Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

⁸⁶[Regulation 35. Valuation of assets intended to be sold

⁸¹[Valuation of assets intended to be sold

(1)

Where the valuation has been conducted under regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 or regulation 34 of the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017, Regulation 35, prior to substitution it stood as under: “35. Valuation of assets intended to be sold.

(1)

The liquidator shall appoint at least two registered valuers to value the assets as required under Regulation 34(2).

(2)

The provisions of Regulation 7 shall apply mutatis mutandis to registered valuers appointed under sub- regulation (1).

(3)

The registered valuers appointed under sub-regulation (1) shall independently submit to the liquidator the estimates of the realizable value of the asset(s) computed in accordance with internationally accepted valuation standards, after physical verification of the assets of the corporate debtor.

(4)

The average of the estimates received under sub-regulation (3) shall be considered the value of the assets.” as the case may be, the liquidator shall consider the average of the estimates of the values arrived under those provisions for the purposes of valuations under these regulations. ⁸²[

(2)

In cases not covered under sub-regulation (1) or where the committee, is of the opinion that fresh valuation is required under the circumstances, the liquidator shall within seven days of the liquidation commencement date, appoint two registered valuers to determine the realisable value of the assets under regulation 32 of the corporate debtor: Provided that the following persons shall not be appointed as registered valuers, namely: -

(a)

a relative of the liquidator;

(b)

a related party of the corporate debtor;

(c)

an auditor of the corporate debtor at any time during the five years preceding the insolvency commencement date; or

(d)

a partner or director of the insolvency professional entity of which the liquidator is a partner or director.]

⁷⁷ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as, “preliminary”.

⁷⁸ Substituted by Notification No. IBBI/2022-23/GN/REG094, dated 16th September, 2022 (w.e.f. 16-09-2022). Prior to substitution, sub-regulation (5) stood as: “The asset memorandum shall not be accessible to any person during the course of liquidation, unless permitted by the Adjudicating Authority”.

⁷⁹ Omitted by Notification No IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as under:- “members of the consultation”.

⁸⁰ Omitted by Notification No IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as under:- “having voting rights”.

⁸¹ Substituted by Notification No. IBBI/2018-19/GN/REG037, dated 22nd October, 2018 (w.e.f. 22-10-2018).

⁸² Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under:- “(2) [In cases not covered under sub-regulation (1) or ⁸²[where the liquidator after consultation with the consultation committee under regulation 31A, is of the opinion ]that fresh valuation is required under the circumstances, he shall within seven days] of the liquidation commencement date, appoint two registered valuers to determine the realisable value of the assets or businesses under clauses (a) to (f) of regulation 32 of the corporate debtor: [Provided that, in respect of a corporate debtor classified as a micro, small or medium enterprise under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the liquidator shall appoint one registered valuer for each asset class of the corporate debtor, unless the liquidator after consultation with the consultation committee decides, for reasons to be recorded in writing, to appoint two registered valuers.] Provided [further] that the following persons shall not be appointed as registered valuers, namely: - (a) a relative of the liquidator; (b) a related party of the corporate debtor; (c) an auditor of the corporate debtor at any time during the five years preceding the insolvency commencement date; or (d) a partner or director of the insolvency professional entity of which the liquidator is a partner or director.”. (3) The Registered Valuers appointed under sub-regulation (2) shall independently submit to the liquidator the estimates of realisable value of the assets ⁸³[***], computed in accordance with the ⁸⁴[such valuation standards as notified by the Board through circular], after physical verification of the assets of the corporate debtor. (4) The average of two estimates received under sub-regulation (3) shall be taken as the value of the assets ⁸⁵[***].] ⁸⁶[(5) Where valuation is undertaken as per sub-regulation (2), the liquidator shall facilitate a meeting wherein registered valuers shall explain the methodology being adopted to arrive at valuation to the ⁸⁷[***] committee before finalisation of valuation reports. (6) The liquidator shall share the valuation reports with the ⁸⁸[***] committee after obtaining an undertaking that they shall maintain the confidentiality of such reports and shall not use these reports to cause an undue gain or undue loss to itself or any other person. (7) In case there is deviation of twenty five percent in the valuation of an asset class under sub-regulation (2) from valuation under regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall facilitate a meeting wherein the registered valuers shall explain the reasons for the difference to the ⁸⁹[***] committee.]

⁸³ Omitted by Notification No IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as under:- “or businesses, as the case may be”.

⁸⁴ Substituted by Notification No. IBBI/2025-26/GN/REG136, dated 25th February, 2026 (w.e.f. 25-02-2026). Before substitution, the words stood as under: “Companies (Registered Valuers and Valuation) Rules, 2017”

⁸⁵ Omitted by Notification No IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as under:- “or businesses”.

⁸⁶ Inserted by Notification No. IBBI/2023-24/GN/REG112,dated 12th February,2024 (w.e.f. 12.02.2024).

⁸⁷ Omitted by Notification No IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as, “consultation”.

⁸⁸ Omitted by Notification No IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as, “members of the consultation”.

⁸⁹ Omitted by Notification No IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as, “consultation”. ⁹⁰[(8) For the purposes of this regulation, a registered valuer shall prepare the valuation report and maintain such documentation as per the format notified by the Board through circular.]