standard request for proposals empanelment of valuers · proceeding under the income tax act 1961,...
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STANDARD PROCUREMENT DOCUMENTS
Standard Request for Proposals
Empanelment of Valuers
22nd March 2019
Credit Operations and Risk Monitoring
Important Dates:
Date of commencement of RFP 22nd March 2019
Pre-Bid Meeting 3rd April 2019 Time: 11;30 hrs
Last Date and Time of Receipts of Technical
Proposals
19th April 2019 Time: 15:00 hrs
Date & Time of Opening of Technical
Proposals 19 t h April 2019 Time: 15:30 hrs
Place of Downloading, Submission and
Opening of Technical Proposals https://nsdc.eproc.in/
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INSTRUCTION TO BIDDERS
A. General Provisions
1. Introduction
1.1. National Skill Development Corporation (NSDC), the client, invites proposals to
empanel a set of Valuers for valuation of properties of Training Partners (TP)
(hereinafter called “Services”).
1.2. The valuer should familiarize themselves with the local conditions and take them into
account in preparing their Proposals. 2. Conflict of Interest
2.1. The valuer is required to provide professional, objective, and impartial advice, at all
times holding the Client’s interests paramount, strictly avoiding conflicts with other
assignments or its own corporate interests, and acting without any consideration for
future work. Valuers or any of their affiliates shall not be engaged for any assignment
which, by its nature, may conflict with another assignment of the valuer.
3. Eligibility Criteria:
The valuer should be an individual meeting following requirements:
3.1. Educational qualification and previous work experience
It is necessary that the Valuer possesses proper educational qualifications, which
make him competent to carry out the task of valuation of immoveable property. In
addition, relevant work experience is also important. Persons possessing the
following educational qualifications and work experience are indicative criteria that
should be followed for empanelment as Valuers for immovable properties (land and
building).
S.no Educational
Qualification
Work
Experience Remarks
1.
Bachelor’s degree in
Civil Engineering /
Architecture / Town
Planning or equivalent
5 years’ work
experience in the
field of valuation
after completion
of the degree or
equivalent
The Valuer must complete 6
months prescribed course in
Valuation within a period of 5
years from the date of his
empanelment. (For practicing
Valuers, who are above 60 years
of age, they must complete a 2
weeks prescribed course on
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S.no Educational
Qualification
Work
Experience Remarks
Valuation within a period of 3
years of their empanelment).
2.
Bachelor’s degree in
Civil Engineering /
Architecture / Town
Planning or equivalent
with pass in Valuation
Examination conducted
by the Institution of
Surveyors, India
(Valuation Branch)
2 years’ work
experience in the
field of valuation
after completing
the examination
-
3.
Master’s degree in
Valuation awarded by a
recognized University in
India
2 years’ work
experience in the
field of valuation
after completing
the examination
4.
Bachelor’s degree in
Civil Engineering /
Architecture / Town
Planning or equivalent
with pass in
Examinations conducted
by the Royal Institute of
Chartered Surveyors
(RICS) OR American
Society of Appraisers
(ASA) OR Appraisal
Institute (AI), US
Since, the process of procurement
of membership with these
organizations includes training as
an integral component, no further
experience/training requirement
is being prescribed.
Note:
Diploma Holders in Civil Engineering / Architecture or equivalent with 8 years of
experience are also eligible for empanelment and shall be permitted to undertake
valuations with value up to Rs.50 lakhs only.
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Valuers need to furnish proof of experience. In case of companies undertaking
valuations, the qualifications and experience shall apply to the lead Valuer in the
company.
3.2. Minimum Age Requirement
Age is an important criteria while empanelling Valuers. The minimum age for
empanelment shall be 25 years and there is no maximum age limit for a Valuer to
remain on the panel.
3.3. Membership of Professional Bodies
It is important that a Valuer actively participates in professional activities in various
professional bodies. It shall be necessary that every empanelled Valuer be a member of
any one of the undermentioned associations namely;
1. Institution of Valuers (IOV )
2. Institution of Surveyors ( Valuation Branch ) ( IOS )
3. Institution of Government Approved Valuers ( IGAV )
4. Practicing Valuers Association of India ( PVAI )
5. Centre for Valuation Studies, Research and Training ( CVSRT )
6. Royal Institute of Chartered Surveyors, India Chapter ( RICS )
3.4. Categories of Valuers
The objective of categorization of Valuers is to ensure that higher value assignments
are handled by experienced Valuers. The empanelment of Valuers therefore shall be in
the following categories:
S.no Category
of Valuer
Work Experience in
Undertaking Valuations
Value of property for
assignment of valuation
work
1 A More than 10 years No limit
2 B More than 5 years and less than
10 years Upto Rs.25 crores
3 C Upto 5 years Upto Rs. 1 crore
3.5. Registration with Government
It may be noted that for undertaking valuations the valuer has to be registered Valuer
with Insolvency and Bankruptcy Board of India (IBBI) under the Companies
(Registered Valuer and Valuation) Rules 2017.
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3.6. References
Prior to empanelment of any Valuer, proper reference check is mandatorily required
for checking the Valuer’s credentials and competency. Valuers are required to submit
reference letters and necessary evidence in support of being empaneled with at least 3
Scheduled commercial banks preferably public sector banks or leading private sector
banks.
3.7. Other conditions
In addition to the above, the other conditions to be fulfilled by the Valuers for
empanelment are as under:
1. the Valuer should be an Indian citizen;
2. the Valuer has not been removed / dismissed from service (previous
employment) earlier;
3. the Valuer has not been convicted of any offence and sentenced to a term of
imprisonment;
4. the Valuer has not been found guilty of misconduct in professional capacity;
5. the Valuer is not an undischarged insolvent;
6. the Valuer has not been convicted of an offence connected with any
proceeding under the Income Tax Act 1961, Wealth Tax Act 1957 or Gift
Tax Act 1958; and
7. the Valuer possesses a PAN Card number / GST number, as applicable.
At the time of empanelment, Valuer shall give an undertaking to this effect as per Annexure
2.
4. Duration of Empanelment
The duration of empanelment of Valuers for immovable properties shall be for a period of
five years. However, the quality of service provided and the performance of the Valuers
shall be reviewed annually. An annual performance review shall be carried out in this
regard and in case the performance is unsatisfactory, the Valuer can be disempanelled at
NSDC’s discretion.
B. Preparation of Proposals
5. General Considerations: In preparing the Proposal, the Valuer is expected to examine
the RFP in detail. Material deficiencies in providing the information requested in the RFP
may result in rejection of the Proposal.
6. Cost of Preparation of Proposal: The valuer shall bear all costs associated with the
preparation and submission of its Proposal, and the Client shall not be responsible or liable
for those costs, regardless of the conduct or outcome of the empanelment process. The
Client is not bound to accept any proposal and reserves the right to annul the empanelment
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process at any time prior to empanelment, without thereby incurring any liability to the
valuer.
7. Language: The Proposal, as well as all correspondence and documents relating to the
Proposal exchanged between the Valuer and the Client, shall be written in English.
8. Documents Comprising the Proposal: The Proposal shall comprise the documents and
forms listed in Annexure 1.
9. Only One Proposal: The valuer shall submit only one Proposal. If a valuer, submits or
participates in more than one proposal, all such proposals shall be disqualified and
rejected..
10. Proposal Validity: Valuer’s Proposal must remain valid upto 120 days after the Proposal
submission deadline. During this period, the valuer shall maintain its original Proposal
without any change, including their availability. If it is established that any valuer was not
available at the time of Proposal submission or was included in the Proposal without
his/her confirmation, such Proposal shall be disqualified and rejected for further
evaluation.
11. Extension of Validity Period: The Client will make its best effort to complete the
negotiations within the proposal’s validity period. However, should the need arise, the
Client may request, in writing, all valuers who submitted Proposals prior to the submission
deadline to extend the Proposals’ validity.
a. If the valuer agrees to extend the validity of its Proposal, it shall be done without
any change in the original Proposal and with the confirmation of the availability
of the Key Experts.
b. The Valuer has the right to refuse to extend the validity of its Proposal in which
case such Proposal will not be further evaluated.
12. Sub-Contracting : The valuer shall not subcontract any part or the whole of the
Services.
a. A valuer is required to submit a Proposal Securing Declaration as per the
format provided in Annexure 3 of the RFP. A Proposal Securing Declaration
be executed:
b. if a Valuer withdraws its proposal during the period of proposal validity
specified by the Valuer in its proposal, or any extension thereto provided by
the Valuer; or
c. if the successful Valuer fails to accept empanelment.
d. The Client may, declare the Valuer ineligible to be awarded a
contract/PO/procurement by the Client for a period of time 3 months.
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13. Clarification and Amendment of RFP: The Valuer may request a clarification of
any part of the RFP during the period of one week before the Proposals’ submission
deadline. Any request for clarification must be sent in writing, by email, to the Client’s
email address: [email protected]. The Client may respond in writing, by
email, or will upload responses (including an explanation of the query but without
identifying its source) to all Valuers. Should the Client deem it necessary to amend the
RFP as a result of a clarification, it shall do so following the procedure described below:
a. At any time before the proposal submission deadline, the Client may amend the
RFP by issuing an amendment in writing or by standard electronic means. The
amendment shall be uploaded on NSDC website.
b. If the amendment is substantial, the Client may extend the proposal submission
deadline to give the shortlisted Valuers reasonable time to take an amendment
into account in their Proposals.
c. The Valuer may submit a modified Proposal or a modification to any part of it
at any time prior to the proposal submission deadline. No modifications to the
Proposal shall be accepted after the deadline.
14. Technical Proposal Format and Content: The Technical Proposal shall not include
any financial information. A Technical Proposal containing material financial
information shall be declared non-responsive. Only one CV shall be submitted for each
valuer. Failure to comply with this requirement will make the Proposal non-responsive.
C. Submission, Opening and Evaluation
15. Submission, Sealing, and Marking of Proposals: The Valuer shall submit a signed and
complete Proposal comprising the documents and forms in accordance with Clause 8
(Documents Comprising Proposal). The submission can be done on eprocurement portal
of NSDC as per process mentioned in Annexure 4.
16. An authorized representative of the Valuer shall sign the original submission letters in the
required format for Technical Proposal and shall initial all pages. The authorization shall
be in the form of a written power of attorney attached to the Technical Proposal.
17. Any modifications, revisions, interlineations, erasures, or overwriting shall be valid only
if they are signed or initialed by the person signing the Proposal.
18. Confidentiality: From the time the Proposals are opened to the time the Contract/letter of
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empanelment is awarded, the Valuer should not contact the Client on any matter related
to its Technical Proposal.
a. Information relating to the evaluation of Proposals and award recommendations
shall not be disclosed to the Valuers who submitted the Proposals or to any
other party not officially concerned with the process, until the empanelment.
b. Any attempt by Valuers or anyone on behalf of the Valuer to influence
improperly the Client in the evaluation of the Proposals or empanelment
decisions may result in the rejection of its Proposal.
c. Notwithstanding the above provisions, from the time of the Proposals’ opening
to the time of Empanelment award publication, if a Valuer wishes to contact the
Client on any matter related to the selection process, it should do so only in
writing.
19. Opening of Technical Proposals: The Client’s evaluation committee shall conduct
the opening of the Technical Proposals online as per the opening date, time stated in this
RFP.
20. Proposals Evaluation:
The Valuer is not permitted to alter or modify its Proposal in any way after the proposal
submission deadline. While evaluating the Proposals, the Client will conduct the
evaluation solely on the basis of the submitted Technical Proposals.
