rates are based :

Plumbing consists of (i) Water Supply & (ii) Drainage & Sanitation. Theplumbing pipes can be of CI, Steel, RCC, Pressed concrete, Galvanised M. S,copper, brass, wrought iron, asbestos, polyethylene, UPVC, Chlorinated PVC orstainless steel. The rates of pipes varies widely depending up on the typeof pipe and class of pipe used. The plumbing cost can be subdivided infour subheads and their cost component as (i) Water supply pipe line 35%,(ii) C.I. Soil and waste water pipe line work 25%, (iii) Drainage pipe work includingman holes 15% & (iv) China ware and CP fittings and over head tank 25% totalling100%.

(A) Water Supply : The plinth area rates are based on the use of G.I. PipeB class ISI marked of standard company. If we use different class of pipethe difference in the rates of pipe used in place of admissible pipes shouldbe accounted for. The difference in cost for using such pipes has also been calculatedtaking 80% weightage of 15 mm dia pipes and 20% weightage of 20 mm dia pipeson DSR 2012 for water supply pipe line concealed in walls are as :

Type of pipe Item No Rate per Rm Sverage weighted rate

G.I 15 mm 18.11.1 229.10

G.I 20 mm 18.11.2 251.30 233.54

CPVC 15 mm 18.8.1 218.85

CPVC 20 mm 18.8.2 243.05 223.69

PPR 16 mm OD 18.5.1 180.05

PPR 20 mm OD 18.5.2 226.65 187.37

PA-AL-PE 16 mm 18.2.1 297.95

PA-AL-PE 20 mm 18.2.2 340.60 306.48

As such if other than admissible pipes are used for water supply pipe line therates be amended by (-) 4.34% in case of CPVC, (-) 19.78% in case of PPR pipeand (+) 31.2% in case of PA–AL- PE pipes.


Or the cost of plumbing to be amended as under :

If used GI Pipes NIL

If used CPVC pipes 1 x 35% x (-) 4.34 % (-) 1.52%

If PPR pipes are used 1 x 35% x (-) 19.78 % (-) 6.92%

If PA-AL-PE pipes are used 1x35%x(+) 31.2 (+) 10.92%

(B) Sanitary Pipes : The plinth area rates are based on the use of C.I. PipeISI marked of standard company. If we use different class of pipe the differencein the rates of pipe used in place of admissible pipes should be accountedfor. The difference in cost for using such pipes has also been calculated taking70% weightage of 100 mm dia pipes and 30% weightage of 80 mm dia pipeson DSR 2012 for sanitary pipe line are as :

The rates of SCI soil pipe single socket of 1.80 meters length 100 mm diaas per DSR 2012 code 1617 is Rs 990.00 and rate for 75 mm dia pipe is 890.00as per code 1616. The average weighted rate works out to 960.00 per 1.80 metersor 533.33 per Rm. After adding of labour charges the rate will work out to 575.00per Rm.

There is no rate in DSR for PVC pipes. The market rates of SWR PVC pipeis 940 to 980.00 for 6.00 metres length 110 mm OD pipe and Rs 650 to 720.00for 80 mm dia. The average weighted rate by taking highest rates, works out toRs. 902.00 per 6.00 metres or 150.33 per Rm. Jointing of PVC pipe is very cheapin comparison of jointing of CI Pipes, besides that the specials of PVC are also muchcheaper than specials of CI. After adding for labour charges the rate will work outto 190.00 per Rm.

As such if PVC Pipes are used CI pipes for sanitary pipe line the rates be amendedby

(-) 66.67%.

Or the cost of plumbing to be amended as under

If used CI Pipes NIL

If used PVC pipes 1 x 25% x (-) 66.67% (-) 16.67%

(C) Drainage Pipe work plus manholes : The plinth area rates are based on theuse of S.W. Pipe ISI marked of standard company. If we use different classof pipe the difference in the rates of pipe used in place of admissiblepipes should be accounted for.


The rates of S.W. pipe and PVC pipe including excavation, concrete for beddingand concrete for haunches the rate nearby works out the same, hence no adjustmentwill be required.

But if RCC NP-2 pipes are used in place of SW, the difference in rate will bethere. The rate of 150 mm dia SW pipe for laying including bedding concrete andconcrete for haunches as per DSR 2012 item 19.1.2, 19.3.2 & 2.10.1.1 isRs (219.05+382.75 +165.60) = 767.40 per RM. The rate of 150 mm dia RCC N.P-2 pipe for laying including (bedding concrete and haunch concrete not required) asper DSR 2012 item 19.6.2 & 2.10.1.1 is Rs (254.50 +165.60) = 420.10 per RM. Afteraccounting for manholes as 30% of SW piping cost the rates with SW pipe & RCCNP-2 pipes will works out to adding of labour charges the 997.62 and 650.32respectively.

As such if RCC pipes are used for drainage purpose the cost of drainage isto be amended by (-) 34.80% .

If used SW Pipes NIL

If used PVC Pipes NIL

If used RCC pipes 1 x 15% x (-) 34.80% (-) 5.22%

4. Norms of plumbing for different Class of building :

Following are the norms of plumbing as per NBC 2005.

(a) Office Building :

Executive Room & conference room One W.C And wash Basin plus shower

(i) For Office Staff and VisitorsItem Male Female

W.C 1 per 25 1 per 15

Wash Basin 1 per 25 1 per 25

Drinking water 1 per 100 1 per 100

Urinals Nil up to 6

1 for 7-20

2 for 21-45

3 for 46-70

4 for 71-100

Add 3% for 100-200Over 200 at 2.5%


(b) Factories Building :

(i) For Office Staff and Visitors

Item Male Female

W.C 1 up to 25 1 up to 15

2 for 16-35 2 for 16-25

3 for 36-60 3 for 26-40

4 for 66-100 4 for 41-57

5 for 58-77

6 for 78-100

Add 3 for 101-200 Add 5 for 101-200

Add 2.5 % above 200 Add 4% above 200



Urinals Nil up to 6

1 for 7-20

2 for 21-45

3 for 46-70

4 for 71-100

Add 3% for 100-200

Over 200 at 2.5%

(ii) For Workers

Item Male Female


2 for 16-35 2 for 13-25

3 for 36-60 3 for 26-40

4 for 66-100 4 for 41-57

5 for 58-77

6 for 78-100

Add 3 for 101-200 Add 5 for 101-200


Add 2.5% above 200 Add 4% above 200



Urinals Nil up to 6

1 for 7-20

2 for 21-45

3 for 46-70

4 for 71-100

Add 3% for 100-200

Over 200 at 2.5%

(c) Cinemas, Multiplexes, Convention Halls Building :

For Staff

Item Male Female


2 for 16-35 2 for 13-25


2 for 16-35 2 for 13-25


Urinals Nil up to 6

1 for 7-20

2 for 21-45

For Public

Item Male Female

W.C 1 per 100 up to 400 3 per 100 up to 200

Over 400 1 per 250 Over 200, 2 per 200

Wash Basin 1 per 200 or part 1 per 200 or part

Drinking water 1 per 100 or part 1 per 100 or part

Urinals 1 per 25 or part

(d) Hospitals with Indoor Patient wards :


For Private wards and Individual Doctors and Officers room, one W.C. one WashBasin and Shower.

(i) For staff

Item Male Female


2 for 16-35 2 for 13-25


2 for 16-35 2 for 13-25


Urinals Nil up to 6

1 for 7-20

2 for 21-45

(ii) For General Wards, Hospital Staff and Visitors

Item Male Female

W.C 1 per 8 bed or part 1 per 8 bed or part

Wash Basin 2 up to 30 bed 2 up to 30 bed

Above 30, 1 per 30 or part Above 30, 1 per 30 or part

Drinking water 1 per ward 1 per ward

Urinals 1 per 30 bed or part

(e) Hospitals Outdoor Patients :

For Individual Doctors and Officers room, one W.C. one wash Basin and shower.

(i) For staff

Item Male Female


2 for 16-35 2 for 13-25


2 for 16-35 2 for 13-25


Urinals Nil up to 6


1 for 7-20

2 for 21-45 (ii) For Patients and Visitors

Item Male Female

W.C 1 per 100 or part 2 per 100 or part



Urinals 1 per 50 or part

(f) Hospitals Administrative Building :

For Individual Doctors and Officers room, one W.C. one wash Basin and shower.

(i) For staff

Item Male Female




Urinals Nil up to 6

1 for 7-20

2 for 21-45

(g) Hospital Staff Quarters and Nurses Homes (Common Rooms) :

Item Male Female



Bath shower 1 per 4 or part 1 per 4 or part


(h) Schools and Educational Institutions :

(i) Nursery

Item

W.C 1 per 15 or part

Wash Basin 1 per 15 or part


Bath shower 1 per 40 or part

Drinking water 1 per 50 or part

(ii) Non Residential

Item Male Female



Urinal 1 per 20 or part


(iii) Residential

Item Male Female



Bath Shower 1 per 8 or part 1 per 6 or part



Note : For teaching staff, the schedule of fixtures shall be same as for office.

(i) Creches :

Item

W.C 1 per 10 or part

Wash Basin 1 per 15 or part

Kitchen sink for

Preparation of milk 1 per 15 or part

Sink for Drinking water 1 per 15 or part

(J) For Hotels : The suits attached with toilets will have one W.C., one wash basinand one bath shower / Bath tub. Regarding guest rooms with common facilities, thefixtures given in the NBC 2005 at para 5.2.5.1 table 17 is much on lower side. inmy opinion the facilities should be as follows:-

(i) For rooms with common facilities

Item Male Female







As regards facilities for the non-residential staff it should be the same as Hospitalstaff given above.

(K) For Restaurants :

(i) For Public

Item Male Female

W.C 1 per 50 seats up to 200 2 per 50 seats up to 200

Over 200 1 per 100 Over 200 1 per 100

Wash Basin 1 per WC 1 per WC



(L) For Hostels :

If hostel is with attached toilet than each toilet will have one W.C., one wash basinand one bath shower. Regarding hostel rooms with common facilities, the fixtures willbe as follows:-

(i) For Residents

Item Male Female

W.C. 1 per 8 or part 1 per 6 or part






(ii) For Visitors Commonroom

Item Male Female


W.C 1 per 100 seats up to 400 2 per 100 seats up to 200

Over 400 1 per 250 Over 200 1 per 100

Wash Basin 1 per WC 1 per WC


5. Effects of Plumbing provisions on the Valuation of the Property : The actualprovisions made in the building should be studied by the valuer and the value of plumbingshould be accounted for. Similarly if different materials have been used in the buildingin plumbing, their effect should be accounted for to arrive at the reasonable value ofplumbing works.

6. Provision for external service connections : A provision of 5% has been madein the PAR towards this sub head, which is basically for the purpose of preparationof preliminary estimate. In the case of valuation of investment cost we should addactual cost. In case of valuation for fair market value it should not be more than 2%or a very reasonable amount only and not 5%.

In the case of plots allotted by the development authorities there is hardlyany investment towards external services except payments made for water supplyand sewer connection charges plus the cost of piping from last manhole ofthe building for sewer.

7. Conclusion : We should not arbitrarily add certain percentage on account ofplumbing. The plumbing cost should be assessed on the basis of actual provisionsmade in the building. IV

BECOME PRACTISING PROFESSIONAL CREDIBLE VALUERPROFESSION COUNSELLING, TRAINING, GUIDANCE, ASSISTANCE, REPORT WRITING, FIELD

TRAINING FOR BEGINNERS, PRACTISING/ASPIRING VALUERS, CHARTERED ENGINEERS.For Details

S. DESHPANDEC.Eng.FI(Mech.) E(I), PGDPEM (IPE), LL.M, FIV, FICA, FIE(I), C.Eng.(I)

Valuer, Valuation: Counsellor/Trainer,Former Chairman: IOV, Hyderabad, AP Branch.

Former Editor-in-Chief: INDIAN VALUER.

308, Amrit Apts., Ph.II, Kapadia Lane, Rajbhavan Road, Somajiguda.Hyderabad - 500082.T.S. INDIA

Phone : 040-23300329, 040-23300344

MENTOR OF FUTURE VALUERS


New Valuers after getting their Registration No. are in a fix as to how to start work.For this, following are some of the things a new Valuer should do:-

1. First of all the new Valuer should visit the Income Tax office and apply for registrationas a Valuer. This is very important because no major Public sector banks or anyFinancial Institution will keep him on their panel unless he is a Registered Valuerof Income Tax Department. The Valuer should visit the IT Deptt. and apply on aprescribed form along with an application fee of Rs. 1000(?) and original documentsof academic qualifications and proof of practical experience of a minimum of 10years in a gazetted capacity of a govt. department or a PSU. Within a periodof about 3 months or so he will be registered as a Valuer of Income Tax Deptt.The registration is valid throughout India.

2. Once the new Valuer becomes a Registered Valuer of Income Tax Deptt, he cannow apply in any bank and Financial Institution and can become a Panel Valuerof that bank. For this, the new Valuer should visit the Regional/Zonal office of thatbank and obtain an application form which should be forwarded by any branch ofthat bank. Now many a Branch Manager refuse to forward the application to theirRegional office for the reasons known to them but some do it. Many banks entertainapplications once a year. Other banks revise the list of Valuers after 2 or 3 years.Some banks maintain two lists of Valuers. One for the ordinary cases of loansand the other for those cases where the loan has become a bad loan or goneNPA (Non Performing Assets).

3. After becoming a Panel Valuer of any bank one has to go to the bank to establishcontact and make a rapport with the Branch Manager and the Loan Officer. Itdepends upon oneself how quickly one makes rapport with the bank’s officials. Ihave seen many young Valuers who employ all means, fair or foul to get thebusiness from the banks. The banks also do not distribute the business equitablyto all the Valuers on their panel. They allot the work only to their favourites. Sonew Valuers should try to become favourites of bank managers/loan officers andthis technique they should learn from young valuers.

4. New Valuers can also apply for empanelment in IBDI, UP SIDC, PICKUP, IOCetc.

5. Before you start working as a Panel Valuer, you have to collect the followingliterature:-

TIPS FOR NEW VALUERS—A.L. Kalra

FIE, FIVUttar Pradesh

(F. 4983)


i) Current Plinth Area Rates of UP/PWD, CPWD. This is available in PWDResearch Institute, Lucknow. There is a small Book Stall in that building wherethis booklet is generally available.

ii) Latest Circle Rates. This can be had from the office of the Assistant Registrarnear District Court, Kaisar Bagh, Lucknow.

iii) Depreciation rates. One must know the Depreciation rates vis a vis life of variousstructures in order to work out the depreciated construction cost of the structure.For this, one is suggested to read the article published in the proceedingsof the Refresher Course on 2nd Oct. 2009 by Lucknow Branch of the Institutionof Valuers. A copy of the proceedings may be available in the library of theBranch office.

iv) Cost Inflation Indices from 01.04.1981.

v) Proforma of the bank for making Valuation Report.

vi) A Compass. For checking the Boundaries of the plot of the Building undervaluation.

vii) A GPS Receiver Set. When one inspects the property, one can get the latitudeand longitude of the plot by using GPS and it can be entered in the Report.This will help identify the property any time. (page 28 Indian Valuer Jan. 2013and page 29, National Geographic - Questions and Answers)

viii) Building Cost Index: This is a multiplying factor for the basic Plinth Area Ratesin order to get the present Plinth Area Rates. The Basic Plinth Area Ratesare issued periodically by the CPWD/PWD.

7. When you are given a job for valuation, you have to ask the bank to supply thefollowing:

i) Lawyer’s Search Report about the propertyii) A copy of the Sale Deed of the propertyiii) A copy of the Approved Plan of the propertyiv) Letter from the bank requesting you to value the property. Some banks avoid

giving this letter but one must ask for this.8. When you go to inspect the property, you must take along with you Bank’srepresentative and the owner’s representative. Take photograph of both of them in frontof the property for record. Take photographs of the properties on the North, South,East and West side of property under valuation for identification. Note down the namesof the owners of the adjacent property. This would prove to be very useful foridentification of the property in case of any dispute at a later stage.

9. In case of valuation of a large extent of land which is much deeper than the widthfacing a road, Belting method of valuation is adopted. (To be continued)


1. Valuation taken up at the request of : AGM PQR Bank

2. Purpose of Valuation : NPA

3. Name of Organisation : M/s AAA Industry

4. Date of Valuation : xx.yy.zz

5. Bank : M/s PQR Bank

Valuation of an Asset: It is the sum of probable financial returns obtainable from it.

Market Value: It is the sum which a property which will fetch when sold in open marketat a price which a willing Vendor or Seller might reasonably expect to obtain froma willing purchaser.

This valuation of the unit is undertaken keeping above in view. The report isprepared on the basis of the documents and informations provided by the bank andinspection carried out and the valuation so arrived at is the considered opinion of thevaluer, which may change by +/- 10% on either side due to market fluctuations, changesin government policy or similar such factors.

General:The above unit was Mentha Oil Extraction Unit and Mint Flakes Producing Unit.

It is situated at an Industrial Area of UP. The unit used to obtain Crude Mentha Oilfrom farmers and refine it. They were also producing Mentha Flakes as per marketrequirement. The unit was started in the year 2009 as per records of the bank. Somemachines were subsequently added to it. The unit was closed during the visit of thevaluer to the plant. It was informed that the unit is closed for last one year. Thereis a general problem of order and also price of the product in market. Hence it wasnot viable to run the industry.

Product:Mentha Oil and Mint Flakes are being used in many foods items, tooth pastes,

beverages, pharmaceuticals, perfumery etc. The raw material for the industry is anagricultural herb—Mentha Arvensis. In fact with the efforts of Central Institute ofMedicinal & Aromatic Plants, in 1986 farmers were encouraged to start farming of

VALUATION OF PLANT AND MACHINERYOF M/s AAA INDUSTRY

—Er. O.P. SharmaGov. Reg. Valuer & Chartered Engineer, FIV

Lucknow(F. 15894)


Mentha Arvensis.

The farmers also established small crude plants for taking out oil from MenthaArvensis leaves by steam distillation, as cottage industry. This oil could be sold in

cash. The result was that the farmers were directly getting benefited. Many largerplants, like one being valued, were also set up. Some of the units established moderncolumn based plants so that they could take out other medicinal products from it whichotherwise used to get evaporated in the production process.

Mentha and Mint are taken in spice category by Govt. These two together earnedlarge foreign exchange by way of exports. India is the largest producer of Mentha inworld.

Inspection: Bank arranged inspection of the unit. For the propose of determining currentvalue, physical inspection of the machines and equipments used by the unit was carriedout, to evaluate physical condition of each individual item to best possible extent.

Plant and Machinery:The above Mentha Oil and Mint Flakes Producing Unit is situated at an Industrial

Area, Lucknow. Below listed machinery were found at site. The plant is non-functionalfor one year but the condition of the machinery is good. The unit is not a generalpurpose industry; it is an industry for production of specialised item, hence it will bedifficult to find buyers for the machinery. All above factors will contribute to reductionof its realisable fair market value. Since Mentha industry is not doing well hence itwill be difficult to get suitable buyers to buy the machinery at suitable price.

