Case Studies: Real Valuations, Real Outcomes

Real cases from our files, with the names and exact addresses removed. These show you how the work actually goes, and what difference a properly evidenced report makes.

A flat in East Delhi bought in 1985

The situation. A family was selling their father's flat. He had bought it in 1985 for about eighty thousand rupees. The buyer was ready and the sale was going through, but their accountant said the tax on the gain would be very large if they used the 1985 price.

What we did. Because the flat was bought before April 2001, the rules allowed them to use its value as on 1 April 2001 instead. So we went looking for evidence of what it was worth back then. We pulled the government notified rates for that colony from 2001. We found records of what similar flats in the same block had actually sold for around that time. Our engineer inspected the flat. The report put the 1 April 2001 value at a little over twelve lakh rupees.

The result. Their taxable gain was calculated from twelve lakh instead of eighty thousand. The report went through without a query. This is the single most common thing we do, and it is usually the difference between a small tax bill and a very large one.

An inherited house going to three brothers

The situation. Three brothers had inherited their mother's house in West Delhi. Two wanted to sell, one wanted to keep his share. They could not agree on what the house was worth and the disagreement had been going on for over a year.

What we did. We were appointed jointly, which mattered because it meant no brother could say the valuer was on someone else's side. We inspected the property, valued the land and the building separately, and showed the working openly so all three could follow it.

The result. They settled between themselves without going to court. A neutral number that everyone could check was all they had actually needed.

A family in Toronto selling a Bangalore flat

The situation. An Indian family living in Canada were selling a flat in Bangalore. The buyer had to deduct tax at a high rate because the sellers were not resident in India, and they also had reporting to do in Canada. Nobody could fly down for the inspection.

What we did. Our engineer inspected the flat and sent photographs stamped with the date and location. We prepared the valuation and the working of the gain, and shared it in a form their accountant in Canada could use as well as their accountant here.

The result. The sale went ahead without anyone travelling. This is routine work for us.

A shop valued for a bank loan

The situation. A shopkeeper in Karol Bagh wanted a loan against his shop. The bank needed a report in its own format showing both the market value and what the property would fetch in a quick forced sale.

What we did. We inspected the shop, worked out the value from the rent it earns as well as from comparable sales, and filled in the bank's format exactly as their panel requires.

The result. Sanctioned without a revaluation. Read about bank valuations.