21. Evaluation of Technical Proposals: The Client’s evaluation committee shall evaluate the
Technical Proposals on the basis of their responsiveness to the RFP, applying the
eligibility criteria specified. Each responsive Proposal qualifying all aspects of eligibility
criteria will be considered for empanelment. A Proposal shall be rejected at this stage if it
does not respond to important aspects of the RFP or if it fails to achieve the minimum
eligibility criteria.
22. Firms will be empaneled as per format as described in this RFP, in accordance with NSDC
Procurement Guidelines. Firms that qualify the eligibility criteria empanelled by NSDC
for a period of five years. No Financial Proposals are required to be submitted along with
the technical proposals. All empanelled valuers will be requested to provide their
financials based on the requirements of the assignment as and when it arises. NSDC
intends to empanel a set of valuers and also reserves the rights for more technically
qualified valuers to empanel at later stage.
23. Terms of Engagement for Empanelment of Valuers
Empanelled Valuers shall be engaged by NSDC on following terms;
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1. Commencement of Work: The Valuer shall commence the valuation work after the letter of
appointment is issued to the Valuer by NSDC.
2. Time for undertaking the work: The time for completing the work shall be prescribed by the
concerned department of NSDC.
3. Duties of the Valuer: The Valuer shall perform his duties as prescribed in the Policy and in
accordance to IBA handbook on real estate valuation of properties.
4. Confidentiality and Non-Disclosure: The Valuer shall maintain confidentiality of the work
being undertaken and shall not disclose information to any other person, other than the person
who has issued the appointment letter to the Valuer.
5. The Valuer shall ensure that the employees of his organization also follow the policy of
confidentiality and non-disclosure.
6. NSDC shall procure from the TP and provide to the Valuer, copies of key documents such as
the sale letter/sale deed/water bill/electricity bill/particulars of the owner/rental
agreement/lease deed/plans of the building, as applicable, along with the Appointment Letter
to the Valuer. All other documents have to be procured by the Valuer.
7. The Valuer shall complete the assignment within the stipulated time period as agreed to in the
Appointment Letter.
8. In case the Valuer takes up the assignment but does not deliver the Valuation Report in a
reasonable amount of time even after three reminders, the concerned department in NSDC will
take necessary steps to recommend the case for adjudication by the Conflict Resolution
Committee and in the meanwhile, appoint another Valuer to undertake the assignment.
9. In case the Valuer takes up the assignment but is not in a position to deliver due to any genuine
reason, hardship or contingency, the Valuer shall inform the concerned department in NSDC
and some extension of time may be given to the Valuer to complete the assignment.
10. The Valuer shall not sub-contract the work to any other Valuer. The Valuer shall carry out the
work himself.
11. All communications between NSDC and the Valuer shall be in writing or over registered e-
mail ID(s) only.
24. Professional fee: The professional fees to be paid to the Valuer by NSDC shall be
negotiated with the Valuer depending on the nature of work involved and value of the
property. The fees shall be negotiated by taking into account the Valuer’s category type
and the IBA guidelines on the amount of fees to be paid to the Valuer. In case, the
Valuer is required to undertake the valuation in a city other than that in which the Valuer
normally resides, NSDC shall reimburse the outstation travel TA/DA charges as agreed
to between both the parties before the Valuer starts the assignment.
25. Allocation of Work:
The concerned department in NSDC shall maintain a Register of Valuation Work
Outsourcing. Whenever, any work is offered to any Valuer based on his/her
performance, if for any reason the Valuer does not take up the work, the same should
be recorded in the said Register and the work shall be allotted to another Valuer.
Validity of contract and all related details of the work so offered shall be updated in the
Register of Valuation Work Outsourcing. No services should be availed from such
Valuers, whose validity has already expired.
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Annexure -1
Form TECH-1
Technical Proposal Submission Form
{Location, Date}
To: [Name and address of Client]
Dear Sirs:
We, the undersigned, offer to provide the valuation services for [Insert title of
assignment] in accordance with your Request for Proposals dated [Insert Date] and our
Proposal. “We are hereby submitting our Proposal.
We hereby declare that:
(a) All the information and statements made in this Proposal are true and we accept that
any misinterpretation or misrepresentation contained in this Proposal may lead to our
disqualification by the Client and/or may be sanctioned by the client.
(b) Our Proposal shall be valid and remain binding upon us for the period of 120 days
after the last date of submission.
(c) We have no conflict of interest in accordance with ITB 2.
(d) We meet the eligibility requirements as stated in ITB 3, and we confirm our
understanding of our obligation to abide by the NSDC’s policy in regard to corrupt and
fraudulent practices as per Annexure 5.
(e) We, along with any of our sub-Valuers, subcontractors, suppliers, or service providers
for any part of the empanelment, are not subject to, and not controlled by any entity or
individual that is subject to, a temporary suspension or a debarment imposed by a central
government/ministry and or any state/s of India.
(f) In competing for (and, if the award is made to us, in executing) the Empanelment, we
undertake to observe the laws against fraud and corruption, including bribery, in force as per
Prevention of Corruption Act, 1988
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(g) Not Applicable
(h) Our Proposal is binding upon us and subject to any modifications.
We undertake, if our Proposal is accepted and the Contract is signed or letter of empanelment
issued, to initiate the Services related to the assignment no later than the date indicated in the
contract/letter.
We understand that the Client is not bound to accept any Proposal that the Client receives.
We remain,
Yours sincerely,
Authorized Signature {In full and initials}:
Name and Title of Signatory:
Name of Valuer:
Address:
Contact information (phone and e-mail):
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I. General Information
S.No. Particulars Details (enclose supporting documents, wherever
required)
1. Name of the
Applicant
2. Date of Birth
3. Address for
correspondence
4. Permanent Address
5. Telephone
Email ID
6. Income over the
past 3 years from
Valuation services
FY 2015-16 FY 2016-17 FY 2017-18
7. No. of valuation
assignments
undertaken with
PSBs, FIs and others
(mention
specifically for
whom)
8. Membership with
professional
associations
9. Categories of
Valuers S.no
Category
of
Valuer
Work Experience in
Undertaking
Valuations
Value of
property for
assignment of
valuation work
1 A More than 10 years No limit
2 B More than 5 years and
less than 10 years
Upto Rs.25
crores
3 C Upto 5 years Upto Rs. 1 crore
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S.No. Particulars Details (enclose supporting documents, wherever
required)
10. Registration with
various Govt
authorities for
valuation
11. List of Financial
Institutions/ Banks
with which the
Applicant is already
empanelled
Name of the
Bank/ FI
Date of
Empanelment
Letter
Period of
Empanelment
12. References
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CURRICULUM VITAE (CV)
Position Title and No.
Name of valueer:
Date of Birth: {day/month/year} Education: {List college/university or other specialized education, giving names of
educational institutions, dates attended, degree(s)/diploma(s) obtained}
________________________________________________________________________
________________________________________________________________________
Employment record relevant to the assignment: {Starting with present position, list in
reverse order. Please provide dates, name of employing organization, titles of positions held,
types of activities performed and location of the assignment, and contact information of
previous clients and employing organization(s) who can be contacted for references. Past
employment that is not relevant to the assignment does not need to be included.} Period Employing organization and
your title/position. Contact
info for references
Summary of
activities
performed relevant
to the Assignment
[e.g., May
2005-
present]
Membership in Professional Associations and Publications: ______________________________________________________________________ Language Skills (indicate only languages in which you can work): ______________
______________________________________________________________________
Adequacy for the Assignment:
Detailed Tasks Assigned on Valuer
Reference to Prior Work/Assignments
that Best Illustrates Capability to Handle
the Assigned Tasks
{List all deliverables/tasks in which the
Valuer will be involved)
Valuer’s contact information: (e-mail …………………., phone……………)
Certification:
I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly
describes myself, my qualifications, and my experience, and I am available, as and when
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necessary, to undertake the assignment in case of an award. I understand that any
misstatement or misrepresentation described herein may lead to my disqualification or
dismissal by the Client. {day/month/year}
Name of Valuer Signature Date
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Annexure 2
Format of undertaking to be submitted by the Valuer for Empanelment
UNDERTAKING
I, _____________________________son/ daughter
of________________________do hereby solemnly affirm and state that:
• I am a citizen of India,
• I have not been removed / dismissed from service/ employment earlier,
• I have not been convicted of any offence and sentenced to a term of
imprisonment,
• I have not been found guilty of misconduct in professional capacity,
• I am not an undischarged insolvent,
• I have not been convicted of an offence connected with any proceeding
under the Income Tax Act 1961, Wealth Tax Act 1957 or Gift Tax Act
1958; and
• My PAN Card number / Service Tax number as applicable
is________________
Dated:
Signature
Name
Address
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Annexure -3
Form of Proposal-Securing Declaration
Date: [date (as day, month and year)]
To: [complete name of Client]
I, the undersigned, declare that:
I understand that, according to your conditions, proposals must be supported by a
Proposal- Securing Declaration.
We accept that we will automatically be suspended from being eligible for participating in
any procurement with the client for the period of time of three months starting on [date
of Opening of Proposals], if we are in breach of our obligation(s) under the RFP
conditions, because we:
(a) have withdrawn our Proposal during the period of Proposal validity specified in
the Form Tech - 1; or
(b) having been notified of the acceptance of our proposal by the client during the
period of proposal validity, (i) fail or refuse to sign the Contract/or accept
conditions of empanelment; in accordance with the ITB.
We understand this Proposal Securing Declaration shall expire if we are not the
successful bidder, upon the earlier of (i) our receipt of your notification to us of the
name of the successful Bidder; or (ii) twenty-eight days after the expiration of our
proposal.
Name of the valuer *
Signature of the person named above
Date
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Annexure 4
DEFINITIONS:
a. C1 India Private Limited: Service provider to provide the e-Tendering Software and
facilitate the process of e-tendering on Application Service Provider (ASP) model.
b. NSDC e-Procurement Portal: An e-tendering portal of National Skill Development
Corporation (“NSDC”) introduced for the process of e-tendering which can be accessed on
https://nsdc.eproc.in.
Pre-requisites:
(i) It is mandatory for all the bidders to have Class-III Digital Signature Certificate (With
Both DSC Components, i.e. Signing & Encryption) from any of the licensed
Certifying Agency under CCA, Ministry of Electronics and Information Technology,
Government of India to participate in e-tendering portal of NSDC. Bidders can see the
list of licensed CA’s from the link www.cca.gov.in
C1 India Pvt. Ltd. also facilitate Class III Digital Signature Certificate (With Both
DSC Components, i.e. Signing & Encryption) to the bidders. Bidder may contact C1
India Pvt. Ltd. at mobile no. +91-7291981138 for DSC related queries or can email at
(ii) To participate in the online bidding, it is mandatory for the Applicants to get
themselves registered with the NSDC e-Tendering Portal (https://nsdc.eproc.in)
(iii) System Requirement/ Registration Manuals/ Bid Submission Manuals are available at
the NSDC eTendering Portal (https://nsdc.eproc.in)
(iv) For helpdesk please contact Help Desk Nos. +91-124-4302033 / 36 / 37
(v) Participant are requested to email their issues to helpdesk at
[email protected] This will help serving the participant better
(vi) The amendments/ clarifications to the tender, if any, will be posted on the NSDC
eTendering Portal (https://nsdc.eproc.in)
(vii) The Bidder may modify or withdraw their bid after submission prior to the Bid Due
Date. No Bid shall be modified or withdrawn by the Bidder after the Bid Due Date
and Time.
(viii) It is highly recommended that the bidders should not to wait till the last date of bid
submission to avoid complications like internet connectivity issue, network problems,
system crash down, power failure, browser compatibility issue, system compatibility
issue, improper digital signature certificate problem etc. In view of this context,
neither M/s National Skill Development Corporation nor M/s. C1 India Pvt. Ltd will
be responsible for such eventualities.