The bank provided with copy of purchase bills / tax invoices of purchase ofmachines. The same has been relied upon and has been taken as reference for findingout Fair Market Value of machines.


Depreciation:

Machines were purchased and installed from 2008 to 2013 in stages and as persite requirement. Looking into their present condition a depreciation of 15% per yearon their reducing value has been considered proper. Before depreciating them theirpresent replacement values have been found using cost escalation factors. Factorsof their present condition and obsolescence have been estimated and applied to gettheir Fair Market Value.

Valuation:

Based on all above, following have been carried out:

List of machinery available at site has been prepared. Purchase cost of the machinesand their year of purchase provided by the bank was incorporated in above list. Theirpresent replacement values were found out by using cost escalation factors. A factorof their present condition and obsolescence has been estimated and applied. Thena depreciation of 15% on their reducing value was applied to above value, to obtaintheir Fair Market Values.

For M/s AAA INDUSTRY


Thus Fair Market Value of Plant and Machinery of M/s AAA Industry

= Rs. 35597504

Say = Rs. 356 Lac

Distress Sale Value at 70% of FM Value of M/s AAA Industry = Rs. 249.2 Lac

Encl.: — 26 Nos. of Photographs of Plant & Machineries of M/s AAA Industry.

Note: 1. A valuation is linked to a purpose and time. Thus this valuation is only validfor purpose and conditions mentioned above.


2. The valuation report is prepared on the basis of documents and informationsprovided by the bank and it is considered opinion of the valuer, which may changeby +/- 10% on either side due to market fluctuations, changes in governmentpolicy or similar such factors.

3. If there is any observation in the valuation report it should be brought to the noticeof the valuer within 15 days of submission of the report. If no observation is reportedwithin this period it will be presumed that the report has been accepted in totality.

4. It is declared that the valuer has no direct or indirect interest in the property.

A unique and complete book on Real Estate Valuation

Title: “VALUATION PRINCIPLES AND PROCEDURES”Author: DR. ASHOK NAIN ISBN: 978-81-908295-0-2Publication date : 2010 Pages: xxviii + 651 (HB)

Valuation Principles and Procedures is a unique and complete book that attempts to bridge thetheoretical and practical aspects of real estate valuation. The book combines various aspects of themultidisciplinary subjects encompassing law, economics, engineering and accountancy in a simple andlucid manner. It covers practically all aspects of Real Estate Valuation. It provides a comprehensivestudy of material for a student or a practising professional with numerous examples. Professionals in othermultidisciplinary fields will also find the unique approach and various discussions, reference to case laws,technical data and other related information very useful. The book has now become a standard text invaluation of various Universities where valuation is taught.

Author’s Profile

Dr. Ashok Nain is a practising Consulting Engineer, Surveyor and Valuer having nearly 40 years experience.He is associated with a number of professional organizations and has published a number of technicalpapers in India and overseas. He has won awards for his writings from both the Institution of Surveyors andfrom the Institution of Valuers. He is also a Fellow of The Royal Institution of Chartered Surveyors. Dr. Nainhas also been engaged in teaching as a Visiting Professor at Institute of Urban Management, Kolkata, atISTAR, Sardar Patel University, Gujarat and at colleges under the West Bengal University of Technology.This is his second book on Valuation.

The price of the book is Rs. 825/- and by Courier/Post is Rs. 950/- and the same can be had fromthe office of the Institution of Valuers, Plot No. 3, Parwana Road, Adjacent to Bal Bharti PublicSchool, Pitampura, Delhi - 110 034. The book can also be had from Dew Drops Education Pvt.Ltd., 27-B, Dr. Rajendra Road, Kolkata – 700 020 (E-mail : [email protected]).

IV


C.P.W.D., State P.W.D’s, National Building Code & other Departments; Organisationsincluding Real Estate Agencies throughout the country. These have been widelycirculated. The method of measurement has been explained in all the technical literature.So much so, that our Valuers Diary issued by our Institution of Valuers to the membersalso contain these for ready reference.

Legacy of Super Area

There is no term as Super Area. The term Super Area or Super-Super Area hadbeen coined by the Builders/Promoters. This led to lot of anomalies & confusion. Someof the Builders claimed 40 to 50% or even more; and above 60% in the case ofCommercial Malls. The Consumer Court had to intervene and restricted to 30 to 40%in the normal cases subject to site conditions. Super Area was fraught with confusion.However, the genuine buyers needed some protection from exploitation.

Regulation of Real Estate

Authorities were contemplating for a long time to check this menace and introducesome Regulatory Authority. Ultimately at long last, it climaxed to passing of Real Estate(Regulation and Development) Act after due deliberations.

Practices being followed globally like in USA, UK, Germany, and Singapore werestudied.

Regulation Bill to be converted into Act

The Bill is heavily stacked against builders. The setting up of the Real EstateRegulatory Authority (RERA) is expected to usher in much needed transparency andpave the way for implementation of standard practices across the sector.

GOOD BYE, AU REVOIR TO SUPER AREA—Er. S.S.K. Bhagat

FIE (India), FIVFormer Vice President

Institution of ValuersRetd. Chief Engineer, N.D.M.C

(F. 2645)

PREAMBLE

As is well known, Bureau of Indian Standards, vide : IS3861 (SecondRevision) and earlier versions laid down Indian Standard for Method ofMeasurement of Plinth, Carpet, and Rentable Areas while describingscope & terminology. These are sacrosanct and hence followed by


The developers’ top body Confederation of Real of India (CREDAI) while welcominghad mixed reaction and apprehended inter-alia the proposed RERA for turning into justanother approval authority.

Promptness of Indian Valuers

It is surprising and worth appreciating that our vigilant members of the Associationunder WhatsApp flashed aptly the contents of the Act soon after passing of the Billby Rajya Sabha on 11th March. Content of the Bill, its reaction on the consumer, Viewsof the Realtors & public opinion had been well explained. The Practising Valuers havehopefully acquainted themselves with the Bill. If not done, may do so.

Woes of the Home Buyers

It had often been reported by the intending buyers or from the Press Media thatthe delay in completion of the project and actually handing over the possession ofthe house with complete documents & details required for the registration has beenresulting to physical, mental and over and above the financial strain by way of (i) EMI’sof the loan taken from the Banks or other resources; (ii) Rents on account of anaccommodation taken on rent and (iii) Disturbing their budgetary planning etc.

Cheers & Tears

The Bill to be converted into Act looks after the interest of Consumers & the Builders& prescribed responsibilities the party’s checks & balances on both. There can besome genuine hurdles encountered by the Builders, which need consideration in allfairness & solution found within the courts or outside the court provided the will &the intentions are clear.

Much thrust has been laid upon timely completion of Projects, Tougher regulationson the Promoter to ensure construction on time according to the specification withoutany encumbrances. Likewise, the Home Buyers to adhere to Payment Schedule. Anyslippage without justification to be adjudged by the RERA.

Enactment of Bill into Act

Enactment of Bill & issue of Gazette Notification & formation of Rules shall takeusual time. Till then, R&D Committee of our Council may keep its eagle’s open forguidance of our fraternity appropriately.

Valuer’s Role

Most important provision concerning the Valuers is that the Buyers have to payonly on Carpet Area and not on the super built-up area. Carpet Area has been clearlydefined in the Act to include usable spaces such as kitchen and toilets.


So Ciao, Good Bye, Au revoir to super Built-Area

Valuers now have to exercise their own judgment while undertaking valuationassignments of real estates within the definition of Carpet Area.

Further

It must be ensured and checked that there are no encumbrances. The documentslike Completion Plans, Service Plans; undivided share of land etc. are made availableto the person seeking valuation for a Happy POSSESSION, as owning a house isowner’s one time life’s dream. Valuers by this way can render yeoman’s service.

It has been experienced in some projects, Completion Certificate cannot be handedover to the Builders on account of some violation or nonpayment of dues; the authoritieshave mortgaged their unsold stock and issue the Completion Certificate, so that peoplecan take possession & get registration done.

A STITCH IN TIME SAVES NINE IV

SPECIAL CASES OF

PLANT AND MACHINERY VALUATION

&&&&&THOUGHTS ON PROFESSIONAL VALUATION

BY DR. P.C. GUPTAB.Sc. Engg. (BHU), M.S. (Tax. Tech) MIT,Ph. D. (Mech. Engg.). I.I.T. USA, A.S.M.E. (Life), M.I.E., F.I.V.

This is the 2nd book by the author on Valuation of Plant & Machinery.

The price of the above book is Rs. 375/- and by Registered post Rs. 400/- fromthe office of the Institution of Valuers, Plot No. 3, Parwana Road, Adjacent to BalBharti Public School, Pitampura, Delhi - 110 034.


The Valuer handling such an assignment should exercise due care, in the interestof all the stakeholders. Some of the steps involved in such an exercise are enumeratedbelow:-

1. Seek a written consent from the owner / occupier along with the requireddocuments.

2. Set a time frame / schedule for job to be completed.

3. Carry out physical inspection of the property in question.

4. Arrange physical measurements of property or verify them from the availabledrawing(s).

5. Arrange photographs of the property in question (both Exterior & Interior).

6. Make necessary enquiries about the Value of land in the vicinity of said property.

7. Examine the Circle rate, etc. of land in the vicinity of the property in question.

8. Enquire about the rates at which property deals are materializing as regardscomparable properties.

9. Value the Building forming part of the said property.

10. Examine the holding cost of the property in question by considering the cashoutflow involved under heads like –

Property Tax

Electricity

Water

Maintenance

VALUATION VIS-À-VIS SPLITTING OF PROPERTY—Vikram Arora

B.Sc (Engg.)(Civil), MBA, LLB, FIVDelhi

(F. 8285)

A Valuer required to carry out Valuation of a property required to be split(divided) would be a typical exercise for any Valuer. Here the sole objectiveof exercise would not be valuation but valuation with purpose of division,rather a fair division. It has to be borne in mind that such a property maybe disputed.


IV

Safety / SecurityOthers

11. Consider other factors related with the property such as –Legal Status / TitleSaleabilityOccupationPossessionLocationConnectivityParkingAccessMaintenanceSafety, etc.

12. The above would help in arriving at a Fair Market Value of the Property in question.13. Consider various possible splitting options taking into account the features of the

property such as –a. Number of Shareholders in the property / Number of shares to be createdb. Prospects of Horizontal or Vertical Splitting.c. Prospects of combination of Horizontal and Vertical Splitting.

Other Key Factors to be considered are –i. Number of existing floors of the property.ii. Independent access to each divided portion.iii. Future expansioniv. Ventilationv. Partitioningvi. Natural lightvii. Proximity to road / Footpath, etc.viii. Number of entrance(s)ix. Hazard(s), if any.The option(s) provided should be so fair that the person(s) exercising choice shouldbe in a position to make an unhesitant choice.

Disclaimer :The steps involved are not exhaustive and complete. Instead, they are suggestive

and deviation / modifications may be required depending upon the property in questionand several other factors unique to a property.


VALUATION FOR REDEVELOPMENT OF PROPERTYBY OWNER (CASE STUDY)

—Javahar R. RavalM.E. (Civil-Struct.), M.I.E., F.I.V.

Mumbai(F. 2272)

reason being use of Inferior Construction Materials, Improper Workmanship, PoorMaintenance, Over Loading, Alteration for Renovation; and thereby disturbing StructuralStability, Weathering Effect, Seepage from Terrace, Chhajja, Parapet and Walls andLeakage from Sanitary Connections, etc. In addition, there is a reason to doubt thequality of R.C.C. buildings constructed between 1978 & 1985, when there was ashortage of cement. The results are Peeling off Plaster, Broken Concrete Cover, SteelBars Exposed, Corroded or even Broken and Deep Cracks in Structural Members,etc. Serious Distress develops also in old load bearing structures with timber joist pillars,beams and floorings, due to Aging Effect & Non Maintenance. In buildings of manyco-operative Housing Societies, residents are non Co-operative for Repairs & Main-tenance of Common Structural members, even though spend a fortune for interiorsof their own flat. As a result, the Seepage of Water from Monsoon Rains, Leakagefrom Plumbing Joints and also Saline Moisture from the Sea Winds (in Coastal Areaspercolate through hair cracks in R.C.C. Columns, Beams, Slabs (Ceilings) and RainShades (Chhajja), come in contact with Steel Reinforcement bars and Corrosion ofSteel bars start. As a result of corrosion, Steel bars expand and the cracks get widened.Further, as crack width increases, more water get percolated and because of this viciouscircle, the process of deterioration of R.C.C. members continues. Hence damages willincrease, as the Repairs are delayed. In many of such cases Structural Repairswill give only a lease life to the buildings and Redevelopment of building is theonly solution, where the existing building is demolished and new building isconstructed.

REDEVELOPMENT OF BUILDINGS

As Real Estate Prices continue to zoom and land in most cities becomes scarce,

INTRODUCTION

Normal R.C.C. buildings are supposed to have a useful life of 60to 80 years, with proper and regular maintenance. Even then, manybuildings show the signs of distress and structural defects, after about15 years of construction or many a time even earlier. The common


builders have begun to look at the existing structures that can be redeveloped, sincethey get more F.S.I. to sell at current market price. In fact, as an incentive to demolisholder buildings and construct a new building with more floors, the developers are offeringadditional area, money and the promise of a new flat to the existing owners.Redevelopment is welcomed also by occupants of existing buildings, since they willget additional F.S.I., in terms of extra Room/s and also Corpus from the developer,since taxes in redeveloped building would be much more, in addition to maintenancecharges. In Rented Properties, the Tenants of the building will automatically becomeOwners in the Redeveloped Building. While the offer may seem exciting, there aresome things one should keep in mind before agreeing to have property redeveloped.Selecting the proper developer is thus very important, since the occupants have nothingin hand, except agreement papers, after the building is demolished.

STAGES OF REDEVELOPMENT

1. Structural Audit Certificate from Structural Engineer, Registered with MunicipalCorporation, giving Recommendation for Redevelopment.

2. General Body Resolution by Society to appoint all relevant persons like ProjectManagement Consultant, Developer etc. The Developer will give Offer Letter toSociety, indicating Terms & Conditions with the Society; and make Agreement withthe Society.

3. Sanction Letter from Municipal Corporation in favour of the Society and Loadingof T.D.R. in the Society’s name.

4. Obtaining IOD for Approval of Plans from Corporation and obtaining Permissionto Demolish the Structure. Shifting Members and Demolition of Building.

5. Obtaining CC, a Commencement Certificate to start a New Work up to Plinth Leveland afterwards obtaining further CC to Start Construction above Plinth Level.

6. After completion of FSI = 1, obtain permission for utilizing T.D.R. and gettingamendment plans.

7. CC for T.D.R. portion and further Construction till Completion.

8. Obtaining Occupation Permission and Possession to Old & New Members.

9. Formation of Society and Making Conveyance.

TRANSFER OF DEVELOPMENT RIGHTS (T.D.R.)This concept has been adopted by Government under Development Plans of Cities

and Towns and in Development Control Rules mainly with a view to enablingcompensation. Due to inadequacy of fund with Municipal Corporations, right to use


T.D.R. is granted to the plot owner, instead of payment of compensation. Normallythe owner of the plot holds the right of development, which is attached to the plotof land owned by him. Under this T.D.R. concept instead, owner of the plot retainsright for development, which is detached from the plot owned by him. This right istransferable and it can be attached by sale to the other plots located in prescribedarea, not belonging to the owner. The only condition is that the land reserved for publicpurposes or roads has to be handed over free of cost and free from encumbrancesto the local authority and in lieu of free surrender of the land, local authority wouldaward T.D.R., the rights which are tradable in the open market. The owner even thoughloses ownership of land, yet continues to hold development right of the surrenderedland, which is transferable and salable in the market.

Originating Plot: The Plot of Land which is reserved for the public purpose or forRoad under Development Plan, when surrendered free of cost and free of anyencumbrance to the local authority by the owners of the said plot; and get T.D.R. inreturn.

Receiving Plot: The Plot of Land on which extra F.S.I. is permitted to be developedby use of T.D.R.

FUNGIBLE F.S.I.Development of Mumbai is governed by Development Control Regulations for

Greater Mumbai. It was noticed by Municipal Corporation of Greater Mumbai in2010-11 that Architectural Features, Air Handling Units, Voids, Flower Beds and suchother features which were permitted free of F.S.I. were misused by making alterationsand forming part of the premises. In 2012, Development Control Regulation of GreaterMumbai was modified and a list is given of usable area to be counted in F.S.I. e.g.Covered Parking Space, Fire Escape Balconies, Air Conditioned Plant Room, Balconies,Flower Beds etc. Government has given at the same time the details of % ofCompensatory F.S.I., which is termed as Fungible F.S.I.

The Regulation was further modified by Urban Development Department, Govern-ment of Maharashtra, wherein a list of users permitted free of F.S.I. (with the specialpermission of Commissioner of Municipal Corporation of Greater Mumbai), FungibleCompensatory F.S.I. over and above admissible F.S.I. may be permitted. Followed bythe said modifications, Municipal Corporation of Greater Mumbai has issued a Circularwherein the details of Quantum of Permissible Fungible F.S.I., according to the useris quantified as under:

1. Residential User: 35%.

2. Non residential User including Commercial & Industrial User: 20%.


CASE STUDY

A Family of Industrial Magnet has Property in a Metropolitan City Mumbai in Prime& Aristocrat Residential Location, consisting a premises of Piece & Parcel of Land,having an Area of Land of 7200 sq. ft. or there about, with an R. C. C. ResidentialBuilding (Own Bungalow), having of Ground plus Two Upper Floors and a Terrace.The Building having Total Built up Area of 5876 sq. ft. or thereabout and situated atthe one of the Aristocrat locality of Mumbai. Ground Floor is constructed in 1965 andFirst & Second Floor in 1982, as reported. Entire Property is in the possession ofowners, used by only family members and there are no tenants.

The Owners themselves want to do Redevelopment of this property for Residentialuse; and carry out entire process themselves, without appointing any outside developer.A Valuation Report is required to get Loan from Financial Institution.

Note: Nationalized Banks are normally not giving Loans to Builders, due toRecession in Real Estate Market, but looking at the excellent financial condition ofthe owners, having a couple of Industries in India and Bright Prospects of Sale andSituation of Property in Prime & Aristocrat Residential Location, a couple of FinancialInstitutions have shown interest.

PROCESS OF VALUATION:

A) DESCRIPTION OF PROPERTY:

The premises of Piece & Parcel of Land of Area of 7200 sq. ft. or thereabout,with a Residential Building, having a Ground plus Two Upper Floors and Terrace ofTotal Built up Area of 5876 sq. ft. or thereabout. Height of each Floor is 9’- 6". TheBungalow has an Internal Staircase of Marble.

