IBBI Cancels Registration of Valuer After Expulsion from IOV-RVF and Voluntary Withdrawal from Practice [Read Notification]
The Authority noted that Mr Radhakrishnan had failed to comply with the bye-laws and regulatory framework of IOV-RVF, leading to his expulsion
The Insolvency and Bankruptcy Board of India (IBBI) has cancelled the registration of a valuer after his expulsion from IOV Registered Valuers Foundation (IOV-RVF) and his own communication expressing unwillingness to continue valuation practice.
Mr Radhakrishnan was registered with IBBI as a valuer of Plant and Machinery. On 23 December 2024, the Disciplinary Committee of IOV-RVF expelled him as a member for violations of Rule 11 and Rule 16 of Annexure III and Rule 12(2)(e) of the Valuation Rules.
The expulsion was based on persistent non-compliances, including non-payment of membership fees, non-submission of prescribed returns, and failure to meet continuing professional education requirements.
Following this, IBBI issued a Show Cause Notice (SCN) under Rule 17 of the Valuation Rules, seeking his response. Mr Radhakrishnan did not submit a written reply. When contacted for a personal hearing, he declined the opportunity and confirmed via email that he did not wish to continue valuation work.
Rule 3 of the Valuation Rules says that a person is eligible to be a registered valuer only if they are a member of a Registered Valuers Organisation (RVO). Rule 7 requires that a registered valuer must at all times maintain eligibility, qualifications, and compliance with the Act, Rules, and bye-laws of the RVO.
Expulsion from an RVO automatically renders a valuer ineligible to continue registration. Rule 15 empowers the Authority to cancel or suspend registration for violations.
The Authority noted that Mr Radhakrishnan had failed to comply with the bye-laws and regulatory framework of IOV-RVF, leading to his expulsion. Once expelled, he ceased to be a member of an RVO, thereby losing eligibility under Rule 3 and Rule 7.
Further, his own communications reinforced this position. In his email to IBBI, he stated that he had not been doing valuation work since 2020 due to personal and health reasons and did not intend to take up assignments in the future. He requested withdrawal from membership. Similar submissions had earlier been made before IOV-RVF, where he asked for cancellation of membership citing inability to attend meetings or earn continuing education points.
The Authority concluded that Mr Radhakrishnan was not eligible to continue as a registered valuer. His expulsion from IOV-RVF and voluntary withdrawal from practice canceled registration, both necessary and inevitable.
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