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Annexure 5
It should be kept in mind that all actions towards award of Contract/empanelment and its
implementation on the ground have to be fair, consistent, transparent and based on highest
standard of ethics. Similarly, bidders/suppliers/contractors/Valuers associated in the
procurement of Goods, Works & Consultancy, are expected to observe the highest standard of
ethics during procurement and execution of contracts. In pursuance to above:
a. Proposal for award may be rejected, if it determines that the bidder, recommended
for award, and/or its employees, sub-contractors, sub-Valuer, sub- vendors, agents
have engaged in corrupt or fraudulent practices in competing for the
Contract/empanelment in question;
b. Portion of the funds allocated to a contract may be cancelled, in full or in part, if
it is determined that corrupt or fraudulent practices were engaged by
contractor/Valuer and/or its employees, subcontractors/sub-Valuers, sub-vendors,
agents for getting the Contract or during the execution of a Contract;
c. A firm may be declared as ineligible, either indefinitely or for a stated period of
time, to be awarded a Contract, if it, at any time, determines that the firm has been
engaged in corrupt or fraudulent practices in competing for or in executing the
Contract. For the purpose of above provision, the terms, "Corrupt Practice" and
"Fraudulent Practice", mean following:
"corrupt practice" means offering, giving, receiving, or soliciting anything of value to
influence the action of NSDC’s official(s) in the procurement process or in the contract
execution; and
"fraudulent practice" means a misrepresentation of facts in order to influence a procurement
process or the execution of a contract and includes collusive practices among bidders (prior to
or after bid submission) designed to establish bid/proposal prices at artificial, non- competitive
levels.
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Terms of Reference
Policy on Valuation of Properties
2017-18
Contents
1. Introduction ................................................................................................................................. 21
2. Review of policy ........................................................................................................................... 22
3. Definitions .................................................................................................................................... 22
4. Objectives of the policy ................................................................................................................ 22
5. Coverage of the policy ................................................................................................................. 23
6. General Policy guidelines ............................................................................................................. 23
7. Frequency of re-valuation ............................................................................................................ 25
8. Appointment of Valuers ............................................................................................................... 26
8.1. Criteria for empanelment of Valuers ................................................................................... 26
8.2. Duration of Empanelment ..................................................................................................... 5
8.3. Conflict resolution and Removal .......................................................................................... 29
8.4. Re-empanelment ................................................................................................................. 55
8.5. Professional fee .................................................................................................................... 29
8.6. Compliance of Standards and Procedures ........................................................................... 29
8.7. Independence and Objectivity ............................................................................................. 30
8.8. Obligations of NSDC ............................................................................................................. 30
8.9. Approving Authority for Empanelment of Valuers .............................................................. 30
8.10. Procedure for Call for Applications for Empanelment ............................................... 30
8.11. Procedure for Selection of Valuers .................................................................................. 30
8.12. Procedure for Annual Review .......................................................................................... 30
8.13. Other Procedures to be followed for empanelment of Valuers ...................................... 30
8.14. Procedure for Allotting Work to Empaneled Valuers ...................................................... 31
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8.15. Norms for Approved Valuers ........................................................................................... 31
8.16. Submission of valuation report by the approved Valuer ................................................. 31
9. Conclusion ................................................................................................................................ 31
10. Appendix .................................................................................................................................. 32
10.1. Annexure 1: Factors determining market value of the immovable properties ................ 32
10.2. Annexure 2: Terms of Engagement for Empanelment of Valuers .................................... 34
10.3. Annexure 3; Format of undertaking to be submitted by the Valuer for Empanelment ... 16
10.4. Annexure 4: Valuation Report Format of Land & Building. .............................................. 36
Policy Document on Valuation of Properties include guidance note on primary or collateral security
accepted by NSDC for their exposures on loans to Training Partners, ‘TPs’; and empanelment of
Valuers.
1. Introduction NSDC’s funding guidelines stipulates various conditions and parameters that determine a firm’s
eligibility for availing financial assistance from NSDC. These guidelines also set forth mandatory
security 1 requirements, whether primary or collateral security, as cover for NSDC’s loan exposure
to TPs. A major portion of these securities are in the form of movable or immovable properties.
The securities may be broadly classified as:
1. Land and Buildings
2. Plant and machinery, movable as well as embedded in ground
3. Furniture and Fixtures
In case a loan becomes impaired, a realistic valuation of the securities is necessary to arrive at the
correct security coverage ratio to safeguard NSDC’s interest. The value of the above properties
depends on lot of factors, combination of which will determine its fair valuation, therefore, it’s
imperative to appoint a Valuer with necessary expertise in field of valuation for arriving at proper
valuation of the security.
In this context, there is a need for putting in place system and procedure for realistic valuation of
securities charged to NSDC and also for empanelment of Valuers for the purpose. The policy
document on valuation of securities provides necessary framework guidance for this purpose.
1 NSDC Funding guidelines 2016
22
2. Review of policy The valuation policy will be reviewed annually or in case of any policy change guidance or
directives from government, regulator, statutory bodies, NSDC management or changing market
dynamics that necessitate revision, amendment or modification in the existing policy. All such
changes, revisions, modifications, amendments etc. in the valuation policy are to be duly
authorized by NSDC MD & CEO.
3. Definitions The definitions of certain terminologies used in the policy document are as follows:
1. Property - property means
I. Immovable property
II. Movable property
III. Receivables, whether existing or future
IV. Intangible assets such as know-how, patents, copyright, trademark, license,
franchise or any other business and commercial rights of similar nature.
V. Shares of Company
2. Fixed Assets - An asset held with intention of being used for the purpose of producing or
providing goods or services and not held for sale in the normal course of business.
3. Fair Market Value - is the price that would be agreed to in an open and unrestricted
market between knowledgeable and willing parties dealing at arm's length, who are fully
informed and are not under any compulsion to transact.
The term ‘Fair Market Value’ as used herein, may also be defined as being the amount, in
terms of money, at which the property would be exchanged in the current real estate
market allowing a reasonable time to find a purchaser, as between a willing buyer and a
willing seller, both having reasonable knowledge of all relevant facts and with equity to
both.
The terms of sale, whether favorable or unfavorable, would be the price of the property
if it was offered for sale in the open market. It is further assumed that title to the properly
is good and marketable, and that it would be transferable without unreasonable
restrictions.
4. Forced Sale Value- is the price at which the security can be sold in an auction.
5. Gross Book Value of a Fixed Asset - is its historical cost or other amount substituted for historical cost in the books of account or financial statements. When the amount is shown net of accumulated depreciation is termed as net book value.
4. Objectives of the policy The broad objectives of this policy are as follows:
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1. To ensure that competent, qualified, independent and professional Valuers, value the
properties that are acquired or mortgaged or to be acquired or mortgaged to NSDC.
2. To maintain the quality of the assets at reasonably high level by properly valuing these
assets.
3. To ensure fairly high quality of assets so that the requirement of fairly accurate provision
is ascertained and actual provision is kept to minimum.
4. Proper and timely valuation of properties to ensure that NSDC is in a position to take
timely cover for the exposure in event of erosion or deterioration in asset quality or value
of the property.
5. To expand NSDC’s business on principles of sound lending and prudential norms.
6. To streamline and stabilize the system and procedure for valuation of property,
appointment of Valuers and revaluation of assets.
7. To reflect the change in the fair value of Fixed Assets.
8. To determine the frequency of the valuation as over time, property value may decrease
or increase depending upon various market factors that impact movement of property
prices.
9. To identify the properties for revaluation.
10. To recognize the value of non-performing assets (NPAs).
11. Resumption of properties in cases of default.
5. Coverage of the policy The policy aims to cover the following aspects;
1. Valuation of properties (primary and collateral) accepted as security for NSDC’s exposure.
2. Systems and procedures, norms, terms and conditions, records, etc. for empanelment/
renewal of Approved Valuers for different classes of assets viz;
I. Immovable properties (land and building)
II. Plant and machinery
III. Others (Automobiles, Electronics, Information technology etc.)
6. General Policy guidelines 1. For advances secured by immovable properties, the value of the mortgaged property is very
critical to NSDC. When an immovable property is offered as collateral security for advance
made or to be made, it is crucial to get it valued by an approved NSDC Valuer. The valuation
must be conservative, realistic and give due importance to all the factors dealt with elsewhere
in this policy documents. Factors determining market value of the immovable properties are
as per Annexure 1.
2. The immovable property mortgaged as first charge to NSDC for any advance shall be revalued
at least once in three years and review of account shall be done based on the revaluation in
the event of any significant decline in the value. However, if the circumstances so warrant,
24
the revaluation may be done at any time within the three years period. Rotation among
empaneled Valuers shall be preferred for periodical revaluation.
3. Where the anticipated value of the property is below Rs. 10 Crores, the valuation of property
will be obtained from one empaneled Valuer.
4. Where the anticipated value of the property is Rs. 10 Crores and above, at least two valuation
reports will be obtained from the empaneled Valuers. If the variation in the two valuations is
not more than 10%, the lower value of the two will be considered. In case the variation is
more than 10%, a third Valuer will be engaged at cost of the borrower. Out of the three
valuations, the lowest valuation will be considered as the fair market value of the property.
5. For all loans above Rs 10 Crores, physical verification of assets shall be carried out by NSDC.
6. When the valuation of immovable properties is done by qualified Valuers, their report should
be cross checked by independent enquiries, so as to ensure that the realistic values are
reckoned. Independent enquires are based on estimation of value of property by:
I. In person visit to the site and inspection of the property.
II. Comparing the value of the property with recent sale of similar properties in the
neighborhood.
III. Enquiring with local property Valuers, real estate agents to have a fair idea of
prevailing property prices.
IV. Counterchecking the valuation of properties from available market sources, prevailing
circles rates, tax challans, etc.
7. The valuation should be done on the basis of current market price only and not on the
replacement value of the security to determine the value of actual security available.
8. For security coverage, value of property should be taken on distress value.
9. Undertaking from the Borrower should be obtained stating that it will not rent or lease out
the property charged to NSDC, without informing NSDC.
10. At the time of loan processing, the TP should provide a declaration about the tentative value of property and submit a copy of the complete chain of documents reflecting the title of the TP along with original of the same for verification. Further, a declaration should be obtained from TP to the effect that in case the valuation of property falls below a certain level that calls for additional security, the TP will provide alternate or additional security to cover the difference.
11. All property related documents including copy of the title deeds of the property should be shared by the TP with NSDC. NSDC will then share the said documents with the Valuer. Under no circumstances shall the TPs be allowed to handover the said documents directly to Valuer.
12. Any property charged with NSDC must be visited once in two years. Further, the valuation of
NPA accounts should be done annually through empaneled Valuers only.
13. The Approved Valuer should verify the legal opinion of the properties furnished by NSDC’s
legal counsel. It must be an integral part of the valuation report. The valuation report should
be accompanied by the photographs of the property along with demarcation of the property
with landmarks. The Valuer has to give his opinion on variation, if any, between the land area
physically available and land area mentioned in the legal opinion.
14. To cover all districts or majority thereof, NSDC may empanel multiple Valuers across different
locations for better coverage.
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15. NSDC will have the final authority to appoint the Valuers. In the appointment of Valuers the
TPs will have no say or consideration.
16. The payment of fees of the Valuers shall be made by NSDC directly. Such fees may be
recovered from TPs subsequently.
17. There should be proper recording of all securities charged to NSDC along with its latest
valuation. A register in hard or electronic form may be maintained to keep track of all changes.
The register should be under dual custody.
18. NSDC may refer latest IBA2 Handbook3 on real estate valuation of properties for determining
the process of valuation.
19. Valuation of Plant and Machinery
In case the TP has a substantial amount of plant and machinery as security and the book
value of the same appears to be inflated, NSDC shall get it valued by an empaneled Valuer.