Compound:It has four sides of Enclosed Compound Wall, with Wooden Gate. There is Otla

(Elevated Platform), at Front & Rear side with Marble Flooring. There is a - WatchmanCabin and also a Servants’ Toilet Block. The Compound has a Drive Way with CarPark and a Garage and a Pump Room. There are miscellaneous Trees & plants.

Ground Floor:

There is a Living Room with Attached Covered Porch, a Master Bed Room, a Kitchen& Dining Room, a Waiting Room, a Store Room and Two separate Western type ToiletBlocks.

First Floor:

There is a Sitting Room, a Master Bed Room with Balcony, other Two Master Bed


Rooms, a Dressing Room and a Library Room.

Second Floor:

There is a Sitting Room and Two Master Bed Rooms with Balcony.

Terrace:

It is an Open Terrace, having Overhead Water Tanks.

The Brick Walls are plastered and painted on both sides.

The Flooring is of Marble in entire building.

The Roof is an R.C.C. Terrace.

There are Wooden Doors in the building.

The Window are of Wooden Frame and Glass Panels.

The Plumbing in the premise is of Concealed type.

The Electric Wiring work is of Concealed type.

B) FIXATION OF MARKET RATE:

1. Instance of Sales and Purchases:Instances of Sales and Purchases were not available for the property at LMN, in

the similar situation and location.

2. Local Inquiries:Local Enquiries revealed that at PQR Road in Aristocrat LMN locality in OPQ,

in proximity of famous SSS, the Market Rate for Residential Property would be betweenRs. 50,000/- and Rs. 55,000/- per sq. ft.

3. Situation of Property:The property is situated at Aristocrat Residential Locality of LMN, in the

proximity of famous HHH (Temple of Lord SSS) at KK Road. Well Known RRRTemple is also at 5 minutes by vehicle. JJJ Railway Station is at 10 minutesby vehicle. Main Road is at 5 minutes by vehicle. In addition, many Bus Routesare available for various places of City and Suburbs. International Airport is at30 minutes & Domestic Airport at 25 minutes by vehicle. All Leading Banks arein proximity. There are well known Shopping Malls, popular Stores ‘YY’ and ‘ZZ’for Electronics appliances etc.; and Good Restaurants nearby. Famous SeaBeach is at 10 minutes of walking distance. Well known High Schools and TopColleges of all faculties are also located in the vicinity.

The Building as in Aristocrat Residential Area of LMN, has good ambience with


Bungalows of many Leading Film Stars, Industrialists and Businessmen. A Garden withJoggers Park is also in proximity.

All these factors increase the Value as well as Potential for Marketability of theProperty for Residential use.

4. FIXATION OF MARKET RATE:

Considering the situation of property, with respect to its proximity to all those places,as mentioned above, as well as market facility and over and above its situation inone of the Aristocrat Residential Area of the city, the premises, if sold in open market,would easily fetch not less than Rs.45,000/- per sq. ft.

Hence, the said Market Rate, in my opinion, seems to be Fair and Reasonable.

I, therefore, consider Rs. 45,000/- per sq. ft. as Market Rate of Built up Area.a) LAND RATE:

Considering Cost of Construction @ Rs. 3,000/- per sq. ft.,

Land Rate = Built up Area Rate – Cost of Construction

= Rs. (45,000 – 3,000)/-

= Rs. 42,000/- per sq. ft.

I, therefore, consider Rs. 42,000/- per sq. ft. as Land Rate.

b) DEPRECIATED VALUE OF BUIDLING:The Building on the said Plot of Land is Old, but Building Materials used are of

Superior Quality. The Depreciated Rate hence, can conservatively be considered asRs. 300/- per sq. ft.

Hence, I consider Depreciated Rate of Construction @ Rs. 300/- per sq. ft.c) VALUATION:1) Piece & Parcel of Land:

(a) Area of Land : 7200 sq. ft.

(b) Permissible F.S.I. in Location : 1.00.

(c) Permissible Built up Area as per F.S.I. 1.00 : 7200 sq. ft.

(d) As Plot situated in T.D.R. Receivable Zone,

T.D.R. Permissible would be 100% of Net Plot Area: 7200 sq. ft.

(e) Total Permissible Built up Area : (c) + (d) : 14400 sq. ft.

(f) 35% Fungible F.S.I. (Residential User) : 5040 sq. ft.

(g) Total Built up Area : (e) + (f) : 19440 sq. ft.(h) Land Rate : Rs. 42,000/- per sq.ft.


(i) Market Value of Land : Rs. 42,000/- x 19440

: Rs. 81,64,80,000/-2) Depreciated Value Building:(a) Total Built up Area of Building : 5876 sq. ft.

(b) Depreciated Rate of Construction : Rs. 300/- per sq. ft.

(c) Market Value of Building : Rs. 300/- x 5876

: Rs. 17,62,800/-3) Market Value of Property:

= Value of Land + Depreciated Value of Building= Rs. (81,64,80,000/- + 17,62,800/-)= Rs. 81,82,42,800/-Say Rs.81,82,42,000/-

(RUPEES EIGHTY-ONE CRORE EIGHTY-TWO LAC FORTY-TWO THOUSANDONLY).

REFERENCES:

1) “Elements of Valuation of Immovable Properties” - Book on Valuation by Shri. R.K.Gandhi.

2) “Effect of Fungible F.S.I. on Valuation of Immovable Properties” - Paper presentedby Shri. Bharat C. Shah.

“DISPARITIES AND DISPUTES IN VALUATION OF LANDS”(With 100 case - laws)

Written by

Shri C.H. Gopinatha Raoa prominent Valuer and

past President of the Institution of Valuers

The above book is available for sale at Rs. 750/- and by Registered Post atRs. 800/- (including packing and registered postage charges) from the office ofthe Institution of Valuers, Plot No. 3, Parwana Road, Adjacent to Bal Bharti PublicSchool, Pitampura, Delhi - 110 034.

(PTO)


IV


GENERAL

one and all. If, the construction quality is good, one can enjoy the asset for yearstogether. However, if not, one will be left with leaky roofs and damp walls. Everyonein market states that his quality of construction is best. It is not the construction materialwhich is only important, neither workman ship is only important factor, but most importantis quality of supervision. The valuer can peep inside concrete if he can know, whatis the cause of defects like cracks and what remedies are.

02. What is required to produce good work?

It needs good attitude and sound technology to produce quality work. This isapplicable in all fields and at all times. But, unfortunately, in construction industry, moneypower overpowers the attitude and technology. The construction field is controlled bynon technical, illiterate and people with money and muscle power. Hence, it is veryimportant for a buyer, financer - banker and valuer to understand the process ofconstruction. Let us also understand how the defects in construction can be eliminated/avoided.

03. Foundation

The cracks in the building are basis of the damages to a building. Let’s see why theyare developed.

The foundation of the building is “The foundation”. It should be suitable for nature,strata, loading and future expansion of the building. The most common example isfoundation in black cotton soil. The black cotton soil expands with water and shrinkswhen dry and cracks. The presence of Mica in the soil is reason for this unusualexpansion with water. This expansion and contraction of soil leads to damages to

HOW TO INSPECT THE PROPERTY?—Nitin Lele

BE, MIE, FIVPune

(F. 7749)

01. Introduction

A flat purchaser when looks out for a flat for him, important aspectis area, rate, locality, loan, taxes etc.. When a valuer visits to inspect,he simply looks to identify the property location wise, floor wise, roomwise, rate wise etc. However, the quality of construction is ignored by


structure, flooring, etc. And, the irrecoverable damages make the building redundant.Usually the river banks have such type of soil. Pile foundations are recommendedin black cotton soil.

If the strata are variable, e.g. part of the building is on hard strata and part ofthe building is on filled up strata, in such a case, there is a danger of unevensettlement. Usually, such type of variation is observed in filled up quarry area wherefilling material is dumped without checking the type of material filled. Removing thefilled up material and filling with selected earth is recommended.

04. Formwork

Sound building designs can avoid structural cracks. However, certain cracks arebeyond control. However, one can mitigate the effects.

While constructing ground floor slab, sometimes the props are positioned onuncompacted ground. When the actual concrete is poured in the beam, the formworksettles and cracks are developed in the beam so casted. This can be avoided bycompacting the ground before formwork.

Use of wooden formwork is common in construction. When it comes in contactwith water it expands. When concrete if poured in wooden formwork stress isdeveloped on the wait concrete leading to hair cracks on concrete. This can beavoided by use of marine ply, film faced ply or metallic formwork.

05 Concrete mix

Concrete is composed of mix of cement, sand, metal and water in designed proportion.In batching plants the composition of the contents can be controlled. However, itcannot be controlled when the mixing is manual. Basically the tendency of labouris to have workability of concrete; hence, the use of extra water is seen commonly.Due to non-maintenance of water-cement ratio as the concrete sets i.e. the waterwithin the concrete evaporates, the cracks in the concrete starts developing. Waterin the concrete acts as chemical, Hence, if the proportion is disturbed, it will leadto damages. Further, curing of the concrete is another important aspect. When wateris added to cement, a chemical reaction produces heat of hydration, which resultsin setting and hardening of cement. If water content in the concrete is restored duringthe setting period, the concrete gains full strength. Curing is a process to restorethe water content in the concrete. However, it is misunderstood as watering theconcrete twice or thrice a day. Rather, such occasional watering will add totemperature cracks.

Voids in the concrete can be avoided by use of controlled vibrator or using


hollow bamboo.

Due to segregation of concrete in columns, honeycomb is observed at the baseof column. Only course aggregate is seen there. Also the top layer of about 50mmis seen without course aggregate. This top layer is weak section in the column. Thiscan be encountered by placing a thin layer of rich mortar in column before concretingas bottom layer. Regarding top layer rich cement–course aggregate mix can be placedin column after concreting immediately.

06. Brickwork

The technical wording for brickwork is “Burnt Brick Masonry” (BBM). The nameitself indicates that, the bricks should be well burnt. If not, the un-burnt soil inside thebrick when comes in contact with water, the brick cracks. Also, if such brick is used,the wall will catch the dampness. The brick joint is also important aspect of brickwork.It should not be more than 12mm. However, it is observed to be 25mm to 50mm.

Queen closer is only a book term. At no place, I have seen use of queen closerin my life. However, one can make queen closers by cutting broken/ waste bricksand avoid large mortar joints. This will reduce the wall cracks and dampness inthe wall.

07. Plaster

The reasons behind cracking of plaster are, 1. Type of sand 2. Thickness of plaster3. Second coat 4. Hacking

If percentage of fine aggregate in the sand is more then, cracking is assured. Innorth India and in coastal areas, the size of sand is uniform whereas in Deccan trap,the size is graded from fine to coarse. Hence, correctly sieving the sand and washingthe sand before plastering is most important. This will avoid cracks in the plaster.

The thickness of plaster in a layer should not be more than 18mm. However, itis observed on site a single coat is applied in the thickness of 25mm to 50mm. Nochicken mesh is used in between coats of thick plaster or joints of RCC and brickwork. This leads to cracking.

Good time to apply second coat of plaster is after 3to 5 days of first coat. Thefirst coat shrinks in 3 to 5 days and hair cracks are created after which applicationof second coat protects the building. However, on sites, second coat is applied withinhours of first coat.

Hacking the wet concrete is very important for bonding of plaster with concrete.The roughness created helps in bonding to dissimilar materials.


08. Concealed workFor concealed piping work of electrical conducting, plumbing, drainage sometimesinserts are not kept, and the concrete is chased up to reinforcement. This weakensthe structure. Also, the holes are not repaired / plugged properly using rich mortar.This creates leaky spots.

9.1 CracksFirstly, cracks look aesthetically bad. But over and above that, it reduces life of thestructure and increases the maintenance expenditure. In country like India where dayand night temperature differs by over 20 degree centigrade, the cracks are temperaturesensitive. The small crack expands and converts into large crack. The water entersthis cracks and attack reinforcement in the concrete and concrete starts rusting. Theiron gets converted into ferrous oxide and later into ferrous hydroxide reducing strengthof the structure. No need to tell how much entry of water in RCC is dangerous atplaces like toilets, water tanks and staircases. At places of cracks/loosely pluggedholes, trees and bushes start growing. This leads to widening of cracks and damagingthe structure. With increasing pollution, the carbon dioxide and moisture in theatmosphere reacts with each other to form carbonic acid which attacks the reinforcementthrough cracks.

If we do not attend and correctly value the life of the structure, we will not bejustifying our profession.

9.2 Types of cracks

Cracks can be divided in two types: 1) Structural 2) Non Structural – Brick work,plaster. One can identify the reason behind the crack by visual inspection.

9.3 Basic reasons

In general life of building is 80 to 100 years. I have seen buildings which have becomeredundant in 20 years. If we study the reasons behind that, the two main reasonswhich come up are :

i) Poor mix of concrete

ii) Un-compacted concrete

Honeycombed, un-compacted concrerte looks aesthetically bad and it is repaired bycement morter. It is just like cosmetic treatment. However the cavities inside are notfilled up and concrete is hollow inside. Grouting is essentially required to be done.Otherwise concrete will start cracking along with plaster. A crack of 0.25mm widthcan absorb moisture and resulting into rusting of steel. In summer when temperatureis above 40 degree Centigrade concrete starts cracking. High temperature, dry weather


and windy conditions help water within the concrete evaporate. On the contrary in wintervery cool temperature also aids in cracking of concrete.

Architects & engineers are required to make an effort to improve the quality ofconstruction, rather than concentrating largely on cost of construction.

The construction labour in India is uneducated and untrained. Also this labour sectoris unorganized. They do heavy work and after age of 40-45 they become uselessfor work.

There is lacuna in construction industry that, on site material tasting facilities arehardly available. Many times laboratory taste results are fabricated. The concrete mixfor actual use and used for laboratory testing differ.

9.4 Structural CracksA study has identified and distinguished the structural cracks as: 1. Beam Cracks:Flexural, Shear, Torsion, Bond & Tension Cracks 2. Column Cracks : Horizontal,Diagonal, Corrosion / Bond Cracks 3. Slab : Flexural, Top flexure, Shrinkage cracks

The structural cracks may occur due to incorrect estimate of loading, incorrectdesign, faulty construction or overloading endangering the safety of building.

9.5 Non structural cracksNon structural cracks are due to defective brickwork & plaster. First reason will bequality of material used like brick, sand etc. Second is joint thickness, mix of mortar,fineness of sand. Third is curing of brickwork and plaster, fourth is thickness of plasteretc etc. If non structural cracks are developed & if not attended in time they mayconvert into structural cracks. This will reduce the life of building. Leakage is like ‘cough& cold’ but if not attended in time in gets to converted into ‘pneumonia’ and then to‘death’.

9.6 Type of cracks based on width

The cracks are categorized in three groups: Type - 1 - Thin cracks - Less than 1mmType - 2 - Medium Cracks – 1 to 2 mm Type – 3 - Wide Cracks – more than2 mm

These cracks are due to Plastic settlement and Shrinkage, thermal expansion andcontraction, corrosion of concrete, chemical attacks, corrosion of steel.

A valuer while inspecting the property has to take cognizance of above three typesof cracks as type -1 today become type – 2 tomorrow and type 2 becomes type -3. Hence one can write a note in the report regarding cracks. Anything more than2 mm is dangerous.


9.7 Image of non structural crack

Non Structural cracks occur mostly due to internallyinduced stresses in building materials. These cracksnormally do not endanger the safety but may lookunsightly, create an impression of faulty work or givea feeling of instability.

9.8 Image of structural steel corrosion

Corrosion of steel and spalling of concrete dueto ingress of moisture. Due to reduction indiameter of bar and stress exerted by rustedsteel on concrete reduces the life of the buildingfast.

IV

9.9 Pattern of cracks

10 SummaryTo summarise, is not that a valuer should go and inspect number of stories, flooringmaterial, doors and windows but he has to see the building technically. The estimatedfuture life will be valuable. The purchaser pays for balance life. Like in rent capitalisationor lease, the value is for balance period for which the property is likely to fetch income,similarly here, the balance life for which the purchaser is able to enjoy the stay.

It is not that a valuer can estimate the future life, but unless such type of observationsare recorded one cannot distinguish the external cosmetic building and internally strongbuilding.

Start writing about Cracks and Defects. And observe the defective buildingperiodically.


i) Flat in ground floor normally fetches comparitively more rent.

ii) If the flat can be used for commercial activities, rent is comparitively more.

iii) If the flat in ground floor faces the road directly, it may fetch a better rent.

iv) A flat without exclusive car parking fetches a lower rent.

v) A flat in the top floor (below the open terrace) fetches a lower rent because ofheat radiation.

vi) A new flat fetches a better rent than old flats.

Normally, a residential flat fetches an annual rent from 2.5% to 3% (as on 2015).A flat which can be used for commercial activities in mofussil area may fetch a rateof return of, say, 4% to 6% as on date.

(Note : It may be noted that there is no hard and fast rule about these %ages whichvary depending on the period, location, market trend, demand, etc. An experiencedvaluer must be in a position to fix appropriate percentage of rate of return.)

Example 1 :

The super built up area of a residential flat is 1,036 sq.ft. The unit composite rateis Rs. 6,000/-. What is the probable rent the owner can expect?

Super built up area = 1,036 sq.ft

Unit composite rate = Rs. 6,000/-

Value : 1,036 x 6,000 = Rs. 62,16,000/-

Assuming an annual rate of

return of 3%, the monthly rent

VALUATION BY RENT CAPITALISATION METHOD—B. Kanaga Sabapathy

Former National Vice-PresidentBE, FIE, FCIA, CE, FIV

Tiruchirappali(F. 1890)

What is the rental value of a Flat?Rent is the amount given by the tenant to the owner for enjoying

his flat.

Rental value depends upon the nature of use, the location of thebuilding and the floor in which the said flat is situated:-

= 62,16,000 x3

100

3

100x = Rs. 15,540/-}


Assuming a rate of return

of 2.5%, the monthly rent

The monthly rental value may be from Rs. 12,950/- to Rs. 15,540/-. If the flat islocated in ground floor, it may fetch a better rent. If the flat is located in top floor,it may fetch a lower rent. It depends on the actual site conditions and demand.

Example 2 :

A flat in ground floor is fit for commercial activities. The size of the shop is30’ x 20’. The plinth area is 600 sq.ft. The super built up area is 660 sq.ft and thecarpet area = 28’ 6” x 18’ 6” = 527 sq.ft. It is a new building and the composite rateis Rs. 10,000/sq.ft. What is the rental value per sq.ft. of carpet area?

Super built up area = 660 sq.ft.

Unit composite rate = Rs. 10,000

Value : 660 x 10,000 = Rs. 66,00,000

%age annual return assumed in this case = 5%

Yearly rent : 66,00,000 x 5/100 = Rs. 3,30,000

Monthly rent : 3,30,000/12 = Rs. 27,500

Carpet area = 527 sq.ft.

Rental value for unit carpet area = Rs. 52.1827,500 / 527

say: Rs. 52/-

Example 3 :

A residential flat in first floor with car parking fetches a monthly rent of Rs. 16,000.What is the probable value of the flat? The building is 15 years old.

