Insolvency and Bankruptcy Board of India
7th Floor, Mayur Bhawan, Connaught Place, New Delhi-110001
Dated: 13th August, 2019
All Registered Insolvency Professionals
All Recognised Insolvency Professional Entities
All Registered Insolvency Professional Agencies
All Registered Valuers, and
All Recognised Registered Valuer Organisations.
(By mail to registered email addresses and on website of the IBBI)
Dear Madam /Sir,
Subject: Valuation under the Insolvency and Bankruptcy Code, 2016: Appointment of Registered Valuer.
Para 6 of the Circular No. IBBI/RV/019/2018 dated 17th October, 2018 stipulates as under:
“6. …….. every valuation required under the Code or any of the regulations made thereunder is required to be conducted by a ‘registered valuer’, that is, a valuer registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017. It is hereby directed that with effect from 1st February, 2019, no insolvency professional shall appoint a person other than a registered valuer to conduct any valuation under the Code or any of the regulations made thereunder.”
2. It is reiterated that-
(i) appointment of any person, other than a ‘registered valuer’, that is, a valuer registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017, on or after 1stFebruary, 2019, to conduct any valuation required under the Insolvency and Bankruptcy Code, 2016, or any regulations made thereunder, including the Insolvency and Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016, and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, is illegal and amounts to violation of the Circular aforesaid; and
(ii) payment, whether as fee or otherwise, to any person, other than a ‘registered valuer’ for any valuation referred to in paragraph (i), shall not form part of the insolvency resolution process costs or liquidation cost.
3. This is issued in exercise of the powers under clauses (aa), (g) and (p) of sub-section (1) of section 196 of the Insolvency and Bankruptcy Code, 2016.
Deputy General Manager