The following guidelines shall be followed in such cases:
• Any acquisition of second hand plant and machinery should be valued by
empaneled Valuers only.
• For new or existing plant and machinery, valuation may be insisted upon by the
sanctioning authority, if required. The valuation report should contain:
i. Name of the manufacturer, year of manufacture and original invoice
value.
ii. Present working condition of the machinery and the utility value.
iii. Approximate replacement value of the machinery.
iv. Whether the technology involved is contemporary or obsolete.
v. Approximate residual life of machinery.
vi. Details like required manpower and power consumption, when
compared to similar machinery.
vii. Approximate scrap value under forced sale.
viii. Approximate replacement value for similar productivity.
7. Frequency of re-valuation The real estate sector is very dynamic and cyclical in nature. The sector is still informal and till
recently lack proper regulatory supervision. Among various factors that impact property prices,
the most critical are changes in Government regulations, guidelines, taxation, etc. In recent time
demonetization, GST (Goods and Services Tax), RERA (Real Estate Regulatory Agency) have
resulted in downward trend of property valuation in most parts of the country. In order to be
relevant and adequately cover the loan by NSDC, it is imperative to have regular appraisal of the
property carried out by empanelled Valuers. For all standard accounts, the valuation shall be
conducted once in three years. In case of accounts categorized as NPA, the valuation shall be
conducted each year.
2 Indian Bank’s Association 3 Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFIs in India 2010”
26
8. Appointment of Valuers NSDC should appoint external independent Valuers to ascertain the value of the property for
sanctioning of loan based on collateral value, undertake periodic revaluation of property to
determine price increase or decrease during the loan tenure, realize the value of non-
performing assets and for the purpose of resumption of properties in case of default.
8.1. Criteria for empanelment of Valuers
Prior to appointment of Valuers, NSDC should ensure that the Valuers are competent and
capable of providing high quality service. Following criteria need to be adhered for Valuer
empanelment:
8.1.1. Educational qualification and previous work experience It is necessary that the Valuer possesses proper educational qualifications, which make him
competent to carry out the task of valuation of immoveable property. In addition, relevant
work experience is also important. Persons possessing the following educational
qualifications and work experience are indicative criteria that should be followed for
empanelment as Valuers for immovable properties (land and building).
S.no Educational Qualification Work Experience Remarks
1.
Bachelor’s degree in Civil
Engineering / Architecture
/ Town Planning or
equivalent
5 years’ work
experience in the
field of valuation
after completion of
the degree or
equivalent
The Valuer must complete 6 months
prescribed course in Valuation
within a period of 5 years from the
date of his empanelment. (For
practicing Valuers, who are above
60 years of age, they must complete
a 2 weeks prescribed course on
Valuation within a period of 3 years
of their empanelment).
2.
Bachelor’s degree in Civil
Engineering / Architecture
/ Town Planning or
equivalent with pass in
Valuation Examination
conducted by the
Institution of Surveyors,
India (Valuation Branch)
2 years’ work
experience in the
field of valuation
after completing
the examination
-
3.
Master’s degree in
Valuation awarded by a
recognized University in
India
2 years’ work
experience in the
field of valuation
27
S.no Educational Qualification Work Experience Remarks
after completing
the examination
4.
Bachelor’s degree in Civil
Engineering / Architecture
/ Town Planning or
equivalent with pass in
Examinations conducted
by the Royal Institute of
Chartered Surveyors (RICS)
OR American Society of
Appraisers (ASA) OR
Appraisal Institute (AI), US
Since, the process of procurement
of membership with these
organizations includes training as an
integral component, no further
experience/training requirement is
being prescribed.
Note:
Diploma Holders in Civil Engineering / Architecture or equivalent with 8 years of experience are
also eligible for empanelment and shall be permitted to undertake valuations with value up to
Rs.50 lakhs only.
Valuers need to furnish proof of experience. In case of companies undertaking valuations, the
qualifications and experience shall apply to the lead Valuer in the company.
8.1.2. Minimum Age Requirement Age is an important criteria while empanelling Valuers. The minimum age for empanelment
shall be 25 years and there is no maximum age limit for a Valuer to remain on the panel.
8.1.3. Membership of Professional Bodies It is important that a Valuer actively participates in professional activities in various
professional bodies. It shall be necessary that every empanelled Valuer be a member of any
one of the undermentioned associations namely;
7. Institution of Valuers ( IOV )
8. Institution of Surveyors ( Valuation Branch ) ( IOS )
9. Institution of Government Approved Valuers ( IGAV )
10. Practicing Valuers Association of India ( PVAI )
11. Centre for Valuation Studies, Research and Training ( CVSRT )
12. Royal Institute of Chartered Surveyors, India Chapter ( RICS )
8.1.4. Categories of Valuers The objective of categorization of Valuers is to ensure that higher value assignments are
handled by experienced Valuers. The empanelment of Valuers therefore shall be in the
following categories:
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S.no Category
of Valuer
Work Experience in Undertaking
Valuations
Value of property for
assignment of valuation
work
1 A More than 10 years No limit
2 B More than 5 years and less than 10
years Upto Rs.25 crores
3 C Upto 5 years Upto Rs. 1 crore
8.1.5. Registration with Government It may be noted that for undertaking valuations the valuer has to be registered Valuer with
Insolvency and Bankruptcy Board of India (IBBI) under the Companies (Registered Valuer and
Valuation) Rules 2017.
8.1.6. References
Prior to empanelment of any Valuer, proper reference check is mandatorily required for
checking the Valuer’s credentials and competency. Valuers are required to submit reference
letters and necessary evidence in support of being empaneled with at least 3 Scheduled
commercial banks preferably public sector banks or leading private sector banks.
8.1.7. Other conditions In addition to the above, the other conditions to be fulfilled by the Valuers for empanelment
are as under:
8. the Valuer should be an Indian citizen;
9. the Valuer has not been removed / dismissed from service ( previous employment
) earlier;
10. the Valuer has not been convicted of any offence and sentenced to a term of
imprisonment;
11. the Valuer has not been found guilty of misconduct in professional capacity;
12. the Valuer is not an undischarged insolvent;
13. the Valuer has not been convicted of an offence connected with any proceeding
under the Income Tax Act 1961, Wealth Tax Act 1957 or Gift Tax Act 1958; and
14. the Valuer possesses a PAN Card number / GST number, as applicable.
At the time of empanelment, Valuer shall give an undertaking to this effect as per Annexure 3.
8.2. Duration of Empanelment
The duration of empanelment of Valuers for immovable properties shall be for a period of five
years. However, the quality of service provided and the performance of the Valuers shall be
reviewed annually. An annual performance review shall be carried out in this regard and in case
the performance is unsatisfactory, the Valuer can be disempanelled at NSDC’s discretion.
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8.3. Conflict resolution and Removal
For addressing all conflicts and arriving at an amicable resolution, a Valuation Conflict Resolution
Committee shall be formed, member of such committee to be decided by MD & CEO.
In cases where the Valuer has been found to be indulging in unfair practices, guilty of professional
misconduct or violating the code of ethics and professional practice, the following procedure shall
be followed:
I. Issue of show cause notice- the Valuer shall be given an opportunity to show as to why
action should not be initiated against him or her.
II. Hearing- the Valuer shall be given an opportunity of being heard, so that his/her point of
view is known.
III. Deliberation by the Committee - the matter shall be deliberated by the concerned
Conflict Resolution Committee.
In case, the Committee opines that the charges against the Valuer are proved, the Valuer shall be
removed from the panel and depending on the seriousness of the case, he may be empanelled
once again after a gap of 5 years from such removal. The Committee may also consider imposition
of suitable fines depending on the severity of the case against the Valuer.
Names of Valuers removed shall be reported to the Indian Banks’ Association which in turn shall
place the names on its caution list. In addition to this information may be shared with respective
association of the Valuer.
8.4. Re-empanelment
Any Valuer once removed from NSDC, the panel of any bank, housing finance institution or NBFCs could be re-empanelled again after a period of three years, based on the recommendations of the Annual Valuation Review Committee .
8.5. Professional fee
The professional fees to be paid to the Valuer by NSDC shall be negotiated prior to empanelment of the Valuer depending on the nature of work involved and value of the property. The fees shall be negotiated by taking into account the Valuer’s category type and the IBA guidelines on the amount of fees to be paid to the Valuer.
In case, the Valuer is required to undertake the valuation in a city other than that in which the Valuer normally resides, NSDC shall reimburse the outstation travel TA/DA charges as agreed to between both the parties before the Valuer starts the assignment.
The Valuation fee which has been paid by NSDC may subsequently be recovered from TP.
8.6. Compliance of Standards and Procedures
All empaneled Valuers shall comply and abide by the standards and procedures laid down in this
document.
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8.7. Independence and Objectivity
All empaneled Valuers shall act with independence, integrity and objectivity. They shall undertake
all valuation works with an independent mind and shall not come under any influence of anybody.
The empaneled Valuers shall not be related, directly or indirectly, to any of the personnel of NSDC
or the TP.
8.8. Obligations of NSDC
This document casts the following obligations on NSDC while appointing Valuers;
1. All appointments / empanelment of Valuers shall be done in accordance with the provisions
of this document and its amendments from time to time.
2. All instructions to the Valuer are to be given in writing.
3. Supportive documents, wherever possible, shall be provided to the Valuer before the
valuation work begins. Any other document will have to be procured by the Valuer and
sufficient time for the same shall be provided.
4. A minimum of 3 days and a maximum of 10 days’ time shall normally be given to the Valuer
to carry out the valuation. In case of outstation properties or in case of valuation of large
property, more time shall be given, depending on the circumstances on a case to case basis.
5. In case the valuation report submitted by the Valuer is not in order, concerned department
in NSDC shall bring the same to the notice of the Valuer within 15 days of submission for
rectification and resubmission.
8.9. Approving Authority for Empanelment of Valuers
A Committee to be formed for approving empanelment of Valuers, members of such committee
to be decided by MD & CEO.
8.10. Procedure for Call for Applications for Empanelment
As per prevailing NSDC guidelines.
8.11. Procedure for Selection of Valuers
As per prevailing NSDC guidelines.
8.12. Procedure for Annual Review
Whilst the duration of empanelment is for 5 years, the performance of the Valuers shall be reviewed on annual basis. In order to carry out the performance review, NSDC shall constitute a committee called Annual Valuation Review Committee, comprising of senior officers along with at least one independent knowledgeable person of repute. This committee shall review the performance of the Valuers and recommend continuity or removal, as the case may be.
8.13. Other Procedures to be followed for empanelment of Valuers
Whenever the Valuer, who has applied for empanelment is a proprietor, partner, associate,
director of any firm/company etc., the approval should be given in the name of
firm/company/associate only. In such cases, the Head/Main Partner(s) must be a qualified civil
engineer and should inspect the property and submit valuation report on behalf of the firm.
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8.14. Procedure for Allotting Work to Empaneled Valuers
The concerned department in NSDC shall maintain a Register of Valuation Work Outsourcing. Whenever, any work is offered to any Valuer based on his/her performance, if for any reason the Valuer does not take up the work, the same should be recorded in the said Register and the work shall be allotted to another Valuer. Validity of contract and all related details of the work so offered shall be updated in the Register of Valuation Work Outsourcing. No services should be availed from such Valuers, whose validity has already expired.
8.15. Norms for Approved Valuers
1. The approved Valuer should not be less than 25 years old at the time of empanelment. In case
of firm, which is a well-known and reputed one, the owner or the person running the firm
should not be less than 25 years old. Further, the engineers employed by such firm should
have worked with the firm for a minimum 5 years.
2. The minimum education qualification for empanelment of Valuers in different categories in
the approved panel of Valuers should be in accordance with NSDC’s prevailing guidelines. Any
other or lesser unrelated qualification shall not be considered.
