IBBI Revokes Valuer's Registration Following Expulsion from RVO for Non-Compliance with Membership Obligations
Background of the Disciplinary Action
The Insolvency and Bankruptcy Board of India (IBBI) exercised its regulatory authority on 17 February 2026 to revoke the registration credentials of a registered valuer specializing in the asset class of Land and Building. This decisive action was initiated under the framework of the Companies (Registered Valuers and Valuation) Rules, 2017, specifically invoking Rules 15 and 17.
The proceedings commenced after the Disciplinary Committee of the IOV Registered Valuers Foundation took the step of expelling the registered valuer from its membership rolls. The expulsion was grounded on multiple infractions including failure to remit membership dues, neglect in filing mandatory returns, and deficiency in meeting continuing professional education obligations.
The valuer in question, Mr. P Natarajan, held registration number IBBI/RV/02/2018/10382 and was authorized to conduct valuations in the Land and Building category. The regulatory framework under Rule 3 read in conjunction with Rule 7 explicitly mandates that uninterrupted membership with a recognized Registered Valuers Organisation constitutes a fundamental eligibility prerequisite for maintaining registration status.
Regulatory Framework and Eligibility Requirements
Mandatory Membership Condition
The statutory architecture established under the Companies (Registered Valuers and Valuation) Rules, 2017 creates a clear linkage between professional membership and registration validity. Rule 3 articulates the baseline eligibility standards that every registered valuer must satisfy. Among these criteria, active membership status with a registered valuers organisation stands as a non-negotiable requirement.
Rule 7 further reinforces this requirement by stipulating that registration granted to any valuer remains conditional upon continuous compliance with eligibility and qualification benchmarks specified under Rule 3 and Rule 4. The regulatory intent behind this provision is to ensure that only those professionals who remain accountable to their peer organizations and maintain requisite professional standards continue to hold registration credentials.
Compliance Obligations
Beyond mere membership, the Valuation Rules impose substantive compliance obligations on registered valuers. These include:
- Timely payment of membership fees to the concerned registered valuers organisation
- Regular submission of prescribed returns and documentation
- Fulfillment of continuing professional education requirements
- Adherence to the Model Code of Conduct for Registered Valuers
- Compliance with byelaws and internal regulations of the respective registered valuers organisation
The regulatory regime views these obligations not as administrative formalities but as essential mechanisms to maintain professional competence and ethical standards within the valuation profession.
Chronology of Events Leading to Cancellation
Show Cause Notice by IOV-RVF
The disciplinary proceedings originated when IOV Registered Valuers Foundation issued a Show Cause Notice dated 03.10.2023 to Mr. P Natarajan. The notice outlined specific contraventions relating to non-remittance of membership fees, failure to submit mandatory returns, and non-fulfillment of continuing professional education requirements.
These infractions represented violations of Rule 11 and Rule 16 of Annexure III, as well as Rule 12(2)(e) of the Valuation Rules. The notice provided Mr. P Natarajan with an opportunity to explain his non-compliance and present his defense before the Disciplinary Committee.
Response to IOV-RVF Proceedings
In his submission before the Disciplinary Committee of IOV-RVF, Mr. P Natarajan acknowledged that he was not engaged in active practice and expressed his disinterest in continuing valuation work. Specifically, he stated: "As I am not practicing and not interested in doing the Valuation. Hence, I am not proceeding with my COP."
This admission became a critical factor in the subsequent proceedings, as it demonstrated the valuer's conscious decision to disengage from the profession without following proper procedures for surrender of registration.
Expulsion Order by Disciplinary Committee
After considering the evidence and the valuer's submissions, the Disciplinary Committee of IOV Registered Valuers Foundation passed an order dated 23.12.2024 expelling Mr. P Natarajan from membership. The order was premised on his failure to comply with the byelaws and regulatory framework of the organisation, encompassing non-payment of fees, non-submission of returns, and non-compliance with continuing professional education norms.
This expulsion automatically triggered a situation where Mr. P Natarajan ceased to possess the mandatory eligibility condition prescribed under Rule 3 of the Valuation Rules, namely active membership of a registered valuers organisation.