The Insolvency and Bankruptcy Board of India cancelled the registration of a registered valuer in the asset class of Securities or Financial Assets after finding that the mandatory eligibility conditions under the Companies (Registered Valuers and Valuation) Rules, 2017 were no longer satisfied. The action followed the valuer’s expulsion by his Registered Valuers Organisation for persistent non-compliances, including failure to pay membership fees, submit required returns, and meet continuing professional education obligations. Since membership of a Registered Valuers Organisation is a continuing statutory requirement, the expulsion rendered him ineligible to act as a registered valuer. The authority noted that the valuer did not respond to the show cause notice and, during the personal hearing, expressly stated that he did not wish to continue as a registered valuer, which was later confirmed in writing. In view of these facts, the authority exercised its powers to cancel the registration with immediate effect and disposed of the show cause notice.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
[Authority delegated by the Central Government vide notification no. GSR 1316(E) dated 18.10.2017 under section 458 of the Companies Act, 2013 read with rule 2(1)(b) of the Companies (Registered Valuers and Valuation) Rules, 2017]
IBBI/Valuation/Disc./34/2026 | Dated: 21 January 2026
ORDER
This Order disposes the Show Cause Notice (SCN) No. RV-13011/1/2023-IBBI/416/1795, dated 28th November 2025 issued to Mr. S V Nagaraj (RV) under rule 17 read with rule 3 and rule 7 of the Companies (Registered Valuers and Valuation) Rules, 2017 (Valuation Rules). Mr. S V Nagaraj is registered with IBBI as a valuer of Securities or Financial Assets (SFA) with the registration number IBBI/RV/02/2019/11688.
1. Issuance of Show Cause Notice (SCN) and hearing before the Authority.
1.1 Rule 17(1) of the Valuation Rules provides that based on material available on record, if the authorised officer is of the prima facie opinion that sufficient cause exists to cancel or
suspend the registration of a valuer, it shall issue a show cause notice to the valuer.
1.2 The Board has taken on record the order dated 23.12.2024 of the Disciplinary Committee (DC) of the IOV Registered Valuers Foundation (IOV- RVF) against Mr. S V Nagaraj vide which the DC has expelled Mr. S V Nagaraj as a member of RVO on the ground that Mr. S V Nagaraj has violated Rule 11 and Rule 16 of Annexure III and Rule 12(2)(e) of Valuation Rules.
1.3 Upon consideration of the material available on record, SCN dated 28.11.2025 was issued under rule 17 of the Valuation Rules to Mr. S V Nagaraj for contravention of the provisions of the Rules and the Model Code of Conduct for Registered Valuers and sought for his written reply by 13.12.2025. However, Mr. S V Nagaraj did not respond to the SCN and the matter was referred to the Authority for disposal of the SCN. Mr. S V Nagaraj availed the opportunity of personal hearing on 15.01.2026.
2. Examination of contraventions alleged in the SCN
The contravention alleged in the SCN, the response of Mr. S V Nagaraj and the findings of the Authority are summarised as follows:
2.1 Rule 3 of the Valuation Rules which deals with the requisite eligibility criteria for a registered valuer which provides as that:
“3. Eligibility for registered valuers. – (l) A person shall be eligible to be a registered valuer if he –
a. is a valuer member of a registered valuers organisation;
Further Rule 7 of the Valuation Rules which deals with the conditions of registration as a valuer
7. Conditions of Registration. -The registration granted under Rule 6 shall be subject to the conditions that the valuer shall –
a. at all times possess the eligibility and qualification and experience criteria as specified under Rule 3 and Rule 4;
b. at all times comply with the provisions of the Act, these Rules and the Byelaws or internal regulations, as the case may be, of the respective registered valuers organisation.”
2.2 In terms of Rule 7(a) of the Valuation Rules, the registration granted to Mr. S V Nagaraj is subject to the condition that Mr. S V Nagaraj shall at all times possess the eligibility and qualification and experience criteria as specified under Rule 3 and Rule 4. Further, in terms of Rule 15 of the Valuation Rules, the registration of a valuer may be cancelled or suspended by the Authority for violation of the provisions of the Valuation Rules.
2.3 In view of the above provisions and keeping in view of Mr. S V Nagaraj’s expulsion by IOVRVF in which Mr. S V Nagaraj has been enrolled as a professional member, Mr. S V Nagaraj is ineligible to continue as a registered valuer.
Submission of Mr. S V Nagaraj.
2.4 Mr. S. V. Nagaraj did not submit any reply to the SCN. During the personal hearing, he submitted that he does not wish to continue as a registered valuer. Subsequently, vide email dated 15.01.2026, he informed as follows:
“Further to the meeting held on Teams, I would like to inform you that I do not wish to continue as a registered valuer.”
Findings of this Authority.
2.5 In terms of Rule 3 of the Valuation Rules, 2017, a person is eligible to act as a registered valuer only if he is a valuer member of a registered valuers organisation. Further, Rule 7 of the Valuation Rules mandates that a registered valuer shall, at all times, continue to possess the eligibility criteria prescribed under the Rules and shall comply with the provisions of the Act, the Valuation Rules, and the bye-laws of the concerned registered valuers organisation.
2.6 This Authority notes that in the present case, Mr. S V Nagaraj failed to comply with the bye-laws and regulatory framework of IOV Registered Valuers Foundation (IOV-RVF), including non-payment of membership fees, non-submission of prescribed returns, and non-compliance with continuing professional education requirements. Owing to these persistent non-compliances, Mr. S V Nagaraj was expelled from IOV-RVF by Disciplinary Committee of IOV-RVF order dated 23.12.2024. Consequently, Mr. S V Nagaraj ceased to be a valuer member of a registered valuers organisation and thereafter does not possess the eligibility conditions under Rule 3 read with Rule 7 of the Valuation Rules.
2.7 This Authority further notes that, during the personal hearing, Mr. S V Nagaraj himself stated that he did not wish to continue as a registered valuer, which was subsequently confirmed by Mr. S V Nagaraj vide email dated 15.01.2026.
3. Order.
3.1. In view of the above, the Authority, in exercise of powers conferred vide notification of Central Government no. GSR 1316(E) dated 18.10.2017 under Section 458 of the Companies Act, 2013 and in pursuance of rule 15 and rule 17 of the Companies (Registered Valuers and Valuation) Rules, 2017, hereby cancels the registration of Mr. S V Nagaraj as Registered Valuer in the asset class – Securities or Financial Assets having Registration No. IBBI/RV/02/2019/11688.
3.2. Since, IOV-RVF DC vide order dated 23.12.2024 had already expelled Mr. S V Nagaraj as its member, making him ineligible to practice as a registered valuer from such date. Also, as observed earlier, Mr. S V Nagaraj has expressed his unwillingness to continue as a registered valuer. In view thereof, this order shall come into force with immediate effect.
3.3. A copy of this order shall be forwarded to IOV Registered Valuers Foundation where Mr. S V Nagaraj is enrolled as a member.
3.4. Accordingly, the show cause notice is disposed of.
Sd/-
(Sandip Garg)
Whole Time Member
Insolvency and Bankruptcy Board of India
Dated: 21.01.2026
Place: New Delh