3. The Valuer should neither be engaged in any construction/contract/land promotion/property
development activity, etc. either directly or indirectly nor should the Valuer be associated as
Partner/Proprietor/Director of any business entity involved in above mentioned line of
business.
4. The Valuer should not be convicted of any offence and sentenced to a term of imprisonment.
5. Among Valuers of equal educational qualification, the weightage is to be given to the Valuer
who has more years of experience.
8.16. Submission of valuation report by the approved Valuer
The approved Valuer should furnish the valuation report as per the NSDC prescribed format.
Valuers can additionally provide information relevant to valuation not captured in the format as
enclosures. However, no omission is allowed in the prescribed format.
9. Conclusion
NSDC’s policy document on valuation of properties is based on extent RBI/ Government
guidelines and IBA handbook on real estate valuation.
32
10. Appendix 10.1. Annexure 1: Factors determining market value of the immovable properties
Important factors to be taken into account by the Valuers for ascertaining the market value
of properties are as stated below:
1. In case of lands:
I. The points, if any, mentioned by the parties to the instrument or any other person
which requires special consideration.
II. The value of adjacent land or lands in the vicinity, comparison with recent sale of
similar properties in the neighborhood.
III. Location of land, nearness to road and market, level of land etc.
IV. The use of land (domestic, commercial, industrial etc.) and also the appreciation
in the land value.
V. Enquiry from parties having good knowledge of local land values
VI. Other factors that influence the valuation of land under consideration.
2. Sites - in case of house:
I. General value of house sites in the locality. II. Property location, nearness to market, shops and other amenities like hospital,
educational institutions, banks, post office, etc. III. Connectivity to main roads, railway station and bus routes, etc. IV. Development activities, industrial improvements in the vicinity. V. Land tax and valuation of sites with reference to taxation records of local
authorities concerned. VI. Any other feature having special bearing on the valuation of the site.
VII. Any special feature of the case represented by the parties.
VIII. Present utility of the land.
3. In case of buildings:
I. Any special feature of the case represented by the party.
II. Type of building, construction type and materials used, age of construction and
its condition
III. Locality of the building
IV. Plinth area,
V. Rate of depreciation
VI. Fluctuation in rates
VII. Any other feature that have a bearing on the value
VIII. Property tax that has reference to the taxation records of local authorities
concerned.
IX. Present utility of the building, purpose for which the building is constructed for
i.e. commercial or residential.
X. Status of property i.e. self-occupied/ lease hold /rent.
33
XI. Period of tenancy.
XII. For rented property, whether the rent /lease deed is registered with the
competent authority.
4. Properties other than lands, house sites and buildings:
I. The nature and condition of the property.
II. The purpose for which the property is used for.
III. Any other special feature having a bearing on the valuation of the property.
5. General:
I. Clear description of the properties (shop, residential, house, open site,
agricultural land, etc.)
II. Boundaries
III. Whether the land is free hold or leasehold.
IV. In case of leasehold, the terms of the lease; location; the valuation report should
contain the field map of the property, so that in future the location of the
property could be easily identified. Photograph of the property is to be attached
with the valuation report.
V. Age of building superstructure and present condition.
VI. Total area and built up area.
VII. Capitalized value, forced sale value, value of construction of the property.
VIII. Name of the occupant and if he is not the owner, the terms by which he has
possession of the property.
IX. Whether the land is or will be affected by land ceiling Act, land acquisition,
demolition, etc. and whether any notice form the Government is received or not
in this regard.
X. While giving the valuation of the property, the Valuer should specifically advise
the approach of the property and whether the property has direct access.
The above guidance is only illustrative and Valuer must take into account other relevant and
non-covered factors, if any, while determining the value of immovable property.
34
10.2. Annexure 2: Terms of Engagement for Empanelment of Valuers
Empanelled Valuers shall be engaged by NSDC on following terms;
12. Commencement of Work: the Valuer shall commence the valuation work after the letter of
appointment is issued to the Valuer by NSDC.
13. Time for undertaking the work: the time for completing the work shall be prescribed by the
concerned department of NSDC.
14. Duties of the Valuer: the Valuer shall perform his duties as prescribed in the Policy and in accordance
to IBA handbook on real estate valuation of properties.
15. Confidentiality and Non-Disclosure: the Valuer shall maintain confidentiality of the work being
undertaken and shall not disclose information to any other person, other than the person who has
issued the appointment letter to the Valuer.
16. The Valuer shall ensure that the employees of his organization also follow the policy of confidentiality
and non-disclosure.
17. NSDC shall procure from the TP and provide to the Valuer, copies of key documents such as the sale
letter/sale deed/water bill/electricity bill/particulars of the owner/rental agreement/lease
deed/plans of the building, as applicable, along with the Appointment Letter to the Valuer. All other
documents have to be procured by the Valuer.
18. The Valuer shall complete the assignment within the stipulated time period as agreed to in the
Appointment Letter.
19. In case the Valuer takes up the assignment but does not deliver the Valuation Report in a reasonable
amount of time even after three reminders, the concerned department in NSDC will take necessary
steps to recommend the case for adjudication by the Conflict Resolution Committee and in the
meanwhile, appoint another Valuer to undertake the assignment.
20. In case the Valuer takes up the assignment but is not in a position to deliver due to any genuine
reason, hardship or contingency, the Valuer shall inform the concerned department in NSDC and
some extension of time may be given to the Valuer to complete the assignment.
21. The Valuer shall not sub-contract the work to any other Valuer. The Valuer shall carry out the work
himself.
22. All communications between NSDC and the Valuer shall be in writing or over registered e-mail ID(s)
only.
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10.3. Annexure 3; Format of undertaking to be submitted by the Valuer for
Empanelment
UNDERTAKING
I, _____________________________son/ daughter of________________________do hereby
solemnly affirm and state that:
• I am a citizen of India,
• I have not been removed / dismissed from service/ employment earlier,
• I have not been convicted of any offence and sentenced to a term of imprisonment,
• I have not been found guilty of misconduct in professional capacity,
• I am not an undischarged insolvent,
• I have not been convicted of an offence connected with any proceeding under the Income Tax Act 1961, Wealth Tax Act 1957 or Gift Tax Act 1958; and
• My PAN Card number / Service Tax number as applicable is________________
Dated:
Signature
Name
Address
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10.4. Annexure 4: Valuation Report Format of Land & Building.
Reference No :
(I) BASIC INFORMATION
A. Borrower’s Name & Details. :
B. NSDC letter No. & date-requesting for
undertaking valuation.
:
C. Whether valuation was made at the request
of the borrower?
:
D. Name of NSDC official who accompanied the
Valuer. (if any)
:
E. Valuation: whether fresh / revaluation /
periodic valuation.
:
F. Date of earlier valuation, if any. :
G. Name of the previous Valuer, if any. :
H. Date of visit to the property. :
I. Date on which valuation is made. :
J. Person(s) in presence of whom valuation is made.
:
K List of documents produced for verification. :
L. Name of the borrower / borrower account with address, telephone nos. & nature of business.
:
At :
P.O. :
Via :
District. :
Phone no. :
M. Name / address / telephone no. of the owner/ owner(s) of the property.
:
At :
P.O :
P.S. :
Pin :
37
District. :
Phone No. :
II VALUATION OF LAND :
1. Details of property
a. Details of property offered as secured. :
b. Date of acquisition/ purchase of land. :
c. Value of the property as per regd. Sale deed :
d. Sale deed / title deed document no. :
e. Area of land (as per document/title deed) :
f. Area of land (as per ror) :
g. Area of land (as per physical measurement) :
h. Location of the property and postal address. :
1. Plot No. :
2. At :
3. P.O. :
4. P.S. :
5. Pin :
6. District. :
i Urban/semi urban/rural :
j. Whether the property is situated in
residential/ commercial/ mixed / industrial
area.
:
k Classification of locality- i.e. kind of people
staying (High / middle / poor class)
:
l. Type of property: :
i) Agricultural: In case it is an agricultural
land, any conversion to house site plots
is contemplated
:
ii) Industrial: If the property is industrial-
state for what type of activity/industry
the property is well suited
:
iii) Residential: (any restrictive clauses for
sale etc. to be furnished).
:
38
iv) Commercial :
v) Institutional :
vi) Others (specify) :
2.1 Title of the property- Free hold / Lease hold: :
a. Ownership of the property: :
b. In case of joint ownership, whether share is
undivided/divided. If undivided, share of
each owner:
:
c. Taxes paid up to: :
d. Land revenue: :
e. Land / Building Municipal Taxes: :
f. Wealth tax assessed / paid, if any: :
2.2 If lease hold: :
a. Name of the lessor: :
b. Name of the lessee: :
c. Nature of lease: :
d. Date of commencement of lease: :
e. Period of lease: :
f. Terms of renewal: :
g. Lease premium/ rent per annum: :
h. Un-expired period of lease: :
i. Initial premium: :
j. Ground rent payable per annum: :
k. Unearned increase payable to the lessor in the event of sale or transfer:
:
l. Whether lease agreement permits creation of mortgage:
:
2.3 Rents:
a. Names of tenants/ lessees / licensees, etc.: :
b. Portion in their occupation: :
c. Monthly or annual rent/ compensation/ license fee, etc. paid by each:
:
39
d. Gross amount receives for the whole property:
:
3. Brief description of the property: :
a. Address of the property in detail: :
b. Municipality ward no.: :
c. Street no.: :
d. Survey / plot no.: :
e. Khata no.: :
f. Mouza: :
g. Thana no.: :
h. Tehsil no.: :
i. Tehsil: :
j. SRO.: :
k. Police station (P.S): :
l. Village / town/city: :
m. District: :
n. State: :
o. i) Dimensions of the site as per document: :
a. East to west: :
b. North to south: :
ii) Dimensions of the site as per measurement:
:
a. East & west: :
b. North & south: :
iii) Extent of site: :
iv) Extent of site considered for valuation purpose:
:
p. 1. Boundaries (as per document): :
i East :
ii West :
iii North :
iv South :
40
p.1 2. Boundaries (as per verification): :
i East :
ii West :
iii North :
iv South :
(Sketch for location of the property enclosed)
:
4. Characteristics of the site: :
a. Level of land with topographical condition: :
b. A. Use to which it can be put: :
c. B. Is there any agreement of easements (encroachments)? If so, details:
:
d. Is there any restrictive covenant in regard to use of land? If so, attach a copy of the covenant?
:
e. C. Approval letter no. & date of development agencies/ municipality etc. authorizing construction:
:
f. D. Whether building use certificate from the development authorities/ municipality, etc. has been obtained:
:
g. E. Does the land fall in an area included in any town planning scheme or any development plan of government or any statutory body? If so, give particulars:
:
h. F. Corner or intermittent plot: :
i. G. Is a land locked land? : :
j. H. Means and proximity to surface communication by which the locality is served:
:
k. I. Road facilities: :
l. J. Road (kind of road and width): :
m. K. If the property is not within the city/ town/ municipal limit then state the distance of the property from the:
:
L. a. M. Municipal office: :
N. b. O. Municipal limits: :
41
n. P. Water potentialities: :
o. Q. Possibility of frequent flooding: :
p. R. Underground sewerage system availability :
q. S. Drainage systems available: :
r. T. Is power supply available in the site? :
s. U. Development of surrounding areas: :
t. V. Proximity to civic amenities: :
i School: :
ii College: :
iii Hospital: :
iv Market: :
v Bus stand: :
vi Railway station: :
vii Any other important place: :
4.1 Location advantages: :
Location disadvantages (details): :
5. 3. Other issues/points: :
a. A. Has the whole or part of the land been notified for acquisition by Government or any statutory body? If yes, give date of the notification:
:
b. B. Has any contribution been made towards development or is any demand for such contribution still outstanding?
