FA, 2020 amendment increasing...
In the instant case, a Show Cause Notice was issued to the Managing Director of ‘PVAI Valuer Professional Organization’ (PVAI-VPO) registered with the Insolvency and Bankruptcy Board of India (IBBI) as a registered valuer organization.
It was found that it had allowed ineligible applicants to be registered as members of its organization even though they did not have proper credentials as per eligibility norms, Qualified and forwarded applications of applicants who did not meet the length of experience required for an individual to be registered as a registered valuer to IBBI.
It failed in its institutional obligations in not scrutinizing credentials of some of applicants in a professional manner while enrolling, granting certificate of completion of education course and forwarding applications to IBBI for registration.
However, it was observed that PVAI-VPO took corrective course of action after taking notice of aforesaid irregularities and argued that procedural irregularities committed by it for the first time constituted a bona fide and unintentional error
And due to haste, lack of experience and understanding to deal with procedural issues relating to emerging professions of valuers, hence, called for a lenient view.
As a result, show cause notice was to be disposed of by warning PVAI-VPO that it should be extremely careful, diligent and take effective steps to improve process of enrolling members, provide educational course and certificate thereof as well as recommending applications to IBBI for enrollment as valuers in accordance with regulations.
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