Monthly rent = Rs. 16,000/-

Yearly rent = 16,000 x 12

Assuming an annual rate of return

as 3%, the value is

(Note : The age does not play any role in rent capitalisation method.)

Example 4 :

In a village adjacent to the town, a promoter is developing an apartment building

= 62,16,000 x2.5

100

1

12x = Rs. 12,950/-

16,000 x 12 3

x 100 = Rs. 64,00,000/-=

}

}

}


with ground floor + 2 floors. It is meant for lower middle class people. For a flat of825 sq.ft in first floor, he quotes a composite rate of Rs. 3,500/-. The specificationsare very normal only. How to ascertain whether the composite rate quoted by thepromoter is genuine? What may be the reasonable rate? The rental value of a similarflat in the adjacent building is Rs. 3,000/- pm.

Super built up area = 600 sq.ft

Composite rate = Rs. 3,500/-

Value : 600 x 3,500 = Rs. 21,00,000/-

Rental income assuming a

minimum %age of 2.5% per annum

This flat should fetch a minimum rent of Rs. 4,375/-, whereas the prevailing rentalvalue for a similar flat is Rs. 3,000/- only.

Monthly rent = Rs. 3,000/-

Yearly rent = 3,000 x 12 = Rs. 36,000/-

Capitalising @ 2.5% =

The composite rate =

The composite rate of Rs. 3,500 as quoted by the promoter is not genuine. It appearsto be on the higher side. A rate of say, Rs. 2,400/- may be reasonable.

Example 5 :

Mr. “X” has invested Rs. 1.2 crores to purchase a residential flat in second floorof an apartment complex. Mr. “Y” has invested Rs. 1.2 crores to purchase a shopin the ground floor of the same complex. What is the reasonable rent they can expect?Proper drawing approval is available.

Mr. X : assuming an annual rateof return of say, 3% theprobable monthly rent

Mr. Y : assuming an annual rateof return of say, 5% theprobable monthly rent

= 21,00,000 x2.5

100

1

12x = Rs. 4,375/-

36,000

2.5x 100 = Rs. 14,40,000/-

14,40,000

600= Rs. 2,400/-

= 1,20,00,000 x5

100

1

12x = Rs. 50,000/-

= 1,20,00,000 x3

100

1

12x = Rs. 30,000/-

}

}

}


If there is so much difference in rental income, everybody can invest in a shoprather than a residential flat. What is the reason?

The answer is : A tenant may not vacate the shop that easily. He may not bewilling to pay the revised rent periodically.

INSTITUTION OF VALUERSTiruchirappalli Branch

will be conducting a two-day courseon

"Valuation for Banks" "Valuation for Banks" "Valuation for Banks" "Valuation for Banks" "Valuation for Banks" (Course No. 28)at

Hotel Sangam, Tiruchirappallion the 13th and 14th of August, 2016.

The course fees is Rs. 4,000/-.The number of delegates is restricted to 200 only.

For correspondenceMr. S. Baskar, Branch Chairman, I.O.V.,

Tiruchirappalli Branch,“C.S.Residency”, 27B, 11th Cross (West),

Thillainagar, Tiruchirappalli - 620 018 (T.N.)E-mail: [email protected]

Mobile: 093451-02788 & Office: 0431-2741058

IV

Note : The above narration holds good for the valuation of freehold properties letat market rent with a clause for periodical rent review.


they are ready to extend crores of rupees as loans. In this process Banksare self-goalling themselves, as a result the NON PERFORMING ASSETS(NPAs) are rising at astronomical figures, resulting a threat to National economy.Recently, a reputed bank in a small town of Andhra Pradesh ordered for aCBI (Central Bureau of Investigation) enquiry for non-payment of even a singleinstalment by a customer who cheated the bank for rupees 30 crores forconstruction of a FISH POND submitting fake documents with forged signaturesof neighbours and government lands claiming as his own as security. The innocentneighbours and the government officials received notices from the bank whichis another farce. Any innocent man of the village could tell the lands belongsto whom. But, without Physical inspection, loans are sanctioned for kick backs.In many instances the bank people make the Panel Valuer as a scapegoat.

So, physical inspection is very much required as there are occasions thatthe documents created for mortgage have no connection with the actualproperty of which collateral security have been obtained.

Panel Valuer is the only person who is physically inspecting the propertyunder mortgage depending upon site conditions, prepare his valuation reportsand issues valuation certificate. When a property is valued for the purposeof creating equitable mortgage to the banks, the responsibility of the PanelValuer is much more and take extra care. He observers many vital factorslike, complications in documents, involvement of other’s right in property, possiblelitigation, encroachments, right of ownership etc. Apart from involving mere technicalknowledge he applies his intelligence, shrewdness and analysis practical and

PHYSICAL INSPECTION OF A PROPERTY ISA MUST FOR VALUERS

—P.N. RaoB.Tech, D.Arch, FIE, FIV

Hyderabad(F. 6945)

These days, Banks are very liberal in extending loans (Housing,Vehicle and Personal loans etc.). Interest rates on loans havebeen reduced. Door to door campaign and Loan Melas at streetcorners are organized by Banks to attract the customers. It isno wonder, that even if anybody claims ownership of TAJ MAHALor CHARMINAR as their own and submit the false documents


critical site conditions. For this, he goes through the following stages andprepares his final valuation report.

Perusal of Document

Physical inspection

Assessment of value

In practice,

a) Some of our senior valuers are very much competent in Technicalknowledge and retired as Chief Engineers or Superintend Engineers in Publicor Private sector organizations. They register themselves as Panel Valuers aftertheir retirement. Generally the Senior Valuers of that rank entrust Physicalinspection of site to their assistants or associates and simply certify thevaluation reports prepared by their assistants. The assistants may not becompetent.

b) In big valuation firms Chief Valuer or the Managing director entrust thejobs of Physical inspection, collection of data, preparation of valuation reportsto their associates or assistants. They simply sign the valuation reportwithout any knowledge of site conditions.

c) A Valuer in Andhra Pradesh used to submit 600 to 700 valuation reportsof various banks in a financial year. Taking 300 working days in ayear it is not possible to visit every site, collect data and prepare two/three valuation reports in a single day. So he takes the help of his assistantsand he will not have knowledge of physical conditions of the propertyhe certified.

d) Prime activity of some valuers is, Architectural design/ Structural design/Consultancy / Construction etc. The valuation jobs are only secondary tothem.

e) Thanks to technology, some valuers are preparing Valuation reports with thehelp of GOOGLE maps. They never physically inspect the property.

Actually, sixty percent of Architect’s design of a building depends on hisobservations in the first visit of the site in which the building to is beconstructed. Similarly a Valuers report will be more accurate only with hispersonal physical inspection of the site. In the court of law the Valuer whosigns the report is only responsible for any consequences SO, PHYSICALINSPECTION OF A PROPERTY IS A MUST FOR ANY VALUER.PERUSAL OF DOCUMENTS : The following documents shall be obtained from


the client or the bank before going for the inspection.

1. TITLE DEED : Name of the owner, the date and registration No. of theTitle deed. Survey No; ward No: Village Name etc. The size and extentof the site any percentage of shares value is involved. Any commonshare with neighbours is involved, any easement rights is mentioned ageof the building if mentioned.

2. Approved drawings if available. The year of approval. The owners nameSurvey No. ward no. Block No. etc.

3. Tax receipt (Original). Name of the owner the amount Tax assessmentDoor No. Street no. etc.

4. Original Electricity Bills, NOC (No objection certificates original), OC Occupancycertificate other Bills, Deposit receipts warranties, Water supply and drainagepermissions. etc.

5. Beware of Fake, and False documents with forged signatures. Only originaldocuments (not scanned/Xerox copies) shall be insisted for inspection.

6. Some of the builders are not handing over the original documents to theapartment owner’s registered association without any reason and make themsuffer years together which leads to a litigation between builder and owners.Valuers should verify whether originals are handed over or not to theowners.

PHYSICAL INSPECTION : Since no property is sticked with the label bearingsurvey no. owner’s name etc., physical inspection is of utmost importanceas for the Realistic market value is concerned. Panel valuer is the onlycompetent person to check the property physically and certify whether theproperty offered for inspection is the same described in the title deed whichis being pledged to the Bank/Financial Institution.

During the site inspection Panel valuer should observe the following:

The size and extent of the plot.The length and breadth and area of the plot shall tally with the measurements

mentioned in the sale deed. Physical measurement of the whole area is required.In title deeds or municipal drawings the measurements of sides only mentionedand not diagonals. For Square and Rectangular plots the opposite sides anddiagonals should be equal. Otherwise they are parallelograms with unequal diagonals,not preferable for building because of more wastage of space. A plot ofrectangular shape fetches more value than the plot of irregular shape. Ingeneral large plots fetch less unit price due to less number of buyers.


Location with reference to the boundaries.

Door or house numbers fixed by the Municipal authorities shall be verifiedwith the details given in sale deed. and Municipal approved drawings. The roads,land marks, survey nos. lay out plan nos shall also be checked. Road widthsshall be measured.

Incorrect extent mentioned in the document purposely or by over sight.

This can be checked only by Physical measurement of the actual site.The difference can be corrected by the process of Rectification in the Subregistrar’s Office, if Sub registrar agrees otherwise it is a litigation. For examplea builder of a five storeyed apartment building with 25 two bed room flatswith different built up areas has intentionally retained 66 sq. yards of land.The actual site is 1245 sq.yards and there are 25 flats. So for undividedshare of land builder has to distribute the total 1245 sqyards in proportionof built up areas. But he distributed only 1179 sqyards retaining 66 sq yards.If it is not noticed,, unclaimed the Builder wants to utilize for his purpose whichis illegal and unethical.

Whether the plot is situated in a land-locked land situation?

In the case of interior sites away from the road and not facing any roadthe owners should negotiate with the front site owners for common passageand when there is a misunderstanding between the two the front neighbour restrictthe movement of the rare plot owners and there will be a litigation betweenthe two. These sites shall be avoided.

Whether the whole or part of land is notified acquisition by Governmentor any statutory body ?

Some times the Government or any statutory body reserve some areaof land for development of Industry, Commercial purpose or for Greeneryor for Road widening etc. This has to be found from the local planningauthorities.

Whether the local authority has declared the particular area as any specialzone?

This must be verified with the Master Plan prepared by the Director ofTown Planning or Regional Planner. Master Plans are available with MunicipalCorporation or with the Developing Authority of that region.

Is there any encumbrance?Land which is encumbered by unauthorized occupation/ encroachment will have


depressed value on account of litigation for eviction.

Will there be any problems in transferring the conveyance ofownership?

A conveyance deed is executed to transfer title from one person toanother. Generally, any owner can transfer his property unless there isa legal restriction barring such transfer . Under the law any person cantransfer it in favour of another. If the owner gives another individual aPower of Attorney (POA) that person can sell it under this authority. APOA gives another person the power to act on behalf the owner. Howeverif the POA only grants a person the authority to manage the propertyhe cannot sell it. This should be observed carefully by the valuer.

Are there any common shares in the property?

When two or more people buy a property together there should bea clear agreement stating each person’s share in the property. This isgenerally mentioned in the title deed. However when such property is purchasedall the shareholders shall be consulted to avoid future litigations.

Whether the drawings are approved for which the land was purchased?

This is indicated in approved plan by the regulatory authority .

Whether environmental condition is good or not?

The site shall be free from the environmental conditions such as— Wetness, Non Toxic dusts, Odours, Vibrations, Noise, Discomforts, Dangerouslocations, Fire, steam, Hot surfaces, Radiation, Flying particles, Falling objects,Electrical (High tension wires) Equipment, machinery and tools, Biological agents,Dangerous Chemical substances Hazards etc.

Is there any nuisance due to environmental pollution?

There are five types of pollutions—Air, Water, Soil, Noise and Light.Environmental pollution is causing heavy damage to people’s health. Naturallypeople are reluctant to buy any property effected with environmental pollution.

Is there any legal problem existing in the title deed?

A sale deed is one of the most valuable legal documents in a purchaseor sale of a property. It is governed by Registration act and an importantdocument for both buyer and seller. Most importantly sale deed requiredthe seller’s certificate that the property under sale is free from any


encumberance.

Is there any easement right mentioned in the title deed?

An easement is a right benefitting one parcel of land that permits rightfulusers of that land to perform specified actions over a neighbouring parcelof land. Probably the most commonly used easement is one that allows undergroundservices (water, drainage, gas, electricity, telephone or TV cable etc) of one propertytopass beneath the land of one or more neighbouring properties . Perhapsthe most widely known easement is the private right of way. There areother, such as the right to light, right to support.

Character and classification of locality i.e. Residential/Commercial/Industrial etc.

The concept of Zonal system in Master plans is a failure in India. Evenin well-planned cities Zonal regulations are violated after a period of time. Thereshould be a change in people’s attitude.

Development of surrounding areas

The land rate increases with the degree of development and the situationof the property like in commercial or residential zones, nearness to roads,proximity to civic amenities, transport facilities, corner plots etc.

Is the locality subjected to frequent flooding?

Example: during the last floods whole city of CHENNAI submerged inwater for days together due to non receding of back water of sea causingmany hardships to residents and damage to buildings. Maximum Flood levelsof nearby rivers or Tanks to the site shall be noted.

Feasibility to the civic amenities like schools, hospitals, offices, marketsetc.

The sites nearer to Civic amenities with good infrastructure facilities willalways be in demand and their market value will be higher than other sitesin any city/ town.

Level of land with topographical condition. Shape of land, type of use to whichit can be put.Some plots are filled with boulders, to level the ground boulders have tobe removed by blasting etc which is a costly affair and blasting maydamage the neighbouring buildings. As per type of building and soil conditionsRaft foundations may be adopted which require deep excavation. Due to thisadjacent plot compound wall or even building wall on the boundaries may


collapse causing heavy damage. Some sites require heavy filling to the road levelor to avoid inundation during heavy rains or floods.

Any restrictions of use ?

In the Master Plan of city or a region the Residential, Commercial, Industrialzones and green belt areas are mentioned for the healthy growth of city.But commercial and industrial activity is seen in Residential zones or viceversa. The value of Residential house in a noisy industrial area is less thanthe same house when it is located in well planned residential area.

Whether leasehold or freehold land?

If it is leasehold the original leasehold agreement has to be checked. Period of leaseand conditions of lease are important. Some times leaseholders, sub let a part or fullof property to another person without the knowledge of the original owner. Therewill be a litigation in evacuation.

Is it in Town Planning layout?

Some builders / owners construct buildings without the Lay out plan approval.Builders cheat the customers saying that local panchayat’s or municipal buildingapproval is sufficient. But without LAY OUT approval it will become unauthorizedconstruction. Only the Director of Town planning or any City or Regional DevelopmentAuthority is competent for any lay out approval. LAY OUT approval numbershall be verified and checked with the competent authority.

Road facility, water potential under ground sewerage systems? Wellplanned lay outs will have these facilities. Some lay out show 40 feet roadin Lay out plan but in actual it is only 30 feet . which is a violationof Lay out plan. The buyers has to face the consequences of demolitionor imposing penalities and the total area also become very congested.

Commercial potential of the property—any of sentimental / social issueswhich may affect the value in case of buildings?

Sites adjacent to slums, facing burial grounds, adjacent to drainage channelsor near sewerage plants will have less market value. The potential of thesite can be judged only by physical inspection.

Is it an unauthorized construction ?

Due to laxity and corruption in Town Planning department some builders/owners construct without taking any approval for construction. Some bad elementsin the Town planning offices encourage this type of construction. The builders


(To to continued)

If you wish to be always happy, pray for the welfareof other.

think that construction can be regularized in Building Regularization Schemeand Land Regularization Scheme (BRS & LRS ) which the Municipalities announceonce in 3 or 5 years. Heavy penalties are imposed during this schemeand the building never be considered as an authorized construction.

Is it constructed violating the local building rules?

Setbacks, Heights Plinth areas, Horizontal and Vertical extensions and FSI hasto be verified and checked with the local building rules. Only the constructionas per building rules shall be considered for Valuation. For example buildingsare extended on cantilevers intruding into the setback area to increase thebuilt up area. This is a clear violation of building rules.

The Specifications of the building in detail:

The specifications written in approved plan defer from the actual specificationsadopted. For example the flooring in Approved plan says Ceramic tile flooringbut during inspection it is found costly Marble flooring with super finish.The cost variation will be high.

How is the condition of building?

Main objective of condition assessment is to place the building into oneof the following three categories 1) The building has not shown any signsof distress and it satisfies all the safety and serviceability requirementsaccording to relevant Codes of practice, hence no action is needed towardsany retrofitting. 2) The building is seen to deficient (or distressed) but it canbe repaired and strengthened to satisfy the Codal safety requirements orperformance criteria set by the user 3) If the building is badly damaged.it is to be demolished and new building may be built. Decision can onlybe taken after physical inspection of the building.


1. INTRODUCTION:

INDIA is second largest producer of Fish and related aqua food in the world. Thesource is from Sea, Rivers, Natural Tanks and Aqua Culture Units.

Aqua food is the best health non-vegetarian food for the human beings, irrespectiveof their size and classification.

The feed for the aqua culture is manufactured at the Aqua (Fish and Shrimp)manufacturing units.

We have inspected one of such Aqua feed manufacturing units on behalf of oneof the nationalized banks in India. This unit has two separate manufacturing units—one for the Fish feed manufacturing and the second one for Shrimp feed manufacturing.Effort is made to give a glimpse of the manufacturing process of both the units asshown below.

2. BRIEF DESCRIPTION: MANUFACTURING PROCESS OF THE FISH FEED UNIT(FFU):

The raw material used for the Fish feed is Maida, Soya, Maize, small dry Fishetc. The material is first weighed by mixing proportionately and then fed to the conveyor.Here the capacity of the feed is one Ton.

The feed from the conveyor is sent to the grinders through the elevators, wherethe grinding takes place.

After grinding, the feed is sent to the pulveriser for finishing process and then sentto the mixing chamber where the feed is thoroughly mixed and the steam coming fromthe steam Boiler at about 90 Deg. C is also mixed.

After combining with the steam the feed is then sent to the cooling chamber,condenser and then to the Pellet machine, where the feed is shaped to granules andsent through the dryers for removal of the moisture content in the feed.

VALUATION OF PLANT and MACHINERYValuation of “Fish and Shrimp” Feed Unit –

A brief description—V.S. Rao —D.S.N. MurthyB.E.(Mech.), F.I.V. AMIE(Mech.), F.I.V.Visakhapatnam Visakhapatnam(F. 10796) (F. 22634)


The feed in final stage is sent to the crumble section, sieve unit and collected inthe collection chamber in the form of granules of 4mm size. This finished feed is collectedfrom chamber, packed in 50 kgs bags and is made ready to be shipped for AquaUnits.