:
c. C. Whether covered under any state/central govt. Enactments (e.g. urban land ceiling act) or notified under agency area/ scheduled area/ cantonment area:
:
d. D. Sales: :
i i. Give instance of sale of immovable property in the locality, if available, indicating the name and address of the property, registration no., sale price and area of the land sold:
:
42
ii ii. If sale instance is not available or not relied upon, please furnish the basis of arriving at the land rate:
:
iii iii. Land rate adopted in this valuation: :
6. 4. Valuation :
a. A. Previous valuation details: :
b. B. Present valuation details: :
Valuation of land :
Govt. Value :
Market value :
Distress sale value :
III Valuation of building :
1. Basic information of the building (land
details in part a) :
a. Type of building.: (residential / commercial
/industrial) :
b. Year of commencement of construction and
year of completion: :
c. 1. Type of construction- load bearing walls/ RCC frames/ steel frame:
:
d. 2. Estimated future life: :
e. What is the floor space index permissible and
percentage actually utilized? :
f. 3. Approval letter no. & date of development authority/ municipality/ local body authorizing construction of the building. Please attach a copy of the approval letter.
:
g. Whether the construction has been made as
per approved plan? If not, please list the
deviations made from the approved plan:
:
h. i. Built up area: :
ii. Carpet area: :
iii. Saleable area: :
i. Is the building owner- occupied / tenanted /
both? :
43
j. If the partly owner- occupied specify portion
and extent of area under owners’-occupation: :
k. Whether the property is under rent control Act:
:
l. Names of tenants / lessees / licenses, etc: :
m. Portions in their occupation: :
n. Monthly or annual rent/compensation /license fee, etc. Paid by each:
:
o. Gross amount received for the whole property:
:
p. Are any of the occupants related to, or close business associates of the owner?
:
q. Is separate amount being recovered for the
use of fixtures like fans, geysers, refrigerators,
cooking ranges built in wardrobes, etc, or for
service changes, if any, to be borne by the
owner:
:
r. Give details of water and electricity charges,
if any, to be borne by the owner:
:
s. Is any dispute between landlord and tenant
regarding rent pending in a court of law?
:
t. Has any standard rent been fixed for the premises under any law relating to the control of rent?
:
u. Has the tenant to bear the whole of part of
the cost of repairs and maintenance? Give
particulars:
:
v. If a lift is installed, who is to bear the cost of maintenance and operations-owner or tenant?
:
w. If a pump is installed, who is to bear the cost
of maintenance and operation-owner or
tenant?
:
x. Who has to bear the cost of electricity charges for lighting of common space like entrance hall, stairs, passages, compound, etc? Owner or tenant?
:
y. What is the amount of property tax? Who is
to bear it? Give details:
:
44
z. Is the building insured? If so give the policy
no., amount for which it is insured, risks
covered and the annual premium:
:
aa. Whether upto date statutory dues such as
property tax, municipal tax and other
outgoings if any, have been paid:
:
2. Technical details of the building :
a. Number of floors & height of each floor
including basements, if any. :
b. Plinth area floor-wise: :
Ground floor :
First floor :
Second floor :
Third floor :
Fourth floor :
c. Condition of the building: :
i. i. Exterior- excellent, good, normal, poor: :
ii. ii. Interior- excellent, good, normal, poor :
d. C. Type of foundations: :
e. D. Doors and windows (floor-wise) :
f. Flooring (floor- wise): :
g. Wall finishing (floor- wise) :
3. Specifications of construction (floor-wise) in respect of building
a. 3. Foundation: :
b. 4. Basement: :
c. Superstructure: :
d. Joinery/ doors & windows: :
e. RCC works: :
f. Plastering: :
g. Flooring, skirting, dadoing: :
h. Special Finishing as Marble, Granite, Wooden
Paneling, Drills etc. :
i. Roofing including weather proof course: :
45
j. Drainage: :
k. Special architectural or decorative features, if
any :
l. i. iii. Internal wiring- (concealed/ external) :
ii. Class of fittings: Superior/ ordinary :
m. Sanitary installation: :
n. No. of geysers: :
o. Class of fitting: superior / ordinary: :
p. Compound wall: :
i. Height and Length: :
ii. Type of construction: :
q. No. of lifts and capacity: :
r. Underground sump- capacity and type of
construction:
:
s. Overhead Tank: :
i. iv. Where located: :
ii. Capacity: :
t. Pumps – No. and their Horse Power: :
u. Roads and paving within the compound,
approximate area and type of paving: :
v. Sewage disposal- whether connected to
public sewers, if septic tanks provided no and
capacity:
:
w. Quality / Class of construction: :
(Any Additional Remark)
4. DETAILS OF VALUATION: :
S.
No.
Particulars of
Items & height.
Built-up
area in
sq. ft.
Age of
buildin
g years
1. Ground floor
2. First floor
(Add Floor details and note remarks if any)
46
5.1 5. EXTRA ITEMS: :
1. Portico :
2. Ornamental front door :
3. Sit Out / Verandah with steel grills :
4. Overhead water tank :
5. Extra Steel/ Collapsible Gates :
TOTAL :
5.2 6. AMENITIES
1. Wardrobes :
2. Glazed tiles :
3. Extra sing and bath tub :
4. Marble / ceramic tiles flooring :
5. Interior decorations :
6. Architectural elevation works :
7. Paneling works :
8. Aluminum works :
9. Aluminum hand rails :
10. False ceiling :
TOTAL :
5.3 MISCELLANEOUS :
1. Separate toilet room :
2. Separate lumber room :
3. Separate water tank / sump :
4. Trees. Gardening :
TOTAL :
5.4 SERVICES :
1. Water supply arrangements :
2. Drainage arrangements :
3. Compound wall :
4. C.B deposits, fittings etc. :
5. Pavement & Other gate :
47
TOTAL :
6.0 TOTAL ABSTRACT OF THE ENTIRE PROPERTY (` in Crores)
Govt. Value Market Value Distress sale value
Part- A Land
Part- B Building
5.1 Extra items:
5.2 Amenities:
5.3 Miscellaneous:
5.4 Services
TOTAL
SAY
BASIS OF VALUATION:
i) Sale ability :
ii) Likely rental values in future and :
iii) Any likely income it may generate may
be discussed
:
Remarks:
DECLARATION: - We hereby declare that
A. The information furnished above is true to the best of my knowledge and belief.
B. Neither I nor my associate have any direct or indirect interest in the advance or assets valued.
C. We are neither related to the owner of the property which is being valued nor with any official in
NSDC.
D. The property was physically inspected by our civil engineer on (date)
E. The title deed (s) of the property under valuation is available with NSDC
F. The property is identified by our civil engineer as well as representative of company.
G. This valuation is prepared without any prejudice or bias to any person or institution.
48
H. This report is prepared based on available documents during my/our visit to the site and discussions
made with the owner of the property.
I. The legal aspects are not considered in this valuation.
J. The value of land is taken into account by making due enquires in the locality and ascertaining the
sales value of the properties in the locality.
L. We are not related to the auditors or the owner of the property and their firms, associates nor are
we related to the statutory auditors of NSDC from where the loan is proposed to be availed / already
availed.
M. It is hereby certified that the present market value of the above property in our opinion is
Rs. ____________ (Rupees_____________)[] and the estimated realizable value under distress sale
will be Rs.____________ (Rupees______________).
N. We have not been dismissed or removed from Govt. service or convicted of an offence connected
with any proceedings of Income Tax Act, Wealth Tax Act or Gift Tax Act or have been blacklisted by
any bank/ financial institution/ Govt. Department/ public sector enterprise/ body corporate, etc.
O. Latitude & Longitude of location of the property is:
P. This valuation report contains [●] (no. of pages) excluding check list.
Q. Photographs of the property valued as enclosure
For [Valuer’s Details; Name, Signature, Registration No., Address]
Date:
Place: Ref
No.
49
Annexure- I
Sale Deed No Date of Registry Area of Land
Total Area-
50
CHECK- LIST
S.
No. PARTICULAR √ / x
1. Full names of all property owners are mentioned. Address of the property is mentioned
and the same is as per the latest title deed.
2. Boundaries of the property are mentioned as per both, title deed and actual observations.
3. Clearly mentioned that property has been identified by the borrower on his own based on
the address
4. Type of property is clearly mentioned (amongst agricultural, residential, commercial,
industrial etc.)
5. If land, clearly mention whether the land is land locked plot or independent land
• Only "Yes" or "No" should be mentioned. "Not applicable" should not be mentioned here
6. If vacant land, clearly mention that proper demarcation and fencing has been done
If building, clearly mention that construction has been done according to the building plan
approval
• If not, deviation should be clearly specified
8. If building, clearly mention that building use / completion certificate has been obtained
from competent authority
9. Clearly mention whether access to the property is available
• Only "Yes" or "No" should be mentioned. "Not applicable" should not be mentioned here
10. Basis for arriving at Government value has been mentioned and necessary documents have
been enclosed.
51
Tentative format of agreement
THIS Framework Agreement (“Framework Agreement”) is entered into this …. day of …. 2019 by and
between
1. National Skill Development Corporation, (CIN: U85300DL2008NPL181612) a company registered
under Companies Act, 1956 having its registered office at 301, 3rd Floor, West Wing, Worldmark-1,
Aero City, New Delhi – 110 037 (hereinafter referred to as “NSDC” or “the Purchaser”), and
2. [enter firm name] (CIN: [enter CIN], a company registered under [Enter statute name] having its
registered office at [enter registered office address] (hereinafter referred to as “the Firm” OR
“Service Provider”).
This Agreement is a binding contract but imposes no obligation on the Purchaser to purchase the estimated or
any quantity from the Firm. The Purchaser and Firm may hereinafter be referred singly as “Party” and
collectively as “Parties”.
WHEREAS, the Purchaser wishes to have the Firm supply the Goods or Services hereinafter referred to, and
WHEREAS, the Firm is willing to supply these Goods or Services,
NOW THEREFORE THE PARTIES hereby agree as follows:
1. Scope
1.1. The Purchaser has entered into this Framework Agreements with the Firm in order to allow Purchaser to
award an order (“Order” or Purchase Order”) under the Framework Agreement.
1.2. The Firm shall supply the Goods or Services as and when the NSDC issues the Orders specifying the
details of Goods or Services to be delivered along with the delivery schedule and consignee’s address.
1.3. If the Firm rejects/ does not provide quotation when such a request is sought to award an order, over three
times, the Purchaser shall be entitled to terminate this Framework agreement.
1.4. The indicative scope of the work/ goods and services to be provided by the Firm is provided in
Annexure-1
2. Term
This framework agreement shall be effective from []and shall be valid for a period of 5 years during the
period commencing from the date of empanelment.
3. Standards
The Goods or Services supplied under this Agreement shall conform to the standards mentioned in the
Technical Specifications/Scope of Work and, when no applicable standard is mentioned, to the
authoritative standards appropriate to the Goods’ country of origin.
4. Use of Documents and Information
The Service provider shall not, without the Purchaser’s prior written consent, disclose the Agreement, or
any provision thereof, or any specification, plan, drawing, pattern, sample, or information furnished by or
on behalf of the Purchaser in connection therewith, to any person other than a person employed by the
Firm in the performance of the Agreement.
52
Fraud and Corruption
4.1. Under this Framework Agreement means:
(a) "Corrupt Practice" means offering, giving, receiving, or soliciting anything of value to influence the
action of NSDC’s official(s) in the procurement process or in the Framework Agreement execution; and
(b) "Fraudulent Practice" means a misrepresentation of facts in order to influence a procurement process
or the execution of the Framework Agreement and includes collusive practices among Firms (prior to or
after bid submission) designed to establish bid/proposal prices at artificial, non- competitive levels.
