Valuers ask FIs to put effective monitoring to curb rising NPAs

Bank agents roaming to mislead innocent loanees, farmers and owners of small scale units

Perturbed over rising NPAs (Non Performing Assets) of financial institutions especially in the realty sector, Chandigarh-based Valuers (those who evaluate properties, plant & machinery) under the aegis of Institution of Valuers has suggested that financial institutions should appoint experienced and honest valuers to monitor the system of utilization of loans to ensure the proper and timely utilization of funds.

They are of the view that efficient management system is very essential to improve the credit system to curb the NPAs.

Speaking to Business Standard, Chairman of the Chandigarh branch of Institution of Valuers, B L Luthra said, " Now a days valuation of property is multi-disciplinary subject involving economics and technologies followed in different fields i.e. industrial, building design, interior decoration of prestigious buildings.

Also, technical and commercial system has entirely changed during the last few years. Moreover, political mafia has entered into real estate sector and bank agents are roaming to mislead the innocent loanees, farmers and owners of small scale units.

To mislead the bank authorities and valuers fake billls, fake government registration, court papers etc. are fabricated. As a result, now a days valuers are facing so many challenges from different agencies. The bank officials like only those valuers who are ready to prepare the valuation reports as per their conveniences so as to sanction the loan as per requirement of parties.”

He added, “ Numerous cases of bad reports, fake government registration papers and vouchers have been noticed and so many cases of fraud with financial institutions are going in the courts all over India. Loanes are given as per convenience of the influential and fraudulent & willful defaulters.

They invest this money in real estate. Planning, coordination and monitoring are the important pillars of an organization but are badly missing in the financial institutions. Financial institutions grant the loan but do not monitor the utilization of loan amount.

Considering all this problems, we have suggested that financial institutions should appoint experienced and honest valuers to monitor the system of utilization of loans to ensure the proper and timely utilization of funds. They are of the view that efficient management system is very essential to improve the credit system to curb the NPAs.’

Commenting on social obligation, Luthra added that Valuers would guide the poor farmers in Punjab and Haryana to understand the food and fruit processing Industry and encourage them to set up green houses to cultivate the coloured capsicums, hybrid tomatoes, flowers, cucumber etc. and other off season vegetables which are much in demand throughout the country.

He added,”Food processing units on smaller and bigger scale have great scope in Punjab and Haryana. It is also a very profitable business. We are planning to guide the owners of small industrial units and farmers to plan the timely payment of installments against the loan.”