3. BRIEF DESCRIPTION: MANUFACTURING PROCESS OF THE SHRIMP FEEDUNIT (SFU):

The Shrimp feed manufacturing process is similar to the Fish feed unit in termsof machinery and the manufacturing process.

Unlike Fish feed unit there is a difference in the raw material like Fish Oil andSoya Oil are used here.

These oils are sent from separate chambers to the mixing chambers, where themixing is done thoroughly.

Then the mixing of steam, condensate of the steam, drying of the feed etc is samelike the Fish Unit.

The final finished Shrimp feed granules are of different sizes like 1mm, 1.5mm,2mm which are packed in 25kgs bags and then sent to the Aqua Farms.

Samples of the Fish and Shrimp granules are periodically tested in the in houseLaboratory to check the presence of the moisture levels.

A Flow Process chart of manufacturing Shrimp feed is shown in the following pagesto have a brief idea of the unit.

4. VALUATION ABSTRACT OF THE MACHINERY USED FOR BOTH THEMANUFACTIURING UNITS:

As per the details shown in the below table.

Fair Market Value of the whole Plant Rs. 1,44,49,350.00

The description of various machinery installed in Fish and Shrimp Units individuallyand combined are shown in the below table, along with the present equivalentreplacement cost(PERC), fair market value (FMV) and the final total value of the Unit.The FMV considered is as per the physical condition of the machinery, theirperformance, residual life and other related factors.

Machines in the Shrimp Unit are new ones, so the final FMV is arrived and shownin the 6th column, in below table. However in case of the Fish unit the Invoice Value,PERC and the FMV are shown in separate columns since this unit has old machinery.


6. DESCRIPTION OF FISH FEED UNIT, MACHINERY AND THE RELATEDVALUATION DETAILS :


7. COMMON MACHINEY FOR BOTH SHRIMP AND FISH UNIT:


(PTO)

MUST FOR MUST FOR MUST FOR MUST FOR MUST FOR VVVVVALALALALALUERSUERSUERSUERSUERSOF PLANT AND MACHINERY

VVVVVALALALALALUUUUUAAAAATION OF PLANT TION OF PLANT TION OF PLANT TION OF PLANT TION OF PLANT AND MAAND MAAND MAAND MAAND MACHINERCHINERCHINERCHINERCHINERYYYYYTheory and Practice

By Dr. P.C. Gupta B.Sc.Engg.(BHU), M.S.(Tax. Tech.) MIT Ph.D.(Mech.Engg.) I.I.T. USA, A.S.M.E. (Life), M.I.E., F.I.V.

The price of above Book is Rs. 375/- and by Registered Post Rs. 400/-from the office of the Institution of Valuers, Plot No. 3, Parwana Road,

Adjacent to Bal Bharti Public School, Pitampura, Delhi - 110 034.This book can also be had directly from : Dr. M.N. Gupta S/o Late Dr. P.C. Gupta,

C-15, Vivek Vihar, Delhi-110 095.This book is also available with Jain Book Depot, C-4, Opp. PVR Plaza, Connaught Place,

New Delhi-110 001.


9. CONCLUSION

On the basis of analysis and appraisals it is our considered opinion that the totalfair market value of the machinery (Fish and Shrimp unit) based on the markebilityfactor is Rs. 1,44,89,350-00 (Rupees one crore forty four lakhs eighty nine thousandthree hundred and fifty only).

8. FLOW CHART:


10. APPROACH TO VALUATION / NOTE:

The value is based on the information collected from the existing market, invoicecopies of the respective machinery, the physical condition of the machinery, ageand the residual life of the machinery.

The Boiler was manufactured at Bombay in 1978 as per Form VI certificate. Theage and the extended residual life of the Boiler is considered as per the lettersissued by the Inspector of Boilers in 2010 & 2012.

The upgradation of the existing capacity of the Transformer, for a better output,is under process.

To,The Authors of ArticlesThe Institution expects senior and highly qualified members to devote serious thoughtto produce useful & topical literature from time to time. All the matter for publicationshould be on Valuation.General Considerations :1. All articles must be received in a soft copy so that the possibility of any error

in publication is not allowed to happen.2. The address in full and membership No. may be shown for record in the office.3. All articles must be signed by the author.4. It should be mentioned clearly that the written item is an article, a note, or news

or information, etc.5. The point the author wants to highlight be mentioned as introduction.6. If any abbreviation is used, immediately to that its expansion be written in brackets.7. If any other author’s facts or work is stated or used, the source of the same

be mentioned.!8. All written matter should be useful to all our readers.9. The Council in its meeting held on 10/08/2013 decided that w.e.f. January, 2014

the photographs of the authors of articles in black and white be also printed.The authors of articles are requested to kindly send their passport size photographsso that the same are printed alongwith their articles.

--EDITORIAL BOARD

IV


(iii) Detailed estimate method

2.0 DATA

Place : Tiruchirappalli (Tamil Nadu)

Plinth area of building : 1200 Sft.

Year of construction : April 2013 - December 2013

Purpose of use : Residential

Method of construction : Owner’s direct supervision

Specification

Type of structure : Load bearing structure

Foundation : R.R. masonry in C.M.

Basement : R.R. masonry in C.M.

Superstructure : B.W. masonry in C.M.

Roof : R.C.C. 1 : 2 : 4

Floor finish : Marble

Joinery : Teak wood

Weathering course : Pressed tiles with lime concrete

Water supply arrangements : Deep bore with motor

Drainage arrangements : Septic tank

Compound wall : Nil

COST OF CONSTRUCTION OF A RESIDENTIALBUILDING BY THREE METHODS—CASE STUDY

—Er. N. RavindranB.E., M.Sc.(Real Estate Valuation), F.I.V.

Registered ValuerTiruchirappalli

(F. 11202)

1.0 INTRODUCTION

The cost of construction of a residential building is estimated by followingmethods:

(i) State P.W.D. rate method

(ii) Accounting method &


4.2 Technical audit (on verification of materials)

In order to ascertain whether the quantum of materials that have gone into the buildingis reasonable and the rates are genuine, a technical audit is conducted.

I. Steel

1. Average requirement of steel for the this type of = 35 Kg/sq.m of P.A.

construction as per standard books and

valuation journals

2. Total plinth area = 1,200 Sft. (or) 111.52 m2

3. Theoretical requirement of steel = 3,903 kg.

- 111.52 m2 x 35/Kg/sq.m

4. Quantity of steel actually consumed in the building = 4,010 kg.

5. The amount spent by the assessee for steel = Rs. 2,00,500

6. Unit rate of steel = 50/Kg.

From the above analysis, the quantum of steel and the unit rate of steel appearreasonable.

II. Cement

1. The average theoretical requirement of cement per sq.m. = 3.5 bags

2. The total quantum of cement = 390 bags- 111.52 m2 x 3.5 bags/ sq.m.

3. Quantum of bags actually consumed = 410 bags

4. Amount spent for cement = Rs. 1,23,600


5. Unit rate per bag = Rs. 300

From the above analysis, the quantum of cement and the unit rate of cement appearreasonable.

III. Bricks

1. The average consumption of bricks per sq.m area = 137 nos.

2. The total requirement of bricks = 15,728 nos.- 111.52 m2 x 137 nos./sq.m

3. Quantum of bricks actually utilised = 16,128 nos.

4. Amount = Rs. 80,640

5. Unit rate = Rs. 5/piece

From the above analysis, the quantum of bricks and the unit rate of bricks appearreasonable.

IV. Stone aggregates

1. The average theoretical consumption per sq.m of p.a. = 0.3 m3

2. Total requirement – 111.52 m2 x 0.3 m3 / m2 = 33.46 m3 or 12 units

3. Quantity actually consumed = 15 units

4. Amount spent by the assessed = Rs. 33,750

5. Average rate/unit rate of jelly = Rs. 2,250/-

From the above analysis, the quantum of aggregate and the unit rate of aggregateappear reasonable.

V. SAND

1. The quantum of sand required per sq.m = 0.36 m3

2. The total requirement = 40.15 m3(or)14 units

- 0.36 m3/sq.m x 111.52 m2

3. Quantum of sand actually consumed in this building = 20 units

4. Amount spent for sand = Rs. 30,000

5. Unit rate of sand = Rs. 1,500

From the above analysis, the quantum of sand and the unit rate of sand appearreasonable.


VI. LABOUR1. The amount spent by the assesses for labour = Rs. 6,72,000

2. Percentage of labour over the total cost 6,72,000 x 100 = 25%27,00,000

3. The labour component in the building normally = 25 – 30%4. The amount is reasonable


6.0 CONCLUSION

Cost of construction by State P.W.D. Rate Method : Rs. 25,05,000

Cost of construction by Accounting Method : Rs. 27,00,000

Cost of construction by Detailed Estimate Method : Rs. 26,90,000IV

Desire and anger are like pests that destroy the tree ofhuman life.


EXERCISES IN COMPUTATION OF CAPITAL GAINS—K. Arun

BE, FIVTiruchirappalli

(F. 13707)

Exercise 1 :

An individual acquired a property in June 1990 for Rs. 12.05 lakhs.On 10.12.2014, this property was sold for a sale consideration ofRs. 85.14 lakhs. What is the indexed cost of acquisition and what isthe CAPITAL GAINS?

Solution :

1. Status Individual

2. Date of Acquisition June 1990 (1990-91)

3. Cost of Acquisition Rs. 12,05,000

4. Fair Market Value as on 1.4.81 Not applicable here

5. Date of Transfer 10.12.2014 (2014-15)

6. Sale Consideration Rs. 85,14,000

7. Cost Inflation Index 1990-91 182

Cost Inflation Index 2014-15 1024

8. Indexed Cost of Acquisition 12,05,000 x

Rs. 67,79,780

9. Taxable Capital Gain Rs. 85,14,000

(-) Rs. 67,79,780

Rs. 17,34,220

10. Tax Rate 20%

11. Tax on Capital Gains 0.2 x 17,34,220

Rs. 3,46,844/-

1024182


Exercise 2 :

On 07.12.1989, a property was acquired by Mr. x for Rs. 8.08 lakhs. In June 1992,improvements were made for Rs. 12.06 lakhs. On 10.12.2014, the property was soldfor Rs. 1.93 crores. What is the indexed cost of acquisition & improvement? Whatis the Capital Gain?

Solution :


2. Date of Acquisition 07.12.1989 (1989-90)

3. Cost of Acquisition (12/1989) Rs. 8,08,000

4. Cost of improvements (6/1992) Rs. 12,06,000 (1992-93)

5. Date of Transfer 10.12.2014 (2014 - 15)

6. Sale Consideration Rs. 1,93,00,000




8. Indexed Cost of Acquisition 8,08,000 x 1024 = Rs. 48,10,419

172

9. Indexed cost of improvement 12,06,000 x 1024 = Rs. 55,37,865

223

10. Total indexed cost of 48,10,419 + 55,37,865 =acquisition & improvement Rs. 1,03,48,284

11. Taxable Capital Gain Rs. 1,93,00,000

(-) Rs. 1,03,48,284

Rs. 89,51,716

12. Tax Rate 20%

13. Tax on Capital Gains 0.2 x 89,51,716

Rs. 17,90,343/-

(PTO)


Exercise 3 :

An individual-owned property was originally acquired in 01.10.1972 for Rs. 1.02lakhs. The fair market value of the property as on 01.04.1981 is Rs. 5.25 lakhs. On10.12.2014, this property was sold for a sale consideration of Rs. 75.05 lakhs. Whatis the indexed cost of acquisition? Compute the Capital Gains.

Solution :


2. Date of Acquisition 01.10.1972


4. Fair market value as on 1.4.81 Rs. 5,25,000

as worked out (1981-82)

5. Date of Transfer 10.12.2014 (2014-15)

6. Sale Consideration Rs. 75,05,000

g. Cost Inflation Index 1981-82 100


h. Indexed Cost of Acquisition 5,25,000 x 1024 = 53,76,000 100

i. Taxable Capital Gain Rs. 75,05,000

(-) Rs. 53,76,000

Rs. 21,29,000

j. Tax Rate 20%

k. Tax on Capital Gains 0.2 x 21,29,000

Rs. 4,25,800/-

(PTO)

The heart bereft of love and compassion is verily acemetery.


Exercise 4 :

On 12.12.2010, a property was acquired by Mr. Y for Rs. 75.28 lakhs. On 10.12.2014,the same was sold for Rs. 1.03 crores. What is the indexed cost of acquisition andwhat is the Capital Gain?

Solution :


2. Date of Acquisition 12.12.2010 (2010-11)


4. Date of Transfer 10.12.2014 (2014-15)

5. Sale Consideration Rs. 1,03,00,000



7. Indexed Cost of Acquisition 75,28,000 x 1024 = 1,08,42,014

711

8. Taxable Capital Gain Rs. 1,03,00,000

(-) Rs. 1,08,42,014

(-) Rs. 5,42,014

It is a loss

9. Tax Rate NIL

10. Tax on Capital Gains NIL (There is no capital gain.

But there is a capital loss.

No Tax).

IV

There is nothing greater than service to humanity.


the entire flat for Rs. 60,00,000/-. Compute the Capital Gains.

B. If he sold the flat on the next day i.e., 01.04.2015 for the same value, what willbe the Capital Gains?

Solution (1A) :

1. Acquisition :

1996-97 - UDS of land - Rs. 1,50,000/-

1997-98 - Flat purchase - Rs. 8,15,000/-

1998-99 - Car parking - Rs. 14,402/-

2. Sale consideration in 2014-2015 = Rs.60,00,000/-

3. Cost Inflation Index :

1996-97 - 305 1998-99 - 351

1997-98 - 331 2014-15 - 1,024

4. Indexed cost of acquisition :

UDS of land : 1,50,000 x 1,024 = Rs. 5,03,607/-305

Flat : 8,15,000 x 1,024 = Rs. 25,21,329/-331

Car parking : 14,402 x 1,024 = Rs. 42,016/-351

Total cost of acquisition = Rs. 30,66,952/-

COMPUTATION OF CAPITAL GAINS FOR A FLAT—K. Arun

BE, FIVTiruchirappalli

(F.13707)

Problem 1 :

A. In the year 1996 - 97, Mr. x purchased 532 sq.ft. UDS from a flatpromoter for Rs. 1,50,000/- which includes the cost of registration.In the year, 1997-98, he paid Rs. 8,15,000 to the promoter towardsthe cost of 1,331 sq.ft. of flat. In the year 1998-99, he purchasedan exclusive car parking for Rs. 14,402/-. On 31.03.2015, he sold


5. Sale consideration on 31.03.2015 = Rs. 60,00,000/-

6. Gain made : 60,00,000 - 30,66,952 = Rs. 29,33,048/-

7. Capital gain tax percentage = 20%

8. Capital gain tax : (0.2 x 29,33,048) = Rs. 5,86,610/-

Solution (1B) :

1. Cost Inflation Index : 2015-16 = 1,081

2. Indexed cost of acquisition :

UDS of land : 1,50,000 x 1,081 = Rs. 5,31,639/-305

Flat : 8,15,000 x 1,081 = Rs. 26,61,677/-331

Car parking : 14,402 x 1,081 = Rs. 44,355/-351

Total cost of acquisition = Rs. 32,37,670/-

3. Gain made : 60,00,000 - 32,37,670 = Rs. 27,62,330/-

4. Capital gain tax : (0.2 x 27,62,330) = Rs. 5,52,466/-

Problem 2 :

A flat (UDS 1,200 sq.ft. and Super built up area 2,400 sq.ft.) in 1979 waspurchased by Mr. x for Rs. 2,25,000/-. In the year 2015-16, he sold it for Rs.64,25,000/-. Compute capital gains.

Solution 2 :

The flat was procured in 1979. For the purpose of computing capital gains, the fairmarket value of the flat as on 01.04.1981 is the basis and it is worked out like this:

The value of the flat in 1981 :

Market value of UDS 1,200 sq.ft. : Rs. 60,000/-

Depreciated value of flat 2,400 sq.ft. : Rs. 1,20,000/-

Fair market value as on 01.04.1981 : Rs. 1,80,000/-

For the purpose of computing the capital gains, the Fair market value as on 01.04.1981(i.e. Rs. 1,80,000/-) is to be considered. But the assessee has spent a higher amountof Rs. 2,25,000/- even in 1979. Hence this higher amount is considered as the minimumbasic value as on 01.04.1981.


Cost Inflation Index for 2015-2016 = 1,081

Cost Inflation Index for 1981 - = 100

Indexed cost of acquisition = 2,25,000 x 1081

100

= Rs. 24,32,250/-

Sale consideration in 2015-16 = Rs. 64,25,000/-

Gain : 64,25,000 - 24,32,250 = Rs. 39,92,750/-

Capital gain 20% of Rs. 39,92,750/- = Rs. 7,98,550/- IV

“VALUATION PRACTICE OF IMMOVABLE PROPERTIES”(Revised & Enlarged Edition)

Written by

Shri C.H. Gopinatha Raoa prominent Valuer and

past President of the Institution of Valuers

The above book is available at Rs. 420/- and by Registered Post at Rs. 470/-(including packing and registered postage charges) from the office of theInstitution of Valuers, Plot No. 3, Parwana Road, Adjacent to Bal Bharti PublicSchool, Pitampura, Delhi - 110 034.


NEWS AND NOTES

IMPORTANT ANNOUNCEMENT6th Indian Valuers Congress and 47th All India National SeminarThe Council of Institution of Valuers has decided to hold this year’s 6th Indian Valuers

Congress and 47th All India National Seminar on “Immovable and Movable Assets” inPuducherry (UT) on 28th, 29th and 30th of December, 2016.

Puducherry: Puducherry also known as Pondicherry is one of the few cities in India,that gracefully blends the east with the west. It was formerly a French colony andcurrently the capital city of Puducherry union territory of India. It has various placesof interest and is a very popular tourist and holiday destination in the country. It hasbeautiful beaches, Mediterranean architecture and places of worship and meditation.It is well connected by road and the nearest major railway station and internationalairport is situated 160 km away at Chennai city.

This popular tourist destination is a Union Territory of India. Puducherry tourismis held together strongly by its architecture, mosques, churches, culture and food.Puducherry is most popular due to its French connection. The town of Puducherryis located about 162 km south of Chennai (Madras). The main languages spoken inthe region include Tamil, Telugu and Malayalam. Apart from this, English and Frenchare the other languages spoken by local people.

Accommodation in Puducherry: Visitors will get some unique accommodation andlodging services here in Puducherry, as there are a good number of signified hotelsand beach resorts. While there are a good many budget hotels in Puducherry, whichprovide good quality accommodation to its guests, the thing to look out for are thecolonial bungalows converted into quaint small hotels. These are the places with areal quality experience.

Places to visit and things to do in Puducherry: Some call it a serene beachdestination while others nicknamed it as the “French colony of the south”. However,Puducherry in South India is an amalgamation of both, range of postcard like beachesbordered by French named roads and French architectural wonders. Attractions inPuducherry reflect a unique harmony between Indian culture and French colonialism.Colonial buildings, churches and statues contribute to a wide range of Puducherryattractions.