4.2. It should be kept in mind that all actions towards award of Framework Agreement and its implementation
on the ground have to be fair, consistent, transparent and based on highest standard of ethics. Similarly,
the Firm is expected to observe the highest standard of ethics during procurement and execution of
Framework Agreement.
4.3. In pursuance to above:
4.3.1. Framework Agreement may be immediately terminated, if NSDC determines that the Firm and/or its
employees, sub-contractors, sub-consultant, sub- vendors, agents have engaged in corrupt or fraudulent
practices in competing for the Framework Agreement;
4.3.2. Portion of the funds allocated to a Framework Agreement may be cancelled, in full or in part, if it is
determined that corrupt or fraudulent practices were engaged by the Firm and/or its employees,
subcontractors/sub-consultants, sub-vendors, agents for getting the Framework Agreement or during
the execution of a Framework Agreement;
4.3.3. The Service Provider may be declared as ineligible, either indefinitely or for a stated period of time,
to be awarded the Framework Agreement or any contract, if NSDC, at any time, determines that the
Firm has been engaged in corrupt or fraudulent practices in competing for or in executing the
Framework Agreement.
5. Conflict of Interest
The Service provider declares that it (or any affiliate that directly or indirectly controls, is controlled by,
or is under common control with Firm) has not been engaged by the Purchaser to provide consulting
services for the preparation of the design, specifications, and other documents to be used for the
procurement of the Goods described in this framework agreement.
6. Registration of Goods: Not applicable
If required under the Applicable Law, Goods supplied under the Agreement shall be registered for use in
India.
7. Performance Security
Within twenty-one (21) days from date of signing of the Framework Agreement award, the Firm shall
furnish to the Purchaser the performance security of [] The performance security shall be denominated in
Indian Rupees, and shall be in the form of an unconditional bank guarantee issued by a
nationalized/scheduled bank located in India acceptable to the Purchaser, in the format provided by the
Purchaser. The performance security will be returned to the Firm not later than thirty (30) days following
the date of expiry of the Framework Agreement and Orders issued under this Framework Agreement,
including any warranty obligations.
8. Inspections and Tests: Not applicable
Pre-dispatch inspection (to check compliance to technical specifications/scope of work defined in annexure
- 1) may be carried out by the Purchaser or an Firm appointed and paid by Purchaser for this purpose.
Goods shall be dispatched only after receipt of satisfactory inspection report and communication to this
effect by NSDC/ Inspection Firm. These tests will be prior intimated by NSDC to the Firm and will be
done if required.
9. Packing
53
The Firm shall provide such packing of the Goods (if required) as is required to prevent their damage or
deterioration during transit to their final destination, as indicated in the Order.
10. Delivery and Documents
10.1. Delivery of the Goods/Services shall be made by the Firm in accordance with the terms specified in
the Orders/Scope of Work. The shipping and/or other documents to be furnished by the Firm are (a)
two originals and two copies of the Firm’s invoice, showing Purchaser, the Framework Agreement
number, Order number; Goods’ description, quantity, unit price, and total amount. Invoices must be
signed in original and stamped or sealed with the company stamp/seal; (b) two copies of delivery note
showing Purchaser’s name and delivery through to final destination as stated in the Order; (c) one
original of the manufacturer’s or Firm’s Warranty certificate covering all items supplied; and (d) copy
of the Certificate of Inspection furnished to Firm by the nominated inspection Firm (where inspection
is required).
10.2. Documents or soft files will be sent to NSDC as per requirements of the assignment. Final product
should be in ready to print/work or high-resolution files as desired by the concerned section/division.
Firm will be responsible for taking precautionary measures against any plagiarism, or copy righted
material; that must not to be used for NSDC assignment.
11. Insurance
The Goods/Services supplied under the Orders to be issued under the Agreement shall be adequately
insured against loss or damage incidental to manufacture or acquisition, transportation, storage, and
delivery.
12. Transportation
The price indicated in Orders for Goods/Services shall include the cost of transportation.
13. Payment
Price of Goods/Services received under each Order shall be paid by NSDC within thirty (30) days of receipt
of the Goods/Services upon submission of valid invoice and other documents.
14. Prices
NSDC shall issue the Order either through Email or post/courier or physical delivery. The details about
the price / rate, taxes and incidental expenses e.g. insurance, delivery charges, octroi, loading and unloading
charges etc., as determined by NSDC and agreed by Firm in accordance with the Request for
Quotation/Proposal (if any) process, shall be mentioned in each respective Purchases Order. NSDC will
ask for the quotation from Empaneled firms to obtain their financial costs for the requirement. The Firm
will be selected based on Substantive responsive and Lowest Evaluated price.
15. Amendments
Any variation or modification to this Framework Agreement or the Orders shall be made only by written
amendment signed by the Parties.
16. Assignment
The Firm shall not assign, in whole or in part, its obligations to perform under this Framework Agreement,
except with the Purchaser’s prior written consent.
17. Delays in the Firm’s Performance
Delivery of the Goods/Services and performance of related Services shall be made by the Firm in
accordance with the time schedule prescribed by the Purchaser in the Order. If at any time during
performance of the Order, the Firm should encounter conditions impeding timely delivery of the Goods
and performance of Services, the Firm shall promptly notify the Purchaser in writing of the fact of the
delay, it’s likely duration, and its cause(s). As soon as practicable after receipt of the Firm’s notice, the
54
Purchaser shall evaluate the situation and may at its discretion extend the Firm’s time for performance,
with or without liquidated damages, in which case the extension shall be ratified by the parties by
amendment of the Order.
18. Liquidated Damages
Subject to Clause 18, if the Firm fails to deliver any or all of the Goods or to perform the Services within
the period(s) specified in the Order, the Purchaser shall, without prejudice to its other remedies under the
Agreement, deduct from the Order Price, as liquidated damages, a sum equivalent to 0.5% of price of the
delayed Goods or unperformed Services for each week or part thereof of delay until actual delivery or
performance, up to a maximum deduction of the 10% of the Order price. Once the maximum is reached,
the Purchaser may consider termination of the Framework Agreement or the Order pursuant to Clause 20.
19. Termination for Default
20.1 The Purchases may terminate this Agreement with immediate effect, with a written notice, if the
Firm, in the judgment of the Purchaser has engaged in fraud and corruption, as defined in Clause
5, in competing for or in executing the Framework Agreement.
20.2 The Purchaser, without prejudice to any other remedy for breach of the Agreement, by written
notice of fifteen (15) days of default sent to the Firm, may terminate this Agreement in whole or
in part:
(a) if the Firm fails to deliver any or all of the Goods or services within the period(s) specified in the
Order, or within any extension thereof granted by the Purchaser; or
(b) if the Goods or services do not meet the Technical Specifications/Scope of Work or registration
requirement (if any) stated in the Framework Agreement and / Order; or
(c) if the Firm fails to perform any other obligation(s) under the Framework Agreement.
20.3 In the event the Purchaser terminates the Framework Agreement in whole or in part, pursuant to
this Clause, the Purchaser may procure, upon such terms and in such manner as it deems
appropriate, Goods or Services similar to those undelivered under Orders issued prior to such
termination, and the Firm shall be liable to the Purchaser for any excess costs for such similar Goods
or Services.
20. Termination for Insolvency
The Purchaser may at any time terminate the Agreement by giving written notice to the Firm if the Service
Provider becomes bankrupt or otherwise insolvent.
21. Termination for Convenience
The Purchaser, by written notice sent to the Firm, may terminate the Framework Agreement or the Order,
in whole or in part, at any time for its convenience. The notice of termination shall specify that termination
is for the Purchaser’s convenience, the extent to which performance of the Firm under the Agreement or
Order is terminated, and the date upon which such termination becomes effective. The Goods or Services
that are already supplied before the Firm’s receipt of notice of termination shall be accepted by the
Purchaser at the terms and prices described in the Framework Agreement and the Order.
22. Dispute Resolution
Any dispute arising out of this Framework Agreement, which cannot be amicably settled between the
Parties, shall be referred to adjudication/arbitration in accordance with the Arbitration and Conciliation
Act of 1996 of India. The venue of adjudication/arbitration shall be New Delhi.
For addressing all conflicts and arriving at an amicable resolution, a Valuation Conflict Resolution
Committee shall be formed, member of such committee to be decided by MD & CEO.
In cases where the Valuer has been found to be indulging in unfair practices, guilty of professional
misconduct or violating the code of ethics and professional practice, the following procedure shall be
followed:
55
IV. Issue of show cause notice- the Valuer shall be given an opportunity to show as to why action
should not be initiated against him or her.
V. Hearing- the Valuer shall be given an opportunity of being heard, so that his/her point of view is
known.
VI. Deliberation by the Committee - the matter shall be deliberated by the concerned Conflict
Resolution Committee.
In case, the Committee opines that the charges against the Valuer are proved, the Valuer shall be
removed from the panel and depending on the seriousness of the case, he may be empanelled once
again after a gap of 5 years from such removal. The Committee may also consider imposition of
suitable fines depending on the severity of the case against the Valuer.
Names of Valuers removed shall be reported to the Indian Banks’ Association which in turn shall
place the names on its caution list. In addition to this information may be shared with respective
association of the Valuer.
Re-empanelment
Any Valuer once removed from NSDC, the panel of any bank, housing finance institution or NBFCs
could be re-empanelled again after a period of three years, based on the recommendations of the Annual
Valuation Review Committee.
23. Applicable Law
The Agreement shall be interpreted in accordance with the laws of Union of India.
24. Notices
Any notice given by one Party to the other pursuant to this Framework Agreement shall be sent to the other
Party in writing. The Purchaser’s addresses for notice purposes is:
CEO and Managing Director, NSDC
National Skill Development Corporation
301, West Wing, Worldmark-1,
Aero City, New Delhi – 110 037
Phone: +011-47451600-10
The Firm’s addresses for notice purposes is:
[]
25. Taxes and Duties
The Firm shall be entirely responsible for all taxes, duties, license fees, etc., incurred until delivery of the
contracted Goods or services to the Purchaser.
26. Intellectual Property
27.1 The Service Provider agrees not to use or misuse or register as the owner, licensee, or cause to be
registered, nor assist any other person or entity in misusing or in registering as the owner or causing
to be registered, in any part of the world, any trademark, trade name, service mark, copyrights,
insignias, symbols, know-how, trade dress, slogans and logos, photographs and images currently used
and to be used in the future (including emblems, services and rights in the distinctive design and signs,
or combinations thereof) and all similar proprietary rights belonging to NSDC or associated with
NSDC’s work / Services (“Intellectual Property”).
27.2 The Service Provider understands that the data and information are collected and compiled for NSDC
in order to meet its business requirements. The information collected for this assignment as well as
provided by Service Provider to NSDC are the sole and absolute property of NSDC. Service Provider
understands and appreciates that the formats prepared and the data submitted by Service Provider to
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NSDC therefore constitute trade secrets. Service Provider therefore understands and acknowledges
that the property including formats, data and information collected by its personnel in terms hereof
are the sole and absolute property of NSDC.
27.3 The Service Provider hereby agrees and undertakes that it has no interest whatsoever in the
information collected by it and the formats created and shall not use the same for any purposes
whatsoever other than as set out in this Framework Agreement.
27.4 The Service Provider hereby represents and warrants that none of its activity, software, documentation
etc. used under this Framework Agreement and / or provided to NSDC does or will infringe any
Intellectual Property Rights held by any third party and that it has all necessary rights or at its sole
expense shall have secured in writing all transfers of rights and other consents necessary to make the
assignments, licenses, and other transfers of Intellectual Property Rights for NSDC to own or exercise
all Intellectual Property Rights as provided in this Framework Agreement. The Service Provider
further represents and warrants that it has secured / shall secure all necessary written agreements,
consents, and transfers of rights from its employees and other persons or entities whose services are
used for providing Services.
