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Mortgage and SARFAESI valuation for banks, NBFCs and ARCs
Mortgage valuation and the fresh valuation required before a reserve price is fixed for sale under the SARFAESI Act. Reports distinguish fair market value, distress sale value and white-money realizable value.
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Credit officer’s checklist
What does a credit officer check, and where?
| You check | What we say | Where to verify |
|---|---|---|
| Registered valuer, asset class | IBBI IBBI/RV/02/2019/11959, Land & Building | IBBI register |
| Valuers’ organisation | IOV Registered Valuers Foundation | IBBI list of registered valuer organisations |
| Professional body | MRICS, Royal Institution of Chartered Surveyors | RICS Find a Member |
| Panel experience | 18 institutions listed by Er. Singh | Empanelment list |
| Method and basis of value | Fair market value, distress sale value and white-money realizable value, stated separately | How we value |
| Turnaround | Inspection within 48 hours of instruction in Delhi NCR; report generally 2 working days after; expedited for auction deadlines | Fees and turnaround |
| Published work on the subject | Journal articles on SARFAESI sales, realizable value and mortgage valuation | Writing |
Each bank applies its own empanelment criteria. Ask your valuation desk what it requires and we will respond to each point.
Documents for an NPA assignment
Which documents come with an NPA instruction?
- Possession notice (Section 13(4), SARFAESI Act)
- Original title deed or mortgage deed
- Encumbrances and liabilities on the property
- Latest property tax or utility bills
- Any prior valuation reports
Process
What happens, in order?
- The bank or creditor shares the property details and the valuation basis required
- Physical inspection with photographic evidence of the secured asset
- Assessment of fair market, distress and realizable value
- Certified report issued
Published work
What has Er. Singh published on these questions?
- Information Asymmetry and Sale of Assets under SARFAESI Act to Recover the Dues in NPA — Buyers Are Only Willing to Pay an Average Price
- Impact of Black Money on Valuation for Mortgage
- Valuation of Assets under SARFAESI Act
- The Role of Valuers in Balancing Bank Interests and Independent Judgement
- Unveiling Realizable Value: A Paradigm Shift in Banking Practices
Questions
Questions from lenders
What is distress sale value?
The value realizable under forced-sale conditions.
More detail
Er. Singh’s published papers explain why it sits below open-market value (time pressure, a restricted buyer pool, publicity costs).
Has Er. Singh written on SARFAESI valuation?
Yes.
More detail
His SARFAESI-related articles in the IOV RVF and ICAI RVO journals are on the Writing page.
Ready when you are
Tell us the property.
Three taps, then a message to Er. Singh with the details. He confirms the scope, the documents and the fee. Typically responds within 2 hours on WhatsApp.
Or reach Er. Singh directlyCall +91-98110-35491WhatsAppEmailContact form