Climate in Puducherry: The weather in Puducherry during the winters, the temperaturegenerally nestles a mild climate. In October and November the temperature in


Puducherry roves at 20 degree and 27 degree and it drops down to a minimum of15 degree and to a maximum of 20 degree from December to February.

How to Reach Puducherry: Clung to South Eastern coast of peninsular India,Puducherry with its unique colonial appearance firmly draws in travellers – leisure andhoneymooners – round the globe. Overlooking the rage of Bay of Bengal this tranquilcity, beholding the Puducherry Ashram and French Colony at one end and theunexploited hues of beaches, encircles some of the popular tourist destinations in Indiaas well as heritage towns.

One can reach Puducherry by road from Chennai, covering an approximate distanceof 162 kms whereas it is 160 kms from Vellore to Puducherry. One travelling fromCoimbatore to Puducherry needs to cover a distance of 380 kms en route Salem-Kanyakumari Highway, Salem-Ulundurpettai Highway and Tiruchirapalli-Chennai High-way.

The distance from Tirupati to Puducherry is approximately 260 kms whereas it isonly 100 kms from Mahabalipuram and from Madurai to Puducherry it is 340 kmsapproximately. The approximate distance from Kanyakumari to Puducherry is 600 kmsand it takes one to drive approximately 9 hours to 10 hours. Buses ply from Bangaloreto Puducherry that takes approximately 6 to 7 hours and covers a distance of 320kms en route Hosur and Uthangarai. From Hyderabad to Puducherry it is approximately790 kms whereas it is just 560 kms from Cochin by road.

If you are planning to reach Puducherry by air then there are scheduled flightsto Puducherry from New Delhi, Hyderabad, New Delhi, Mumbai and Kolkata. The closestinternational as well as busy domestic airport is in Chennai.

Puducherry hosts its own railway station that connects the city with all other majorcities like Bhubaneswar, Kolkata, New Delhi, Mumbai, Bengaluru, Hyderabad, Jaipurand Kanpur. So, one planning to reach Puducherry by train has got wider options.Villupuram railhead is considered as the nearest railway station to Puducherry.Villupuram is well linked to Tiruchirappalli, Madurai and Chennai.

Visit Puducherry to empower your knowledge in Valuation and enjoy thehospitality during Indian Valuers Congress & All India National Seminar 2016.

*****

INSTITUTION OF VALUERS, MADURAI BRANCH

Institution of Valuers, Madurai Branch, Conducted the regular Monthly Meeting atour office premises on April 26, 2016. The technical talk was on “LAYOUT APPROVALPROCESS AND CHALLENGES IN REAL ESTATE SECTOR”.


The Meeting waspresided over by Vr. R.Ashok, FIV, Chairman,IOV Madurai Branch.Chief Guests ShriM.Vallappan, Er. S.Tamilarasan and Vr.K. Vijayakumar, FIV,Secretary was on thedais. After invocationVr. R. Ashok deliveredthe welcome address.

Vr. K. Vijayakumar introduced the Guest Mr. M. Vallappan and Er. S. Tamilrasanto the audience. E.C. Member K.A. Rathakrishnan honoured the Guest with a shawland Er. S. Tamilrasan was honoured with a shawl by our EC Member M. Babu.

The Chief Guest Shri M. Vallappan in his speech first thanked the IOV MaduraiBranch for giving him this opportunity to deliver the lecture. In his speech he pointedout the difficulties in getting layout approval in Madurai region. During Er. S. Tamilrasanspeech he mentioned preliminary scrutiny of basic records and knowing of some ofthe acts which are useful on purchase of the property – Hindu succession and MuslimAct. The talk was really beneficial for the fellow valuers. After their speech manyquestions were raised by the members on the Layout approval process. Thesequestions were replied by the respective speakers. The session was attended by 40valuers.

The Chairman requested E.C. Member S. Ramakrishnan to present the mementoto the Guest Shri M. Vallappan and Vr. K. Kumar to present the memento to the GuestEr. S. Tamilrasan. Joint Secretary Vr. R. Vanniarajan delivered the vote of thanks.After the National Anthem, opulent Dinner was served which was hosted by E.C.Member Vr. S. Anbu.


INSTITUTION OF VALUERS, HYDERABAD BRANCH

On April 23, 2016the Hyderabad branchconducted its monthlymeeting at ourHyderabad office pre-mises – 104, MustafaTowers, Nilofer Hospi-tal Road, Lakdikapul,Hyderabad. Valuers inand around Hyderabad,Secunderabad, RangaReddy and Medak at-tended the meeting.

The speakers of themeeting were ShriBalraj, Retd AGM ofSBH. Senior valauerand Past Chairman Mr.Despande honouredthe speaker and mem-ber Mr. DSP Rameshbriefed about thespeaker.

The meeting wasstarted at about 6.30PM after the secretaryMr. P. Madhu invited the Chairman Mr. G.V. Apparao & the speakers on the dais.The Chairman briefed about the talks and activities of the branch. The speaker veryelaborately explained the valuation reports with case studies and also explained roleof the valuer. Afterwards, senior valuer Mr. Despande explained about the ethics andmoral of the valuers.

The chief guest was honoured with memento by senior valuer Mr. Bheem Rao.

During interactive session the speakers gave opinions to various questions raisedby fellow valuers.

The monthly meeting was conclude with the vote thanks by the Chairman.


minutes of the meeting.

Branch Chairman & Members of the branch talked about the Central Bank of India'sSigning issue, Bonding system not accepted by the valuers.

Discussion about the topics of one day seminar dated – 19.06.2016

Valuation of immovable properties,

1. I.T. Valuation.

2. Valuation for Bank Purpose – Land & Building.

3. Fair Rent Calculation (Fixation of fair rent).

4. Legal Aspects of Valuation.

5. Gedgets used in Valuation.

Branch Chairman & Members of the branch talked about the National Seminar.

The Chairman of branch and valuers discussed Valuation for Acquisition for NHAI.

Institution of Civil Engineers emphasised only Civil Engineers to be valuers insteadof M.Sc. graduation.

Later Vr. Ajit deliberated regarding lease hold properties.

Vr. Vijayakumar deliberated regarding equipments used in valuation GPS Tracker,Total station.

Articles - Lease hold - Vr. Ajit

- Equipment - Vr. Vijayakumar

INSTITUTION OF VALUERS, PUDUCHERRY BRANCH

On April 26, 2016Puducherry Branch con-ducted the regularmonthly meeting in HotelAnandha Inn, Anna Salai,Puducherry. After HighTea the Meeting began.

Branch Chairmanwelcomed the augustgathering. Hon. Secretarydeliberated the previous


INSTITUTION OF VALUERS, PUNE BRANCHThe 11th CPE (Continuous Professional Education) programme was held on 23rd

April, 2016 at 6.30 p.m. at Hotel Raviraj, Bhandarkar Road, Pune on the topic ‘Crossexamination in U.S. Court’. Mr. Mandar Gadre was the speaker.

Mr. Shewade, Secretary welcomed the members present. Mr. Shewade introducedMr. Gadre. He was felicitated by Mr. G.L. Kulkarni, Chairman of the Branch.

Mr. Gadre delivered lecture on various issues related to cross examination in U.S.court. He explained the. procedures regarding cross examination of expert witness asare prevailing in that court. The Question and Answer Session was then conductedto satisfy members on various queries raised by them.

Then the latest edition of Valuation was published. Thereafter Mr. Lele, Vice-Chairman, proposed to hold health camps for the benefit of the members and theirclose relatives. The concept was appreciated by all the members present. He thenproposed to hold eye check up first. He informed that he had talked to Dr. Todkar,Eye Specialist of Apollo Hospital, Pune, who had volunteered to help the Institute inthis regard. Mr. Lele then introduced Dr. Todkar who made a presentation on theproposed eye check up camp. He explained various types of eye related diseases,remedies, importance of regular check up etc. It was decided to hold this camp till8th May 2016. The members were given coupons to be used for eye check up atApollo Hospital. About 65 coupons were given.

Mr. Lele then apprised the members present of various decisions and discussionsheld in the Central Council meeting held at Bengaluru. He also informed that certainfundamental definitions used in valuation field were being discussed and being improvedat the Central Council level.

Mr. Lele suggested to conduct programme on certain topics of common interestwhich would be discussed by the members present on the basis of their practicalexperience. Help of outside experts may also be taken in this regard.

Mr. Shewade suggested that specific questions would be invited from the members,beforehand and in the programme those questions would be discussed by the membersand remedies to day-to-day difficulties being faced by the members could be solved.

Mr. Shewade proposed a vote of thanks. About 29 members from Pune and othercities attended the programme. It was followed by dinner. Members appreciated theprogramme and quality contents in the same.

INSTITUTION OF VALUERS, LUCKNOW BRANCH

A refresher course was conducted at the premises of IOV, Lucknow on 22nd May,2016, on “Valuation of Assets for Bank Purpose”. It was organised by IOV, Lucknow


Branch. 27 IOV members attended the refresher course.

The course started at 9.30 AM with registration of members and ended at 17.35hrs. with vote of thanks address by Secretary Mr. A.N. Dubey.

Following articles were presented and queries of participants were answered bythe speakers in details.

1. Valuation of Shop - by Col. S.R. Prasad

2. Valuation of A First Floor Residence by Vr. A.L. Kalra

3. Valuation of a Mentha Oil Extraction Unit by Vr. O.P. Sharma

4. Valuation of Shop - by Vr. M.K. Goel

5. Valuation of Partly Commercial & Residential Building - by Vr K. Chandra

6. Valuation of Shop - by Vr. A.N. Dubey

7. Valuation of a Flat - by Vr. M.I. Khan

8. Valuation of Used Vehicles - by Vr. Prabhat Srivastava

9. Valuation of a Commercial Property - by Vr. K. Chandra

10.Refresher Course in Mathametics for Valuers -by Vr. A.L. Kalra

Different Cost Index were also given by Vr. K. Chandra

All above articles were published in a book form.

***

The follwoing were elected as Office Bearers and Executive Committee Members byvarious Branches (given below) of the Institution of Valuers for the years 2016-2018:-

1. COCHIN BRANCH

Office Bearers

(i) Chairman Sh. M.P. Abraham(ii) Vice-Chairman (I) Sh. V.S. Ramakrishnan(iii) Treasurer Sh. Rajumani(v) Secretary Sh. P.J. Paulose(vi) Joint Secretary Mrs. Aji John

Executive Committee Members

Sh. Sajikumar G.Sh. P. AjithSh. George F. ChethalanSh. G. Velayudhan Nair


Sh. Vincent A. AlappatSh. Radhakrishnan P.Sh. M.K. Krishnan

2. ERODE BRANCH

Office Bearers

(i) Chairman Sh. R. Mohanraj(ii) Vice-Chairman (I) Sh. S. Devanandan(iii) Vice-Chairman (II) Sh. A. Manoharan(iv) Treasurer Sh. P. Paul Vijayakumar(v) Secretary Sh. K.A. Manikandan(vi) Joint Secretary Sh. G. Kumaresan

Executive Committee MembersSh. K.P. DuraisamySh. P. GopalakrishnanSh. M.K. KandasamySh. S. MohanSh. K.B. VertivelSh. N. SivanSh. A. RamakrishnanSh. S. VelusamySh. K.M. ThirunavukkarasuSh. A. Shanmuga Sundaram

3. INDORE BRANCHOffice Bearers

(i) Chairman Sh. Ashutosh Saxena(ii) Vice-Chairman (I) Sh. Kirnesh Kumar Goyal(iii) Vice-Chairman (II) Sh. Bijay Kumar Agarwala(iv) Treasurer Sh. Sunil Chawda(v) Secretary Sh. Sanjay Jain

Executive Committee MembersSh. Rajeev BumbSh. Om Prakash PateriyaSh. Sunil GargSh. Basant Kumar Chhazed


Sh. Mahesh Chandra AgrawalSh. Dharmendra Singh PariharSh. Shailesh PapdiwalSh. Sudhir ParekhSh. Nand Kishore ShrimaliSh. Dilip Kumar Jain

4. JABALPUR BRANCHOffice Bearers

(i) Chairman Cdr. K.S. Vilku (Retd.)(ii) Vice-Chairman Sh. P.C. Tembhere(iii) Treasurer Sh. Sushil Agrawal(iv) Secretary Sh. Raj Kumar Sahu

Executive Committee MembersSh. Sanjay VermaSh. P.K. SoniSh. Rajeev JainSh. Ashish JainSh. Mukesh SoniSh. P.C. DubeySh. M.R. GhaiSh. Padmesh Tiwari

5. PUDUCHERRY BRANCH

Office Bearers

(i) Chairman Sh. J.R. Ezhil(ii) Vice-Chairman Sh. P. Sivakumar(iii) Treasurer Sh. A. Vijayanarayanan(iv) Secretary Sh. S. Sivakandan(v) Joint Secretary Sh. V.R. Ajitchandran


Sh. K. MagalingameSh. R. PremkumarSh. K. RaviSh. D. Giridhara RaoSh. N. Ganesan


6. TRIVANDRUM BRANCH

Office Bearers

(i) Chairman Sh. N. Rajkumar

(ii) Vice-Chairman (I) Sh. M.K. Nazarulla

(iii) Vice-Chairman (II) Sh. G. Viswanathan

(iv) Treasurer Ms. S. Lathikakumari

(v) Secretary Sh. V. Subramanian Potty

(vi) Joint Secretary Sh. A.K. Bose

Executive Committee MembersSh. K.G. Nadarajan

Sh. George K. Thomas

Sh. A.P. Jalajakumar

Sh. K.P. Cheriyan

Sh. T.T. Kripananda Singh

Sh. V. Raveendranathan Nair

Sh. S. Nandan Menon

Sh. Muhammad Sali A.

Sh. Hari Narayanan K.

******Following office-bearers and members nominated to the Ad-hoc Committee ofLudhiana Branch as approved by the Council under Rule 15.2 of Rules forBranches. The said Ad-hoc Committee shall continue till the regular electedcommittee takes over.

Office Bearers

(i) Chairman Sh. G.P.S. Chaddha(ii) Vice-Chairman Sh. Nalin Tayal(iii) Treasurer Sh. Puneet Mittal(iv) Secretary Sh. Nitin Kumar Tayal


Sh. Mandeep Singh BhasinSh. Raj Kumar GargSh. Sanjeev KumarSh. Rakesh Kumar Gupta


IV

NOTICE(To all Members of Institution of Valuers)

By this notification, the Council of Institution of Valuers, according to the powerconferred by the Bye Laws of the Institution, hereby makes it mandatory forall its Corporate Members to attend a minimum of 2 (two) numbers full daySeminar / Symposium / Work Shop / Basic Course / Advance Course on Valuationand its allied subjects conducted by Institution of Valuers, in one calendar year,to retain their names in the “Active Professional Valuers List” maintained bythe Institution at its Head Quarter at Delhi and uploaded at its official websitewww.institutionofvaluers.net.

Explanation:Full Day Seminar: The seminar shall be of a minimum seven hour

duration including Inauguration, Valedictorysession and lunch / dinner etc.

Allied Subjects: Law, Economics, Accountancy, Engineering,Finance, Standards and Ethics, Management,Architecture etc.

Calendar Year: For the year 2016, the names of all lifeCorporate Members shall be there in the “ActiveProfessional Valuers List”. But, they have toattend minimum two full day seminars by31.12.2016 to retain their names in 2017 “ActiveProfessional Valuers List” from 01.01.2017.

Active Professional Valuers List: A list maintained by Institution of Valuerscontaining the names of the life corporatemembers who are constantly updating theirknowledge base by actively participating invarious continuing education programme viz.seminars, conferences, workshops, trainingprogramme, capacity building programme etc.This list shall be updated once in every yearon the third Monday of the Month of Januaryevery year. The members successfullycompleting their continuing education programmeshall have to send the copy of their participationcertificates to the Head Quarter by 31st

December of each year to include their namesin the next year’s list. This will be available inwww.institutionofvaluers.net as well as in HeadQuarter. In 2016 list, the names of all lifecorporate members shall be there.


LIST OF LIFE MEMBERS ENROLLED DURINGTHE MONTH OF MARCH 2016

ANDHRA PRADESH

KORIPELLA, AASHITAB.Arch., A.I.V.Approved ValuerPlot No. 5, D.No. 3-16B-71,Postal Colony, Nr. R.T.C. Complex, Kakinada,East Godavari Dist. – 533 003Mobile : 9966373409, 9100304409E-mail : [email protected] LM C1 AP

POLIDASU, SANKARA RAOB.Tech., M.I.E., F.I.V.Govt. Reg. No. CCIT is No. 7/09-10 inF.No. CCIT-III/Tech/Reg.Val/161/09-10Approved ValuerDoor No. 6-21-36, 13/2, Arundel Pet,Guntur – 522 002Mobile : 9393360889, 7673963299E-mail : [email protected] LM C1 AP

POLAVARAPU, VENKATA RAMANA RAOB.E., F.I.V.Approved ValuerFlat No. G-1, Door No. 40-12-3/3,Apoorva Residency, Patamatalanka,Vijayawada – 520 010E-mail : [email protected] LM C1 AP

UPPALA, SATYANARAYANAB.E., F.I.V.Approved ValuerD. No. 41/1/5-11,Prashanthi Nilayam,Gouthami Nagar, 1st Lane,Vijayawada – 520 013Phone : 2524838Mobile : 8143364567, 9440048838E-mail : [email protected] LM C1 AP

BIHAR

SAH, PRAKASH KUMARB.E., F.I.V.Approved ValuerBarmasia, North to Jagganath Mandir,Katihar – 854 105Mobile : 9431060749, 9162909186E-mail : [email protected] LM C1 Bi.

KUMAR, SANJEEVB.E., F.I.V.Approved ValuerAzad Colony,B/h Durga Mandir, Maripur,Muzaffarpur – 842 001Mobile : 9905616716E-mail : [email protected] LM C1 Bi.

CHANDIGARH

SURI, MUKULB.E.(Elect.), MBA, F.I.V.Approved ValuerH. No. 17, Sector-11A,Chandigarh – 160 011Mobile : 9818176468E-mail : [email protected] LM C7 CH

CHHATTISGARH

BHAGWANI, MUKESH KUMARB.E., F.I.V.Approved ValuerDesh Lahra Nagar,Sindhi Colony,Durg – 491 001Mobile : 9425551889, 9300266644E-mail : [email protected] LM C1 Chh.


SINGH, BIJENDRA KUMARB.E., F.I.V.Approved ValuerMahamaya Consultant, B/h Hotel Panchanan,Shivdhari Colony, Ambikapur,Surguja – 497 001Phones : (R) 240027 (O) 234219Mobile : 9926943407E-mail : [email protected] LM C1 Chh.

DELHI

CHADHA, HITESHB.Arch., F.I.V.Approved ValuerChadha & Associates,Flat No. 2, Shankar Market, Connaught Circus,New Delhi – 110 001Phone : (O) 23412739, 23411873Mobile : 9810624239E-mail : [email protected] LM C1 Di.

GOA

MALIK, AMIT ANILB.E., F.I.V.Approved ValuerOff. No. 502, Fifth Floor,E-Block, Saldana Business Tower,Nr. Court Circle,Mapusa – 403 507Phone : 2380141 Mobile : 9420974950E-mail : [email protected] LM C1 GO

GUJARAT

KUMAR, ASHOKAMIE(Mech.), MBA, F.I.V.Approved ValuerC-401, Sharan Status, Nr. Devpriya-3,Motera Stadium Road, Motera,Ahmedabad – 380 005Phone : (O) 27700552 Mobile : 9978948299E-mail : [email protected] LM C7 Gt.

GOSWAMI, RASHMIPARIB.E., F.I.V.Approved ValuerM-215, Sarita Vihar Society,Kalavad Road, Nr. Bisap House,Rajkot – 360 005Phone : 2563236 Mobile : 9428213231E-mail : [email protected] LM C1 Gt.

HARYANA

GARG, JAI PARKASHB.Sc.(Engg.)(Civil), F.I.V.Approved ValuerFlat No. B-1002,Tulip Ivory Apts., Sector-70,Gurgaon – 122 101Phone : 4988294 Mobile : 9350561021E-mail : [email protected] LM C1 Har.

HIMACHAL PRADESH

MADHAV, ANISHB.Arch., A.I.V.Approved ValuerVill. – Salowa, P.O. Rangas,Tehsil Naduan,Hamirpur Dist. – 177 048Mobile : 9882134818, 9805981199E-mail : [email protected] LM C1 Him.

KARNATAKA

KELADI, GUNDAJOIS NAGARAJB.E., F.I.V.Approved Valuer# 502, 5th Floor, Block F,Nagarjuna Meadows Phase-II,Puttenahalli Village, Yelahanka,Bengaluru – 560 064Phone : (R) 65476156Mobile : 9663044433E-mail : [email protected] LM C1 Ka


MEENAKSHI, SB.E., M.Tech., A.I.V.Approved ValuerNo. 38/19, Vinayaka Street,Manorayanapalya, R.T. Nagar Post,Bengaluru – 560 032Phone : 23530705Mobile : 8971697737, 9448573284E-mail : [email protected] LM C1 Ka

PRADEEP, G.N.D.M.E., B.E.(Mech.), A.I.V.Approved Valuer60, Sri Laxmi Narasimha Swamy Nilaya,2nd Main Road, 11th Block,2nd Stage, Nagarabhavi,Bengaluru – 560 072Mobile : 9980218966, 9632685678E-mail : [email protected] LM C7 Ka

AJAY, G.K.B.E., A.I.V.Approved Valuer7th A Cross, B-Block,K.R. Nagar,Mysore Dist. – 571 602Mobile : 8050330089E-mail : [email protected] LM C1 Ka

KERALA

PILLAI, GOPALAKRISHNA V.B.Sc.(Engg.)(Civil), MTP, F.I.V.Approved ValuerMadathil House, H. No. 28/2773C,Ponnethsouth Road, Kadavanthra,Kochi – 682 020Phones : (R) 2313789 (O) 2204902Mobile : 9447113789E-mail : [email protected] LM C1 Ke

PRIJITH, V.R.B.Tech., M.I.E., F.I.V.Approved Valuer‘Sreepriya’, TMC 3/1823 (Old TC 5/962)Cheroor Road, Chembukkavu,Thrissur – 680 020Phones : (R) 2331624 (O) 2389790Mobile : 9895712426E-mail : [email protected] LM C1 Ke

RAJAN, P.B.Sc.(Elect.), M.Sc.(REV), A.I.V.Govt. Reg. No. CCIT/CHN/Cat-II/3/2016-17Prime Assessors,29, Keltron Nagar, Kolazhy P.O.,Thrissur – 680 010Phones : (R) 2200654 (O) 2320235Mobile : 9447223094E-mail : [email protected] LM C1 Ke

MADHYA PRADESH

CHANDAK, CHHAYAB.Arch., F.I.V.Approved ValuerA2-32, Sagar Estates,Ayodhya By Pass,Bhopal – 462 041Phone : (O) 4284993Mobile : 9424439003, 9406541084E-mail : [email protected] LM C1 MP

DHALIWAL, INDRAPAL SINGHB.E., F.I.V.Approved ValuerNarayan Vihar Colony,B/h ICICI Bank, A.B. Road,Dhamnod,Dhar Dist. – 454 552E-mail : [email protected] LM C1 MP


SAHU, NIKHILB.E., A.I.V.Approved Valuer12, Ganjipura,Jabalpur – 482 002Mobile : 9425153377, 8109373073E-mail : [email protected] LM C1 MP

BANGER, DEVENDRA KUMARB.E., F.I.V.Approved ValuerBhairoganj, Bhagatsing Ward,Nahar Road, Nr. Mobile Tower,“White House”, Seoni Post,Seoni Dist. – 480 661Mobile : 8109096480, 9556590080E-mail : [email protected] LM C1 MP

MAHARASHTRA

YADAV, DHARMANATH PRASADB.Sc.(Engg.)(Chem.), F.I.V.Approved ValuerC-3, Jaibhavani CHS, Plot No. 18,Sector-11, Kharghar,Navi Mumbai – 410 210Mobile : 9869155863, 9769965812E-mail : [email protected] LM C7 MS

FIRODIYA, RAKESH SHANTILALB.E., A.I.V.Approved ValuerVasant Vastu Bldg.,Darode Jog Guruh Prakalpa,F. No. 403, C/o Deena Shah,Maharshinagar,Pune – 411 037Mobile : 8149932377, 9028319498E-mail : [email protected] LM C1 MS

SATHE, UDAY DATTATRAYAB.E.(Elect.), F.I.V.Govt. Reg. No. 234 of 2015-16Approved Valuer295/30, A-301, Morya City,Keshvnagar, Chinchwadgaon,Pune – 411 033Phone : (R) 27610099Mobile : 9404070173, 9892320173E-mail : [email protected] LM C7 MS

PATWARDHAN, SHASHANK SHEKHARB.Arch., F.I.V.Approved Valuer122, Alamanda, Tata Glendale,Pokhran Road No. 2,Thane (West) – 400 610Mobile : 9869451230, 9820251231E-mail : [email protected] LM C1 MS

DAHIWALKAR, RAJESH SHRIRAMB.E., MIE, F.I.V.Approved Valuer“Shriram”, Tilak-Wadi,Datey College Road,Yavatmal Dist. – 445 001Phone : (R) 241620Mobile : 9423131131, 8087102699E-mail : [email protected] LM C1 MS

ODISHA

DASH, PRABEER KUMARAMIE, F.I.V.Approved ValuerNeheru Nagar – 8,Berhampur – 760 003Mobile : 9437134868E-mail : [email protected] LM C1 Odi.


PATRA, BIRAJA PRASADAMIE(Mech.), F.I.V.Approved ValuerACE Associates,Gandhi Nagar, Main Road,Berhampur – 760 001Phone : 2222338, 2220342Mobile : 9437061210F-12313 LM C7 Odi.

BEHERA, PANCHANANB.Sc.(Engg.)(Civil), F.I.V.Approved ValuerPlot No. 19/199, Paiknagar,P.O. Baramunda,Bhubaneswar – 751 003Mobile : 9437001496E-mail : [email protected] LM C1 Odi.

PUDUCHERRY

KANCHANA, V.B.Arch., F.I.V.Approved ValuerH. No. 19, 20,2nd Maria Theresa Street,Duethamby Garden, Reddiarpalayam,Puducherry – 605 010Phone : 2292010Mobile : 9486331359E-mail : [email protected] LM C1 Pd.

TAMIL NADU

MOHANRAJ, A.B.E., F.I.V.Approved Valuer1071-F, Main Road,Bhavani – 638 301Mobile : 9842784830E-mail : [email protected] LM C1 Tn

MURALI, S.G.B.E., M.E., F.I.V.Approved ValuerAkhil Apartments, Old No. 77,New No. 108, Kamaraj Avenue,2nd Street, Adyar,Chennai – 600 020Mobile : 9444948393E-mail : [email protected] LM C1 Tn

PILLAI, RADHAKRISHNA K.B.Sc.(Engg.)(Mech.), F.I.V.Approved ValuerNo. 702, Pearl Block,Alliance Orchid Springs,Water Canal Road, Koratur North,Chennai – 600 076Phones : (R) 49525453 (O) 37182280Mobile : 9176674804E-mail : [email protected] LM C7 Tn

RAJKUMAR, P.B.Tech.(Mech.), A.I.V.Approved Valuer58D, Vishnu Apartments,Gandhi Road, Choolaimedu,Chennai – 600 094Phone : (R) 42836806Mobile : 9790914552, 9884621473E-mail : [email protected] LM C7 Tn

MOHAMED, ASLAMB.E., A.I.V.Approved ValuerPlot No. 5, 1st Cross Street,Sathya Narayana Nagar,Pothanur,Coimbatore – 641 023Phone : 2410880Mobile : 9095092888, 9944792888E-mail : [email protected] LM C1 Tn


SUYAMBURAJA, DR. ARULSELVANAMIE, Ph.D., F.I.V.Approved Valuer10, Jeeva Nagar, Vilankurichi Road,Coimbatore – 641 035Mobile : 9842293245E-mail : [email protected] LM C1 Tn

MATHIVANAN, M.B.E., M.I.E., F.I.V.Govt. Reg. No. 6/2005-06 (CBDT)Approved ValuerBaarath Consultancy,129, Main Road,Kovilpatti – 628 501Phones : (R) 220086 (O) 223226Mobile : 9443253229E-mail : [email protected] LM C1 Tn

VIJAYAKUMAR, K.V.B.E., M.Tech., F.I.V.Approved Valuer50/13 A, Panthadi 7th Street,Madurai – 625 001E-mail : [email protected] LM C1 Tn

CHANDRAMOHAN, O.B.E., F.I.V.Approved Valuer1/358-1, Sundarraj Nagar,Keelavadakarai, Periyakulam,Theni Dist. – 625 601Mobile : 9790292112E-mail : [email protected] LM C1 Tn

RAMAMOORTHY, R.AMIE, F.I.V.Approved ValuerChittambody Kandigai,G.R. Pet Post, Arakkonam Tk.,Vellore Dist. – 631 101Mobile : 9894200208E-mail : [email protected] LM C1 Tn

TELANGANA

MEDA, VISWANADHB.Tech., F.I.V.Approved Valuer1-10-284/D, Lane No. 5,Bhraman Wadi, Begumpet,Hyderabad – 500 016Mobile : 7661930645E-mail : [email protected] LM C1 TG

AMARAM, JAGANNATHA REDDYAMIE(Mech.), F.I.V.Approved ValuerH. No. 1-2-33/17/1,A.S. Raju Nagar, Street No. 1,Nizampet Road, Kukatpally,Hyderabad – 500 072Phone : (R) 23156763Mobile : 9000770710E-mail : [email protected] LM C7 TG

UTTAR PRADESH

GOYAL, ANIL KUMARB.Tech.(Elect.), F.I.V.Approved Valuer5-New Adarsh Nagar,Balkeshwar Colony,Agra – 282 005Mobile : 9837059415E-mail : [email protected] LM C7 UP

SIDDHARTHAB.Arch., F.I.V.Approved Valuer484, Lakhanpur Housing Society,Kanpur – 208 024Phone : (R) 2582694Mobile : 9838777401, 7309037421E-mail : [email protected] LM C1 UP


JAISWAL, VIJAY CHANDRADip.(Arch.), AMIE, A.I.V.Approved Valuer14/2047, Sector-14,Indira Nagar,Lucknow – 226 016Mobile : 9453723201A-22408 LM C1 UP

RAMKUMARAMIE, F.I.V.Approved Valuer13/3, Type-4,PWD Colony, Jail Road,Lucknow – 226 012Mobile : 9335003385, 9839055778E-mail : [email protected] LM C1 UP

IV

SINGH, GOPALB.E., F.I.V.Approved Valuer2/1, New Bahar, Sahara Estate,Sector-H, Jankipuram,Lucknow – 226 021Phone : (O) 2442200Mobile : 7800333323, 9838711115E-mail : [email protected] LM C1 UP

UTTARAKHAND

AGARWAL, BINDUI.I.A., F.I.V.Approved Valuer75, AWHO Flats, Seemadwar,Indira Nagar Colony,Dehradun – 248 006Phone : (R) 6544102Mobile : 9219599900, 9219606099E-mail : [email protected] LM C1 Utt.

INSTITUTION OF VALUERSChennai Branch

Proposes to organise one day Seminaron

Valuation of Assetsat

Hilton, 124/1, J. N. Salai, Guindy, Chennai-32On 2nd July, 2016

The Registration Fee is Rs. 3,000/DelegateFor details please contact:

1. Mr. R. Thirumal – 93606 73666 / 044 – 224910072. Mr. M. S. Karthikheyan – 98410 25214 / 044 – 24865101

E-mail to [email protected]


BRANCHESBRANCHESBRANCHESBRANCHESBRANCHES - - - - - INSTITUTION OF INSTITUTION OF INSTITUTION OF INSTITUTION OF INSTITUTION OF VVVVVALALALALALUERSUERSUERSUERSUERSANDHRA PRADESH

TIRUPATI BRANCHChairman: Shri A.K. Narayana Reddy, Flat No. 112, First

Floor, Aditya Towers, Opp. SBM, BalajiColony, Tirupati - 517 502, Ph.: 0877-2246330,Mob.: 9246999282, E-mail :[email protected]

Secretary: Shri G.P. Jagadiswar, D.No. 20-2-494/11, MarruthiNagar, Korlagunta, Tirupati-517 501. Mob.:9949556162 E-mail : [email protected] BRANCH

Chairman: Shri G.V. Ramana, Jayram Civil Engg. Consultancy,# B-5, Samrat Apartments, Kokaratnamala Street,Srinagar Colony, Ring Road, Vijayawada - 520008,Ph.: 0866-6536653, Mob.: 9246476651

Secretary: Shri M. Nagaraju, 32-30-4/30, Bhagat Singh Road,Opp. Andhra Bank, Machavaram, Vijayawada -520004, Mob.: 9246496555, E-mail :[email protected]

VISAKHAPATNAM BRANCHChairman: Shri Devi Prasad Vana, D-305, VUDA Apartments,

Seethammadhara, Visakhapatnam - 530 022,Mob.: 9440242732, E-mail :[email protected]

Secretary: Shri K.M. Jeelani, Flat No. 102, GF, Sagar ViharApts., Matsyadarshini Road, RK Beach,Visakhapatnam - 530 003, Mob.: 9866530644E-mail : [email protected]

BIHAR PATNA BRANCH

Chairman: Shri Ram Balak Prasad, 104, R.P. Tower, (Nr. JagatTrade Centre), Fraser Road, Patna-800 001, Ph.:(R) 0612-2285907 Mob.: 9835038711,9431433109

Secretary: Shri Shyam Sundar Bhartia, 308, Varma Centre,Boring Road, Crossing, Patna - 800 001,Mob.: 9431011782, E-mail :[email protected]

CHANDIGARHCHANDIGARH BRANCH

Chairman: Shri B.L. Luthra, 2004, Sector 15-C,Chandigarh-160 015, Ph.: 0172-2772004,4620304, Mob.: 9815071897

Secretary: Shri G.P. Bansal, 3464, Sector 46-C, Chandigarh- 160 047, Ph.: 0172-2633267, Mob.: 9417132561

CHHATTISGARHDURG BRANCH

Chairman: Shri Sushil Kumar Jain, Plot No. 16, Block No. 2,Nehru Nagar (East), P.O. Bhilai, Dist. Durg-490 020.

Secretary: Shri Yogeshwar L. Chandak, Nr. DRG Bank,Motipara, Station Road, Durg-491 001. Ph.: 0788-2323284, E-mail : [email protected]

GOAGOA BRANCH

Chairman: Shri Shravan Dubashi, 18, Preety Homes, Agalli,

Fatorda, Margao, Goa - 403 602. Ph.: 0832-2742793, Mob.: 9422063736 E-mail :[email protected]

Secretary: Shri Mahendra S. Kakule, Caculo House, Nr.Aquem Post Office, Margao, Goa-403 601,Ph.: 0832-2735374 Mob.: 9822485550, E-mail :[email protected]

GUJARATAHMEDABAD BRANCH

Chairman: Shri P.K. Desai, 102, Satyam Tower, NavaVikas Gruh Road, Opp. Bhagyoday Co. Op.Bank Ltd., Paldi, Ahmedabad-380007,Ph.: (R) 079-26634419, Mob.: 9825005595,E-mail : [email protected]

Secretary: Shri Deepak C. Shah, 33, 24 Virbhadra Shop-ping Centre, Nilam baug Circle (Jail Road),Bhavnagar-364001, Ph.: 079-2519770, Mob.:9824220996, E-mail : [email protected]

SURAT BRANCHChairman: Shri Ajit B. Gohil, 103, 1st Floor, “A” Building,

Saint Park Appt., Beside Vishalnagar, Above IDBIATM & Somnath Restaurant, Nr. Sardar BridgeCircle, Adajan Road, Surat -395 009.Ph.: (O) 2796343, Mob.: 9825277523,E-mail : [email protected]

Secretary: Shri Lakhani Murad M., 503, 7th Floor, New Op-era House, Above Kiran Motors, Ring Rod, Surat-395 001. Ph.: (O) 2630297 Mob.: 9825595385,E-mail : [email protected]

VADODARA BRANCHChairman: Shri Hitesh B. Shah, 701 & 703, 8th Floor,

Patel Ashwamegh Complex, Above DenaBank, Sayajigunj, Vadodara-390 005,Ph.: 0265- (R) 2336173 (O) 2225537,Fax : 2363863 Mob.: 9824014216,E-mail : [email protected]

Secretary: Shri Harish Tahilramani, 518, Phoenix Complex,B/s Suraj Plaza, Sayajigunj, Vadodara-390005,Ph.: 0265-2363650, Mob.: 9825011262,E-mail : [email protected]

HARYANAGURGAON BRANCH

Chairman: Shri Rakesh Kumar Chugh , 87, Sector-30,Gurgaon - 122001, Mobile : 9818264036,E-mail : [email protected]

Secretary: Shri Kulvir Singh, H. No. 157, Sector-38,Gurgaon-122018, Mobile : 9818377997,E-mail : [email protected]

JAMMU & KASHMIRJAMMU & KASHMIR BRANCH

Chairman: Shri H.R. Phonsa , No. 63/5, Nanak Nagar,Jammu Tawi-180004, Ph.: 0191-2432712 Mob.:9419134060, E-mail : [email protected]

Secretary: Shri S.C. Thukral, 88 BC Road, Rehari Chungi,Jammu-180005, Mob.: 9419186848,E-mail : [email protected]


JHARKHANDRANCHI BRANCH

Chairman: Shri S.B. Ghosh, Consultus, ‘Bina’ Hinoo Bridge(East), Ranchi - 834002, Ph.: 0651-2251586,Mob.: 9431129316, E-mail : [email protected]

Secretary: Shri Santosh Kr. Singh, 3803, Block-C, Sri Ram Gar-dens, Kanke Road, Ranchi-834008. Mob.:9431170378,E-mail : [email protected]

KARNATAKABENGALURU BRANCH

Chairman: Shri T.S. Chandrasekhara, Sadurat ConsultantsPvt. Ltd., No. 82, 1st Floor, Dr. Raj Kumar Road,Prakash Nagar, Bengaluru-560021, Ph.: 080-65956789, 23326397 Mob.: 9448856488E-mail : [email protected]

Secretary: Shri K.S. Raghuraman, H.No. 1020 Flat No. 301,3rd Floor, Hemadri Residency, Opp. Sugana Hos-pital, Dr. Rajkumar Road, 4th Block, Rajajinagar,Bengaluru - 560 010, Mob.: 9845497602HUBLI BRANCH

Chairman: Shri V.R. Aminbhavi, “Vasudha”, 43, U.B. Hill Road,4th Cross, Dharwad-580001, Ph.: (R) 2442823 (O)2740227, E-mail : [email protected]

Secretary: Shri Raju K. Gowda, 43, Basaveshwar Nagar,Gokul Road, Hubli-580 030, Ph.: 08192-224606

MANGALORE BRANCHChairman: Shri Satish Rao Idya, Griha Shipa, Old P.O. Road,

Surathkar-575014, Ph.: 0824-2475416, Mob.:9845088592, E-mail : [email protected]

Secretary: Shri S.N. Bhat, No. 66, 2nd Floor, VenkatramanaBuilding Car Street, Mangalore - 575001, Ph.:0824-2495527, Mob.: 9845217857, E-mail :[email protected] BRANCH

Chairman: Shri T.V. Chandra, # 10, KHB House,Bannimantap Extn., Mysore-570 015,Ph.: 0821-2493138, Mob.: 9448085148,E-Mail : [email protected]

Secretary: Shri R. Ravi, No. 11/ A, M.N. Jois Road, ChamarajaMohalla, Mysore-570 004, Ph.: 0821-4244541,Mob.: 9448044550, E-mail : [email protected]

KERALACALICUT BRANCH

Chairman: Shri Joy Thomas, 34/1406-A, Florican Hill Road,Malaparamba P.O., Kozhikode - 673 009,Ph.: 0495-2376697, Mob.: 9447500284,E-mail : [email protected]

Secretary: Shri B. Unikrishnan Nair, Deepthi, West OllurTemple, Nellicode, Kozhikode-673 016, Ph.: 0495-2742068, Mob.: 9447409407COCHIN BRANCH

Chairman: Shri M.P. Abraham, Asisha Mangalath, SatelliteTownship, Kakkanadu West P.O., Cochin-682 030,Ph.: (R) 0484-2422832, Mob.: 9847040537/9744380500, E-mail : [email protected]

Secretary: Shri P.J. Paulose, Puthukunnathu, Panipra. P.O.,Thrikariyoor - 686 692, Ph.: 0485-2842605,Mob.: 9847248905,9249580605, E-mail :[email protected]

TRIVANDRUM BRANCHChairman: Shri N. Rajkumar, Rajath, E.V. Road, EVRA-305,

Jagathy, Trivandrum-695 014, Ph.: (R) 0471-2333508, Mob.: 9846319319, E-mail :[email protected]

Secretary: Shri V. Subramonian Potty, T.C. 17/2041, Flat-6A, Green Heights Apts., Medical College,Trivandrum-695 011. Ph.: (R) 0471-2448418, Mob.:9846748898, E-mail : [email protected]

MADHYA PRADESHBHOPAL BRANCH

Chairman: Shri Sunil Joshi, 62, First Floor, 6 No. Bus Stop,Shivaji Nagar, Bhopal-462016 Ph.: 0755-2556365/4244670,Mob.: 9425006965, E-mail :[email protected]

Secretary: Shri Sanjay Nigam, 2-Siddarth Homes, Plot No.141, Zone-II, M.P. Nagar, Bhopal, Ph.: 0755-2574467, Mob.: 9425011292 E-mail :[email protected] BRANCH

Chairman: Shri Ashutosh Saxena, 303/304, 3rd Floor, ManasBhawan Hindi Sahitya Samiti Compound, 11, RNTMarg, Indore - 452 001. Ph.: 0731-2527876, Mob.:9425060141, E-mail : [email protected]

Secretary: Shri Sanjay Jain, 1, Vardhaman Apts., 4/8, OldPalasia,Nr. Medicare Hospital, Indore - 452 001.Ph.: (O) 0731-2490069, Mob.: 9425056756,E-mail : [email protected] BRANCH

Chairman: Cdr. K.S. Vilku (Retd.), 5-Vatika Duplex, 65 NapierTown, Near St. Norbert Church, Bhanwartal,Jabalpur-482 001 Ph.: 0761-2450917 Mob.:9826166783 E-mail : [email protected]

Secretary: Shri Rajkumar Sahu, 169, Damoh NakaChowk, Jabalpur-482 001, Ph.: 0761-4065142Mobile : 9425151954, 9630265222E-mail : [email protected]

MAHARASHTRAAURANGABAD BRANCH

Chairman: Shri Subhas S. Bahekar, Vastushilp, 56, N-5,H-Sector, Satyam Nagar, CIDCO, NewAurangabad - 431 003, Ph.: (O&R) 0240-2486802,Mob.: 9822096007, E-mail :[email protected]

Secretary: Shri N. G. Karkhane, Mogra Rana Nagar, Opp.Hotel Atithi, Jalna Road, Aurangabad - 431 003,Ph.: 0240-2452305, Fax : 2441053,Mob.: 9823028081, E-mail :[email protected] BRANCH

Chairman:

Secretary: Shri Sandipkumar A. Tare, 7/74, 1st Floor,Shirgure Building, Laxmi Market, Ichalkaranji-416 115.Ph.: (O) 0230-2439108, Mob.: 9422045509,E-mail : [email protected] BRANCH

Chairman: Shri Harshad S. Maniar, 1st Floor, Above GeorgeRestaurant, 22, Bombay Samachar Marg, Fort,


Mumbai-400023, Ph.: 022-(O) 22654643,(R) 26181826, Fax : 022-22632399, Mob.:9819170088,E-mail : [email protected]

Secretary: Shri Subhash Banthia, 6, Parvati Villa, N.N. RoadNo. 3, Jogeshwari (East), Mumbai-400 060, Ph.:022-28234094, 32979557, Mob.: 9870031188,E-mail: [email protected] BRANCH

Chairman: Shri Milan C. Kale, DE/10, Yogiraj-3, Plot No.101, Nr. Shivaji Nagar Park, Shivaji Nagar,Nagpur - 440010, Mob.: 9823050639,E-mail : [email protected]

Secretary: Shri Hemant Ambaselkar, 38, Sawarkar Nagar,Nagpur - 440 015, Ph.: 2222184, Mob.: 9922415517,E-mail : [email protected]

NASHIK BRANCHChairman: Shri Sanjeev Y. Patil, A/14, Ameya Sankul,

Ramdas Colony, Canada Corner, Nashik - 422 005.Ph.: (O 2579970, (R) 2575577 Mob.: 9422245524E-mail : [email protected]

Secretary: Dilip V. Nikam, 7, Anandi Apartment, IInd Floor,Sharanpur Road, Nr. Canada Corner, Nashik-422 002.Ph.: (0253) 2315104, Mob.: 9422259703,E-mail : [email protected] BRANCH

Chairman: Shri G.L. Kulkarni, A-5, Deepak Apartments,off Hare Krishna Mandir Road, ModelColony, Pune - 411 016, Telefax : 020-25655437,Mob. 9422001205, E-mail: [email protected]

Secretary: Shri A.V. Shewade, A.V. Shewade & Associates,Ganeshkrupa Apts., 2nd Floor, 274/A, Shaniwar Peth,Nr. Indian Overseas Bank, Above Tulsi Travels,Pune-411030. Fax : 020-24494879, 24459396,E-mail : [email protected] BRANCH

Chairman: Shri Dinesh P. Warade, 1, Ground Floor, NewBhushan CHS Ltd., Teen Hath Naka, Surve Wadi,M.S. Road, Thane (W)-400 604, Ph.: 022-25838990,65848196 E-mail : [email protected]

Secretary: Shri Kedar Chikodi, 101/A, 1st Floor, Hari Krupa,Above Shrihari Mangal Karyalaya,Pandurangwadi, 1st Lane, Dombivli (E)-421 201.Ph.:0251-2801428 Mob.: 9870070121E-mail : [email protected]

NORTH-EAST REGIONGUWAHATI BRANCH

Chairman: Shri Indreswar Sharma, Barthakur Mill Road,Ulubari, Guwahati - 781 007, E-mail :[email protected]

Secretary: Dr. Mahidhar Pathak, MPG Complex, R-2,Rupnagar, Guwahati - 781 032, Mob.: 9864066613/9085066613, E-mail : [email protected]

ODISHABHUBANESWAR BRANCH

Chairman: Shri S.C. Chau Pattanayak, Satyam Tower, Block-A, Flat No. 301, Bomikhal, Cuttack Road,Bhubaneswar-751010, Telefax : 0674-2570393,Mob.: 9337840212 E-mail :[email protected]

Secretary: Shri Subash chandra Sabat, C/o HaripriyaAssociates,Plot No.1127/3048, Jayadurganagar,Bhubaneshwar-751006, Ph.:0674-2572433,2570337, Mob.: 9437002433, 9338592433,E-mail : [email protected]

PUDUCHERRYPUDUCHERRY BRANCH

Chairman: Shri J.R. Ezhil, No. C-100, A&N Fantasy Flats, 1stCross, PSC Bank Colony, Mudhaliyarpet,Puducherry - 605 004. Ph.: 0413-23560444, Mob.:9842311449 E-mail : [email protected]

Secretary: Shri S. Sivakandan, No. 61, 14th Cross, AnnaNagar, Puducherry - 605 005. Ph.: 0413 - (R)2204167 (O) 2204163, Mob.: 9842346200,E-mail : [email protected]

PUNJABAMRITSAR BRANCH

Chairman: Shri Raj Kumar Aggarwal, D-252, Ranjit Avenue,D-Block, Amritsar-143001. Ph.: 0183-25004444,2500445 Mob.: 9814055667 E-mail :[email protected]

Secretary: Shri Arun Kumar Aggarwal, H. No. 7/50, Opp.Trikoni Park, Kashmir Avenue (West), BacksieGulati House, Amritsar-143001. Ph.: 0183-2270543, 2270544 Mob.: 9814220129LUDHIANA BRANCH

Chairman: Shri G.P.S. Chaddha, Managing Director, M/sAshiana Architects Pvt. Ltd., 141-H, SarabhaNagar, Ludhiana, Mob.: 9814000700, E-mail :[email protected]

Secretary: Shri Nitin Kr. Tayal, SCO 1-3, B, Swami VivekanandVridhashram Market, B-Blcok, Model Town Extn.,Ludhiana - 141 002 Ph.: 0161-2457681,2, Mob.:7837600470, E-mail : [email protected]

RAJASTHANJAIPUR BRANCH

Chairman: Shri S.C. Khanna, B-108, Janta Colony,Jaipur - 302 004, Mob.: 9414305093E-mail : [email protected]

Secretary: Shri Manoj Kumar Dharnia, Flat No. 3-B, 3rdFloor, Jain Kunj Apartment, P.N 01, Gopalbari,Ajmer Road, Jaipur - 302 001, Mob.: 9829066828E-mail : [email protected] BRANCH

Chairman: Shri G.P. Mathur, 401, 5th Floor, B-Block, SubhAshiyana Complex, 100’ Road, Ayad, Udaipur,Ph.:0294-2980289, 5120008, Mob.: 9829243089,E-mail : [email protected]

Secretary: Shri Sanjay Dungarwal, 395, I-One Road,Bhupal Pura, Udaipur - 313 001,Ph.: 0294-2412486, Mob.: 9352501324,E-mail : [email protected]

TAMIL NADUCHENNAI BRANCH

Chairman: Shri R. Thirumal, Plot No. 12, 3rd Cross Street,Aandal Garden, Ramapuram, Nr. Dr. Vimala Con-vent, Chennai-600 089, Mob.: 9360673666,E-mail : [email protected]

Secretary: Shri M.S. Karthikheyan, GF, D.No.3,P. No. 196,


Agathiar Street, Alwarthiurnagar, Chennai-600 087,Ph.: (O) 044-65267342 (R) 24865101, Mob.: 9841025214,E-mail : [email protected] BRANCH

Chairman: Shri S. Pichaiya, 1288, Tricy Road (Nr. Hotel Aryas),Coimbatore - 641 018. Ph.: 0422-3268703,4371728, Mob.: 9842237172,E-mail : [email protected]

Secretary: Shri M. Adaikkalavan, 72 Savithiri Nagar,Ramanathapuram, Coimbatore - 641 045.Ph.: 0422-3293938, 2303257, Mob.: 9443290527,E-mail : [email protected] BRANCH

Chairman: Shri R. Mohanraj, 9/4-5, Muthuram’s Arcade, Opp.KPN Travel, Mettur Road, Erode-638 011, Ph.:0424-2269707, Mob.: 9788406000, E-mail :[email protected]

Secretary: Shri K.A. Manikandan, Penna Tower, 116,Veerapathira Chettiar Street, Nr. Oxford Hotel,Erode-638003.Ph.: (O) 0242-2215368, Mob.:9443295651, E-mail: [email protected] BRANCH

Chairman: Shri R. Ashok, Sakthi Consultancy, 1, LourdhuNagar, 7th Street, K. Pudur (P.O.), Madurai - 625007,Ph.: 0452-2562374

Secretary: Shri K. Vijaya Kumar, 9B, Narayana Bhavanam,Valluvar 1 Street, S.S. Colony, Madurai - 625 010,Ph.: 0452- (O) 2360748 (R) 2607575SALEM BRANCH

Chairman: Shri C. Mani, Classic Construction, Shop No. 29(Upstair), Corporation Vaniga Valagam, Nr. OldBus Stand, Salem - 636 001, Mob.: 9842724255,E-mail : [email protected]

Secretary: Shri T. Suresh Kumar, Anugraha Plot No. 12,Subramania Nagar Extn., Thruvagoundanoor,Salem - 636 005, Ph.: 0427-2223877 , Mob.:9443322577, E-mail : [email protected] BRANCH

Chairman: Shri S. Baskar, C.S. Residency, 27/B, 11th CrossWest, Thillainagar, Tiruchirapalli-620 018. Ph.:(O) 0431-2741058 Mob.: 93451-02788E-mail : [email protected]

Secretary: Shri N. Ravindran, Flat No. 3, Ground Floor, MAMPlaza (Opp. to YMCA Ground), Officers’ Colony,Puthur, Tiruchirappalli-620017. Ph.: 0431-2792355, Mob.: 9842464212, E-mail :[email protected]

TELANGANAHYDERABAD BRANCH

Chairman: Shri G.V. Appa Rao, H.No. 5-9-48/27, P.No. 27,Raghava Kalyan Estates, B/h Manik Sai Enclave,J.J. Nagar P.O., Yapral, Secunderabad - 500 087,Ph.: 040-27892212, 69994282,Mob.: 9849001121, 9246202888E-mail : [email protected]

Secretary: Shri Pagolu Madhu, 16-11-20, Flat No.G-3, BharaniApts., Saleemnagar, Malakpet, Hyderabad-500 036.Ph.: 040-65994816, Telefax : 24544815 Mob.:9848035695, E-mail : [email protected]

UTTAR PRADESHAGRA BRANCH

Chairman: Shri Ajit Faujdar, 1st Floor, Ellora Complex, SuryaNagar-Khandari Crossing, Agra - 282 002, Ph.:0562-2520383, Mob.: 9837035766, E-mail :[email protected]

Secretary: Smt. Archana Yadav, G-521, Kamla Nagar,Agra - 282005, Mob.: 9319102421,E-mail : [email protected] BRANCH

Chairman: Shri S.G. Paul, 26, Muir Road, Allahabad - 211001,Ph.: 0532-2621303, Mob.: 9335156218, E-mail :[email protected]

Secretary: Shri Vivek Jaiswal, U-20 & 26, Sangam Place,Civil Lines, Allahabad - 211 001, Ph.: 0532-2561001, 3255455, Mob.: 9838978786, E-mail :[email protected] BRANCH

Chairman: Shri S.S. Sharma, Bhagwant Niwas,KC-120A, Kavi Nagar, Ghaziabad-201 002,Ph.: 0120-2754488, Mob.: 9891417935,E-mail : [email protected]

Secretary: Shri Atul Goel, Atul & Associates, 202-203,Hans Plaza, Ambedkar Road, Ghaziabad-201001Ph.: 0120-2793713 Mob.: 9810139498,E-mail : [email protected] BRANCH

Chairman: Shri S.S. Dash, E-704,705, Krishna Vihar, AvasVikas Colony, Kalyanpur, Kanpur, (Nr. KailashSaraswati Inter College, SBI & KESCO)Phone : 0512-2575700 Mobile : 9415133192,E-mail : [email protected]

Secretary: Shri A.S. Parihar, 117/Q198, “A” Sharda Nagar,Kanpur-208 025, Ph.: 0512-3246933 Mob.:9415478258,E-mail : [email protected] BRANCH

Chairman: Shri Khazan Chandra, 2/ 112, Viramkhand,Gomti Nagar, Lucknow-226 010, Ph.: 0522- (R)4064068, (O) 6451125, Mob.: 9415004395,E-mail : [email protected]

Secretary: Shri A.N. Dubey, 58, Patel Nagar, Phase-III, IndiraNagar, Sector-9, Lucknow-226 017, Mob.:9335738391, E-mail : [email protected]

UTTARAKHANDDEHRADUN BRANCH

Chairman: Shri A.K. Rai, ‘Aangan’, 17, Adarsh Nagar, ChakrataRoad, Dehradun-248 001, Ph.: 0135-2625640,Mob.: 9897328188, E-mail : [email protected]

Secretary: Shri Arvind Kaneri, 01, Haripuram, GMS Road,Dehradun-248001, Mob.: 9927020903, E-mail :[email protected]

WEST BENGALKOLKATA BRANCH

Chairman: Dr. Goutam Sengupta, HB-296, Flat No. 7, Sec-tor-III, Salt Lake City, Kolkata - 700106, Ph.: (O)033-23674615, Fax : 23672875, Mob.: 9831036663,E-mail : [email protected]

Secretary: Smt. Banashree Sarkar, “Anindita” 1297,Madurdaha, Hossainpur, Kolkata-700 107.Mob.: 9831137420 E-mail :[email protected]

institution of valuers indian valuer / june, 2016 shri sandip kumar deb, chairman of academic...

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