27.5 The Service Provider hereby represents and warrants that none of its activity, software, documentation
etc. used under this Framework Agreement and / or provided to NSDC does or will infringe any
Intellectual Property Rights held by any third party and that it has all necessary rights or at its sole
expense shall have secured in writing all transfers of rights and other consents necessary to make the
assignments, licenses, and other transfers of Intellectual Property Rights for NSDC to own or exercise
all Intellectual Property Rights as provided in this Framework Agreement. The Service Provider
further represents and warrants that it has secured / shall secure all necessary written agreements,
consents, and transfers of rights from its employees and other persons or entities whose services are
used for providing Services.
27.6 The Service Provider, subject to any restrictions applicable to any third-party materials embodied in
the Deliverables, hereby grants to NSDC a perpetual and exclusive rights to use, copy and prepare
derivative works of the Deliverables, for purposes of publication and / or NSDC’s internal business
(which includes any business associated with any Ministry of India) only. All other intellectual
property rights in the Deliverables shall remain with and/or are assigned to NSDC
The term, "Deliverables", means materials that are originated and / or prepared for NSDC by the
Service Provider (either independently or jointly with NSDC or third parties) and delivered / to be
delivered to NSDC during the course of Service Provider’s performance under this Framework
Agreement
27.7 NSDC shall have or obtain no rights in any Service Provider Knowledge Base other than (a) to use
the same on a non exclusive and non transferable basis and otherwise as authorized by Service
Provider, (b) to the extent the Service Provider Knowledge Base is incorporated into a Deliverable,
to use it on a non exclusive and non transferable basis as part of the Deliverable for purposes of
NSDC’s internal business objective (which includes any business associated with any Ministry of
India), or (c) pursuant to Service Provider ’s standard licence for such Service Provider Knowledge
Base or, in the case of Service Provider Knowledge Base owned by third parties, pursuant to terms
acceptable to the applicable third party and as intimated to NSDC by Service Provider. If any Service
Provider Knowledge Base is made available to NSDC under (a) above, it will be made available in an
“AS IS” condition and without express or implied warranties of any kind; and any Service Provider
Knowledge Base made available under (c) above shall be subject only to applicable terms of the
applicable licence.
The term, " Service Provider Knowledge Base ", means material existing prior to commencement of
the Framework Agreement, or developed outside the scope of the services under this Framework
Agreement, that are proprietary to Service Provider or to third parties, including all intellectual
property rights therein and together with any enhancements and/or modifications thereto, provided
that such enhancements and/ or modifications are not developed as part of the Deliverables under this
Framework Agreement
27.8 The Parties shall cooperate with each other and execute such other documents as may be necessary or
appropriate to achieve the objectives of this Clause.
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27.9 The Service Provider shall be free to use its general knowledge, skills and experience, and any ideas,
concepts, know-how, and techniques (which does not contain any information, data, input etc. of the
Services or any reference of this) that are acquired or used in the course of providing the Services.
27.10 This Clause shall survive the termination or expiry of this Framework Agreement.
27. Confidentiality
28.1 During the course of performance of the obligations under this Framework Agreement, the Service
Provider may have access to information which could be confidential and proprietary information of
NSDC as well as of its associates, affiliates, partners or its clients, including but not limited to
business plans, financial information, mechanisms, business related functions, activities and services,
computer lists, knowledge of customer needs and preferences, trade secrets, business strategies,
marketing strategies, methods of operation, tax records, markets, data or other proprietary
information relating to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of authorship, other
valuable information, personally identifiable information, confidential information and trade related
information relating to the activities of NSDC or its associates and partners (collectively the
“Confidential Information”). Any Confidential Information shall be considered confidential
regardless of whether or not it is expressly marked as being confidential or proprietary and regardless
of the form in which such information is communicated to the Service Provider, whether it be oral,
in writing or by any other form or mode of communication (including, but not limited to electronic
or magnetic recordings and e-mail communications).
28.2 The Service Provider agrees and undertakes not to disclose or disseminate (or cause to be disclosed
or disseminated), whether directly or indirectly, Confidential Information to any third party, without
the express prior written authorization by NSDC. Without prejudice to the generality of the
foregoing, it is understood that Confidential Information may be disclosed by the Service Provider
only for the purpose of complying with its contractual obligations under this Framework Agreement.
In any event, the Service Provider shall ensure that any person to whom Confidential Information is
communicated by the Service Provider, must abide by the terms of this Clause 28 as if they were
themselves a party to it.
28.3 Notwithstanding the foregoing, the Service Provider may disclose Confidential Information, while
safeguarding to the greatest extent possible the confidential nature of the Confidential Information,
to its legal advisors, tax consultants and accountants or other member firms of Service Provider or
Service Provider’s information technology vendors for the purpose of performance of its obligations
under this Framework Agreement only and not for any other purpose or for carrying out internal,
support, administrative, support, financial purposes, risk management or other quality checks for the
Service Provider after obtaining prior written permission from NSDC.
28.4 The Service Provider undertakes not to use (and to take reasonable efforts to cause any person to
whom it has communicated Confidential Information not to use) Confidential Information, except in
accordance with this Framework Agreement. More generally, nothing in this Framework Agreement
related to the disclosure of Confidential Information shall be interpreted as a licence, implicit or
explicit, to use the Confidential Information in any manner other than as contemplated herein or,
more generally, for the purpose for which it was disclosed.
28.5 The Service Provider shall, in particular, take all reasonable measures, which are appropriate to
safeguard the Confidential Information. The Service Provider shall immediately inform NSDC in
writing of any unauthorized use or disclosure of Confidential Information of which it may become
aware and it shall assist NSDC in ending such unauthorized use or disclosure.
28.6 All Confidential Information (including, but not limited to, documents, drawings, sketches and
electronic or magnetic recordings and e-mail communications) on which Confidential Information
appears or is recorded shall remain the NSDC’s property. Accordingly, except for the purpose of
sharing Confidential Information with persons to whom disclosure is permitted, the Service Provider
unequivocally undertakes not to make any copies of Confidential Information without the NSDC’s
prior written consent and it shall immediately, at NSDC’s first request (i) return to NSDC or destroy
all copies of such Confidential Information it may be holding; and (ii) confirm in writing to NSDC
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that any such media containing Confidential Information in any form has been returned to NSDC or
completely destroyed so that the Confidential Information is no longer readily recoverable. Provided
however, that the Service Provider may retain such copies of such Confidential Information that may
be required by it for its legal and regulatory purposes.
28.7 At NSDC’s request, the Service Provider shall provide NSDC with a detailed list of any person(s) to
whom Confidential Information has been disclosed/ communicated by it.
28.8 It is understood that Confidential Information shall not include any information which:
(i) has entered the public domain prior to its disclosure or subsequently, provided in the latter case that
such entry was not due to the Service Provider’s action or inaction, or due to the action or inaction
of any third party to whom it may have communicated Confidential Information;
(ii) was received from a third party in a lawful and unrestricted manner without violation of the terms
hereof or of the terms of a similar agreement; and
(iii) was known to the Service Provider at the time of its disclosure, the burden of proof in such case being
placed on the Service Provider.
28.9 In the event the Service Provider is required, under any law or by a court order, to disclose any
Confidential Information, it may make only such disclosure while safeguarding to the greatest extent
possible the confidential nature of the Confidential Information that would satisfy the requirement of
such law or such court order, as the case may be, and nothing more. It is further agreed that before
making any such disclosure, the Service Provider shall consult NSDC to the extent legally
permissible and reasonably practicable in the circumstances.
28.10 The Service Provider recognizes that the protection of Confidential Information is essential to
NSDC and that any unauthorized disclosure of Confidential Information is likely to cause NSDC
significant harm and prejudice. Accordingly, without prejudice to any other recourse available to
NSDC (including injunctive or interlocutory relief), the Service Provider acknowledges, agrees and
undertakes that in the event of a breach of any terms of this Clause 29 caused by it or any third party
to whom such Confidential Information has been disclosed, the Service Provider shall hold NSDC
harmless and fully indemnified which NSDC may have suffered as a result of such disclosure.
28.11 This Clause shall survive the termination or expiry of this Framework Agreement.
28. Indemnity
29.1 Without limiting any other rights which NSDC may have under this Framework Agreement and under
law, the Service Provider shall indemnify, defend, hold harmless and keep indemnified NSDC, its
associates, partners or its directors or its employees from and against any claim or loss including
without limitation, fines, penalties, fees, damage, costs (including legal fees and expenses) liability
(whether criminal or civil) suffered and/or incurred by NSDC, its affiliates or its directors or its
employees arising from or in connection with the supply of goods and / or performance of the services
by the Service Provider under this Framework Agreement or due to any breach of the terms and
condition of this Framework Agreement including any covenants, obligations and representations and
warranties of the Service Provider, or with any applicable laws and regulations governing the
performance of the Services by the Service Provider under this Framework Agreement.
29.2 The Firm shall indemnify the Purchaser against all third-party claims of infringement of patent,
trademark, or industrial design rights arising from use of the Goods or any part thereof
29.3 The provisions of this Clause shall survive the termination or expiry of this Framework Agreement.
29. Relationship
30.1 Nothing contained herein shall be construed as creating a partnership or a joint venture or a
principal - agent or an employer-employee relationship between the Parties. The Service Provider
shall always remain an independent Service Provider during the term of this Framework
Agreement and shall always solely remain liable to NSDC or any third party for all its acts and
omissions to act during the course of providing the Services under this Framework Agreement.
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The Service Provider unequivocally, unambiguously, irrevocably and explicitly acknowledges that
this Framework Agreement is not subject to any employment law(s) or related statute(s)
30.2 This Clause shall survive the termination or expiry of this Framework Agreement.
30. Waiver
The failure of either NSDC or the Service Provider to enforce, in any one or more instances,
performance of any of the terms, covenants or conditions of this Framework Agreement shall not be
construed as a waiver or a relinquishment of any right or claim granted or arising hereunder or of the
future performance of any such term, covenant, or condition, and such failure shall in no way affect
the validity of this Framework Agreement or the rights and obligations of NSDC and the Service
Provider hereto. NSDC and the Service Provider acknowledge that a waiver of any term or provision
hereof may only be given by a written instrument executed by each of NSDC and the Service Provider,
as the case may be, hereto.
31. Severability
Any provision of this Framework Agreement which is prohibited, unenforceable or is declared or
found to be illegal, unenforceable or void in any jurisdiction shall, as to such jurisdiction, be ineffective
only to the extent of such prohibition or unenforceability without invalidating the remainder of such
provision or the remaining provisions of this Framework Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction. If any such invalidity substantially affects or
alters the commercial basis of this Framework Agreement, NSDC and the Service Provider shall
negotiate in good faith to amend and modify the provisions and terms of this Framework Agreement
as may be necessary or desirable in the circumstances to achieve, as closely as possible, the same
economic or commercial effect as the original provisions and terms of this Framework Agreement.
*********************execution page follows ************************
IN WITNESS WHEREOF THE PARTIES HERETO HAVE EXECUTED THESE PRESENTS ON
THE DAY AND YEAR FIRST HERE IN ABOVE WRITTEN.
For and on behalf of National Skill
Development Corporation
------------------------------------
Name: Manish Kumar
Designation: Managing Director & Chief
Executive Officer
For and on behalf of []
--------------------------------
Name:
Designation:
In the presence of witnesses:
-------------------------------------
Name:
In the presence of witnesses:
---------------------------------
Name:
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Address: 301, 3rd Floor, West Wing , World
Mark 1, Asset 11, Aerocity, New Delhi 110037
Address: