The cheapest valuation is about to get expensive

The cheapest valuation is about to get expensive.

Written on 14 September 2026, based on public reports at that time.

A promoter once showed me two quotes for the same valuation report. One was three times the other. He picked the cheaper one and asked if that was fine.

For years that question had an embarrassing answer. Often, yes. The report served its purpose, the transaction closed, nobody looked again.

That calculation is about to change.

A Bill now before a parliamentary committee proposes making IBBI the single Valuation Authority for India. Today the profession is fragmented, with multiple registered valuer organisations and oversight split across bodies. The Bill brings registration, standards and enforcement under one roof.

And it carries teeth. A valuer who breaches the norms could face suspension of his certificate for up to ten years, or a penalty of up to ten lakh rupees.

Ten years is not a fine. For most valuers, that is the career.

Think about what a professional does when one signature carries that much personal risk. He documents everything. He asks for title papers instead of accepting a summary. He wants the related party list, the basis of every projection, the comparable data in writing. He says no more often. And he quotes accordingly.

So if you are planning anything that needs a valuer, a buy-back, a merger, a preferential allotment, a family settlement, two things follow.

First, budget more time. A heavily documented valuation moves slower than a light one, and fast-track processes already run on tight clocks.

Second, get your file ready before you appoint anyone. Clean title records. A current related party list. Projections with a written basis, not a spreadsheet built last night. Every document you cannot produce becomes a question in the report, and questions become discounts.

The Bill is not law yet. It sits with a committee, and provisions come into force only when notified. But the direction is set.

For years the cheapest report often won the mandate. When the person signing it carries ten years of personal risk, price stops being the question. The strength of your file becomes the question.